Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 10, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | International Stem Cell CORP | |
Entity Central Index Key | 0001355790 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity File Number | 0-51891 | |
Entity Tax Identification Number | 20-4494098 | |
Entity Address, Address Line One | 5950 Priestly Drive | |
Entity Address, City or Town | Carlsbad | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92008 | |
City Area Code | 760 | |
Local Phone Number | 940-6383 | |
Entity Common Stock, Shares Outstanding | 7,539,089 | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 1,026,000 | $ 484,000 |
Accounts receivable, net | 509,000 | 1,515,000 |
Inventory, net | 937,000 | 1,246,000 |
Prepaid expenses and other current assets | 159,000 | 207,000 |
Total current assets | 2,631,000 | 3,452,000 |
Non-current inventory | 383,000 | 358,000 |
Property and equipment, net | 568,000 | 668,000 |
Intangible assets, net | 1,266,000 | 1,335,000 |
Right-of-use assets | 939,000 | 717,000 |
Deposits and other assets | 64,000 | 90,000 |
Total assets | 5,851,000 | 6,620,000 |
Current liabilities: | ||
Accounts payable | 391,000 | 654,000 |
Accrued liabilities | 374,000 | 642,000 |
Operating lease liabilities, current | 332,000 | 367,000 |
Advances | 250,000 | 250,000 |
Related party note payable | 2,448,000 | |
Paycheck Protection Program loan, current | 57,000 | |
Total current liabilities | 3,852,000 | 1,913,000 |
Related party note payable | 2,370,000 | |
Paycheck Protection Program loan, net of current portion | 599,000 | |
Fair value of warrant liability | 40,000 | 207,000 |
Operating lease liabilities, net of current portion | 936,000 | 718,000 |
Total liabilities | 5,427,000 | 5,208,000 |
Commitments and contingencies (Note 8) | ||
Stockholders' Deficit: | ||
Common stock, $0.001 par value; 120,000,000 shares authorized; 7,539,089 shares issued and outstanding at September 30, 2020 and December 31, 2019 | 8,000 | 8,000 |
Additional paid-in capital | 104,505,000 | 103,490,000 |
Accumulated deficit | (108,394,000) | (106,391,000) |
Total stockholders' deficit | (3,876,000) | (2,888,000) |
Total liabilities, redeemable convertible preferred stock and stockholders' deficit | 5,851,000 | 6,620,000 |
Series D Redeemable Convertible Preferred Stock [Member] | ||
Current liabilities: | ||
Series D redeemable convertible preferred stock, $0.001 par value; 50 shares authorized; 43 shares issued and outstanding; liquidation preference of $4,300 at September 30, 2020 and December 31, 2019 | 4,300,000 | 4,300,000 |
Non-Redeemable Convertible Preferred Stock [Member] | ||
Stockholders' Deficit: | ||
Non-redeemable convertible preferred stock, $0.001 par value; 10,006,310 shares authorized; 5,255,124 shares issued and outstanding; liquidation preference of $10,562 and $10,550 at September 30, 2020 and December 31, 2019, respectively | $ 5,000 | $ 5,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Non-redeemable convertible preferred stock, par value | $ 0.001 | |
Non-redeemable convertible preferred stock, shares authorized | 20,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 7,539,089 | 7,539,089 |
Common stock, shares outstanding | 7,539,089 | 7,539,089 |
Series D Preferred Stock [Member] | ||
Temporary equity, par value | $ 0.001 | $ 0.001 |
Temporary equity, shares authorized | 50 | 50 |
Temporary equity, shares issued | 43 | 43 |
Temporary equity, shares outstanding | 43 | 43 |
Temporary equity, liquidation preference | $ 4,300 | $ 4,300 |
Non-Redeemable Convertible Preferred Stock [Member] | ||
Non-redeemable convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Non-redeemable convertible preferred stock, shares authorized | 10,006,310 | 10,006,310 |
Non-redeemable convertible preferred stock, shares issued | 5,255,124 | 5,255,124 |
Non-redeemable convertible preferred stock, shares outstanding | 5,255,124 | 5,255,124 |
Liquidation preference | $ 10,562 | $ 10,550 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | ||||
Total revenues | $ 1,481 | $ 2,096 | $ 5,652 | $ 6,635 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | ||
Operating expenses: | ||||
Cost of sales | 563 | 799 | $ 2,138 | $ 2,497 |
Research and development | 255 | 79 | 758 | 1,001 |
Selling and marketing | 403 | 626 | 1,347 | 2,057 |
General and administrative | 1,058 | 1,405 | 3,494 | 4,324 |
Total operating expenses | 2,279 | 2,909 | 7,737 | 9,879 |
Loss from operations | (798) | (813) | (2,085) | (3,244) |
Other income (expense): | ||||
Change in fair value of warrant liability | 282 | 837 | 167 | 1,745 |
Interest expense | (28) | (21) | (85) | (55) |
Miscellaneous income | 2 | |||
Total other income (expense), net | 254 | 816 | 82 | 1,692 |
Net income (loss) | $ (544) | $ 3 | $ (2,003) | $ (1,552) |
Net income (loss) per common share, basic and diluted | $ (0.07) | $ 0 | $ (0.27) | $ (0.21) |
Weighted-average common shares used to compute net income (loss) per share, basic and diluted | 7,539 | 7,546 | 7,539 | 7,502 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Deficit (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Series D Redeemable Convertible Preferred Stock [Member] | Non-redeemable Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Beginning balance at Dec. 31, 2018 | $ 2,537 | $ 5 | $ 7 | $ 109,188 | $ (106,663) | |
Beginning balance, shares at Dec. 31, 2018 | 5,255 | 6,934 | ||||
Out of period correction | (4,300) | $ 4,300 | (8,837) | 4,537 | ||
Conversion of bridge loan from a related party to common stock | 1,049 | $ 1 | 1,048 | |||
Conversion of bridge loan from a related party to common stock, shares | 599 | |||||
Stock-based compensation | 506 | 506 | ||||
Net income (loss) | (906) | (906) | ||||
Ending balance at Mar. 31, 2019 | (1,114) | $ 5 | $ 8 | 101,905 | (103,032) | |
Ending balance at Mar. 31, 2019 | 4,300 | |||||
Ending balance, shares at Mar. 31, 2019 | 5,255 | 7,533 | ||||
Beginning balance at Dec. 31, 2018 | 2,537 | $ 5 | $ 7 | 109,188 | (106,663) | |
Beginning balance, shares at Dec. 31, 2018 | 5,255 | 6,934 | ||||
Conversion of bridge loan from a related party to common stock | 1,049 | |||||
Net income (loss) | (1,552) | |||||
Ending balance at Sep. 30, 2019 | (676) | $ 5 | $ 8 | 102,988 | (103,677) | |
Ending balance at Sep. 30, 2019 | 4,300 | |||||
Ending balance, shares at Sep. 30, 2019 | 5,255 | 7,533 | ||||
Beginning balance at Mar. 31, 2019 | (1,114) | $ 5 | $ 8 | 101,905 | (103,032) | |
Beginning balance at Mar. 31, 2019 | 4,300 | |||||
Beginning balance, shares at Mar. 31, 2019 | 5,255 | 7,533 | ||||
Stock-based compensation | 571 | 571 | ||||
Net income (loss) | (648) | (648) | ||||
Ending balance at Jun. 30, 2019 | (1,191) | $ 5 | $ 8 | 102,476 | (103,680) | |
Ending balance at Jun. 30, 2019 | 4,300 | |||||
Ending balance, shares at Jun. 30, 2019 | 5,255 | 7,533 | ||||
Stock-based compensation | 512 | 512 | ||||
Net income (loss) | 3 | 3 | ||||
Ending balance at Sep. 30, 2019 | (676) | $ 5 | $ 8 | 102,988 | (103,677) | |
Ending balance at Sep. 30, 2019 | 4,300 | |||||
Ending balance, shares at Sep. 30, 2019 | 5,255 | 7,533 | ||||
Beginning balance at Dec. 31, 2019 | (2,888) | $ 5 | $ 8 | 103,490 | (106,391) | |
Beginning balance at Dec. 31, 2019 | 4,300 | |||||
Beginning balance, shares at Dec. 31, 2019 | 5,255 | 7,539 | ||||
Stock-based compensation | 418 | 418 | ||||
Net income (loss) | (373) | (373) | ||||
Ending balance at Mar. 31, 2020 | (2,843) | $ 5 | $ 8 | 103,908 | (106,764) | |
Ending balance at Mar. 31, 2020 | 4,300 | |||||
Ending balance, shares at Mar. 31, 2020 | 5,255 | 7,539 | ||||
Beginning balance at Dec. 31, 2019 | (2,888) | $ 5 | $ 8 | 103,490 | (106,391) | |
Beginning balance at Dec. 31, 2019 | 4,300 | |||||
Beginning balance, shares at Dec. 31, 2019 | 5,255 | 7,539 | ||||
Net income (loss) | (2,003) | |||||
Ending balance at Sep. 30, 2020 | (3,876) | $ 5 | $ 8 | 104,505 | (108,394) | |
Ending balance at Sep. 30, 2020 | 4,300 | |||||
Ending balance, shares at Sep. 30, 2020 | 5,255 | 7,539 | ||||
Beginning balance at Mar. 31, 2020 | (2,843) | $ 5 | $ 8 | 103,908 | (106,764) | |
Beginning balance at Mar. 31, 2020 | 4,300 | |||||
Beginning balance, shares at Mar. 31, 2020 | 5,255 | 7,539 | ||||
Stock-based compensation | 324 | 324 | ||||
Net income (loss) | (1,086) | (1,086) | ||||
Ending balance at Jun. 30, 2020 | (3,605) | $ 5 | $ 8 | 104,232 | (107,850) | |
Ending balance at Jun. 30, 2020 | 4,300 | |||||
Ending balance, shares at Jun. 30, 2020 | 5,255 | 7,539 | ||||
Stock-based compensation | 273 | 273 | ||||
Net income (loss) | (544) | (544) | ||||
Ending balance at Sep. 30, 2020 | $ (3,876) | $ 5 | $ 8 | $ 104,505 | $ (108,394) | |
Ending balance at Sep. 30, 2020 | $ 4,300 | |||||
Ending balance, shares at Sep. 30, 2020 | 5,255 | 7,539 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (2,003) | $ (1,552) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 192 | 203 |
Operating lease expense | 199 | 222 |
Stock-based compensation | 1,015 | 1,589 |
Change in fair value of warrant liability | (167) | (1,745) |
Allowance for inventory obsolescence | 36 | 89 |
Interest expense on related party note payable | 78 | 51 |
Impairment of intangible assets | 65 | 145 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,006 | (429) |
Inventory | 248 | 63 |
Prepaid expenses and other current assets | 48 | 236 |
Deposits and other assets | 26 | (12) |
Accounts payable | (263) | 264 |
Accrued liabilities | (272) | 84 |
Operating lease liabilities | (238) | (224) |
Net cash used in operating activities | (30) | (1,016) |
Cash flows from investing activities | ||
Purchases of property and equipment | (24) | (146) |
Payments for patent licenses | (58) | (250) |
Net cash used in investing activities | (82) | (396) |
Cash flows from financing activities | ||
Proceeds from Paycheck Protection Program loan | 654 | |
Proceeds from note payable from a related party | 800 | |
Net cash provided by financing activities | 654 | 800 |
Net increase (decrease) in cash | 542 | (612) |
Cash, beginning of period | 484 | 1,075 |
Cash, end of period | 1,026 | 463 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 4 | 4 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right-of-use asset obtained in exchange for operating lease liability | 421 | |
Patent license costs included in accrued liabilities | $ 6 | |
Conversion of bridge loan from a related party to common stock | $ 1,049 |
Description of Business, Basis
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Description of Business International Stem Cell Corporation (the “Company”) was organized in Delaware in June 2005 and is publicly traded on the OTCQX under the symbol “ISCO”. The Company is primarily a research and development company, for the therapeutic market, which has focused on advancing potential clinical applications of human parthenogenetic stem cells (“hpSCs”) for the treatment of various diseases of the central nervous system and liver diseases. The Company has the following wholly-owned subsidiaries: • Lifeline Cell Technology, LLC (“LCT”) – for the biomedical market, develops, manufactures and commercializes primary human cell research products including over 200 human cell culture products, including frozen human “primary” cells and the reagents (called “media”) needed to grow, maintain and differentiate the cells; • Lifeline Skin Care, Inc. (“LSC”) – for the anti-aging market, develops, manufactures and markets a category of anti-aging skin care products based on the Company’s proprietary parthenogenetic stem cell technology and small molecule technology; • Cyto Therapeutics Pty. Ltd. (“Cyto Therapeutics”) – performs research and development (“R&D”) for the therapeutic market and is currently conducting clinical trials in Australia for the use of ISC-hpNSC® in the treatment of Parkinson’s disease. COVID-19 Pandemic In January 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus (“COVID-19”) originating in Wuhan, China and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified COVID-19 as a pandemic, based on its rapid increase in exposure globally. The Company is uncertain as to the full magnitude of effects that the COVID-19 pandemic will have on its financial condition, liquidity, and future results of operations. As of the date of this report, the Company is currently experiencing a year-over-year decline in the volume of product sales and in response has reduced its capital spending and, where possible, operating expenses while facilitating ongoing safe and reliable operations. In addition, management is actively monitoring the impact of COVID-19 on the Company’s operations, workforce, suppliers, customers and industry. The full impact that COVID-19 will have on the Company’s consolidated financial statements throughout and beyond 2020 remains uncertain and ultimately will be dictated by the length and severity of the pandemic, as well as the economic recovery and federal, state and local government actions taken in response. Therefore, the Company cannot reasonably predict the extent to which its consolidated financial statements will be impacted. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and the results of its operations and cash flows for the periods presented. The operating results presented in these unaudited interim condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2019 included in the Company’s annual report on Form 10-K filed with the SEC on June 1, 2020. Liquidity and Going Concern The Company had an accumulated deficit of approximately $108.4 million as of September 30, 2020 and has, on an annual basis, incurred net losses and negative operating cash flows since inception. The Company has had no revenue from its principal operations in therapeutic and clinical product development through research and development efforts. Unless the Company obtains additional financing, the Company does not have sufficient cash on hand to sustain operations at least through one year after the issuance date of these financial statements. There can be no assurance that the Company will be successful in maintaining normal operating cash flow or obtaining additional funding. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern. For the foreseeable future, the Company’s ability to continue its operations is dependent upon its ability to obtain additional financing. The accompanying condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of the uncertainty concerning the Company’s ability to continue as a going concern. The Company continues to evaluate various financing sources and options to raise working capital to help fund current research and development programs and operations. The Company will need to obtain significant additional funding from sources, including through the exercise of outstanding warrants, debt and/or equity financing, license arrangements, grants and/or collaborative research arrangements to sustain its operations and develop products. The timing and degree of any future capital requirements will depend on many factors, including: • the accuracy of the assumptions underlying the estimates for capital needs in 2020 and beyond; • the extent that revenues from sales of LSC and LCT products cover the related costs and provide capital; • scientific progress in research and development programs; • the magnitude and scope of the Company’s research and development programs and its ability to establish, enforce and maintain strategic arrangements for research, development, clinical testing, manufacturing and marketing; • the progress with preclinical development and clinical trials; • the time and costs involved in obtaining regulatory approvals; • the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing patent claims; • the number and type of product candidates that the Company decides to pursue; and • the development of major public health concerns, including COVID-19 or other pandemics arising globally, and the current and future impact that such concerns may have on the Company’s operations and funding requirements. As a result of the COVID-19 pandemic and actions taken to slow its spread, the global credit and financial markets have experienced extreme volatility and disruptions, including inconsistent liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability. As the pandemic continues and restrictions remain in place or new restrictions are imposed, it may make any additional debt and/or equity financing more difficult, more costly and more dilutive. In addition, debt financing may be expensive and require the Company to pledge all or a substantial portion of its assets. If additional funds are obtained through arrangements with collaborative partners, these arrangements may require the Company to relinquish rights to some of its technologies, product candidates or products that the Company would otherwise seek to develop and commercialize on its own. Furthermore, if sufficient capital is not available, the Company may be required to delay, reduce the scope of or eliminate one or more of its product initiatives. The Company’s failure to raise capital or enter into applicable arrangements when needed would have a negative impact on its financial condition. Principles of Consolidation and Foreign Currency Transactions The unaudited condensed consolidated financial statements include the accounts of International Stem Cell Corporation and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The functional currency of the Company and its subsidiaries, including its wholly-owned Australian subsidiary, Cyto Therapeutics, is the U.S. dollar. Assets and liabilities that are not denominated in the functional currency are remeasured into U.S. dollars at foreign currency exchange rates in effect at the respective balance sheet dates. Revenue and expenses are translated at the average rate in effect on the date of the transaction. Net realized and unrealized gains and losses from foreign currency transactions and remeasurement are reported in general and administrative expense in the accompanying condensed consolidated statements of operations and were not material for the periods presented. Reclassifications For the three and nine months ended September 30, 2020, the Company reclassified certain prior period amounts to conform to the current period presentation, as follows: • The carrying value and shares of the Company’s Series B, Series G, Series I-1 and Series I-2 non-redeemable convertible preferred stock were aggregated on the accompanying condensed consolidated balance sheets and statements of changes in redeemable convertible preferred stock and stockholders’ deficit. Refer to Note 6 – Convertible Preferred Stock and Stockholders’ Deficit for further discussion; • Non-cash operating lease expense was reclassified from changes in operating assets and liabilities to adjustments to reconcile net loss to net cash used in operating activities on the accompanying condensed consolidated statements of cash flows; and • Financed insurance premiums and payments on financed insurance premiums were reclassified from non-cash financing activities and cash flows from financing activities, respectively, to cash flows from operating activities on the accompanying condensed consolidated statements of cash flows. These reclassifications had no effect on previously reported net income (loss), stockholders’ deficit or cash flows for the prior period. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying condensed consolidated financial statements. Significant estimates include patent life (remaining legal life versus remaining useful life), inventory carrying values, allowance for excess and obsolete inventories, allowance for sales returns and doubtful accounts, and transactions using the Black-Scholes option valuation model, for example, common stock options and common stock warrants, as well as the Monte-Carlo simulation method for certain common stock warrants. Actual results could differ from those estimates. Segments The Company’s chief operating decision-maker reviews financial information presented on a consolidated basis, accompanied by disaggregated information by each reportable company’s statement of operations. The Company operates the business on the basis of three reporting segments, the parent company and two business units: ISCO – therapeutic market; LCT – biomedical market, and; LSC – anti-aging market. Inventory Inventory is accounted for using the average cost and first-in, first-out (FIFO) methods for LCT cell culture media and reagents, average cost and specific identification methods for LSC products, and specific identification method for other LCT products. LCT’s cell inventory does not have a shelf life when frozen. Inventory balances are stated at the lower of cost or net realizable value. Laboratory supplies used in the research and development process are expensed as consumed. At each reporting period, the Company estimates its reserve for allowance and obsolescence using historical sales data and inventory turnover rates. The establishment of a reserve for excess and obsolete inventory establishes a new cost basis in the inventory. Such reserves are not reduced until the product is sold. If the Company is able to sell such inventory, any related reserves would be reserved in the period of sale. The value of the inventory that is not expected to be sold within twelve months of the current reporting period is classified as non-current inventory on the accompanying condensed consolidated balance sheets. Accounts Receivable Trade accounts receivable are recorded at the net invoice value and are not interest bearing. Accounts receivable primarily consist of trade accounts receivable from the sales of LCT’s products, timing of cash receipts by the Company related to LSC credit card sales to customers, as well as LSC trade receivable amounts related to spa and distributor sales. The Company considers receivables past due based on the contractual payment terms. The Company reviews its exposure to accounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company recorded an allowance for doubtful accounts of $12,000 as of September 30, 2020 and December 31, 2019. Advances On June 18, 2008, the Company entered into an agreement with BioTime, Inc. (“BioTime”), whereby BioTime paid an advance of $250,000 to LCT to produce, make, and distribute certain products. The $250,000 advance will be paid down with the first $250,000 of net revenues that otherwise would be allocated to LCT under the agreement. As of September 30, 2020, no revenues were realized and attributable to BioTime under this agreement. Property and Equipment Property and equipment are stated at cost. The provision for depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, which are generally three to five years. The costs of major remodeling and leasehold improvements are capitalized and amortized over the shorter of the remaining term of the lease or the estimated life of the asset. Intangible Assets Intangible assets consist of acquired patent licenses and capitalized legal fees related to the acquisition, filing, maintenance, and defense of patents and trademarks. Amortization begins once the patent is issued by the appropriate authoritative bodies. In the period in which a patent application is rejected or efforts to pursue the patent are abandoned, all the related accumulated costs are expensed. Patents and other intangible assets are amortized on a straight-line basis over the shorter of the lives of the underlying patents, generally 15 years. All amortization expense and impairment charges related to intangible assets are included in general and administrative expense in the accompanying condensed consolidated statements of operations. Long-Lived Asset Impairment The Company reviews long-lived assets for impairment when events or changes in circumstances (“triggering event”) indicate that the carrying value of an asset or group of assets may not be recovered. If a triggering event is determined to have occurred, the carrying value of an asset or group of assets is compared to the future undiscounted cash flows expected to be generated by the asset or group of assets. If the carrying value exceeds the undiscounted cash flows of the asset or group of assets, then impairment exists. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Revenue Recognition Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. This principle is applied using the following five-step process: 1. Identify the contract with the customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) each performance obligation is satisfied The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods or services to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table presents the Company's revenue disaggregated by segment, product and geography (in thousands): Biomedical market: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 221 $ 92 $ 313 27 % $ 696 $ 295 $ 991 22 % Media 750 107 857 73 % 3,211 317 3,528 78 % Other — — — — 16 — 16 — Total $ 971 $ 199 $ 1,170 100 % $ 3,923 $ 612 $ 4,535 100 % Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 179 $ 102 $ 281 18 % $ 635 $ 288 $ 923 18 % Media 1,262 111 1,373 82 % 4,020 348 4,368 82 % Other 16 — 16 — 19 — 19 — Total $ 1,457 $ 213 $ 1,670 100 % $ 4,674 $ 636 $ 5,310 100 % Anti-aging market: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Total % of Total Total % of Total Total % of Total Total % of Total Revenues Revenues Revenues Revenues Revenues Revenues Revenues Revenues Skin care sales channels Ecommerce $ 211 68 % $ 230 54 % $ 733 66 % $ 670 51 % Professional 100 32 % 196 46 % 384 34 % 655 49 % Total $ 311 100 % $ 426 100 % $ 1,117 100 % $ 1,325 100 % T he Company's revenue consists primarily of sales of products from its two revenue-generating operating segments, the biomedical products market and anti-aging products market business segments. The biomedical market segment markets and sells primary human cell research products with two product categories, cells and media, which are sold both domestically within the United States and internationally. The anti-aging market segment markets and sells a line of skincare products sold through two sales channels: ecommerce and professional. The ecommerce channel sells direct to customers through online orders, while professional sales are to spas, salons and other skincare providers. Contract terms for unit price, quantity, shipping and payment are governed by sales agreements, invoices or online order forms which the Company considers to be a customer's contract in all cases. The unit price is considered the observable stand-alone selling price for the performance obligation(s) within the arrangements. Any promotional or volume sales discounts are applied evenly to the units sold for purposes of calculating standalone selling price. The Company recognizes revenue when its customer obtains control of the promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. Product sales generally consist of a single performance obligation that the Company satisfies at a point in time (i.e., upon delivery of the product). For LSC products, ecommerce sales are primarily paid through credit card charges, while professional sales are invoiced. The professional sales and biomedical products' standard payment terms for its customers are generally 30 days after the Company satisfies the performance obligation(s). For LSC, the Company honors a 30-day return policy, but historical returns have been minimal and as such, no estimated allowance for sales returns was recorded as of September 30, The Company elects to account for shipping and handling costs as activities to fulfill the promise to transfer the goods to a customer. As a result, no consideration is allocated to shipping and handling costs. Rather, the Company accrues the cost of shipping and handling upon shipment of the product, and all contract revenue (i.e., the transaction price) is recognized at the same time. Variable Consideration The Company records revenue from customers in an amount that reflects the consideration it expects to be entitled to after transferring control of those goods or services to a customer. From time to time, the Company offers sales promotions on its products such as discounts and free product offers. Variable consideration is estimated at contract inception only to the extent that it is probable that a significant reversal of revenue will not occur and is updated at the end of each reporting period as additional information becomes available. Contract Balances The Company records a receivable when it has an unconditional right to receive consideration after a performance obligation is satisfied. As of September 30, Practical Expedients The Company has elected the practical expedient to not determine whether contacts with customers contain significant financing components. The Company pays commissions on certain sales for its biomedical and anti-aging product markets once the customer payment has been received, which are accrued at the time of the sale. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. In addition, the Company has elected to exclude sales taxes consideration from the determined transaction price. Allowance for Sales Returns The Company’s anti-aging products have a 30-day product return guarantee; however, the Company determined that there is a low probability that returns will occur based on its historical rate of returns. Historically, returns have not been significant and are recognized as a reduction to current period revenue. As of September 30, , the Company recorded no allowance for sales returns. Cost of Sales Cost of sales consists primarily of salaries and benefits associated with employee efforts expended directly on the production of the Company’s products, as well as related direct materials, general laboratory supplies and an allocation of overhead. Certain of the Company’s licensed technology agreements may require the Company to pay royalties based on the future sale of the Company’s products. Such royalties will be recorded as a component of cost of sales when incurred. Additionally, milestone payments or the amortization of license fees related to developed technologies used in the Company’s products will be included as a component of cost of sales to the extent that such payments become due in the future. Research and Development Costs Research and development costs, which are expensed as incurred, primarily consist of salaries and benefits associated with research and development personnel, overhead and occupancy costs, contract services costs and amortization of license costs for technology used in research and development with alternative future uses. Research and development costs are net of research and development tax credits earned by Cyto Therapeutics, the Company’s wholly-owned subsidiary based in Australia. The Australian Taxation Office provides for a refundable tax credit in the form of a cash refund equal to 43.5% of qualified research and development expenditures, not to exceed established thresholds. Stock-Based Compensation The Company recognizes stock-based compensation expense associated with stock options and other stock-based awards in accordance with the authoritative guidance for stock-based compensation. The cost of a stock-based award is measured at the grant date based on the estimated fair value of the award, and is recognized as expense on a straight-line basis, net of forfeitures, over the requisite service period of the award. The fair value of stock options is estimated using the Black-Scholes option valuation model, which requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected life of the option. The fair value of restricted stock awards is based on the market value of the Company’s common stock on the date of grant. Fair Value Measurements The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The Company has no financial assets or liabilities, other than the warrant liability described below, measured at fair value on a recurring basis. No transfers between levels have occurred during the periods presented. The following table presents a summary of the Company’s liabilities which are measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) As of September 30, 2020 Warrant liability $ 40 $ — $ — $ 40 As of December 31, 2019 Warrant liability $ 207 $ — $ — $ 207 The following table presents the rollforward activity of liabilities with inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity) (in thousands): Warrant Liability Balance at December 31, 2019 $ 207 Change in fair value of warrant liability (167 ) Balance at September 30, 2020 $ 40 Warrant Liability The Company is required to recognize warrant agreements as a liability since they did not meet the specific conditions for equity classification and therefore need to be recognized at its fair value. The fair value of the warrant liability is calculated using the Monte-Carlo simulation model, which requires the use of certain estimates. The fair value of these warrants is re-measured at each financial reporting period with any changes in fair value being recognized as a component of other income (expense), net, in the accompanying condensed consolidated statements of operations. The following assumptions were used as inputs to the model: September 30, December 31, 2020 2019 Risk-free interest rate 0.11% 1.55% - 1.59% Volatility 90.0% 85.0% Term to expiration (in years) 0.45 0.29 - 1.21 Subsequent financing 0.0% 0.0% Income Taxes The Company accounts for income taxes in accordance with applicable authoritative guidance, which requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards. Fair Value of Financial Instruments The Company believes that the carrying value of its cash, accounts receivables, accounts payable, accrued liabilities, Paycheck Protection Program loan and related party note payable as of September 30, 2020 and December 31, 2019 approximate their fair values because of the short-term nature of those instruments. The fair value of warrants was determined at each issuance date, reporting date and other applicable remeasurement dates for the periods ended using the Monte-Carlo simulation model. Net Income (Loss) Per Share Basic net income (loss) per share attributable to common stockholders is calculated by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. Potentially dilutive common stock equivalents are comprised of stock options, common stock warrants and convertible preferred stock. For the three and nine months ended September 30, 2020 and 2019, there was no difference in the number of shares used to calculate basic and diluted shares outstanding as the inclusion of the potentially dilutive common stock equivalents would be anti-dilutive. For the periods below, these common stock options, common stock warrants and convertible preferred stock were not included in the diluted net income (loss) per share calculation because the effect would be anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Options outstanding 4,711,130 5,578,311 4,729,829 5,427,557 Common stock warrants outstanding 3,948,569 3,951,052 3,949,521 3,951,052 Redeemable convertible preferred stock 2,457,143 2,457,143 2,457,143 2,457,143 Non-redeemable convertible preferred stock 3,675,135 3,675,135 3,675,135 3,675,135 Total 14,791,977 15,661,641 14,811,628 15,510,887 Comprehensive Income (Loss) Comprehensive income (loss) includes all changes in stockholders’ equity except those resulting from investments by owners and distributions to owners. The Company did not have any items of comprehensive income (loss) other than net loss from operations for the three and nine months ended September 30, 2020 and 2019. Customer Concentrations During the nine months ended September 30, 2020 and 2019, for the biomedical market segment, one customer accounted for approximately 43% and 39%, respectively, of consolidated revenues. As of September 30, 2020 and December 31, 2019, the customer accounted for approximately 39% and 37%, respectively, of accounts receivable, net. No other single customer accounted for more than 10% of revenues for the periods then ended for any segment. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments— Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | 2. Inventory The components of inventory are as follows (in thousands): September 30, December 31, 2020 2019 Raw materials $ 484 $ 688 Work in process 430 492 Finished goods 1,050 1,219 1,964 2,399 Less: allowance for inventory excess and obsolescence (644 ) (795 ) Total current and non-current inventory, net $ 1,320 $ 1,604 Inventory, net $ 937 $ 1,246 Non-current inventory 383 358 Total current and non-current inventory, net $ 1,320 $ 1,604 During the three months ended September 30, 2020, the Company disposed of obsolete inventory in the amount of $121,000. The inventory had been fully reserved for and the write-off had no impact on the Company’s consolidated statements of operations for the periods presented. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 3. Property and Equipment Property and equipment consist of the following (in thousands): September 30, December 31, 2020 2019 Machinery and equipment $ 1,661 $ 1,642 Computer equipment and software 236 236 Office equipment 230 230 Leasehold improvements 1,303 1,290 Construction in progress 4 12 3,434 3,410 Less: accumulated depreciation and amortization (2,866 ) (2,742 ) Property and equipment, net $ 568 $ 668 Depreciation and amortization expense for the three months ended September 30, 2020 and 2019 was $42,000 and $40,000, respectively. Depreciation and amortization expense for the nine months ended September 30, 2020 and 2019 was $124,000 and $115,000, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 4. Intangible Assets Intangible Assets consists of the following (in thousands): September 30, December 31, 2020 2019 Patents $ 2,267 $ 2,268 Less: accumulated amortization (1,076 ) (1,008 ) 1,191 1,260 Indefinite life logos and trademarks 75 75 Intangible assets, net $ 1,266 $ 1,335 Amortization expense for the three months ended September 30, 2020 and 2019 was $23,000 and $26,000, respectively. Amortization expense for the nine months ended September 30, 2020 and 2019 was $68,000 and $88,000, respectively. Impairment charges for the three and nine months ended September 30, 2020 and 2019 were $65,000 and $145,000, respectively. |
Paycheck Protection Program Loa
Paycheck Protection Program Loan | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Paycheck Protection Program Loan | 5. Paycheck Protection Program Loan In May 2020, the Company received a loan of $654,000 from its lender under the Paycheck Protection Program (the “PPP Loan”). The Paycheck Protection Program (“PPP”), as amended, was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration (“SBA”). The PPP Loan required the Company to, in good faith, certify that the current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. This certification required the Company to take into account its current business activity and its ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. Based in part on the Company’s assessment of other sources of liquidity, uncertainty associated with future revenues created by the COVID-19 pandemic, and the going concern uncertainty reflected in the Company’s condensed consolidated financial statements, the Company believes in good faith that it met the eligibility requirements for the PPP Loan. If it is later determined that the Company had violated any applicable laws or regulations or it is otherwise determined the Company was ineligible to receive the PPP Loan, it may be required to repay the PPP Loan in its entirety and/or be subject to additional penalties and potential liabilities. The PPP Loan has a two-year term and bears interest at a rate of 1% per annum. Principal and interest payments are deferred for ten months following the loan forgiveness period, which is defined as the 24-week period following the loan origination date, at which time the loan balance is payable in monthly installments unless the Company applies for, and receives, forgiveness in accordance with the CARES Act and the terms of the loan executed by the Company and its lender. As required by the CARES Act, the Company plans to use the proceeds from the PPP Loan for payroll, healthcare benefits, rent and other qualifying expenses. The PPP provides that the use of the PPP Loan shall be limited to certain qualifying expenses and may be partially or wholly forgiven by the SBA in accordance with the requirements set forth in the CARES Act. While the Company intends to apply for forgiveness of at least a portion of the PPP Loan, there is no assurance that the Company will obtain forgiveness of the PPP Loan in whole or in part. As of September 30, 2020, $57,000 and $599,000 of outstanding principal and accrued interest of the PPP Loan was classified as current and non-current, respectively, on the accompanying condensed consolidated balance sheets based on the contractual payment schedule of the PPP Loan. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders’ Deficit | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders' Deficit | 6. Convertible Preferred Stock and Stockholders’ Deficit Non-Redeemable Convertible Preferred Stock The Company’s Series B, Series G, Series I-1 and Series I-2 non-redeemable convertible preferred stock has been classified as equity on the accompanying condensed consolidated balance sheets in accordance with authoritative guidance for the classification and measurement of non-redeemable securities whose redemption is based upon certain change in control events within the Company’s control, including liquidation, sale, or transfer of control of the Company. The authorized, issued and outstanding shares of non-redeemable convertible preferred stock as of September 30, 2020 consist of the following: Shares Shares Issued Liquidation Carrying Authorized and Outstanding Preference Value (in thousands) Series B 5,000,000 250,000 $ 438 $ — Series G 5,000,000 5,000,000 5,000 5 Series I-1 2,000 814 814 — Series I-2 4,310 4,310 4,310 — Total 10,006,310 5,255,124 $ 10,562 $ 5 The authorized, issued and outstanding shares of non-redeemable convertible preferred stock as of December 31, 2019 consist of the following: Shares Shares Issued Liquidation Carrying Authorized and Outstanding Preference Value (in thousands) Series B 5,000,000 250,000 $ 426 $ — Series G 5,000,000 5,000,000 5,000 5 Series I-1 2,000 814 814 — Series I-2 4,310 4,310 4,310 — Total 10,006,310 5,255,124 $ 10,550 $ 5 Common Stock As of September 30, 2020, the Company was authorized to issue 120,000,000 shares of common stock, $0.001 par value per share, and 20,000,000 shares of preferred stock, $0.001 par value per share. Of the 20,000,000 total authorized shares of preferred stock, the Company had authorized 50 shares of Series D redeemable convertible preferred stock and 10,006,310 shares of Series B, Series G, Series I-1 and Series I-2 non-redeemable convertible preferred stock were authorized. On January 21, 2019, the Company issued 599,222 shares of common stock upon conversion of a portion of the Company’s outstanding indebtedness with a principal amount of $1.0 million and accrued and unpaid interest on the principal of $49,000. In accordance with the Series G Certificate of Designation, the issuance of Common Shares at the conversion price of $1.75 per share triggered further adjustment in the conversion price and conversion ratio of the Series G Preferred Stock from $9.92 per share and 0.1008 shares to $9.70 per share and 0.1031 shares, respectively. The deemed dividend as a result of the down-round adjustment was immaterial. Common Stock Warrants In October 2014 and March 2016, the Company issued warrants exercisable for 62,047 and 11,159,995 shares of common stock, respectively, at an exercise price of $1.75 per share to certain placement agents and existing investors in connection with financing arrangements. As of December 31, 2019, 2,483 common stock warrants issued in October 2014 were outstanding. In April 2020, the common stock warrants issued in October 2014 expired unexercised. The common stock warrants issued in March 2016 expire on March 15, 2021. As of September 30, 2020 and December 31, 2019, 3,948,569 common stock warrants issued in March 2016 were outstanding. Equity Incentive Plans The Company adopted the 2006 Equity Participation Plan (as amended the “2006 Plan”), which provides for the grant of stock options, restricted stock and other equity-based awards. Awards for up to 100,000 shares may be granted to employees, directors and consultants under this Plan. The options granted under the 2006 Plan may be either qualified or non-qualified options. Options may be granted with different vesting terms and expire no later than 10 years from the date of grant. The 2006 Plan expired on November 16, 2016. Options and other equity-based awards granted prior to the expiration of the 2006 Plan will continue in effect until the option or award is exercised or terminates pursuant to its terms. No new awards may be granted under the 2006 Plan following its expiration. In April 2010, the Company adopted the 2010 Equity Participation Plan, as amended (the “2010 Plan”), which provides for the grant of stock options, restricted stock and other equity-based awards. Awards for up to 9,700,000 shares may be granted to employees, directors and consultants under the 2010 Plan. The options granted under the 2010 Plan may be either qualified or non-qualified options. Options may be granted with different vesting terms and expire no later than 10 years from the date of grant. In June 2020, the Company amended the 2010 Plan to extend the term of the 2010 Plan until March 2030. No other material provisions were amended. Stock Options Transactions involving stock options issued to employees, directors and consultants under the 2006 Plan and the 2010 Plan are summarized below. Options issued have a maximum life of 10 years. The following tables summarize the changes in options outstanding and the related exercise prices for the Company’s common stock options issued: Weighted- Average Remaining Number of Weighted- Contractual Aggregate Outstanding Average Term Intrinsic Value Options Exercise (in years) (in thousands) Outstanding at December 31, 2019 4,936,673 $ 3.38 Granted 245,714 $ 1.08 Forfeited or canceled (547,460 ) $ 2.03 Expired (3,022 ) $ 193.50 Outstanding at September 30, 2020 4,631,905 $ 3.30 7.49 $ — Vested and expected to vest at September 30, 2020 4,570,730 $ 3.32 7.47 $ — Exercisable at September 30, 2020 3,664,675 $ 3.79 7.24 $ — Restricted Stock Awards Restricted stock awards are grants that entitle the holder to acquire shares of common stock at zero or a fixed price, which is typically nominal. The Company accounts for the restricted stock awards as issued and outstanding common stock, even though the shares covered by a restricted stock award cannot be sold, pledged, or otherwise disposed of until the award vests and any unvested shares may be reacquired by the Company for the original purchase price following the awardee’s termination of service. The fair value of restricted stock awards is based on the market value of the common stock on the date of grant. For the three and nine months ended September 30, 2020 and 2019, no restricted stock awards were awarded or vested. As of September 30, 2020, there was no unrecognized compensation costs related to unvested awards. Stock-Based Compensation In accordance with applicable authoritative guidance, the Company is required to establish assumptions and estimates of the fair value of stock options granted, as well as use a valuation model to calculate the fair value of stock-based awards. The Company uses the Black-Scholes option-pricing model to determine the fair-value of stock-based awards. All options are amortized over the requisite service periods. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option valuation model. For the three months ended September 30, 2020 and 2019, no stock options were granted. The weighted-average assumptions used in the Black-Scholes option valuation model to determine the fair value of stock options grants for the nine months ended September 30, 2020 and 2019 were as follows: Nine Months Ended September 30, 2020 2019 Risk-free interest rate 0.37% 2.44% Expected stock price volatility 88.82% 84.95% Expected dividend yield 0% 0% Expected life of options (in years) 5.36 5.71 Total stock-based compensation expense for the three and nine months ended September 30, 2020 and 2019 was comprised of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of sales $ 21 $ 29 $ 66 $ 83 Research and development 28 115 107 426 Selling and marketing 18 31 60 88 General and administrative 206 337 782 992 Total $ 273 $ 512 $ 1,015 $ 1,589 Unrecognized compensation expense related to stock options as of September 30, 2020 was $845,000, which is expected to be recognized over a weighted-average period of approximately 1.0 year. Common Stock Reserved for Future Issuance As of September 30, 2020, the Company had shares of common stock reserved for future issuance as follows: Options outstanding 4,631,905 Common stock warrants outstanding 3,948,569 Common stock available for issuance under the 2010 Plan 4,905,370 Redeemable convertible preferred stock 2,457,143 Non-redeemable convertible preferred stock 3,675,135 Total 19,618,122 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions During the first quarter of 2011, the Company executed an operating lease for its corporate offices with S Real Estate Holdings LLC. S Real Estate Holdings LLC is owned by Dr. Russell Kern, the Company’s Executive Vice President and Chief Scientific Officer and a director and was previously owned by Dr. Andrey Semechkin, the Company’s Chief Executive Officer and Co-Chairman of the Board of Directors. The lease agreement was negotiated at arm’s length and was reviewed by the Company’s outside legal counsel. The terms of the lease were reviewed by a committee of independent directors, and the Company believes that, in total, those terms are at least as favorable to the Company as could be obtained for comparable facilities from an unaffiliated party. In March 2017 the Company signed an amendment to the lease agreement to extend the term of the lease until 2020 and include annual adjustments to the monthly lease payments. In March 2020, the Company entered into an amendment to the lease agreement. The amendment extended the term of the lease for three years (until February 28, 2023) and provided for a 2% increase in monthly rent. For the nine months ended September 30, 2020 and 2019, the Company recorded $127,000 and $120,000, respectively, in rent expense that was related to the facility lease arrangement with related parties. Between March 6, 2018 and August 8, 2018, to obtain funding for working capital purposes, the Company borrowed a total of $2.0 million from Dr. Semechkin and issued an unsecured non-convertible promissory note in the principal amount of $2.0 million (the “Note”) to Dr. Semechkin (the “Noteholder”). The outstanding principal amount under the Note accrued interest at a rate of four percent (4%) per annum. The Note was due and payable November 1, 2018 and on November 12, 2018, to satisfy the indebtedness incurred on the Note, an amendment to the Note was entered into extending the due date to January 15, 2019. On January 21, 2019, the Company entered into a Note Conversion Agreement with Dr. Semechkin (the “Conversion Agreement”). The Conversion Agreement provides for the conversion of a total of $1.05 million (representing $1.0 million of principal and $49,000 of accrued interest, representing all accrued interest on the amount owed to Dr. Semechkin through January 21, 2019) under the promissory note issued to Dr. Semechkin on August 8, 2018, into a total of 599,222 shares of the Company’s common stock, representing a conversion price of $1.75 per share, which was greater than the fair value of common stock on the date of conversion at a price of $1.60 per share. Dr. Semechkin took less than fair value to avoid further dilution by triggering down-round adjustments to outstanding common stock warrants and convertible preferred stock. Due to Dr. Semechkin’s role and controlling interest in the Company, no gain was recorded by the Company upon conversion and the excess was recorded within additional paid-in capital due to the absence of retained earnings. Under the Conversion Agreement, the remaining $1.0 million owed to Dr. Semechkin under the Note has been reflected in a new unsecured, non-convertible promissory note in the principal amount of $1.0 million (the “Conversion Note”). The outstanding principal amount under the Conversion Note accrued interest at a rate of 4.5% per annum. The Conversion Note was due and payable on January 15, 2020. On April 17, 2019, to obtain additional funding for working capital purposes, the Company issued an unsecured, non-convertible promissory note (the “New Promissory Note”) in the amount of $1.8 million to Dr. Semechkin. Dr. Semechkin surrendered the Conversion Note and provided an additional $800,000 of funds to the Company. The outstanding principal amount accrued interest at a rate of 4.5% per annum and was due and payable on January 15, 2020. On December 17, 2019, to obtain additional funding for working capital purposes the Company issued an unsecured, non-convertible promissory note in the principal amount of $2.3 million (the “New Note”) to Dr. Andrey Semechkin. On December 17, 2019, the Noteholder provided an additional $500,000 of funds to the Company and surrendered the New Promissory Note, in return for the New Note. The outstanding principal amount under the New Note accrues interest at a rate of 4.5% per annum. The New Note, including outstanding amounts of principal and accrued interest, is due and payable January 15, 2021 but may be pre-paid by the Company without penalty at any time. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Leases The Company has three operating leases for real estate in California and Maryland: • Carlsbad, California – corporate offices with a term date of February 2023 and leased from a related party (see also Note 7 –Related Party Transactions); • Oceanside, California – primary research facility and laboratory space with a term date of December 2021; • Frederick, Maryland – mixed laboratory and administrative space with a term date of November 2025. The Company’s operating leases for real estate are subject to additional variable charges for common area maintenance and other variable costs, and do not include an option to extend the lease term. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of future minimum lease payments over the lease term. As of September 30, 2020, total right-of-use assets and operating lease liabilities were approximately $939,000 and $1.3 million, respectively. All operating lease expense is recognized on a straight-line basis over the lease term. For the nine months ended September 30, 2020 and 2019 lease expense totaled $354,000 and $370,000, respectively, of which $6,000 and $9,000, respectively, related to short-term leases. As of September 30, 2020, the Company had no finance leases. Maturities of lease liabilities were as follows (in thousands): Years ending December 31, 2020 (remaining three months) $ 128 2021 517 2022 394 2023 255 2024 233 2025 240 Total minimum lease payments 1,767 Less: imputed interest (499 ) Total future minimum lease payments 1,268 Less: operating lease liabilities, current (332 ) Operating lease liabilities, net of current portion $ 936 Licensed Patents The Company has a minimum annual license fee of $75,000 payable in two installments per year to Astellas Pharma pursuant to the amended UMass IP license agreement and is noncancelable. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments | 9. Segments The Company operates the business on the basis of three reporting segments, the parent company and two business units: ISCO – therapeutic market; LCT – biomedical market, and; LSC – anti-aging market. The Company does not measure the performance of its segments on any asset-based metrics. Therefore, segment information is presented only for operating income (loss). Revenues, expenses and operating income (loss) for the three and nine months ended September 30, 2020 and 2019 by market segment were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenues: Biomedical market $ 1,170 $ 1,670 $ 4,535 $ 5,310 Anti-aging market 311 426 1,117 1,325 Total revenues 1,481 2,096 5,652 6,635 Operating expenses: Therapeutic market 872 953 2,656 3,753 Biomedical market 1,038 1,320 3,760 4,170 Anti-aging market 369 636 1,321 1,956 Total operating expenses 2,279 2,909 7,737 9,879 Operating income (loss) Therapeutic market (872 ) (953 ) (2,656 ) (3,753 ) Biomedical market 132 350 775 1,140 Anti-aging market (58 ) (210 ) (204 ) (631 ) Total operating loss $ (798 ) $ (813 ) $ (2,085 ) $ (3,244 ) |
Description of Business, Basi_2
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | Description of Business International Stem Cell Corporation (the “Company”) was organized in Delaware in June 2005 and is publicly traded on the OTCQX under the symbol “ISCO”. The Company is primarily a research and development company, for the therapeutic market, which has focused on advancing potential clinical applications of human parthenogenetic stem cells (“hpSCs”) for the treatment of various diseases of the central nervous system and liver diseases. The Company has the following wholly-owned subsidiaries: • Lifeline Cell Technology, LLC (“LCT”) – for the biomedical market, develops, manufactures and commercializes primary human cell research products including over 200 human cell culture products, including frozen human “primary” cells and the reagents (called “media”) needed to grow, maintain and differentiate the cells; • Lifeline Skin Care, Inc. (“LSC”) – for the anti-aging market, develops, manufactures and markets a category of anti-aging skin care products based on the Company’s proprietary parthenogenetic stem cell technology and small molecule technology; • Cyto Therapeutics Pty. Ltd. (“Cyto Therapeutics”) – performs research and development (“R&D”) for the therapeutic market and is currently conducting clinical trials in Australia for the use of ISC-hpNSC® in the treatment of Parkinson’s disease. |
COVID-19 Pandemic | COVID-19 Pandemic In January 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus (“COVID-19”) originating in Wuhan, China and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified COVID-19 as a pandemic, based on its rapid increase in exposure globally. The Company is uncertain as to the full magnitude of effects that the COVID-19 pandemic will have on its financial condition, liquidity, and future results of operations. As of the date of this report, the Company is currently experiencing a year-over-year decline in the volume of product sales and in response has reduced its capital spending and, where possible, operating expenses while facilitating ongoing safe and reliable operations. In addition, management is actively monitoring the impact of COVID-19 on the Company’s operations, workforce, suppliers, customers and industry. The full impact that COVID-19 will have on the Company’s consolidated financial statements throughout and beyond 2020 remains uncertain and ultimately will be dictated by the length and severity of the pandemic, as well as the economic recovery and federal, state and local government actions taken in response. Therefore, the Company cannot reasonably predict the extent to which its consolidated financial statements will be impacted. |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and the results of its operations and cash flows for the periods presented. The operating results presented in these unaudited interim condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2019 included in the Company’s annual report on Form 10-K filed with the SEC on June 1, 2020. |
Liquidity and Going Concern | Liquidity and Going Concern The Company had an accumulated deficit of approximately $108.4 million as of September 30, 2020 and has, on an annual basis, incurred net losses and negative operating cash flows since inception. The Company has had no revenue from its principal operations in therapeutic and clinical product development through research and development efforts. Unless the Company obtains additional financing, the Company does not have sufficient cash on hand to sustain operations at least through one year after the issuance date of these financial statements. There can be no assurance that the Company will be successful in maintaining normal operating cash flow or obtaining additional funding. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern. For the foreseeable future, the Company’s ability to continue its operations is dependent upon its ability to obtain additional financing. The accompanying condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of the uncertainty concerning the Company’s ability to continue as a going concern. The Company continues to evaluate various financing sources and options to raise working capital to help fund current research and development programs and operations. The Company will need to obtain significant additional funding from sources, including through the exercise of outstanding warrants, debt and/or equity financing, license arrangements, grants and/or collaborative research arrangements to sustain its operations and develop products. The timing and degree of any future capital requirements will depend on many factors, including: • the accuracy of the assumptions underlying the estimates for capital needs in 2020 and beyond; • the extent that revenues from sales of LSC and LCT products cover the related costs and provide capital; • scientific progress in research and development programs; • the magnitude and scope of the Company’s research and development programs and its ability to establish, enforce and maintain strategic arrangements for research, development, clinical testing, manufacturing and marketing; • the progress with preclinical development and clinical trials; • the time and costs involved in obtaining regulatory approvals; • the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing patent claims; • the number and type of product candidates that the Company decides to pursue; and • the development of major public health concerns, including COVID-19 or other pandemics arising globally, and the current and future impact that such concerns may have on the Company’s operations and funding requirements. As a result of the COVID-19 pandemic and actions taken to slow its spread, the global credit and financial markets have experienced extreme volatility and disruptions, including inconsistent liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability. As the pandemic continues and restrictions remain in place or new restrictions are imposed, it may make any additional debt and/or equity financing more difficult, more costly and more dilutive. In addition, debt financing may be expensive and require the Company to pledge all or a substantial portion of its assets. If additional funds are obtained through arrangements with collaborative partners, these arrangements may require the Company to relinquish rights to some of its technologies, product candidates or products that the Company would otherwise seek to develop and commercialize on its own. Furthermore, if sufficient capital is not available, the Company may be required to delay, reduce the scope of or eliminate one or more of its product initiatives. The Company’s failure to raise capital or enter into applicable arrangements when needed would have a negative impact on its financial condition. |
Principles of Consolidation and Foreign Currency Transactions | Principles of Consolidation and Foreign Currency Transactions The unaudited condensed consolidated financial statements include the accounts of International Stem Cell Corporation and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The functional currency of the Company and its subsidiaries, including its wholly-owned Australian subsidiary, Cyto Therapeutics, is the U.S. dollar. Assets and liabilities that are not denominated in the functional currency are remeasured into U.S. dollars at foreign currency exchange rates in effect at the respective balance sheet dates. Revenue and expenses are translated at the average rate in effect on the date of the transaction. Net realized and unrealized gains and losses from foreign currency transactions and remeasurement are reported in general and administrative expense in the accompanying condensed consolidated statements of operations and were not material for the periods presented. |
Reclassifications | Reclassifications For the three and nine months ended September 30, 2020, the Company reclassified certain prior period amounts to conform to the current period presentation, as follows: • The carrying value and shares of the Company’s Series B, Series G, Series I-1 and Series I-2 non-redeemable convertible preferred stock were aggregated on the accompanying condensed consolidated balance sheets and statements of changes in redeemable convertible preferred stock and stockholders’ deficit. Refer to Note 6 – Convertible Preferred Stock and Stockholders’ Deficit for further discussion; • Non-cash operating lease expense was reclassified from changes in operating assets and liabilities to adjustments to reconcile net loss to net cash used in operating activities on the accompanying condensed consolidated statements of cash flows; and • Financed insurance premiums and payments on financed insurance premiums were reclassified from non-cash financing activities and cash flows from financing activities, respectively, to cash flows from operating activities on the accompanying condensed consolidated statements of cash flows. These reclassifications had no effect on previously reported net income (loss), stockholders’ deficit or cash flows for the prior period. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying condensed consolidated financial statements. Significant estimates include patent life (remaining legal life versus remaining useful life), inventory carrying values, allowance for excess and obsolete inventories, allowance for sales returns and doubtful accounts, and transactions using the Black-Scholes option valuation model, for example, common stock options and common stock warrants, as well as the Monte-Carlo simulation method for certain common stock warrants. Actual results could differ from those estimates. |
Segments | Segments The Company’s chief operating decision-maker reviews financial information presented on a consolidated basis, accompanied by disaggregated information by each reportable company’s statement of operations. The Company operates the business on the basis of three reporting segments, the parent company and two business units: ISCO – therapeutic market; LCT – biomedical market, and; LSC – anti-aging market. |
Inventory | Inventory Inventory is accounted for using the average cost and first-in, first-out (FIFO) methods for LCT cell culture media and reagents, average cost and specific identification methods for LSC products, and specific identification method for other LCT products. LCT’s cell inventory does not have a shelf life when frozen. Inventory balances are stated at the lower of cost or net realizable value. Laboratory supplies used in the research and development process are expensed as consumed. At each reporting period, the Company estimates its reserve for allowance and obsolescence using historical sales data and inventory turnover rates. The establishment of a reserve for excess and obsolete inventory establishes a new cost basis in the inventory. Such reserves are not reduced until the product is sold. If the Company is able to sell such inventory, any related reserves would be reserved in the period of sale. The value of the inventory that is not expected to be sold within twelve months of the current reporting period is classified as non-current inventory on the accompanying condensed consolidated balance sheets. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are recorded at the net invoice value and are not interest bearing. Accounts receivable primarily consist of trade accounts receivable from the sales of LCT’s products, timing of cash receipts by the Company related to LSC credit card sales to customers, as well as LSC trade receivable amounts related to spa and distributor sales. The Company considers receivables past due based on the contractual payment terms. The Company reviews its exposure to accounts receivable and reserves specific amounts if collectability is no longer reasonably assured. The Company recorded an allowance for doubtful accounts of $12,000 as of September 30, 2020 and December 31, 2019. |
Advances | Advances On June 18, 2008, the Company entered into an agreement with BioTime, Inc. (“BioTime”), whereby BioTime paid an advance of $250,000 to LCT to produce, make, and distribute certain products. The $250,000 advance will be paid down with the first $250,000 of net revenues that otherwise would be allocated to LCT under the agreement. As of September 30, 2020, no revenues were realized and attributable to BioTime under this agreement. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. The provision for depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, which are generally three to five years. The costs of major remodeling and leasehold improvements are capitalized and amortized over the shorter of the remaining term of the lease or the estimated life of the asset. |
Intangible Assets | Intangible Assets Intangible assets consist of acquired patent licenses and capitalized legal fees related to the acquisition, filing, maintenance, and defense of patents and trademarks. Amortization begins once the patent is issued by the appropriate authoritative bodies. In the period in which a patent application is rejected or efforts to pursue the patent are abandoned, all the related accumulated costs are expensed. Patents and other intangible assets are amortized on a straight-line basis over the shorter of the lives of the underlying patents, generally 15 years. All amortization expense and impairment charges related to intangible assets are included in general and administrative expense in the accompanying condensed consolidated statements of operations. |
Long-Lived Asset Impairment | Long-Lived Asset Impairment The Company reviews long-lived assets for impairment when events or changes in circumstances (“triggering event”) indicate that the carrying value of an asset or group of assets may not be recovered. If a triggering event is determined to have occurred, the carrying value of an asset or group of assets is compared to the future undiscounted cash flows expected to be generated by the asset or group of assets. If the carrying value exceeds the undiscounted cash flows of the asset or group of assets, then impairment exists. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. |
Revenue Recognition | Revenue Recognition Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. This principle is applied using the following five-step process: 1. Identify the contract with the customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) each performance obligation is satisfied The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods or services to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table presents the Company's revenue disaggregated by segment, product and geography (in thousands): Biomedical market: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 221 $ 92 $ 313 27 % $ 696 $ 295 $ 991 22 % Media 750 107 857 73 % 3,211 317 3,528 78 % Other — — — — 16 — 16 — Total $ 971 $ 199 $ 1,170 100 % $ 3,923 $ 612 $ 4,535 100 % Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 179 $ 102 $ 281 18 % $ 635 $ 288 $ 923 18 % Media 1,262 111 1,373 82 % 4,020 348 4,368 82 % Other 16 — 16 — 19 — 19 — Total $ 1,457 $ 213 $ 1,670 100 % $ 4,674 $ 636 $ 5,310 100 % Anti-aging market: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Total % of Total Total % of Total Total % of Total Total % of Total Revenues Revenues Revenues Revenues Revenues Revenues Revenues Revenues Skin care sales channels Ecommerce $ 211 68 % $ 230 54 % $ 733 66 % $ 670 51 % Professional 100 32 % 196 46 % 384 34 % 655 49 % Total $ 311 100 % $ 426 100 % $ 1,117 100 % $ 1,325 100 % T he Company's revenue consists primarily of sales of products from its two revenue-generating operating segments, the biomedical products market and anti-aging products market business segments. The biomedical market segment markets and sells primary human cell research products with two product categories, cells and media, which are sold both domestically within the United States and internationally. The anti-aging market segment markets and sells a line of skincare products sold through two sales channels: ecommerce and professional. The ecommerce channel sells direct to customers through online orders, while professional sales are to spas, salons and other skincare providers. Contract terms for unit price, quantity, shipping and payment are governed by sales agreements, invoices or online order forms which the Company considers to be a customer's contract in all cases. The unit price is considered the observable stand-alone selling price for the performance obligation(s) within the arrangements. Any promotional or volume sales discounts are applied evenly to the units sold for purposes of calculating standalone selling price. The Company recognizes revenue when its customer obtains control of the promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. Product sales generally consist of a single performance obligation that the Company satisfies at a point in time (i.e., upon delivery of the product). For LSC products, ecommerce sales are primarily paid through credit card charges, while professional sales are invoiced. The professional sales and biomedical products' standard payment terms for its customers are generally 30 days after the Company satisfies the performance obligation(s). For LSC, the Company honors a 30-day return policy, but historical returns have been minimal and as such, no estimated allowance for sales returns was recorded as of September 30, The Company elects to account for shipping and handling costs as activities to fulfill the promise to transfer the goods to a customer. As a result, no consideration is allocated to shipping and handling costs. Rather, the Company accrues the cost of shipping and handling upon shipment of the product, and all contract revenue (i.e., the transaction price) is recognized at the same time. Variable Consideration The Company records revenue from customers in an amount that reflects the consideration it expects to be entitled to after transferring control of those goods or services to a customer. From time to time, the Company offers sales promotions on its products such as discounts and free product offers. Variable consideration is estimated at contract inception only to the extent that it is probable that a significant reversal of revenue will not occur and is updated at the end of each reporting period as additional information becomes available. Contract Balances The Company records a receivable when it has an unconditional right to receive consideration after a performance obligation is satisfied. As of September 30, Practical Expedients The Company has elected the practical expedient to not determine whether contacts with customers contain significant financing components. The Company pays commissions on certain sales for its biomedical and anti-aging product markets once the customer payment has been received, which are accrued at the time of the sale. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. In addition, the Company has elected to exclude sales taxes consideration from the determined transaction price. |
Allowance for Sales Returns | Allowance for Sales Returns The Company’s anti-aging products have a 30-day product return guarantee; however, the Company determined that there is a low probability that returns will occur based on its historical rate of returns. Historically, returns have not been significant and are recognized as a reduction to current period revenue. As of September 30, , the Company recorded no allowance for sales returns. |
Cost of Sales | Cost of Sales Cost of sales consists primarily of salaries and benefits associated with employee efforts expended directly on the production of the Company’s products, as well as related direct materials, general laboratory supplies and an allocation of overhead. Certain of the Company’s licensed technology agreements may require the Company to pay royalties based on the future sale of the Company’s products. Such royalties will be recorded as a component of cost of sales when incurred. Additionally, milestone payments or the amortization of license fees related to developed technologies used in the Company’s products will be included as a component of cost of sales to the extent that such payments become due in the future. |
Research and Development Costs | Research and Development Costs Research and development costs, which are expensed as incurred, primarily consist of salaries and benefits associated with research and development personnel, overhead and occupancy costs, contract services costs and amortization of license costs for technology used in research and development with alternative future uses. Research and development costs are net of research and development tax credits earned by Cyto Therapeutics, the Company’s wholly-owned subsidiary based in Australia. The Australian Taxation Office provides for a refundable tax credit in the form of a cash refund equal to 43.5% of qualified research and development expenditures, not to exceed established thresholds. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense associated with stock options and other stock-based awards in accordance with the authoritative guidance for stock-based compensation. The cost of a stock-based award is measured at the grant date based on the estimated fair value of the award, and is recognized as expense on a straight-line basis, net of forfeitures, over the requisite service period of the award. The fair value of stock options is estimated using the Black-Scholes option valuation model, which requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected life of the option. The fair value of restricted stock awards is based on the market value of the Company’s common stock on the date of grant. |
Fair Value Measurements | Fair Value Measurements The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The Company has no financial assets or liabilities, other than the warrant liability described below, measured at fair value on a recurring basis. No transfers between levels have occurred during the periods presented. The following table presents a summary of the Company’s liabilities which are measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) As of September 30, 2020 Warrant liability $ 40 $ — $ — $ 40 As of December 31, 2019 Warrant liability $ 207 $ — $ — $ 207 The following table presents the rollforward activity of liabilities with inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity) (in thousands): Warrant Liability Balance at December 31, 2019 $ 207 Change in fair value of warrant liability (167 ) Balance at September 30, 2020 $ 40 |
Warrant Liability | Warrant Liability The Company is required to recognize warrant agreements as a liability since they did not meet the specific conditions for equity classification and therefore need to be recognized at its fair value. The fair value of the warrant liability is calculated using the Monte-Carlo simulation model, which requires the use of certain estimates. The fair value of these warrants is re-measured at each financial reporting period with any changes in fair value being recognized as a component of other income (expense), net, in the accompanying condensed consolidated statements of operations. The following assumptions were used as inputs to the model: September 30, December 31, 2020 2019 Risk-free interest rate 0.11% 1.55% - 1.59% Volatility 90.0% 85.0% Term to expiration (in years) 0.45 0.29 - 1.21 Subsequent financing 0.0% 0.0% |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with applicable authoritative guidance, which requires the Company to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company believes that the carrying value of its cash, accounts receivables, accounts payable, accrued liabilities, Paycheck Protection Program loan and related party note payable as of September 30, 2020 and December 31, 2019 approximate their fair values because of the short-term nature of those instruments. The fair value of warrants was determined at each issuance date, reporting date and other applicable remeasurement dates for the periods ended using the Monte-Carlo simulation model. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share attributable to common stockholders is calculated by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. Potentially dilutive common stock equivalents are comprised of stock options, common stock warrants and convertible preferred stock. For the three and nine months ended September 30, 2020 and 2019, there was no difference in the number of shares used to calculate basic and diluted shares outstanding as the inclusion of the potentially dilutive common stock equivalents would be anti-dilutive. For the periods below, these common stock options, common stock warrants and convertible preferred stock were not included in the diluted net income (loss) per share calculation because the effect would be anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Options outstanding 4,711,130 5,578,311 4,729,829 5,427,557 Common stock warrants outstanding 3,948,569 3,951,052 3,949,521 3,951,052 Redeemable convertible preferred stock 2,457,143 2,457,143 2,457,143 2,457,143 Non-redeemable convertible preferred stock 3,675,135 3,675,135 3,675,135 3,675,135 Total 14,791,977 15,661,641 14,811,628 15,510,887 |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes all changes in stockholders’ equity except those resulting from investments by owners and distributions to owners. The Company did not have any items of comprehensive income (loss) other than net loss from operations for the three and nine months ended September 30, 2020 and 2019. |
Customer Concentrations | Customer Concentrations During the nine months ended September 30, 2020 and 2019, for the biomedical market segment, one customer accounted for approximately 43% and 39%, respectively, of consolidated revenues. As of September 30, 2020 and December 31, 2019, the customer accounted for approximately 39% and 37%, respectively, of accounts receivable, net. No other single customer accounted for more than 10% of revenues for the periods then ended for any segment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments— Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement |
Description of Business, Basi_3
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Revenue Disaggregated by Segment, Product and Geography | The following table presents the Company's revenue disaggregated by segment, product and geography (in thousands): Biomedical market: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 221 $ 92 $ 313 27 % $ 696 $ 295 $ 991 22 % Media 750 107 857 73 % 3,211 317 3,528 78 % Other — — — — 16 — 16 — Total $ 971 $ 199 $ 1,170 100 % $ 3,923 $ 612 $ 4,535 100 % Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Total % of Total Total % of Total Domestic International Revenues Revenues Domestic International Revenues Revenues Biomedical products Cells $ 179 $ 102 $ 281 18 % $ 635 $ 288 $ 923 18 % Media 1,262 111 1,373 82 % 4,020 348 4,368 82 % Other 16 — 16 — 19 — 19 — Total $ 1,457 $ 213 $ 1,670 100 % $ 4,674 $ 636 $ 5,310 100 % Anti-aging market: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Total % of Total Total % of Total Total % of Total Total % of Total Revenues Revenues Revenues Revenues Revenues Revenues Revenues Revenues Skin care sales channels Ecommerce $ 211 68 % $ 230 54 % $ 733 66 % $ 670 51 % Professional 100 32 % 196 46 % 384 34 % 655 49 % Total $ 311 100 % $ 426 100 % $ 1,117 100 % $ 1,325 100 % |
Fair Values of Liabilities on a Recurring Basis | The following table presents a summary of the Company’s liabilities which are measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) As of September 30, 2020 Warrant liability $ 40 $ — $ — $ 40 As of December 31, 2019 Warrant liability $ 207 $ — $ — $ 207 |
Fair Value Measurement and Unobservable Rollforward Activity of Liabilities | The following table presents the rollforward activity of liabilities with inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity) (in thousands): Warrant Liability Balance at December 31, 2019 $ 207 Change in fair value of warrant liability (167 ) Balance at September 30, 2020 $ 40 |
Assumptions Used as Inputs for Warrant Liability | The following assumptions were used as inputs to the model: September 30, December 31, 2020 2019 Risk-free interest rate 0.11% 1.55% - 1.59% Volatility 90.0% 85.0% Term to expiration (in years) 0.45 0.29 - 1.21 Subsequent financing 0.0% 0.0% |
Summary of Antidilutive Securities not Included in Diluted Net Income (Loss) Per Share Calculation | For the periods below, these common stock options, common stock warrants and convertible preferred stock were not included in the diluted net income (loss) per share calculation because the effect would be anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Options outstanding 4,711,130 5,578,311 4,729,829 5,427,557 Common stock warrants outstanding 3,948,569 3,951,052 3,949,521 3,951,052 Redeemable convertible preferred stock 2,457,143 2,457,143 2,457,143 2,457,143 Non-redeemable convertible preferred stock 3,675,135 3,675,135 3,675,135 3,675,135 Total 14,791,977 15,661,641 14,811,628 15,510,887 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of the Components of Inventory | The components of inventory are as follows (in thousands): September 30, December 31, 2020 2019 Raw materials $ 484 $ 688 Work in process 430 492 Finished goods 1,050 1,219 1,964 2,399 Less: allowance for inventory excess and obsolescence (644 ) (795 ) Total current and non-current inventory, net $ 1,320 $ 1,604 Inventory, net $ 937 $ 1,246 Non-current inventory 383 358 Total current and non-current inventory, net $ 1,320 $ 1,604 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following (in thousands): September 30, December 31, 2020 2019 Machinery and equipment $ 1,661 $ 1,642 Computer equipment and software 236 236 Office equipment 230 230 Leasehold improvements 1,303 1,290 Construction in progress 4 12 3,434 3,410 Less: accumulated depreciation and amortization (2,866 ) (2,742 ) Property and equipment, net $ 568 $ 668 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible Assets consists of the following (in thousands): September 30, December 31, 2020 2019 Patents $ 2,267 $ 2,268 Less: accumulated amortization (1,076 ) (1,008 ) 1,191 1,260 Indefinite life logos and trademarks 75 75 Intangible assets, net $ 1,266 $ 1,335 |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders’ Deficit (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Authorized, Issued and Outstanding Shares of Non-redeemable Convertible Preferred Stock | The authorized, issued and outstanding shares of non-redeemable convertible preferred stock as of September 30, 2020 consist of the following: Shares Shares Issued Liquidation Carrying Authorized and Outstanding Preference Value (in thousands) Series B 5,000,000 250,000 $ 438 $ — Series G 5,000,000 5,000,000 5,000 5 Series I-1 2,000 814 814 — Series I-2 4,310 4,310 4,310 — Total 10,006,310 5,255,124 $ 10,562 $ 5 The authorized, issued and outstanding shares of non-redeemable convertible preferred stock as of December 31, 2019 consist of the following: Shares Shares Issued Liquidation Carrying Authorized and Outstanding Preference Value (in thousands) Series B 5,000,000 250,000 $ 426 $ — Series G 5,000,000 5,000,000 5,000 5 Series I-1 2,000 814 814 — Series I-2 4,310 4,310 4,310 — Total 10,006,310 5,255,124 $ 10,550 $ 5 |
Summary of Changes in Options Outstanding and Related Exercise Prices for Company's Common Stock Options Issued | The following tables summarize the changes in options outstanding and the related exercise prices for the Company’s common stock options issued: Weighted- Average Remaining Number of Weighted- Contractual Aggregate Outstanding Average Term Intrinsic Value Options Exercise (in years) (in thousands) Outstanding at December 31, 2019 4,936,673 $ 3.38 Granted 245,714 $ 1.08 Forfeited or canceled (547,460 ) $ 2.03 Expired (3,022 ) $ 193.50 Outstanding at September 30, 2020 4,631,905 $ 3.30 7.49 $ — Vested and expected to vest at September 30, 2020 4,570,730 $ 3.32 7.47 $ — Exercisable at September 30, 2020 3,664,675 $ 3.79 7.24 $ — |
Fair Value of Stock Options Grants, Weighted Average Assumptions | The weighted-average assumptions used in the Black-Scholes option valuation model to determine the fair value of stock options grants for the nine months ended September 30, 2020 and 2019 were as follows: Nine Months Ended September 30, 2020 2019 Risk-free interest rate 0.37% 2.44% Expected stock price volatility 88.82% 84.95% Expected dividend yield 0% 0% Expected life of options (in years) 5.36 5.71 |
Schedule of Total Stock-Based Compensation Expense | Total stock-based compensation expense for the three and nine months ended September 30, 2020 and 2019 was comprised of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of sales $ 21 $ 29 $ 66 $ 83 Research and development 28 115 107 426 Selling and marketing 18 31 60 88 General and administrative 206 337 782 992 Total $ 273 $ 512 $ 1,015 $ 1,589 |
Summary of Shares of Common Stock Reserved for Future Issuance | As of September 30, 2020, the Company had shares of common stock reserved for future issuance as follows: Options outstanding 4,631,905 Common stock warrants outstanding 3,948,569 Common stock available for issuance under the 2010 Plan 4,905,370 Redeemable convertible preferred stock 2,457,143 Non-redeemable convertible preferred stock 3,675,135 Total 19,618,122 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities were as follows (in thousands): Years ending December 31, 2020 (remaining three months) $ 128 2021 517 2022 394 2023 255 2024 233 2025 240 Total minimum lease payments 1,767 Less: imputed interest (499 ) Total future minimum lease payments 1,268 Less: operating lease liabilities, current (332 ) Operating lease liabilities, net of current portion $ 936 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Revenues, Expenses and Operating Income (Loss) by Market Segment | Revenues, expenses and operating income (loss) for the three and nine months ended September 30, 2020 and 2019 by market segment were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenues: Biomedical market $ 1,170 $ 1,670 $ 4,535 $ 5,310 Anti-aging market 311 426 1,117 1,325 Total revenues 1,481 2,096 5,652 6,635 Operating expenses: Therapeutic market 872 953 2,656 3,753 Biomedical market 1,038 1,320 3,760 4,170 Anti-aging market 369 636 1,321 1,956 Total operating expenses 2,279 2,909 7,737 9,879 Operating income (loss) Therapeutic market (872 ) (953 ) (2,656 ) (3,753 ) Biomedical market 132 350 775 1,140 Anti-aging market (58 ) (210 ) (204 ) (631 ) Total operating loss $ (798 ) $ (813 ) $ (2,085 ) $ (3,244 ) |
Description of Business, Basi_4
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)SegmentUnits | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Jun. 18, 2008USD ($) | |
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Accumulated deficit | $ 108,394,000 | $ 106,391,000 | ||
Number of reporting segments | Segment | 3 | |||
Number of business units | Units | 2 | |||
Allowance for doubtful accounts receivable | $ 12,000 | 12,000 | ||
Advances | 250,000 | 250,000 | $ 250,000 | |
Specified amount of revenue to be utilized for advances | $ 250,000 | |||
Revenue realized from agreement | $ 0 | |||
Intangible assets useful lives | 15 years | |||
Number of revenue-generating operating segments | Segment | 2 | |||
Description of payment terms | The Company's revenue consists primarily of sales of products from its two revenue-generating operating segments, the biomedical products market and anti-aging products market business segments. The biomedical market segment markets and sells primary human cell research products with two product categories, cells and media, which are sold both domestically within the United States and internationally. The anti-aging market segment markets and sells a line of skincare products sold through two sales channels: ecommerce and professional. The ecommerce channel sells direct to customers through online orders, while professional sales are to spas, salons and other skincare providers. | |||
Accounts receivable, net | $ 509,000 | 1,515,000 | ||
Write-off of accounts receivable | $ 0 | $ 0 | ||
Product return guarantee period | 30 days | |||
Allowance for sales returns | $ 0 | $ 0 | ||
Financial assets | 0 | |||
Financial liabilities | 0 | |||
Assets transfers between Level 1 to Level 2 | 0 | |||
Assets transfers between Level 2 to Level 1 | 0 | |||
Liability transfers between Level 1 to Level 2 | 0 | |||
Liability transfers between Level 2 to Level 1 | 0 | |||
Asset transfers into Level 3 | 0 | |||
Asset transfers out of Level 3 | 0 | |||
Liability transfers into Level 3 | 0 | |||
Liability transfers out of Level 3 | $ 0 | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | |||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201813Member | |||
Customer Concentration Risk [Member] | Accounts Receivable, Net [Member] | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 39.00% | 37.00% | ||
Biomedical Market [Member] | Customer Concentration Risk [Member] | Major customer 1 [Member] | Sales Revenue Segment [Member] | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage | 43.00% | 39.00% | ||
Australian Taxation Office [Member] | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of refundable tax credit on qualified research and development | 43.50% | |||
LSC [Member] | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Allowance for doubtful accounts receivable | $ 0 | $ 0 | ||
Minimum [Member] | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of property and equipment | 3 years | |||
Maximum [Member] | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of property and equipment | 5 years | |||
Sales commissions amortization period | 1 year |
Description of Business, Basi_5
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Summary of Revenue Disaggregated by Segment, Product and Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 1,481 | $ 2,096 | $ 5,652 | $ 6,635 |
Biomedical Market [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 1,170 | $ 1,670 | $ 4,535 | $ 5,310 |
% of Total Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Biomedical Market [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 971 | $ 1,457 | $ 3,923 | $ 4,674 |
Biomedical Market [Member] | International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 199 | 213 | 612 | 636 |
Biomedical Market [Member] | Cells [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 313 | $ 281 | $ 991 | $ 923 |
% of Total Revenues | 27.00% | 18.00% | 22.00% | 18.00% |
Biomedical Market [Member] | Cells [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 221 | $ 179 | $ 696 | $ 635 |
Biomedical Market [Member] | Cells [Member] | International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 92 | 102 | 295 | 288 |
Biomedical Market [Member] | Media [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 857 | $ 1,373 | $ 3,528 | $ 4,368 |
% of Total Revenues | 73.00% | 82.00% | 78.00% | 82.00% |
Biomedical Market [Member] | Media [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 750 | $ 1,262 | $ 3,211 | $ 4,020 |
Biomedical Market [Member] | Media [Member] | International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 107 | 111 | 317 | 348 |
Biomedical Market [Member] | Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 16 | 16 | 19 | |
Biomedical Market [Member] | Other [Member] | U.S. [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | 16 | 16 | 19 | |
Anti-Aging Skincare Market [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 311 | $ 426 | $ 1,117 | $ 1,325 |
% of Total Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Anti-Aging Skincare Market [Member] | Ecommerce [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 211 | $ 230 | $ 733 | $ 670 |
% of Total Revenues | 68.00% | 54.00% | 66.00% | 51.00% |
Anti-Aging Skincare Market [Member] | Professional [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total Revenues | $ 100 | $ 196 | $ 384 | $ 655 |
% of Total Revenues | 32.00% | 46.00% | 34.00% | 49.00% |
Description of Business, Basi_6
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Fair Values of Liabilities on a Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Warrant liability | $ 40 | $ 207 |
Fair Value, Measurements, Recurring [Member] | Warrants [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Warrant liability | 40 | 207 |
Fair Value, Measurements, Recurring [Member] | Warrants [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Warrant liability | $ 40 | $ 207 |
Description of Business, Basi_7
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Fair Value Measurement and Unobservable Rollforward Activity of Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||||
Balance at December 31, 2019 | $ 207 | |||
Change in fair value of warrant liability | $ (282) | $ (837) | (167) | $ (1,745) |
Balance at September 30, 2020 | $ 40 | $ 40 |
Description of Business, Basi_8
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Assumptions Use as Inputs for Warrant Liability (Detail) | Sep. 30, 2020 | Dec. 31, 2019 |
Risk-Free Interest Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 0.11 | |
Risk-Free Interest Rate [Member] | Minimum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 1.55 | |
Risk-Free Interest Rate [Member] | Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 1.59 | |
Volatility [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 90 | 85 |
Term to Expiration [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Term | 5 months 12 days | |
Term to Expiration [Member] | Minimum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Term | 3 months 14 days | |
Term to Expiration [Member] | Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Term | 1 year 2 months 15 days | |
Subsequent Financing [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 0 | 0 |
Description of Business, Basi_9
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Summary of Antidilutive Effect Not Included In Diluted Net Income (Loss) Per Share Calculation (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 14,791,977 | 15,661,641 | 14,811,628 | 15,510,887 |
Redeemable Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 2,457,143 | 2,457,143 | 2,457,143 | 2,457,143 |
Non-Redeemable Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 3,675,135 | 3,675,135 | 3,675,135 | 3,675,135 |
Options [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 4,711,130 | 5,578,311 | 4,729,829 | 5,427,557 |
Common Stock Warrants [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 3,948,569 | 3,951,052 | 3,949,521 | 3,951,052 |
Inventory - Summary of the Comp
Inventory - Summary of the Components of Inventory (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 484 | $ 688 |
Work in process | 430 | 492 |
Finished goods | 1,050 | 1,219 |
Total current and non-current inventory, gross | 1,964 | 2,399 |
Less: allowance for inventory excess and obsolescence | (644) | (795) |
Total current and non-current inventory, net | 1,320 | 1,604 |
Inventory, net | 937 | 1,246 |
Non-current inventory | $ 383 | $ 358 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Inventory Disclosure [Abstract] | |
Disposed of obsolete inventory | $ 121,000 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 3,434 | $ 3,410 |
Less: accumulated depreciation and amortization | (2,866) | (2,742) |
Property and equipment, net | 568 | 668 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,661 | 1,642 |
Computer Equipment and Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 236 | 236 |
Office Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 230 | 230 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,303 | 1,290 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4 | $ 12 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 42 | $ 40 | $ 124 | $ 115 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Patents | $ 2,267 | $ 2,268 |
Less: accumulated amortization | (1,076) | (1,008) |
Total | 1,191 | 1,260 |
Indefinite life logos and trademarks | 75 | 75 |
Intangible assets, net | $ 1,266 | $ 1,335 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 23,000 | $ 26,000 | $ 68,000 | $ 88,000 |
Impairment charges | $ 65,000 | $ 145,000 | $ 65,000 | $ 145,000 |
Paycheck Protection Program L_2
Paycheck Protection Program Loan - Additional Information (Detail) - USD ($) | 1 Months Ended | |
May 31, 2020 | Sep. 30, 2020 | |
Debt Disclosure [Abstract] | ||
Proceeds from Paycheck Protection Program loan as government aid | $ 654,000 | |
Paycheck Protection Program loan maturity period | 2 years | |
Paycheck Protection Program loan interest rate | 1.00% | |
Paycheck Protection Program loan deferred payment period | 10 months | |
Paycheck Protection Program loan forgiveness period | 168 days | |
Paycheck Protection Program loan, current | $ 57,000 | |
Paycheck Protection Program loan, non-current | $ 599,000 |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders' Deficit - Schedule of Authorized, Issued and Outstanding Shares of Non-redeemable Convertible Preferred Stock (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Class Of Stock [Line Items] | ||
Shares Authorized | 20,000,000 | |
Series B [Member] | ||
Class Of Stock [Line Items] | ||
Shares Authorized | 5,000,000 | 5,000,000 |
Shares Issued | 250,000 | 250,000 |
Shares Outstanding | 250,000 | 250,000 |
Liquidation Preference | $ 438 | $ 426 |
Series G [Member] | ||
Class Of Stock [Line Items] | ||
Shares Authorized | 5,000,000 | 5,000,000 |
Shares Issued | 5,000,000 | 5,000,000 |
Shares Outstanding | 5,000,000 | 5,000,000 |
Liquidation Preference | $ 5,000 | $ 5,000 |
Carrying Value | $ 5 | $ 5 |
Series I-1 [Member] | ||
Class Of Stock [Line Items] | ||
Shares Authorized | 2,000 | 2,000 |
Shares Issued | 814 | 814 |
Shares Outstanding | 814 | 814 |
Liquidation Preference | $ 814 | $ 814 |
Series I-2 [Member] | ||
Class Of Stock [Line Items] | ||
Shares Authorized | 4,310 | 4,310 |
Shares Issued | 4,310 | 4,310 |
Shares Outstanding | 4,310 | 4,310 |
Liquidation Preference | $ 4,310 | $ 4,310 |
Series B, Series G, Series I-1 and Series I-2 Non-redeemable Convertible Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Shares Authorized | 10,006,310 | 10,006,310 |
Shares Issued | 5,255,124 | 5,255,124 |
Shares Outstanding | 5,255,124 | 5,255,124 |
Liquidation Preference | $ 10,562 | $ 10,550 |
Carrying Value | $ 5 | $ 5 |
Convertible Preferred Stock a_4
Convertible Preferred Stock and Stockholders' Deficit - Common Stock - Additional Information (Detail) - USD ($) | Jan. 21, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2019 |
Class Of Stock [Line Items] | |||||
Common stock, shares authorized | 120,000,000 | 120,000,000 | |||
Preferred stock, shares authorized | 20,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Non-redeemable convertible preferred stock, par value | 0.001 | ||||
Non-convertible promissory note, principal amount | $ 1,000,000 | ||||
Accrued and unpaid interest | $ 49,000 | ||||
Convertible common stock, conversion price | $ 1.75 | ||||
Common Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Conversion of debt, shares | 599,222 | 599,000 | |||
Series D Redeemable Convertible Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Redeemable convertible preferred stock shares authorized | 50 | 50 | |||
Series B, Series G, Series I-1 and Series I-2 Non-redeemable Convertible Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Preferred stock, shares authorized | 10,006,310 | 10,006,310 | |||
Series G Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |||
Convertible preferred stock, conversion price | $ 9.70 | $ 9.92 | |||
Conversion ratio for each share | 0.1031 | 0.1008 |
Convertible Preferred Stock a_5
Convertible Preferred Stock and Stockholders' Deficit - Common Stock Warrants - Additional Information (Detail) - $ / shares | 1 Months Ended | |||
Mar. 31, 2016 | Oct. 31, 2014 | Sep. 30, 2020 | Dec. 31, 2019 | |
Class Of Warrant Or Right [Line Items] | ||||
Warrants issued exercisable for shares of common stock | 11,159,995 | 62,047 | ||
Exercise price of warrants | $ 1.75 | $ 1.75 | ||
October 2014 [Member] | ||||
Class Of Warrant Or Right [Line Items] | ||||
Common stock warrants issued expiration date | Apr. 30, 2020 | |||
Common stock warrants outstanding | 2,483 | |||
March 2016 [Member] | ||||
Class Of Warrant Or Right [Line Items] | ||||
Common stock warrants issued expiration date | Mar. 15, 2021 | |||
Common stock warrants outstanding | 3,948,569 | 3,948,569 |
Convertible Preferred Stock a_6
Convertible Preferred Stock and Stockholders' Deficit - Equity Incentive Plans - Additional Information (Detail) - shares | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2010 | Dec. 31, 2006 | |
2006 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expiry of options | 10 years | ||
Stock options expiration date | Nov. 16, 2016 | ||
Options granted to employees, directors and consultants | 0 | ||
2006 Plan [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options that may be granted | 100,000 | ||
2010 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expiry of options | 10 years | ||
2010 Plan [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options that may be granted | 9,700,000 |
Convertible Preferred Stock a_7
Convertible Preferred Stock and Stockholders' Deficit - Stock Options - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
2006 Plan and 2010 Plan [Member] | Maximum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expiry of options | 10 years |
Convertible Preferred Stock a_8
Convertible Preferred Stock and Stockholders' Deficit - Summary of Changes in Options Outstanding and Related Exercise Prices for Company's Common Stock Options Issued (Detail) - 2006 Plan and 2010 Plan [Member] - $ / shares | 9 Months Ended |
Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Outstanding Options, Outstanding, Beginning balance | 4,936,673 |
Number of Outstanding Options, Granted | 245,714 |
Number of Outstanding Options, Forfeited or canceled | (547,460) |
Number of Outstanding Options, Expired | (3,022) |
Number of Outstanding Options, Outstanding, Ending balance | 4,631,905 |
Number of Outstanding Options, Vested and expected to vest at September 30, 2020 | 4,570,730 |
Number of Outstanding Options, Exercisable at September, 2020 | 3,664,675 |
Weighted Average Exercise, Outstanding, Beginning balance | $ 3.38 |
Weighted Average Exercise, Granted | 1.08 |
Weighted Average Exercise, Forfeited or canceled | 2.03 |
Weighted Average Exercise, Expired | 193.50 |
Weighted Average Exercise, Outstanding, Ending balance | 3.30 |
Weighted Average Exercise, Vested and expected to vest at September 30, 2020 | 3.32 |
Weighted Average Exercise, Exercisable at September 30, 2020 | $ 3.79 |
Weighted Average Remaining Contractual Term (in years), Options Outstanding Ending Balance | 7 years 5 months 26 days |
Weighted Average Remaining Contractual Term (in years), Vested and expected to vest at September 30, 2020 | 7 years 5 months 19 days |
Weighted Average Remaining Contractual Term (in years), Exercisable at September 30, 2020 | 7 years 2 months 26 days |
Convertible Preferred Stock a_9
Convertible Preferred Stock and Stockholders' Deficit - Restricted Stock Awards - Additional Information (Detail) - Under 2006 Plan and 2010 Plan [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of Shares, Granted | 0 | 0 | 0 | 0 |
Grant-date fair value of restricted stock awards | $ 0 | $ 0 | $ 0 | $ 0 |
Unrecognized compensation costs | $ 0 | $ 0 |
Convertible Preferred Stock _10
Convertible Preferred Stock and Stockholders' Deficit - Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation expense related to stock options | $ 845,000 | $ 845,000 | |
Unrecognized compensation cost related to unvested shares expected to be recognized, weighted-average period | 1 year | ||
Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options granted | 0 | 0 |
Convertible Preferred Stock _11
Convertible Preferred Stock and Stockholders' Deficit - Fair Value of Stock Options Grants, Weighted Average Assumptions (Detail) - Stock Options [Member] | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 0.37% | 2.44% |
Expected stock price volatility | 88.82% | 84.95% |
Expected dividend yield | 0.00% | 0.00% |
Expected life of options (in years) | 5 years 4 months 9 days | 5 years 8 months 15 days |
Convertible Preferred Stock _12
Convertible Preferred Stock and Stockholders' Deficit - Schedule of Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 273 | $ 512 | $ 1,015 | $ 1,589 |
Cost of Sales [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 21 | 29 | 66 | 83 |
Research and Development [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 28 | 115 | 107 | 426 |
Selling and Marketing [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 18 | 31 | 60 | 88 |
General and Administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 206 | $ 337 | $ 782 | $ 992 |
Convertible Preferred Stock _13
Convertible Preferred Stock and Stockholders' Deficit - Summary of Shares of Common Stock Reserved for Future Issuance (Detail) | Sep. 30, 2020shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 19,618,122 |
Options Outstanding [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 4,631,905 |
2010 Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 4,905,370 |
Redeemable Convertible Preferred Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 2,457,143 |
Non-Redeemable Convertible Preferred Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 3,675,135 |
Common Stock Warrants Outstanding [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares of common stock reserved for future issuance net | 3,948,569 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Dec. 17, 2019 | Apr. 17, 2019 | Jan. 21, 2019 | Mar. 31, 2019 | Aug. 08, 2018 | Sep. 30, 2020 | Sep. 30, 2019 |
Related Party Transaction [Line Items] | |||||||
Related party rent expense | $ 127,000 | $ 120,000 | |||||
Non-convertible promissory note, principal amount | $ 1,000,000 | ||||||
Debt conversion, converted instrument | $ 500,000 | ||||||
Accrued interest on promissory note | $ 49,000 | ||||||
Conversion of debt | $ 1,049,000 | $ 1,049,000 | |||||
Conversion note surrendered | 500,000 | $ 800,000 | |||||
Common Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Conversion of debt, shares | 599,222 | 599,000 | |||||
Conversion of debt | $ 1,000 | ||||||
Unsecured Non-convertible Promissory Note [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Non-convertible promissory note, principal amount | $ 1,800,000 | ||||||
Maturity date | Jan. 15, 2020 | ||||||
Annual interest rate | 4.50% | ||||||
Related party transaction, description | The outstanding principal amount accrued interest at a rate of 4.5% per annum and was due and payable on January 15, 2020. | ||||||
Chief Executive Officer and Co-Chairman [Member] | Unsecured Non-convertible Promissory Note [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Non-convertible promissory note, principal amount | $ 2,000,000 | ||||||
Maturity date | Nov. 1, 2018 | ||||||
Annual interest rate | 4.00% | ||||||
Related party transaction, description | The outstanding principal amount under the Note accrued interest at a rate of four percent (4%) per annum. The Note was due and payable November 1, 2018 and on November 12, 2018, to satisfy the indebtedness incurred on the Note, an amendment to the Note was entered into extending the due date to January 15, 2019 | ||||||
Co Chairman And Chief Executive Officer [Member] | Unsecured Non-convertible Promissory Note [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Non-convertible promissory note, principal amount | $ 2,300,000 | ||||||
Maturity date | Jan. 15, 2021 | ||||||
Annual interest rate | 4.50% | ||||||
Related party transaction, description | The outstanding principal amount under the New Note accrues interest at a rate of 4.5% per annum. The New Note, including outstanding amounts of principal and accrued interest, is due and payable January 15, 2021 but may be pre-paid by the Company without penalty at any time. | ||||||
S Real Estate Holding LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Extended term of lease | 3 years | ||||||
Expiry of lease | Feb. 28, 2023 | ||||||
Percentage of increase in monthly base rent | 2.00% | ||||||
Note Conversion Agreement [Member] | Co Chairman And Chief Executive Officer [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Non-convertible promissory note, principal amount | $ 1,000,000 | ||||||
Related party transaction, description | The outstanding principal amount under the Conversion Note accrued interest at a rate of 4.5% per annum. The Conversion Note was due and payable on January 15, 2020. | ||||||
Debt conversion, converted instrument | 1,050,000 | ||||||
Accrued interest on promissory note | $ 49,000 | ||||||
Conversion price | $ 1.75 | ||||||
Fair value of common stock price per share | $ 1.60 | ||||||
Gain on conversion | $ 0 | ||||||
Note Conversion Agreement [Member] | Co Chairman And Chief Executive Officer [Member] | Common Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Conversion of debt, shares | 599,222 | ||||||
Note Conversion Agreement [Member] | Co Chairman And Chief Executive Officer [Member] | Unsecured Non-convertible Promissory Note [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Non-convertible promissory note, principal amount | $ 1,000,000 | ||||||
Maturity date | Jan. 15, 2020 | ||||||
Annual interest rate | 4.50% | ||||||
Conversion of debt | $ 1,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended | ||
Sep. 30, 2020USD ($)LeaseInstallment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Commitments And Contingencies [Line Items] | |||
Number of operating leases for real estate | Lease | 3 | ||
Right-of-use assets | $ 939,000 | $ 717,000 | |
Operating lease liabilities | 1,268,000 | ||
Lease expense | 354,000 | $ 370,000 | |
Short term lease expense | 6,000 | $ 9,000 | |
Finance leases | 0 | ||
Astellas Pharma [Member] | |||
Commitments And Contingencies [Line Items] | |||
Minimum license fee payable | $ 75,000 | ||
Number of installments per year | Installment | 2 | ||
Carlsbad, California [Member] | |||
Commitments And Contingencies [Line Items] | |||
Operating leases with term date | 2023-02 | ||
Oceanside | |||
Commitments And Contingencies [Line Items] | |||
Operating leases with term date | 2021-12 | ||
Frederick, Maryland [Member] | |||
Commitments And Contingencies [Line Items] | |||
Operating leases with term date | 2025-11 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Leases Future Minimum Payments Due [Abstract] | ||
2020 (remaining three months) | $ 128 | |
2021 | 517 | |
2022 | 394 | |
2023 | 255 | |
2024 | 233 | |
2025 | 240 | |
Total minimum lease payments | 1,767 | |
Less: imputed interest | (499) | |
Total future minimum lease payments | 1,268 | |
Less: operating lease liabilities, current | (332) | $ (367) |
Operating lease liabilities, net of current portion | $ 936 | $ 718 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020SegmentUnits | |
Segment Reporting [Abstract] | |
Number of reporting segments | Segment | 3 |
Number of business units | Units | 2 |
Segments - Revenues, Expenses a
Segments - Revenues, Expenses and Operating Income (Loss) by Market Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Total revenues | $ 1,481 | $ 2,096 | $ 5,652 | $ 6,635 |
Operating expenses: | ||||
Total operating expenses | 2,279 | 2,909 | 7,737 | 9,879 |
Operating income (loss) | ||||
Total operating income (loss) | (798) | (813) | (2,085) | (3,244) |
Anti-aging Market [Member] | ||||
Revenues: | ||||
Total revenues | 311 | 426 | 1,117 | 1,325 |
Operating expenses: | ||||
Total operating expenses | 369 | 636 | 1,321 | 1,956 |
Operating income (loss) | ||||
Total operating income (loss) | (58) | (210) | (204) | (631) |
Therapeutic Market [Member] | ||||
Operating expenses: | ||||
Total operating expenses | 872 | 953 | 2,656 | 3,753 |
Operating income (loss) | ||||
Total operating income (loss) | (872) | (953) | (2,656) | (3,753) |
Biomedical Market [Member] | ||||
Revenues: | ||||
Total revenues | 1,170 | 1,670 | 4,535 | 5,310 |
Operating expenses: | ||||
Total operating expenses | 1,038 | 1,320 | 3,760 | 4,170 |
Operating income (loss) | ||||
Total operating income (loss) | $ 132 | $ 350 | $ 775 | $ 1,140 |