Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MYO | |
Entity Registrant Name | MYOMO INC | |
Entity Central Index Key | 1,369,290 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 12,435,379 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 9,093,412 | $ 12,959,373 |
Accounts receivable | 352,824 | 297,039 |
Inventories, net | 272,664 | 201,155 |
Prepaid expenses and other | 720,866 | 388,275 |
Total Current Assets | 10,439,766 | 13,845,842 |
Restricted cash | 75,000 | 52,000 |
Deferred offering costs | 117,273 | |
Equipment, net | 198,865 | 77,150 |
Total Assets | 10,830,904 | 13,974,992 |
Current Liabilities: | ||
Accounts payable and other accrued expenses | 1,690,553 | 1,277,236 |
Derivative liabilities | 8,652 | 39,930 |
Deferred revenue | 182,515 | 168,006 |
Total Current Liabilities | 1,881,720 | 1,485,172 |
Deferred revenue, net of current portion | 249 | 44,042 |
Total Liabilities | 1,881,969 | 1,529,214 |
Commitments and Contingencies | ||
Stockholders’ Equity: | ||
Common stock par value $0.0001 per share 100,000,000 shares authorized; 12,436,031 and 11,139,667 shares issued as September 30, 2018 and December 31, 2017, respectively, and 12,435,223 and 11,138,859 shares outstanding as of September 30, 2018 and December 31, 2017, respectively. | 1,243 | 1,114 |
Undesignated preferred stock par value $0.0001 per share; 25,000,000 authorized at September 30, 2018 and December 31, 2017, respectively. No shares issued or outstanding. | ||
Additional paid-in capital | 51,551,728 | 47,423,915 |
Accumulated deficit | (42,597,572) | (34,972,787) |
Treasury stock, at cost; 808 shares of common stock at September 30, 2018 and December 31, 2017. | (6,464) | (6,464) |
Total Stockholders’ Equity | 8,948,935 | 12,445,778 |
Total Liabilities and Stockholders’ Equity | $ 10,830,904 | $ 13,974,992 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 12,436,031 | 11,139,667 |
Common stock, shares outstanding | 12,435,223 | 11,138,859 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury shares at cost | 808 | 808 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 608,981 | $ 488,540 | $ 1,554,529 | $ 1,011,454 |
Cost of revenue | 193,577 | 124,098 | 502,103 | 301,308 |
Gross margin | 415,404 | 364,442 | 1,052,426 | 710,146 |
Operating expenses: | ||||
Research and development | 449,673 | 329,357 | 1,309,014 | 1,394,865 |
Selling, general and administrative | 2,674,160 | 1,470,058 | 7,536,802 | 4,047,385 |
Total operating expenses | 3,123,833 | 1,799,415 | 8,845,816 | 5,442,250 |
Loss from operations | (2,708,429) | (1,434,973) | (7,793,390) | (4,732,104) |
Other expense (income) | ||||
Change in fair value of derivative liabilities | (13,310) | (219,374) | (31,278) | (64,366) |
Debt discount on convertible notes | 5,172,000 | |||
Interest income and other expense, net | (45,297) | 43,350 | (137,327) | 357,465 |
Total other expense (income) | (58,607) | (176,024) | (168,605) | 5,465,099 |
Net loss | (2,649,822) | (1,258,949) | (7,624,785) | (10,197,203) |
Deemed dividend – accreted preferred stock | (274,011) | |||
Cumulative dividend to Series B-1 preferred stockholders | (287,779) | |||
Net loss available to common stockholders | $ (2,649,822) | $ (1,258,949) | $ (7,624,785) | $ (10,758,993) |
Weighted average number of common shares outstanding: | ||||
Basic and diluted | 12,415,494 | 6,081,195 | 12,244,075 | 3,191,144 |
Net loss per share available to common stockholders: | ||||
Basic and diluted | $ (0.21) | $ (0.21) | $ (0.62) | $ (3.37) |
Condensed Statement of Changes
Condensed Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Beginning balance at Dec. 31, 2017 | $ 12,445,778 | $ 1,114 | $ 47,423,915 | $ (34,972,787) | $ (6,464) |
Beginning balance, shares at Dec. 31, 2017 | 11,139,667 | 808 | |||
Common stock issued upon vesting of restricted stock units, net of 20,915 shares withheld for employee taxes | (71,412) | $ 3 | (71,415) | ||
Common stock issued upon vesting of restricted stock units, Shares | 39,057 | ||||
Exercise of common stock options | 2 | 2 | |||
Exercise of common stock options, shares | 1,172 | ||||
Exercise of common stock warrants | $ 3,556,391 | $ 121 | 3,556,270 | ||
Exercise of common stock warrants, shares | 1,205,556 | ||||
Restricted stock vested | $ 5 | (5) | |||
Restricted stock vested, shares | 20,915 | 50,579 | |||
Stock-based compensation | $ 642,961 | 642,961 | |||
Net loss | (7,624,785) | (7,624,785) | |||
Ending balance at Sep. 30, 2018 | $ 8,948,935 | $ 1,243 | $ 51,551,728 | $ (42,597,572) | $ (6,464) |
Ending balance, shares at Sep. 30, 2018 | 12,436,031 | 808 |
Condensed Statement of Change_2
Condensed Statement of Changes in Stockholders' Equity (Unaudited) (Parenthetical) | 9 Months Ended |
Sep. 30, 2018shares | |
Statement Of Stockholders Equity [Abstract] | |
Net withheld for employee taxes | 20,915 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Statement Of Cash Flows [Abstract] | |||
Net loss | $ (7,624,785) | $ (10,197,203) | |
Adjustments to reconcile net loss to net cash used in operations: | |||
Depreciation | 48,833 | 6,985 | |
Stock-based compensation | 642,961 | 238,222 | |
Bad debt expense | (16,275) | 29,775 | |
Amortization of debt discount | 17,765 | ||
Debt discount on convertible notes | 5,172,000 | ||
Excess and obsolete inventory reserve | 26,645 | 30,955 | |
Common stock issued for services | 30,000 | ||
Change in fair value of derivative liabilities | (31,278) | (64,366) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (39,510) | (141,203) | |
Inventories | (151,332) | (71,873) | |
Prepaid expenses and other | (332,591) | (313,542) | |
Accounts payable and other accrued expenses | 413,317 | 416,222 | |
Accrued interest | 233,283 | ||
Deferred revenue | (29,284) | 1,695 | |
Net cash used in operating activities | (7,093,299) | (4,611,285) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of equipment | (117,370) | (7,244) | |
Net cash used in investing activities | (117,370) | (7,244) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Payments of issuance costs | (117,273) | (111,719) | |
Net settlement of vested restricted stock units to fund related employee statutory tax withholding | (71,412) | ||
Proceeds from exercise of stock options | 2 | 26,954 | |
Proceeds from exercise of warrants | 3,556,391 | ||
Proceeds from IPO, net of offering costs | [1] | 4,368,315 | |
Proceeds from private placement, net of offering costs | 2,922,885 | ||
Proceeds from convertible promissory notes, net | 1,770,000 | ||
Repayment of note payable, MLSC | (196,992) | ||
Net cash provided by financing activities | 3,367,708 | 8,779,443 | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (3,842,961) | 4,160,914 | |
Cash, cash equivalents and restricted cash, beginning of period | 13,011,373 | 849,174 | |
Cash, cash equivalents and restricted cash, end of period | 9,168,412 | 5,010,088 | |
SUPPLEMENTAL DISCLOSURE CASH FLOW INFORMATION | |||
Cash paid during the period for interest | 79,037 | ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||
Inventory capitalized as sales demo equipment | $ 53,178 | ||
Exchange of 2015 convertible promissory notes for 2016 convertible promissory notes | 430,000 | ||
Accretion of convertible preferred stock to redemption value | 274,011 | ||
Conversion of accrued interest to principal | 21,916 | ||
Conversion of convertible preferred stock into common stock | 12,946,252 | ||
Conversion of convertible promissory notes and accrued interest into common stock | 5,467,389 | ||
Issuance of selling agent warrants in connection with IPO | 156,725 | ||
Deferred offering costs to additional paid-in capital upon IPO closing | [1] | 438,237 | |
IPO issuance costs included in accounts payable and accrued expense | $ 55,000 | ||
[1] | IPO gross proceeds of $4,991,236 are reduced by $622,921 of IPO offering costs that were incurred in 2017. Another $438,237 of IPO deferred offering costs were paid for in 2016. |
Condensed Statements of Cash _2
Condensed Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Cash Flows [Abstract] | ||
IPO gross proceeds | $ 4,991,236 | |
IPO offering costs | $ 622,921 | |
IPO deferred offering costs | $ 438,237 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | Note 1 — Description of Business Myomo Inc. (“Myomo” or the Company”) is a wearable medical robotics company that develops, designs, and produces myoelectric orthotics for people with neuromuscular disorders. The MyoPro ® myoelectric upper limb orthosis product is registered with the Food and Drug Administration as a Class II medical device. The Company sells its products to orthotics and prosthetics (O&P) providers, the Veterans Health Administration (VA), rehabilitation hospitals, and through distributors. Recently, the Company has begun selling directly to patients, utilizing the services of O&P providers for which they are paid a fee. The Company was incorporated in the State of Delaware on September 1, 2004 and is headquartered in Cambridge, Massachusetts. |
Going Concern and Management's
Going Concern and Management's Plan | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Going Concern And Management's Plan | Note 2 — Going Concern and Management’s Plan The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company incurred a net loss of approximately $7.6 million and $10.2 million during the nine months ended September 30, 2018 and 2017, respectively; On July 2, 2018, the Company filed a Registration Statement on Form S-3 (the “Shelf”) with the Securities and Exchange Commission in relation to the registration of common stock, preferred stock, warrants and/or units or any combination thereof the Company (collectively, the “Securities”) having an aggregate price of up to $75 million, subject to the limitations of the Shelf. The Company simultaneously entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley FBR, Inc., as sales agent, to provide for the offering, issuance and sale by the Company of up to an aggregate amount of $15 million of the Company’s common stock from time to time in “at-the-market” offerings under the Shelf and subject to the limitations thereof. The Company shall pay to the sales agent cash commissions of 3.0% of the gross proceeds of sales of common stock under the Sales Agreement. Management plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern are primarily focused on raising additional capital in order to meet its obligations and execute its business plan by pursuing its product development initiatives and penetrating markets for the sale of its products. Management believes that the Company has access to capital resources through possible public or private equity offerings, exercises of outstanding warrants, debt financings, or other means; however, the Company cannot provide any assurance that it will be able to raise additional capital or obtain new financing on commercially acceptable terms. If the Company is unable to secure additional capital, it may be required to curtail its operations or delay the execution of its business plan. There can be no assurance the Company will be successful in implementing its plans to alleviate substantial doubt. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3 — Summary of Significant Accounting Policies Interim Financial Statements The accompanying unaudited condensed financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These statements have been prepared in accordance with GAAP for interim financial information pursuant to Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) that are considered necessary for a fair presentation of the condensed financial statements of the Company as of September 30, 2018 and for the three and nine months ended September 30, 2018 and 2017. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the operating results for the full year ending December 31, 2018, or any other period. These condensed financial statements should be read in conjunction with the audited financial statements and related disclosures of the Company as of December 31, 2017 and 2016, and for the years then ended, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Reclassifications Certain prior period amounts included in the statement of cash flows for the nine months ending September 30, 2017 have been reclassified to conform to the current year’s presentation in accordance with ASU 2016-18. See “ Recent Accounting Pronouncements”. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates and assumptions are reviewed on an on-going basis and updated as appropriate. Actual results could differ from those estimates. The Company’s significant estimates include the allowance for doubtful accounts, deferred tax valuation allowances, warranty obligations and reserves for slow-moving and consigned inventory. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist principally of deposit accounts and money market accounts at September 30, 2018 and December 31, 2017. Restricted cash consists of cash deposited with a financial institution as collateral for Company employee credit cards. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the condensed balance sheets that sum to the total of the same amounts shown in the condensed statements of cash flows. September 30, 2018 December 31, 2017 Cash and cash equivalents $ 9,093,412 $ 12,959,373 Restricted cash 75,000 52,000 Total cash, cash equivalents, and restricted cash in the condensed balance sheet $ 9,168,412 $ 13,011,373 Equipment Equipment is stated at historical cost, net of accumulated depreciation and is depreciated using the straight-line method over the estimated useful lives of the related assets, generally three years. Expenditures for maintenance and repairs, which do not extend the economic useful life of the related assets, are charged to operations as incurred, and expenditures which extend the economic life, are capitalized. When assets are retired, or otherwise disposed of, the costs and related accumulated depreciation or amortization are removed from the accounts and any gain or loss on disposal is recognized. Demonstration units are sometimes provided to the Company’s indirect sales channel by the Company for marketing and patient evaluation purposes. These units are manufactured by the Company and are expensed in the statements of operations to selling, marketing and general administrative expense. During the three months ended September 30, 2018 and 2017, the Company charged to operations approximately $127,300 and $14,100 Test units represent units provided to research and development staff to use in their development process and to end users who are given free units to act as testers so that research and development staff can evaluate and understand the use by patients. A primary objective of these units is to determine when and under what conditions they fail, at which time they are analyzed for cause of failure and then scrapped. These units are recorded at cost in the statements of operations as part of research and development expense. During the three months ended September 30, 2018 and 2017, the Company charged to operations approximately $(3,700) and $4,300, respectively, of these units. During the nine months ended September 30, 2018 and 2017, the Company charged to operations approximately $15,500 and $23,900, respectively, of these units. Accounts Payable and Other Accrued Expenses: September 30, 2018 December 31, 2017 Trade payables $ 438,887 $ 264,890 Accrued compensation and benefits 916,766 642,425 Accrued directors fees 23,750 100,000 Other 311,150 269,921 $ 1,690,553 $ 1,277,236 Revenue Recognition The Company derives revenue primarily from the sale of its products to O&P providers, the VA, rehabilitation hospitals, and through distributors. Recently, the Company has begun selling directly to patients, utilizing the services of O&P providers for which they are paid a fee. The Company recognizes revenue upon shipment, provided that persuasive evidence of an arrangement exists, there are no uncertainties regarding customer acceptance, the sales price is fixed or determinable, and collectability is deemed probable. In certain cases, the Company ships the MyoPro device to O&P providers pending reimbursement from third party payors. As a result of this arrangement, elements of the revenue recognition criteria have not been met upon shipment of the MyoPro. The Company recognizes revenue when payment has been received, as all of the revenue recognition criteria has been met. The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of relief from certain reporting requirements and other burdens that are otherwise applicable generally to public companies. These provisions include an exemption from the adoption of new or revised financial accounting standards until they would apply to private companies. As such, we have delayed the adoption of Accounting Standards Codification (“ASC”) No. 606, Revenue from Contracts with Customers until January 1, 2019. The Company periodically receives federally-funded grants that require the Company to perform research activities as specified in each respective grant. The Company is paid based on the fees stipulated in the respective grants which approximate the projected costs to be incurred by the Company to perform such activities. The Company’s grant revenue is recognized when persuasive evidence of the arrangement exists, the service has been provided and adherence to specific parameters of the awarded grant have been met, the amount is fixed and determinable and collection is reasonable assured. The Company recognized approximately $19,150 and $112,800, respectively, of grant income in the nine months ended September 30, 2018 and 2017, respectively. Direct costs related to these grants are reported as a component of research and development costs in the statements of operations except for reimbursable costs which are reported as a component of cost of revenue in the statements of operations. Cost of revenue includes reimbursable costs of approximately $11,000 and $11,600, respectively, for the nine months ended September 30, 2018 and 2017. Amounts received in advance are deferred. Stock-Based Compensation The Company accounts for stock awards to employees by measuring the cost of services received in exchange for the award of equity instruments based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award. Prior to January 1, 2018, the Company calculated the fair value after estimated forfeitures. As of January 1, 2018, the Company elected to early adopt ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This update simplifies several aspects of the accounting for share-based payment awards, including forfeitures. Under this ASU, the Company elected to recognize forfeitures as they occur, rather than calculating an estimated forfeiture rate using a modified retrospective transition approach. This ASU requires that the cumulative effect of initially applying the standard to be recorded as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application. The cumulative-effect adjustment to accumulated deficit at January 1, 2018 was immaterial. Options and warrants granted to consultants and other non-employees are recorded at fair value as of the grant date and subsequently adjusted to fair value at the end of each reporting period until such options and warrants vest, and the fair value of such instruments, as adjusted, is expensed over the related vesting period. Stock-based compensation expense of approximately $643,000 and $238,200 was recorded in operating expenses in the nine months ended September 30, 2018 and 2017, respectively. Net Loss per Share Basic loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding, plus potentially dilutive common shares. Convertible debt, preferred stock, restricted stock, restricted stock units, stock options and warrants are excluded from the diluted net loss per share calculation when their impact is antidilutive. The Company reported a net loss for the three and nine months ended September 30, 2018 and 2017, and as a result, all potentially dilutive common shares are considered antidilutive for these periods. Potential common shares issuable consist of the following at: September 30, 2018 2017 Stock options 626,619 250,160 Restricted stock units 43,751 — Restricted stock 48,707 44,500 Stock warrants 5,071,887 1,427,493 Total 5,790,964 1,722,153 Recent Accounting Pronouncements Revenue Related Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in ASC 605 — Revenue Recognition and most industry-specific guidance throughout the ASC. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. To allow entities additional time to implement systems, gather data and resolve implementation questions, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, in August 2015, to defer the effective date of ASU No. 2014-09 for one year, which is fiscal years beginning after December 15, 2017. In addition, the FASB issued ASU 2016-08 in March 2016, to help provide interpretive clarifications on the new guidance in ASC Topic 606. The Company is currently evaluating the accounting, transition, and disclosure requirements of the standard to determine the impact, if any, on its financial statements. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers—Principal versus Agent Considerations.” This update provides clarifying guidance regarding the application of ASU No. 2014-09 — Revenue from Contracts with Customers when another party, along with the reporting entity, is involved in providing a good or a service to a customer. In these circumstances, an entity is required to determine whether the nature of its promise is to provide that good or service to the customer (that is, the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an agent). The amendments in the update clarify the implementation guidance on principal versus agent considerations. The update is effective, along with ASU 2014-09, for annual and interim periods beginning after December 15, 2017. ASU 2016-08 is not expected to have a material impact on the financial statements or disclosures. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2016-12”). ASU 2016-12 provides clarifying guidance in a few narrow areas and adds some practical expedients to the guidance. The effective date and transition requirements for this ASU are the same as the effective date and transition requirements for ASU 2014-09. The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of relief from certain reporting requirements and other burdens that are otherwise applicable generally to public companies. These provisions include an exemption from the adoption of new or revised financial accounting standards until they would apply to private companies. As such, the Company has delayed the adoption of Accounting Standards Codification (“ASC”) No. 606, Revenue from Contracts with Customers until January 1, 2019. Other Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases. ASU 2016-02 will also require new qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating ASU 2016-02 and its impact on its financial statements. As an emerging growth company, the Company expects to delay adoption of ASU 2016-02 until January 1, 2020. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This update simplifies several aspects of the accounting for share-based payment awards, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The update is effective for fiscal years beginning after December 15, 2017, including interim periods. The Company adopted this standard effective January 1, 2018, using a modified retrospective transition approach, which requires that the cumulative effect of initially applying the standard to be recorded as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application. The Company elected to no longer calculate an estimate of expected forfeitures and begin recognizing forfeitures as they occur. The cumulative-effect adjustment to accumulated deficit at January 1, 2018 was immaterial. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which addresses the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows with respect to eight specific cash flow issues. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The amendments should be applied using a retrospective transition method to each period presented, if practical. The Company has adopted this standard and the adoption of this standard did not have a material impact on its financial statements or disclosures. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force)”, which clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, and as a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted and the new guidance must be applied retroactively to all periods presented. The adoption of this standard did not have a material impact to the financial statements or disclosures. In May 2017, the FASB issued ASU No. 2017-09, Compensation — Stock Compensation (Topic 718); Scope of Modification Accounting. The amendments in this ASU provide guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. If the value, vesting conditions or classification of the award changes, modification accounting will apply. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of this standard did not have a material impact to the financial statements or disclosures. In September 2017, the FASB issued ASU No. 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments” that enhances the guidance surrounding sale leaseback transactions, accounting for taxes on leveraged leases and leases with third party value. The related amendments to the Topics described above become effective on the same schedule as Topics 605, 606, 840 and 842. In June 2018, the FASB issued ASU No. 2018-07, “Compensation-Stock Comp, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”. The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The ASU also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Revenue from Contracts with Customers (Topic 606). The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company is currently evaluating the accounting, transition, and disclosure requirements of the standard to determine the impact, if any, on its financial statements. 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”. The ASU requires application of the prospective method of transition (for only the most recent interim or annual period presented in the initial fiscal year of adoption) to the new disclosure requirements for (1) changes in unrealized gains and losses included in OCI and (2) the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The ASU also requires prospective application to any modifications to disclosures made because of the change to the requirements for the narrative description of measurement uncertainty. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. The Company is currently evaluating the accounting, transition, and disclosure requirements of the standard to determine the impact, if any, on its financial statements. Subsequent Events The Company evaluated subsequent events through the date the financial statements were issued, and determined that, except as disclosed herein, there have been no subsequent events that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 — Inventories Inventories consist of the following at: September 30, 2018 December 31, 2017 Finished goods $ 198,036 $ 122,000 Consigned inventory 122,205 97,980 Parts and components 21,423 23,530 341,664 243,510 Less: excess and obsolete inventory reserves (24,000 ) (23,739 ) Less: consigned inventory reserves (45,000 ) (18,616 ) Inventories, net $ 272,664 $ 201,155 Consigned inventory represents products that have been delivered for which the Company does not have the right to bill. At September 30, 2018 and December 31, 2017, the Company recorded consigned inventory reserves for units that will not be sold based on historical experience. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 5 — Fair Value of Financial Instruments The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and establishes disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices available in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quotable prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar valuation techniques that use significant unobservable inputs. The carrying amounts of the Company’s financial instruments such as cash and cash equivalents, restricted cash, accounts receivable and accounts payable, approximate fair value due to the short-term nature of these instruments. Cash equivalents are a money market fund that limits its investments to only short-term U.S. Treasury securities and repurchase agreements related to these securities. Cash equivalents and derivative liabilities measured at fair value on a recurring basis at September 30, 2018 were as follows: In Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2018 Total Cash equivalents $ 8,602,345 — — $ 8,602,345 Common stock warrant liabilities — — $ 8,652 $ 8,652 The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value during the nine months ended September 30, 2018: Common stock warrant liability Balance – January 1, 2018 $ 39,930 Change in fair value of derivative liabilities (31,278 ) Balance – September 30, 2018 $ 8,652 Assumptions utilized in the valuation of Level 3 liabilities, for the nine months ended September 30, 2018, were as follows: Risk-free interest rate 2.94% Expected life 3.69 years Expected volatility of underlying stock 61.68% Expected dividend yield — The expected stock price volatility for the Company’s common stock warrant liabilities was determined by the historical volatilities for industry peers and used an average of those volatilities. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. The expected term used is the contractual life of the instrument being valued. The expected dividend yield was not considered in the valuation of the common stock liabilities as the Company has never paid, nor has the intention to pay, cash dividends. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Common Stock | Note 6 — Common Stock During the nine months ended September 30, 2018, 50,579 restricted stock grants vested and 39,057 (net of 20,915 shares withheld for employee taxes) of restricted stock units vested. |
Treasury Stock
Treasury Stock | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Treasury Stock | Note 7 — Treasury Stock Treasury stock is reported at cost and consists of 808 shares of common stock as of September 30, 2018 and December 31, 2017, respectively. |
Stock Award Plans and Stock-bas
Stock Award Plans and Stock-based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Award Plans and Stock-based Compensation | Note 8 — Stock Award Plans and Stock-based Compensation Stock Option Awards The Company uses the Black-Scholes option pricing model to estimate the grant date fair value of its stock options. There was no income tax benefit recognized in the financial statements for share-based compensation arrangements for the nine months ended September 30, 2018 and 2017. The assumptions underlying the calculation of grant date fair value per share are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Number of options granted 41,000 22,000 278,000 91,600 Volatility 60%-61% 63.92 % 60%-62% 64%-80% Risk-free interest rate 2.73%-2.78% 1.92 % 2.73%-3.04% .58%-2.07% Weighted-average expected option term (in years) 6.25 6.25 6.25-9.92 5.50-6.25 Dividend yield — % — % — % — % Weighted-average fair value per share of grants 1.43 6.75 2.02 2.42 The stock price volatility for the Company’s options was determined using historical volatilities for industry peers. The risk-free interest rate was derived from U.S. Treasury rates existing on the date of grant for the applicable expected option term. The expected term represents the period of time that options are expected to be outstanding. Because the Company has only very limited historical exercise behavior, it determines the expected life assumption using the simplified method, which is an average of the contractual term of the option and its ordinary vesting period. The expected dividend yield assumption is based on the fact that the Company has never paid, nor has any intention to pay, cash dividends. On June 19, 2018, the Company’s Shareholders and the Board of Directors approved the Myomo, Inc. 2018 Stock Options and Incentive Plan (the “2018 Plan”). The number of shares of common stock available for awards under the 2018 Plan is equal to 706,119 shares which carries over the remaining 86,119 shares available for grant under the 2016 Plan on April 1, 2018 and increases the share reserve by 620,000 shares, plus on January 1, 2019 and each January 1 thereafter, the number of shares of common stock reserved and available for issuance under the 2018 Plan will be cumulatively increased by 4% of the number shares of common stock outstanding on the immediately preceding December 31 or such lesser number of shares of common stock determined by management in consultation with members of the Board of Directors, including the compensation committee. On January 3, 2018, the Company issued 15,228 fully vested shares of restricted stock to non-employee members of the Company’s board of directors. The Company recorded a compensation expense for these shares in the amount of $60,000 in the three months ended March 31, 2018. On June 19, 2018, the Company issued 39,864 shares of restricted stock units to non-employee members of the Company’s board of directors. The Company determined the fair value of the units based on the closing price of the Company’s common stock on the grant date. The compensation expense is being amortized over the respective vesting periods. The restricted stock units become fully vested on June 30, 2019. On July 9, 2018, the Company announced the hiring of a Chief Commercial Officer and pursuant to his employment agreement, the Company made the following grants for equity compensation to the Chief Commercial Officer: • 30,000 Incentive Stock Options which vest 25% on the first anniversary of July 9, 2018 grant date, and thereafter in 36 equal monthly installments, subject to continuous service with the Company; • 5,000 Restricted Stock Units, which vest in full on the first anniversary of the July 9, 2018 grant date, subject to continuous service with the Company; and • 10,000 Restricted Stock Units which vest 25% on the first anniversary of the July 9, 2018 grant date, and thereafter in 36 equal monthly installments, subject to continuous service with the Company. During the first three months of 2018, the Company granted 88,723 restricted stock units to key employees. They were issued with lapsing forfeiture rights extending up to 24 months. At June 30, 2018, 34,375 restricted stock units were subject to forfeiture. The Company determined the fair value of the units based on the closing price of the Company’s common stock on the grant date. The compensation expense is being amortized over the respective vesting periods. The Company recorded a charge in the amount of $221,310 for the nine months ended September 30, 2018. Awards of restricted stock units are generally net share settled upon vesting to cover the required employee statutory withholding taxes and the remaining amount is converted into shares based upon their share-value on the date the award vests. These payments of employee withholding taxes are presented in the statements of cash flows as a financing activity. Share-Based Compensation Expense The Company attributes the value of stock-based compensation to operations on the straight-line method such that the expense associated with awards is evenly recognized over the vesting period. The Company recognized stock-based compensation expense related to the issuance of stock option awards to employees and non-employees, restricted stock awards to employees and directors, and restricted stock units to employees, in the statements of operations as follow: September 30, 2018 2017 Research and development $ 77,528 $ 3,274 Selling, general and administrative 565,433 234,948 Total $ 642,961 $ 238,222 As of September 30, 2018, there was approximately $580,900 As of September 30, 2018, there was approximately $208,800 of unrecognized compensation cost related to unvested restricted stock awards that is expected to be recognized over a weighted-average period of 1.54 years. As of September 30, 2018, there was approximately $108,000 unrecognized compensation expense related to unvested restricted stock units that is expected to be recognized over a weighted-average period of 1.27 years. |
Warrants
Warrants | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Warrants | Note 9 — Warrants During the nine months ended September 30, 2018, 1,205,556 of the warrants issued in the Company’s follow-on public offering on December 4, 2017, were exercised for aggregate proceeds to the Company of $3,556,400. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 — Related Party Transactions The Company sells its products to an orthotics and prosthetics practice whose ownership includes an individual who is both a shareholder and executive officer of the Company. Sales to this related party are sold at standard list prices. During the nine months ended September 30, 2018 and 2017, revenue recognized on sales to this orthotics and prosthetics practice amounted to approximately $336,700 and $102,000, respectively. Included in accounts receivable at September 30, 2018 and December 31, 2017 is approximately $51,800 and $77,600, respectively, due from the related party. The Company also obtains consulting and fabrication services from the same related party. Charges for these services amounted to approximately $397,300 and $214,000 during the nine months ended September 30, 2018 and 2017, respectively. Included in accounts payable and accrued expenses at September 30, 2018 and December 31,2017 is approximately $79,900 and $65,800, respectively, due to the related party. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 — Commitments and Contingencies Litigation In the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising from the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Currently, there is no litigation against the Company. Clinical Research Studies The Company has in-process contracts with various universities and a research hospital to conduct clinical research studies in 2018 to enhance the Company’s products, increase the body of evidence to support prescribing and reimbursing the Company’s devices, and to grow its range of product offerings. At September 30, 2018, there are no remaining expenses expected to be incurred Warranty Liability During the three months ended September 30, 2018 and 2017, warranty expense amounted to $18,900 and $12,900, respectively. During the nine months ended September 30, 2018 and 2017, warranty expense amounted to $56,900 and $28,000, respectively. Major Customers For the nine months ended September 30, 2018, one customer accounted for approximately 23% (23%-$336,700 related party-Note 10) For the nine months ended September 30, 2017, three customers accounted for approximately 55% (29%-$258,200; 15%-$130,600; 11%-$101,700 [related party]) of revenues, excluding grant income. At September 30, 2018, two customers accounted for approximately 32% (15%-$51,800 [related party-Note 10] and 17%-$60,400) of accounts receivable. At December 31, 2017, three customers accounted for approximately 55% (26%-$77,640 [related party-Note 10]; 18%-$52,200; and 11%-$32,700) of accounts receivable. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 — Subsequent Events The Company evaluated subsequent events through the date the financial statements were issued, and determined that, except as disclosed herein, there have been no subsequent events that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements The accompanying unaudited condensed financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These statements have been prepared in accordance with GAAP for interim financial information pursuant to Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) that are considered necessary for a fair presentation of the condensed financial statements of the Company as of September 30, 2018 and for the three and nine months ended September 30, 2018 and 2017. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the operating results for the full year ending December 31, 2018, or any other period. These condensed financial statements should be read in conjunction with the audited financial statements and related disclosures of the Company as of December 31, 2017 and 2016, and for the years then ended, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. |
Reclassifications | Reclassifications Certain prior period amounts included in the statement of cash flows for the nine months ending September 30, 2017 have been reclassified to conform to the current year’s presentation in accordance with ASU 2016-18. See “ Recent Accounting Pronouncements”. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates and assumptions are reviewed on an on-going basis and updated as appropriate. Actual results could differ from those estimates. The Company’s significant estimates include the allowance for doubtful accounts, deferred tax valuation allowances, warranty obligations and reserves for slow-moving and consigned inventory. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist principally of deposit accounts and money market accounts at September 30, 2018 and December 31, 2017. Restricted cash consists of cash deposited with a financial institution as collateral for Company employee credit cards. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the condensed balance sheets that sum to the total of the same amounts shown in the condensed statements of cash flows. September 30, 2018 December 31, 2017 Cash and cash equivalents $ 9,093,412 $ 12,959,373 Restricted cash 75,000 52,000 Total cash, cash equivalents, and restricted cash in the condensed balance sheet $ 9,168,412 $ 13,011,373 |
Equipment | Equipment Equipment is stated at historical cost, net of accumulated depreciation and is depreciated using the straight-line method over the estimated useful lives of the related assets, generally three years. Expenditures for maintenance and repairs, which do not extend the economic useful life of the related assets, are charged to operations as incurred, and expenditures which extend the economic life, are capitalized. When assets are retired, or otherwise disposed of, the costs and related accumulated depreciation or amortization are removed from the accounts and any gain or loss on disposal is recognized. Demonstration units are sometimes provided to the Company’s indirect sales channel by the Company for marketing and patient evaluation purposes. These units are manufactured by the Company and are expensed in the statements of operations to selling, marketing and general administrative expense. During the three months ended September 30, 2018 and 2017, the Company charged to operations approximately $127,300 and $14,100 Test units represent units provided to research and development staff to use in their development process and to end users who are given free units to act as testers so that research and development staff can evaluate and understand the use by patients. A primary objective of these units is to determine when and under what conditions they fail, at which time they are analyzed for cause of failure and then scrapped. These units are recorded at cost in the statements of operations as part of research and development expense. During the three months ended September 30, 2018 and 2017, the Company charged to operations approximately $(3,700) and $4,300, respectively, of these units. During the nine months ended September 30, 2018 and 2017, the Company charged to operations approximately $15,500 and $23,900, respectively, of these units. Accounts Payable and Other Accrued Expenses: September 30, 2018 December 31, 2017 Trade payables $ 438,887 $ 264,890 Accrued compensation and benefits 916,766 642,425 Accrued directors fees 23,750 100,000 Other 311,150 269,921 $ 1,690,553 $ 1,277,236 |
Revenue Recognition | Revenue Recognition The Company derives revenue primarily from the sale of its products to O&P providers, the VA, rehabilitation hospitals, and through distributors. Recently, the Company has begun selling directly to patients, utilizing the services of O&P providers for which they are paid a fee. The Company recognizes revenue upon shipment, provided that persuasive evidence of an arrangement exists, there are no uncertainties regarding customer acceptance, the sales price is fixed or determinable, and collectability is deemed probable. In certain cases, the Company ships the MyoPro device to O&P providers pending reimbursement from third party payors. As a result of this arrangement, elements of the revenue recognition criteria have not been met upon shipment of the MyoPro. The Company recognizes revenue when payment has been received, as all of the revenue recognition criteria has been met. The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of relief from certain reporting requirements and other burdens that are otherwise applicable generally to public companies. These provisions include an exemption from the adoption of new or revised financial accounting standards until they would apply to private companies. As such, we have delayed the adoption of Accounting Standards Codification (“ASC”) No. 606, Revenue from Contracts with Customers until January 1, 2019. The Company periodically receives federally-funded grants that require the Company to perform research activities as specified in each respective grant. The Company is paid based on the fees stipulated in the respective grants which approximate the projected costs to be incurred by the Company to perform such activities. The Company’s grant revenue is recognized when persuasive evidence of the arrangement exists, the service has been provided and adherence to specific parameters of the awarded grant have been met, the amount is fixed and determinable and collection is reasonable assured. The Company recognized approximately $19,150 and $112,800, respectively, of grant income in the nine months ended September 30, 2018 and 2017, respectively. Direct costs related to these grants are reported as a component of research and development costs in the statements of operations except for reimbursable costs which are reported as a component of cost of revenue in the statements of operations. Cost of revenue includes reimbursable costs of approximately $11,000 and $11,600, respectively, for the nine months ended September 30, 2018 and 2017. Amounts received in advance are deferred. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock awards to employees by measuring the cost of services received in exchange for the award of equity instruments based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award. Prior to January 1, 2018, the Company calculated the fair value after estimated forfeitures. As of January 1, 2018, the Company elected to early adopt ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This update simplifies several aspects of the accounting for share-based payment awards, including forfeitures. Under this ASU, the Company elected to recognize forfeitures as they occur, rather than calculating an estimated forfeiture rate using a modified retrospective transition approach. This ASU requires that the cumulative effect of initially applying the standard to be recorded as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application. The cumulative-effect adjustment to accumulated deficit at January 1, 2018 was immaterial. Options and warrants granted to consultants and other non-employees are recorded at fair value as of the grant date and subsequently adjusted to fair value at the end of each reporting period until such options and warrants vest, and the fair value of such instruments, as adjusted, is expensed over the related vesting period. Stock-based compensation expense of approximately $643,000 and $238,200 was recorded in operating expenses in the nine months ended September 30, 2018 and 2017, respectively. |
Net Loss per Share | Net Loss per Share Basic loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding, plus potentially dilutive common shares. Convertible debt, preferred stock, restricted stock, restricted stock units, stock options and warrants are excluded from the diluted net loss per share calculation when their impact is antidilutive. The Company reported a net loss for the three and nine months ended September 30, 2018 and 2017, and as a result, all potentially dilutive common shares are considered antidilutive for these periods. Potential common shares issuable consist of the following at: September 30, 2018 2017 Stock options 626,619 250,160 Restricted stock units 43,751 — Restricted stock 48,707 44,500 Stock warrants 5,071,887 1,427,493 Total 5,790,964 1,722,153 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue Related Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in ASC 605 — Revenue Recognition and most industry-specific guidance throughout the ASC. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. To allow entities additional time to implement systems, gather data and resolve implementation questions, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, in August 2015, to defer the effective date of ASU No. 2014-09 for one year, which is fiscal years beginning after December 15, 2017. In addition, the FASB issued ASU 2016-08 in March 2016, to help provide interpretive clarifications on the new guidance in ASC Topic 606. The Company is currently evaluating the accounting, transition, and disclosure requirements of the standard to determine the impact, if any, on its financial statements. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers—Principal versus Agent Considerations.” This update provides clarifying guidance regarding the application of ASU No. 2014-09 — Revenue from Contracts with Customers when another party, along with the reporting entity, is involved in providing a good or a service to a customer. In these circumstances, an entity is required to determine whether the nature of its promise is to provide that good or service to the customer (that is, the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an agent). The amendments in the update clarify the implementation guidance on principal versus agent considerations. The update is effective, along with ASU 2014-09, for annual and interim periods beginning after December 15, 2017. ASU 2016-08 is not expected to have a material impact on the financial statements or disclosures. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2016-12”). ASU 2016-12 provides clarifying guidance in a few narrow areas and adds some practical expedients to the guidance. The effective date and transition requirements for this ASU are the same as the effective date and transition requirements for ASU 2014-09. The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of relief from certain reporting requirements and other burdens that are otherwise applicable generally to public companies. These provisions include an exemption from the adoption of new or revised financial accounting standards until they would apply to private companies. As such, the Company has delayed the adoption of Accounting Standards Codification (“ASC”) No. 606, Revenue from Contracts with Customers until January 1, 2019. Other Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases. ASU 2016-02 will also require new qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating ASU 2016-02 and its impact on its financial statements. As an emerging growth company, the Company expects to delay adoption of ASU 2016-02 until January 1, 2020. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This update simplifies several aspects of the accounting for share-based payment awards, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The update is effective for fiscal years beginning after December 15, 2017, including interim periods. The Company adopted this standard effective January 1, 2018, using a modified retrospective transition approach, which requires that the cumulative effect of initially applying the standard to be recorded as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application. The Company elected to no longer calculate an estimate of expected forfeitures and begin recognizing forfeitures as they occur. The cumulative-effect adjustment to accumulated deficit at January 1, 2018 was immaterial. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which addresses the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows with respect to eight specific cash flow issues. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The amendments should be applied using a retrospective transition method to each period presented, if practical. The Company has adopted this standard and the adoption of this standard did not have a material impact on its financial statements or disclosures. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force)”, which clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, and as a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted and the new guidance must be applied retroactively to all periods presented. The adoption of this standard did not have a material impact to the financial statements or disclosures. In May 2017, the FASB issued ASU No. 2017-09, Compensation — Stock Compensation (Topic 718); Scope of Modification Accounting. The amendments in this ASU provide guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. If the value, vesting conditions or classification of the award changes, modification accounting will apply. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of this standard did not have a material impact to the financial statements or disclosures. In September 2017, the FASB issued ASU No. 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments” that enhances the guidance surrounding sale leaseback transactions, accounting for taxes on leveraged leases and leases with third party value. The related amendments to the Topics described above become effective on the same schedule as Topics 605, 606, 840 and 842. In June 2018, the FASB issued ASU No. 2018-07, “Compensation-Stock Comp, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”. The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The ASU also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Revenue from Contracts with Customers (Topic 606). The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company is currently evaluating the accounting, transition, and disclosure requirements of the standard to determine the impact, if any, on its financial statements. 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”. The ASU requires application of the prospective method of transition (for only the most recent interim or annual period presented in the initial fiscal year of adoption) to the new disclosure requirements for (1) changes in unrealized gains and losses included in OCI and (2) the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The ASU also requires prospective application to any modifications to disclosures made because of the change to the requirements for the narrative description of measurement uncertainty. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. The Company is currently evaluating the accounting, transition, and disclosure requirements of the standard to determine the impact, if any, on its financial statements. |
Subsequent Events | Subsequent Events The Company evaluated subsequent events through the date the financial statements were issued, and determined that, except as disclosed herein, there have been no subsequent events that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the condensed balance sheets that sum to the total of the same amounts shown in the condensed statements of cash flows. September 30, 2018 December 31, 2017 Cash and cash equivalents $ 9,093,412 $ 12,959,373 Restricted cash 75,000 52,000 Total cash, cash equivalents, and restricted cash in the condensed balance sheet $ 9,168,412 $ 13,011,373 |
Summary of Accounts Payable and Other Accrued Expenses | Accounts Payable and Other Accrued Expenses: September 30, 2018 December 31, 2017 Trade payables $ 438,887 $ 264,890 Accrued compensation and benefits 916,766 642,425 Accrued directors fees 23,750 100,000 Other 311,150 269,921 $ 1,690,553 $ 1,277,236 |
Summary of Potential Common Shares Issuable | Potential common shares issuable consist of the following at: September 30, 2018 2017 Stock options 626,619 250,160 Restricted stock units 43,751 — Restricted stock 48,707 44,500 Stock warrants 5,071,887 1,427,493 Total 5,790,964 1,722,153 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following at: September 30, 2018 December 31, 2017 Finished goods $ 198,036 $ 122,000 Consigned inventory 122,205 97,980 Parts and components 21,423 23,530 341,664 243,510 Less: excess and obsolete inventory reserves (24,000 ) (23,739 ) Less: consigned inventory reserves (45,000 ) (18,616 ) Inventories, net $ 272,664 $ 201,155 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Cash Equivalents and Derivative Liabilities Measured at Fair Value on Recurring Basis | Cash equivalents and derivative liabilities measured at fair value on a recurring basis at September 30, 2018 were as follows: In Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2018 Total Cash equivalents $ 8,602,345 — — $ 8,602,345 Common stock warrant liabilities — — $ 8,652 $ 8,652 |
Schedule of Fair Value Reconciliation of Level 3 Liabilities Measured | The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value during the nine months ended September 30, 2018: Common stock warrant liability Balance – January 1, 2018 $ 39,930 Change in fair value of derivative liabilities (31,278 ) Balance – September 30, 2018 $ 8,652 |
Significant Unobservable Inputs (Level 3) [Member] | |
Schedule of Fair Value Assumptions | Assumptions utilized in the valuation of Level 3 liabilities, for the nine months ended September 30, 2018, were as follows: Risk-free interest rate 2.94% Expected life 3.69 years Expected volatility of underlying stock 61.68% Expected dividend yield — |
Stock Award Plans and Stock-b_2
Stock Award Plans and Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Grant Date Fair Value Per Share | The assumptions underlying the calculation of grant date fair value per share are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Number of options granted 41,000 22,000 278,000 91,600 Volatility 60%-61% 63.92 % 60%-62% 64%-80% Risk-free interest rate 2.73%-2.78% 1.92 % 2.73%-3.04% .58%-2.07% Weighted-average expected option term (in years) 6.25 6.25 6.25-9.92 5.50-6.25 Dividend yield — % — % — % — % Weighted-average fair value per share of grants 1.43 6.75 2.02 2.42 |
Schedule of Stock-based Compensation Expense | The Company recognized stock-based compensation expense related to the issuance of stock option awards to employees and non-employees, restricted stock awards to employees and directors, and restricted stock units to employees, in the statements of operations as follow: September 30, 2018 2017 Research and development $ 77,528 $ 3,274 Selling, general and administrative 565,433 234,948 Total $ 642,961 $ 238,222 |
Going Concern and Management'_2
Going Concern and Management's Plan - Additional Information (Detail) - USD ($) | Jul. 02, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Going Concern And Managements Liquidity Plan [Line Items] | ||||||
Net loss | $ 2,649,822 | $ 1,258,949 | $ 7,624,785 | $ 10,197,203 | ||
Accumulated deficit | $ 42,597,572 | 42,597,572 | $ 34,972,787 | |||
Cash used in operating activities | $ 7,093,299 | $ 4,611,285 | ||||
Maximum [Member] | ||||||
Going Concern And Managements Liquidity Plan [Line Items] | ||||||
Aggregate public offering price | $ 75,000,000 | |||||
Maximum [Member] | Sales Agreement with B. Riley FBR, Inc. [Member] | ||||||
Going Concern And Managements Liquidity Plan [Line Items] | ||||||
At-the-market offering price | $ 15,000,000 | |||||
At-the-market offering, agent's commission as percent | 3.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 9,093,412 | $ 12,959,373 |
Restricted cash | 75,000 | 52,000 |
Total cash, cash equivalents, and restricted cash in the condensed balance sheet | $ 9,168,412 | $ 13,011,373 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Equipment estimated useful lives | 3 years | |||
Reimbursable costs | $ 11,000 | $ 11,600 | ||
Stock-based compensation expense | 642,961 | 238,222 | ||
Grant Income [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Grant income recognized | 19,150 | 112,800 | ||
Selling, General and Administrative Expenses [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Demonstration units, expenses | $ 127,300 | $ 14,100 | 226,800 | 17,100 |
Stock-based compensation expense | 565,433 | 234,948 | ||
Research and Development Expense [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Test units, expenses | $ (3,700) | $ 4,300 | 15,500 | 23,900 |
Stock-based compensation expense | $ 77,528 | $ 3,274 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Accounts Payable and Other Accrued Expenses (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 438,887 | $ 264,890 |
Accrued compensation and benefits | 916,766 | 642,425 |
Accrued directors fees | 23,750 | 100,000 |
Other | 311,150 | 269,921 |
Total | $ 1,690,553 | $ 1,277,236 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Potential Common Shares Issuable (Detail) - shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 5,790,964 | 1,722,153 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 43,751 | |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 48,707 | 44,500 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 626,619 | 250,160 |
Warrants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 5,071,887 | 1,427,493 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 198,036 | $ 122,000 |
Consigned inventory | 122,205 | 97,980 |
Parts and components | 21,423 | 23,530 |
Total cost | 341,664 | 243,510 |
Less: excess and obsolete inventory reserves | (24,000) | (23,739) |
Less: consigned inventory reserves | (45,000) | (18,616) |
Inventories, net | $ 272,664 | $ 201,155 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Cash Equivalents and Derivative Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 8,602,345 | |
Common stock warrant liabilities | 8,652 | $ 39,930 |
In Active Markets for Identical Assets or Liabilities (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 8,602,345 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Common stock warrant liabilities | $ 8,652 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Fair Value Reconciliation of Level 3 Liabilities Measured (Detail) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |
Beginning balance | $ 39,930 |
Change in fair value of derivative liabilities | (31,278) |
Ending balance | $ 8,652 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Assumptions Utilized in Valuation of Level 3 Liabilities (Detail) | Sep. 30, 2018 |
Risk Free Interest Rate [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Common stock warrant liabilities, measurement input | 2.94 |
Expected Life [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Expected life | 3 years 8 months 8 days |
Expected Volatility of Underlying Stock [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Common stock warrant liabilities, measurement input | 61.68 |
Expected Dividend Yield [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Common stock warrant liabilities, measurement input | 0 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018shares | |
Class of Stock [Line Items] | |
Shares withheld for employee taxes | 20,915 |
Restricted Stock [Member] | |
Class of Stock [Line Items] | |
Number of shares, Vested | 50,579 |
Restricted Stock Units (RSUs) [Member] | |
Class of Stock [Line Items] | |
Number of shares, Vested | 39,057 |
Shares withheld for employee taxes | 20,915 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - shares | Sep. 30, 2018 | Dec. 31, 2017 |
Treasury Stock Shares [Abstract] | ||
Treasury stock, common, shares | 808 | 808 |
Stock Award Plans and Stock-b_3
Stock Award Plans and Stock-based Compensation - Additional Information (Detail) | Jul. 09, 2018Installmentshares | Jun. 30, 2018shares | Jun. 19, 2018shares | Jan. 03, 2018shares | Mar. 31, 2018USD ($)shares | Sep. 30, 2018USD ($)shares | Sep. 30, 2017USD ($) | Jan. 01, 2019shares | Apr. 01, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Income tax benefit recognized | $ | $ 0 | $ 0 | |||||||
Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock, vested | 50,579 | ||||||||
Unrecognized compensation cost | $ | $ 208,800 | ||||||||
Weighted-average remaining contractual term | 1 year 6 months 14 days | ||||||||
Restricted Stock [Member] | Non-employee Members of Board of Directors [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock, granted | 39,864 | 15,228 | |||||||
Compensation expense | $ | $ 60,000 | ||||||||
Incentive Stock Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares vested | 30,000 | ||||||||
Vesting percentage | 25.00% | ||||||||
Number of monthly installments for vesting | Installment | 36 | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock, granted | 88,723 | ||||||||
Compensation expense | $ | $ 221,310 | ||||||||
Restricted stock, vested | 39,057 | ||||||||
Provisions for lapsing forfeiture rights extended period | 24 months | ||||||||
Restricted Stock Units subject to forfeiture | 34,375 | ||||||||
Unrecognized compensation cost | $ | $ 108,000 | ||||||||
Weighted-average remaining contractual term | 1 year 3 months 7 days | ||||||||
Restricted Stock Units (RSUs) [Member] | Vest in Full on the First Anniversary [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock, vested | 5,000 | ||||||||
Restricted Stock Units (RSUs) [Member] | Vest 25% on the First Anniversary [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 25.00% | ||||||||
Number of monthly installments for vesting | Installment | 36 | ||||||||
Restricted stock, vested | 10,000 | ||||||||
Employee Stock Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation cost | $ | $ 580,900 | ||||||||
Weighted-average remaining contractual term | 1 year 11 months 23 days | ||||||||
2018 Stock Options and Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares of common stock available for grant | 706,119 | ||||||||
Percentage increase in number of shares of common stock reserved and available for issuance | 4.00% | ||||||||
2018 Stock Options and Incentive Plan [Member] | Subsequent Event [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of common shares reserved for issuance | 620,000 | ||||||||
2016 Equity Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares of common stock available for grant | 86,119 |
Stock Award Plans and Stock-b_4
Stock Award Plans and Stock-based Compensation - Schedule of Grant Date Fair Value Per Share (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Option Indexed to Issuer's Equity [Line Items] | ||||
Number of options granted | 41,000 | 22,000 | 278,000 | 91,600 |
Volatility | 63.92% | |||
Risk-free interest rate | 1.92% | |||
Weighted-average expected option term (in years) | 6 years 3 months | 6 years 3 months | ||
Weighted-average fair value per share of grants | $ 1.43 | $ 6.75 | $ 2.02 | $ 2.42 |
Minimum [Member] | ||||
Option Indexed to Issuer's Equity [Line Items] | ||||
Volatility | 60.00% | 60.00% | 64.00% | |
Risk-free interest rate | 2.73% | 2.73% | 0.58% | |
Weighted-average expected option term (in years) | 6 years 3 months | 5 years 6 months | ||
Maximum [Member] | ||||
Option Indexed to Issuer's Equity [Line Items] | ||||
Volatility | 61.00% | 62.00% | 80.00% | |
Risk-free interest rate | 2.78% | 3.04% | 2.07% | |
Weighted-average expected option term (in years) | 9 years 11 months 1 day | 6 years 3 months |
Stock Award Plans and Stock-b_5
Stock Award Plans and Stock-based Compensation - Schedule of Stock-based Compensation Expense (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | $ 642,961 | $ 238,222 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | 77,528 | 3,274 |
Selling, General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | $ 565,433 | $ 234,948 |
Warrants - Additional Informati
Warrants - Additional Information (Detail) - USD ($) | Dec. 04, 2017 | Sep. 30, 2018 |
Class Of Warrant Or Right [Line Items] | ||
Proceeds from warrants exercised | $ 3,556,391 | |
FPO [Member] | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants issued | 1,205,556 | |
Proceeds from warrants exercised | $ 3,556,400 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |||
Revenue recognized from related party | $ 336,700 | $ 102,000 | |
Accounts receivable | 51,800 | $ 77,600 | |
Charges for services | 397,300 | $ 214,000 | |
Accounts payable and accrued expenses | $ 79,900 | $ 65,800 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Customer | Sep. 30, 2017USD ($)Customer | Dec. 31, 2017USD ($)Customer | |
Commitments And Contingencies [Line Items] | |||||
Warranty expense | $ 18,900 | $ 12,900 | $ 56,900 | $ 28,000 | |
Revenue | $ 608,981 | $ 488,540 | $ 1,554,529 | $ 1,011,454 | |
Sales Revenue, Net [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Number of customers | Customer | 1 | 3 | |||
Sales Revenue, Net [Member] | One Customer [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Revenue | $ 336,700 | $ 258,200 | |||
Sales Revenue, Net [Member] | Two Customers [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Revenue | 130,600 | ||||
Sales Revenue, Net [Member] | Three Customer [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Revenue | $ 101,700 | ||||
Accounts Receivable [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Number of customers | Customer | 2 | 3 | |||
Accounts Receivable [Member] | One Customer [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Revenue | $ 51,800 | $ 77,640 | |||
Accounts Receivable [Member] | Two Customers [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Revenue | $ 60,400 | 52,200 | |||
Accounts Receivable [Member] | Three Customer [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Revenue | $ 32,700 | ||||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Concentration risk, percentage | 23.00% | 55.00% | |||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | One Customer [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Concentration risk, percentage | 23.00% | 29.00% | |||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Two Customers [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Concentration risk, percentage | 15.00% | ||||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Three Customer [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Concentration risk, percentage | 11.00% | ||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Concentration risk, percentage | 32.00% | 55.00% | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Customer [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Concentration risk, percentage | 15.00% | 26.00% | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customers [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Concentration risk, percentage | 17.00% | 18.00% | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Three Customer [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Concentration risk, percentage | 11.00% | ||||
Clinical Research Studies [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Contractual amount payable | $ 0 |