Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 05, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MYO | ||
Entity Registrant Name | MYOMO, INC. | ||
Entity Central Index Key | 0001369290 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false | ||
Entity Common Stock, Shares Outstanding | 2,813,798 | ||
Entity Public Float | $ 11,077,016 | ||
Entity File Number | 001-38109 | ||
Entity Interactive Data Current | Yes | ||
Entity Tax Identification Number | 47-0944526 | ||
Entity Address, Address Line One | One Broadway | ||
Entity Address, Address Line Two | 14 th Floor | ||
Entity Address, City or Town | Cambridge | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02142 | ||
City Area Code | 617 | ||
Local Phone Number | 996-9058 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Security Exchange Name | NYSEAMER | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Part III of this Form 10-K incorporates information by reference from the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the close of the fiscal year ended December 31, 2019. |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 4,465,455 | $ 6,540,794 |
Accounts receivable, net | 424,287 | 382,258 |
Inventories, net | 439,533 | 256,149 |
Prepaid expenses and other | 820,206 | 695,276 |
Total Current Assets | 6,149,481 | 7,874,477 |
Restricted cash | 75,000 | 75,000 |
Deferred offering costs | 219,240 | 144,582 |
Equipment, net | 154,972 | 187,513 |
Total Assets | 6,598,693 | 8,281,572 |
Current Liabilities: | ||
Current portion of long-term debt, net of discount of $676,703 at December 31, 2019 | 1,763,887 | |
Accounts payable and accrued expenses | 1,738,450 | 1,743,427 |
Derivative liabilities | 378,239 | 3,661 |
Deferred revenue | 2,913 | 1,990 |
Customer advance payments | 40 | 106,609 |
Total Current Liabilities | 3,883,529 | 1,855,687 |
Long-term debt, net of discount of $36,169 at December 31, 2019 | 888,961 | |
Deferred revenue | 1,495 | |
Total Liabilities | 4,773,985 | 1,855,687 |
Commitments and Contingencies | ||
Stockholders’ Equity: | ||
Common stock par value $0.0001 per share 100,000,000 shares authorized; 574,524 and 415,006 shares issued as of December 31, 2019 and 2018, respectively, and 574,497 and 414,979 shares outstanding as of December 31, 2019 and 2018, respectively. | 57 | 41 |
Additional paid-in capital | 57,957,097 | 51,721,834 |
Accumulated deficit | (56,125,982) | (45,289,526) |
Treasury stock, at cost; 27 shares of common stock | (6,464) | (6,464) |
Total Stockholders’ Equity | 1,824,708 | 6,425,885 |
Total Liabilities and Stockholders’ Equity | $ 6,598,693 | $ 8,281,572 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Current portion of long-term debt, discount | $ 676,703 | |
Long-term debt, discount | $ 36,169 | |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 574,524 | 415,006 |
Common stock, shares outstanding | 574,497 | 414,979 |
Treasury shares at cost | 27 | 27 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 3,837,730 | $ 2,444,104 |
Cost of revenue | 917,623 | 728,279 |
Gross profit | 2,920,107 | 1,715,825 |
Operating expenses: | ||
Research and development | 2,160,588 | 1,838,633 |
Selling, general and administrative | 11,554,522 | 10,405,609 |
Total operating expenses | 13,715,110 | 12,244,242 |
Loss from operations | (10,795,003) | (10,528,417) |
Other expense (income) | ||
Change in fair value of derivative liabilities | (194,485) | (36,269) |
Interest (income) and other expense, net | (1,140) | (175,409) |
Non-cash interest expense, debt discount | 113,631 | |
Total other expense (income) | (81,994) | (211,678) |
Net loss | $ (10,713,009) | $ (10,316,739) |
Weighted average number of common shares outstanding: | ||
Basic and diluted | 553,782 | 409,746 |
Net loss per share available to common stockholders: | ||
Basic and diluted | $ (19.35) | $ (25.18) |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Beginning balance at Dec. 31, 2017 | $ 12,445,778 | $ 37 | $ 47,424,992 | $ (34,972,787) | $ (6,464) |
Beginning balance, shares at Dec. 31, 2017 | 371,322 | 27 | |||
Common stock issued upon vesting of restricted stock units | (74,213) | (74,213) | |||
Common stock issued upon vesting of restricted stock units, Shares | 1,426 | ||||
Exercise of common stock options | $ 2 | 2 | |||
Exercise of common stock options, shares | 39 | 39 | |||
Exercise of common stock warrants | $ 3,556,391 | $ 4 | 3,556,387 | ||
Exercise of common stock warrants, shares | 40,185 | ||||
Restricted stock vested, shares | 760 | 2,034 | |||
Stock-based compensation | $ 814,666 | 814,666 | |||
Net loss | (10,316,739) | (10,316,739) | |||
Ending balance at Dec. 31, 2018 | 6,425,885 | $ 41 | 51,721,834 | (45,289,526) | $ (6,464) |
Ending balance, shares at Dec. 31, 2018 | 415,006 | 27 | |||
Cumulative impact of ASC 606 | (123,447) | (123,447) | |||
Proceeds from public offering, net of offering costs of $710,572 | 5,603,829 | $ 15 | 5,603,814 | ||
Proceeds from offering costs, shares | 151,417 | ||||
Common stock issued upon vesting of restricted stock units | (80,250) | $ 1 | (80,251) | ||
Common stock issued upon vesting of restricted stock units, Shares | 6,490 | ||||
Exercise of common stock options | $ 15 | 15 | |||
Exercise of common stock options, shares | 331 | 331 | |||
Restricted stock vested | $ (72) | (72) | |||
Restricted stock vested, shares | 1,836 | 1,280 | |||
Warrants issued as offering costs and recorded as a derivative liability | $ (196,236) | (196,236) | |||
Stock-based compensation | 907,993 | 907,993 | |||
Net loss | (10,713,009) | (10,713,009) | |||
Ending balance at Dec. 31, 2019 | $ 1,824,708 | $ 57 | $ 57,957,097 | $ (56,125,982) | $ (6,464) |
Ending balance, shares at Dec. 31, 2019 | 574,524 | 27 |
Statements of Changes in Stoc_2
Statements of Changes in Stockholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Offering cost from sale of stock | $ | $ 710,572 |
Net withheld for employee taxes | 1,836 |
Restricted Stock Vested [Member] | |
Net withheld for employee taxes | 2 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (10,713,009) | $ (10,316,739) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation | 95,124 | 69,682 |
Stock-based compensation | 907,993 | 814,666 |
Loss on disposal of asset | 2,481 | |
Bad debt expense | 16,275 | |
Non-cash interest expense, debt discount | 113,631 | |
Amortization of original issue discount | 58,296 | |
Inventory reserve | (71,265) | 32,645 |
Change in fair value of derivative liabilities | (194,485) | (36,269) |
Other non-cash charges | 9,423 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (42,028) | (101,494) |
Inventories | (213,562) | (140,817) |
Prepaid expenses and other | (163,742) | (307,001) |
Other assets | (87,265) | |
Accounts payable and accrued expenses | 60,742 | 466,191 |
Deferred revenue | 2,418 | (103,340) |
Customer advance payments | (106,569) | (109) |
Net cash used in operating activities | (10,341,817) | (9,606,310) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of equipment | (51,991) | (126,867) |
Net cash used in investing activities | (51,991) | (126,867) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of debt | 2,788,019 | |
Net proceeds from common stock offering | 5,603,829 | |
Payments of issuance costs | (144,582) | |
Net settlement of vested restricted stock units to fund related employee statutory tax withholding | (80,322) | (74,213) |
Proceeds from exercise of stock options | 15 | 2 |
Proceeds from exercise of warrants | 3,556,391 | |
Proceeds from payments under grants | 6,928 | |
Net cash provided by financing activities | 8,318,469 | 3,337,598 |
Net decrease in cash, cash equivalents, and restricted cash | (2,075,339) | (6,395,579) |
Cash, cash equivalents, and restricted cash beginning of year | 6,615,794 | 13,011,373 |
Cash, cash equivalents, and restricted cash end of year | 4,540,455 | 6,615,794 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Inventory capitalized as sales demo equipment | 17,715 | $ 53,178 |
Cumulative impact from the adoption of ASC 606 | (123,447) | |
Issuance of selling agent warrants | 196,236 | |
Put option bifurcated from term loan | 372,827 | |
Accrued interest converted to principal | $ 65,270 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2019 | |
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 the product to orthotics and prosthetics (O&P) providers, the Veterans Health Administration (VA), rehabilitation hospitals, and through distributors. Recently, the Company has begun providing devices directly to patients and billing their insurance companies directly, utilizing the clinical 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. Pursuant to an amended and restated certificate of incorporation, the Company is authorized to issue up to 125,000,000 shares of stock, consisting of 100,000,000 shares of common stock, par value $0.0001 and 25,000,000 shares of undesignated Preferred Stock, par value of $0.0001. Shelf Registration Statement 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. The Sales Agreement was suspended following the Company’s follow-on public offering in February 2019. Follow-on Public Offerings In February 2020, the Company completed a follow-on offering of 1,660,000 shares of its common stock and 1,660,000 investor warrants to purchase one share of the Company’s common stock at a combined offering price of $7.00 per share. In addition, the Company sold 483,000 pre-funded warrants and 483,000 investor warrants to purchase one share of the Company’s common stock at a combined offering price of $6.999 per share. The offering generated approximately $13.7 million in net proceeds to the Company. See Note 13 – Subsequent Events, for further information. In February 2019, the Company completed a follow-on offering of 151,417 shares of its common stock, including the underwriter’s exercise of its over-allotment option, generating net proceeds of approximately $5.6 million. See Note 7 – Common Stock, for further information. Term Loan On October 22, 2019, the Company entered into a Note Purchase Agreement, Senior Note and Security Agreement (collectively, the “Term Loan”) with Chicago Venture Partners (“CVP “or “Lender”). Under the Term Loan, the Company received gross proceeds of $3.0 million, excluding fees and expenses. Including an original issue discount, the Company will repay the Lender $3.3 million. See Note 6 – Debt, for further information Liquidity The Company incurred net losses of approximately $10,713,000 and $10,317,000 during the years ended December 31, 2019 and 2018, respectively, and has an accumulated deficit of approximately $56,126,000 and $45,290,000 In the notes to the Company’s audited financial statements as of and for the year ended December 31, 2018, and subsequently in each of the Company’s quarterly unaudited condensed financial statements, management stated the Company had incurred significant losses, negative operating cash flows and as of those dates needed to raise additional capital to meet its obligations and sustain its operations. As a result, the Company concluded that there was substantial doubt as to the Company’s ability to continue as a going concern. In February 2020, the Company completed a follow-on offering of its common stock, generating net proceeds of approximately $13.7 million. The Company believes the funds raised will allow the Company to execute on its strategy towards achieving cash flow breakeven. Based upon its expected cash flows and the funds raised in the February 2020 equity offering, the Company believes that its available cash will fund its operations for at least the next twelve months from the issuance date of these financial statements. As a result of the net proceeds raised in the February 2020 equity offering and after consideration of management’s plans described below, the Company believes that substantial doubt about the Company’s ability to continue as a going concern has been alleviated. Management’s operating plans are primarily focused on scaling up its operations, increasing the proportion of patients carrying commercial health insurance with payers that have historically reimbursed for the Company’s products, executing on its plans to bring its pediatric product to market on schedule and continued work with the Centers for Medicare and Medicaid Services, or CMS, and their billing contractors regarding reimbursement of its products. In addition, the Company believes that it has access to capital resources through possible public or private equity offerings, including usage of its ATM facility, exercises of outstanding warrants, additional debt financings, or other means. Additional debt financing requires the consent of CVP and may require the Company to pledge other assets not currently pledged and enter into covenants that could restrict certain business activities or its ability to incur further indebtedness; and may contain other terms that are not favorable to the Company or its stockholders. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies 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, valuation of stock-based compensation, valuation of embedded derivative liabilities, warranty obligations and reserves for slow-moving inventory. Cash and Cash Equivalents 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 December 31, 2019 and 2018. 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 balance sheets that sum to the total of the same amounts show in the statement of cash flows. 2019 2018 Cash and cash equivalents $ 4,465,455 $ 6,540,794 Restricted cash 75,000 75,000 Total cash, cash equivalents, and restricted cash in the balance sheet $ 4,540,455 $ 6,615,794 Accounts Receivable and Allowance for Doubtful Accounts The Company reports accounts receivable at invoiced amounts less an allowance for doubtful accounts. The Company evaluates its accounts receivable on a continuous basis, and if necessary, establishes an allowance for Inventories Inventories are recorded at the lower of cost or net realizable value. Cost is determined using a specific identification method. The Company reduces the carrying value of inventory for those items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technology developments or other economic factors. In addition, the carrying value of consigned inventories is reduced by the value of MyoPro devices that will not be sold based on historical experience. Deferred Offering Costs Deferred offering costs are comprised of direct incremental legal, accounting and financial advisor fees related relating to capital raising efforts. Deferred offering costs are offset against proceeds of an offering. In the event a capital raising effort is terminated, deferred offering costs are expensed. 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 by the Company’s to its indirect sales channel for marketing and patient evaluation purposes. These units are manufactured by the Company and are expensed in the statements of operations to selling, general, and administrative expense. During the years ended December 31, 2019 and 2018, the Company charged to operations approximately $152,200 and $256,700, respectively, for these units. Demonstrations units provided to its own sales force are capitalized as equipment on the Company’s balance sheet. Test units are 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 their 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 expensed in the statements of operations as part of research and development expense. During the year ended December 31, 2019 and 2018 the Company charged to operations approximately $31,100 and $17,700, respectively, of these units. Impairment of Long-Lived Assets The Company assesses the recoverability of its long-lived assets, including equipment when there are indications that the assets might be impaired. When evaluating assets for potential impairment, the Company compares the carrying value of the asset to its estimated undiscounted future cash flows. If an asset’s carrying value exceeds such estimated undiscounted cash flows, the Company records an impairment charge for the difference. Based on its assessments, the Company did not record any impairment charges for the years ended December 31, 2019 and 2018. Accounts Payable and Other Accrued Expenses: 2019 2018 Trade payables $ 450,101 $ 426,727 Accrued compensation and benefits 889,583 1,027,757 Accrued professional services 142,804 73,722 Warranty reserve 81,981 92,000 Other 173,981 123,221 $ 1,738,450 $ 1,743,427 Derivative Liabilities The Company accounts for warrants determined to be derivative financial instruments and any embedded equity-linked component in debt instruments determined to be a derivative liability by recording them as a liability at fair value and then it marks-to-market the instruments at fair values as of each subsequent balance sheet date. Any change in fair value is recorded as a change in the fair value of derivative liabilities for each reporting period at each balance sheet date. The Company reassesses the classification at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. The Company has recorded derivative liabilities for warrants it issued with certain equity offerings (see Note 9) as well as a derivative liability for an embedded derivative liability in its Term Loan (see Note 6). Debt The Company elects not to use the fair value option for recording debt arrangements and elects to record the debt at the stated value of the loan agreement on the date of issuance. Any other elements present are reviewed to determine if they are embedded derivatives requiring bifurcation and requiring valuation. Elements of the host contract which are not clearly and closely related to the debt are considered derivatives and are recorded at fair value. The carrying value assigned to the host instrument will be the difference between the previous carrying value of the host instrument and the fair value of the derivatives. There is no immediate gain/loss from the initial recognition and measurement if the embedded derivative is accounted for separately from its host contract. There is an offsetting debt discount or premium as a result of the fair value assigned to the derivatives, as well as any debt issuance costs, which are amortized under the effective interest method over the term of the loan. Each reporting period, fair value is assessed for the derivative liabilities with the change in value being recorded as other income/loss. Revenue Recognition On January 1, 2019, the Company adopted the new accounting standard ASC 606, “Revenue from Contracts with Customers” and all the related amendments (Topic 606) using the modified retrospective method for all contracts not completed as of the date of adoption. For contracts that were modified before the effective date, the Company reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price in accordance with practical expedient ASC 606-10-65-1-(f)-4, which did not have a material effect on the Company’s assessment of the cumulative effect adjustment upon adoption. The Company recognized the cumulative effect of initially applying the new standard as an adjustment to the opening balance of accumulated deficit. Results for reporting periods beginning after January 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Revenues under Topic 606 are required to be recognized either at a “point in time” or “over time,” depending on the facts and circumstances of the arrangement and are evaluated using a five-step model. Generally, the Company recognizes revenue at a point in time. The adoption of Topic 606 did not have a material impact on the financial statements at initial implementation. The Company recognizes revenue after applying the following five steps: 1) Identification of the contract, or contracts, with a customer, 2) Identification of the performance obligations in the contract, including whether they are distinct within the context of the contract 3) Determination of the transaction price, including the constraint on variable consideration 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, performance obligations are satisfied Revenue is recognized when control of these services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Increasingly, the Company derives its revenue from direct billing. The Company also derives revenue from the sale of its products to O&P providers in the U.S. and internationally, the Veterans Administration (“VA”) and rehabilitation hospitals. Under direct billing, the Company recognizes revenue when all of the following criteria are met: (i) The product has been delivered to the patient, including completion of initial instruction on its use. (ii) Collection is deemed probable and it has been determined that a significant reversal of the revenue to be recognized is not deemed probable when the uncertainty associated with the variable consideration is resolved. (iii) The amount to be collected is estimable using the “expected value” estimation techniques, or the “most likely amount” as defined in ASC 606. Depending on the timing of product deliveries to customers, which is when cost of revenue must be recorded, and when the Company meets the criteria to record revenue, there may be fluctuations in gross margin on an ongoing basis. During the year ended December 31, 2019, the Company recognized revenue of approximately $427,000 from O&P providers or third-party payers for which costs related to the completion of the Company’s performance obligations were recorded in a prior period. For revenues derived from O&P providers, the VA and rehabilitation hospitals, the Company recognizes revenue when control passes to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those services, which may be recognized upon shipment or upon delivery, depending on the terms of the arrangement, provided that persuasive evidence of an arrangement exists, there are no uncertainties regarding customer acceptance and collectability is deemed probable. In certain cases, the Company ships its products to O&P providers pending reimbursement from non-government, third party payers. As a result of this arrangement, elements of the revenue recognition criteria have not been met upon shipment. In this instance, the Company recognizes revenue when payment has been received, as then all of the revenue recognition criteria has been met. The Company receives federally-funded grants that require it 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. Prior to January 1, 2019, the Company’s grant revenue was recognized when persuasive evidence of the arrangement existed, the service had been provided and adherence to specific parameters of the awarded grant had been met, the amount was fixed and determinable and collection was reasonably assured. The Company recognized approximately The Company has elected to record taxes collected from customers on a net basis and does not include tax amounts in revenue or cost of revenue. Contract Balances The timing of revenue recognition may differ from the timing of payment by customers. The Company records a receivable when revenue is recognized prior to payment and there is an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company had immaterial amounts of deferred revenue as of December 31, 2019 and 2018. Disaggregated Revenue from Contracts with Customers The following table presents revenue by major source: 2019 Clinical/medical providers $ 2,553,099 Direct-to-patient 1,284,631 Total revenue from contracts with customers $ 3,837,730 Cost of Revenue In conjunction with the adoption of ASC 606, there are certain cases in which the Company will expense costs when incurred as required by ASC 340-40-25, such as when the Company ships the MyoPro device to O&P providers, or provides the device directly to patients, pending reimbursement from third party payers. Prior to the implementation of ASC 606, the Company had been accounting for this transaction at the time of shipping to an O&P provider by leaving consigned inventory on the balance sheet until the uncertainty regarding payment had been resolved and by providing a consignment inventory reserve based upon the amounts historically collected under this program. Under ASC 340-40-25, this inventory is expensed as of the date of shipment. For the year ended December 31, 2019, the Company recorded cost of goods sold of approximately $120,300 without corresponding revenue. The cost of clinical services by O&P providers for which they are paid a fee in conjunction with devices being sold directly to patients and billing their insurance companies directly are expensed as incurred as required by ASC 340-40-25, as a cost of obtaining a contract. These costs are recorded as sales and marketing expense, with the remaining costs associated with the patient being expensed to cost of revenue. The Company recorded a net increase to opening accumulated deficit of approximately $123,000 as of January 1, 2019 due to the cumulative impact of adopting Topic 606. The cumulative effect of the changes made to the Company’s consolidated balance sheet for the adoption of Topic 606 were as follows: Selected Balance Sheet Accounts Balance at 12/31/18 Adjustments due to ASC 2014-09 Balance at 1/1/19 Assets Inventories, net $ 256,149 $ (84,635 ) $ 171,514 Prepaid expenses and other 695,276 (38,812 ) 656,464 Stockholders’ Equity Accumulated deficit (45,289,526 ) (123,447 ) (45,412,973 ) Shipping and Handling Costs Shipping and handling costs paid by customers are netted against the related shipping costs we incur. The net cost is recorded in cost of revenues. Historically, such costs have not been material. Income Taxes The Company accounts for income taxes under Accounting Standards Codification ASC 740 Income Taxes (“ASC 740”). Under ASC 740, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. ASC 740 requires that the tax effects of changes in tax laws or rates be recognized in the financial statement in the period in which the law is enacted. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Tax benefits claimed or expected to be claimed on a tax return are recorded in the Company’s financial statements. A tax benefit from an uncertain tax position is only recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Uncertain tax positions have had no impact on the Company’s financial condition, results of operations or cash flows. The Company files income tax returns in federal and state jurisdictions and is no longer subject to examinations by tax authorities for years prior to 2016. Currently, there are no income tax audits in process. 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. Stock-based compensation expense of approximately $908,000 and $814,700 was recorded in research and development, selling, general and administrative expense in 2019 and 2018, 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 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 years ended December 31, 2019 and 2018, respectively, and as a result, all potentially dilutive common shares are considered antidilutive for these periods. Potentially common shares issuable at December 31, 2019 and 2018 consist of: 2019 2018 Options 21,806 24,125 Warrants 181,176 169,063 Restricted stock units 18,395 1,270 Restricted stock 659 1,275 Total 222,036 195,733 Advertising The Company charges the costs of advertising to operating expenses as incurred. Advertising expense amounted to approximately $301,700 and $136,300 in 2019 and 2018, respectively. Research and Development Costs The Company expenses research and development costs as incurred. Research and development costs primarily consist of salaries and benefits, facility and overhead costs, and outsourced research activities. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, or 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. We lease or facilities on month-to-month basis and do not carry any equipment leases, therefore we do not believe that the adoption of ASU No. 2016-02 will have a material impact on our financial statements. As an emerging growth company, we delayed adoption of ASU 2016-02 until January 1, 2020. In June 2018, the FASB issued ASU No. 2018-07, “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. We have adopted this standard and the adoption of this standard did not have a material impact on our financial statements or disclosures. 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. We are currently evaluating the accounting, transition, and disclosure requirements of the standard to determine the impact, if any, on our financial statements. In April 2019, The FASB issued ASU 2019-04 “ Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” to clarify and improve guidance within the recently issued standards on credit losses, hedging, and recognition and measurement of financial instruments. Among other updates, this ASU amended provisions of ASU 2016-01, “ Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” relating to fair value disclosures for held-to-maturity debt securities. The amendments related to ASU 2016-01 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in any interim period as long as the entity has adopted all of the amendments in ASU 2016-01. The amendments should be applied on a modified-retrospective basis through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-01. We are currently evaluating the accounting, transition, and disclosure requirements of the standard to determine the impact, if any, on our financial statements. In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740) -- Simplifying the Accounting for Income Taxes. This ASU modifies certain provisions of ASC 740 to simplify the accounting for income taxes. The amendments in ASU 2019-12 are effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. 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 other subsequent events that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3 — Inventories Inventories consist of the following at December 31: 2019 2018 Finished goods $ 46,854 $ - Rental units 23,418 - Consigned inventory - 135,635 Parts and subassemblies 372,996 195,514 443,268 331,149 Less: Reserve for rental units (3,735 ) - Excess and obsolete inventory reserves - (24,000 ) Consigned inventory reserves - (51,000 ) Inventories, net $ 439,533 $ 256,149 Prior to the adoption of ASC 606 on January 1, 2019, consigned inventory represented products that had been delivered for which the Company did not have the right to bill. Under ASC 340-40, also adopted on January 1, 2019 in conjunction with ASC 606, these costs are now expensed as incurred. At December 31, 2018, the Company recorded reserves for excess and obsolete inventory and consigned inventory for units that will not sold based on historical experience. |
Equipment, net
Equipment, net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Equipment, net | Note 4 — Equipment, net Equipment consists of the following at December 31: 2019 2018 Computer equipment $ 104,384 $ 76,424 Sales demonstration units 186,951 155,293 R&D tools and molds 52,644 52,644 Furniture and fixtures 3,270 3,270 347,249 287,631 Less: accumulated depreciation (192,277 ) (100,118 ) Equipment, net $ 154,972 $ 187,513 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
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, 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, which are measured at fair value, and derivative liabilities (see Notes 6 and 9), which are measured at fair value on a recurring basis at December 31, 2019 were as follows: In Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019 Total Cash equivalents $ 3,964,250 — — $ 3,964,250 Derivative liabilities — — $ 378,239 $ 378,239 Cash equivalents, which are measured at fair value, and derivative liabilities (see Note 9), which are measured at fair value on a recurring basis at December 31, 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) December 31, 2018 Total Cash equivalents $ 6,037,456 — — $ 6,037,456 Derivative liabilities — — $ 3,661 $ 3,661 The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value during the year ended December 31, 2019 and 2018: Derivative Liabilities Balance – January 1, 2018 $ 39,930 Change in fair value of derivative liability (36,269 ) Balance – December 31, 2018 3,661 Fair value of common stock warrant issued 196,236 Fair value of debt derivative liability 372,827 Change in fair value of derivative liabilities (194,485 ) Balance – December 31, 2019 $ 378,239 Weighted average assumptions utilized in the valuation of Level 3 liabilities for warrants at December 31, were as follows: 2019 2018 Risk-free interest rate 1.62% 2.51% Expected life 3.05 years 3.44 years Expected volatility of underlying stock 66% 62% 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. Assumptions utilized in the discounted cash flow valuation of the Level 3 liability for the debt derivative liability at December 31, 2019 were as follows: 2019 Effective annual coupon rate 10.52% Discount rate 29.32% Expected life 1.5 years |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 6 – Debt On October 22, 2019, the Company entered into a Term Loan with CVP. Under the Term Loan, the Company received gross proceeds of $3.0 million (excluding fees and expenses). Including an original issue discount the Company will repay CVP $3.3 million. The Term Loan bears interest at a rate of 10% and matures 18 months from the issuance date. Monthly redemptions of up to $300,000 begin six months from the inception date, with the actual amount to be determined by CVP. CVP has granted the Company an option to defer up to three redemption payments. If the Company elects to defer any payments, it will pay CVP a fee that is the greater of $35,000, or 1%, 1.25% and 1.5% of the outstanding balance for each deferral, respectively, which shall be added to the outstanding balance. The Term Loan is secured by all of the Company’s assets, except for its intellectual property. The Company has agreed to not pledge its intellectual property assets to any other party for so long as the Term Loan is outstanding. Subject to the terms and conditions set forth in the Term Loan, the Company may prepay all or any portion of the outstanding balance of the Term Loan, which includes accrued but unpaid interest, as well as collections and enforcement costs, transfer, stamp, issuance and similar taxes and fees incurred under the Term Loan, at any time subject to a prepayment penalty of 15% of the amount of the outstanding balance to be repaid. For so long as the Term Loan remains outstanding, the Company has agreed to pay CVP 50% of the outstanding balance of the Term Loan from net proceeds it receives from the sale of its common stock or other equity (excluding sales of common stock under the at market sales agreement, dated as of July 2, 2018 with B. Riley FBR Inc.), which payments will be applied towards and reduce the outstanding balance of the Term Loan. See Note 13 – Subsequent Events. The Term Loan also contains penalty provisions in an event of default. Events of default are categorized between minor events and major events, with penalties of 5% and 15% of the outstanding balance, respectively for each occurrence. Penalties can be incurred for up to three separate events of default, but are capped at 25% of the outstanding balance immediately prior to the first occurrence of an event of default. Events of default include (i) the failure to repay the Term Loan at maturity; (ii) the failure to make monthly redemption payments; (iii) the failure to make timely filings to the SEC; (iv) the failure to obtain CVP’s prior consent to enter into a fundamental transaction, and (v) conditions of insolvency, receivership and bankruptcy filings. After the occurrence of an event of default, interest on the Term Loan will accrue at a rate of 18% per annum, or such lesser rate as permitted under applicable law. As described in the Term Loan, upon the occurrence of certain events of default, the outstanding balance will become automatically due and payable, and upon the occurrence of other events of default, CVP may declare the outstanding balance immediately due and payable at such time or at any time thereafter. The Term Loan includes provisions for technical covenants, but no financial covenants, and CVP has the right to consent to any additional debt financing arrangements, including convertible debt financings. As of December 31, 2019, the outstanding balance of the Term Loan, including accrued interest, but excluding the unamortized debt discount was approximately $3,366,000. Of that amount, the long-term portion of approximately $925,000 is due in 2021. In addition to the original issue discount, the Company incurred debt issuance costs, including a commission paid to its placement agent, of approximately $212,000. Both the original issue discount and the debt issuance costs have been recorded as a debt discount and are being amortized into interest expense over the term of the Term Loan using the effective interest method. The provision in the Term Loan that the Company must pay CVP 50% of the outstanding balance of the Term Loan plus a 15% prepayment fee from the net proceeds it receives from an equity offering as discussed above, was determined by the Company to not be clearly and closely related to the host instrument. Therefore, the Company bifurcated the embedded component from the Term Loan and accounted for it separately as a derivative liability with an offsetting increase in the debt discount. To determine the fair value of the entire Term Loan, the debt component was separated from the equity payment derivative liability component. The cash flows of both components were then discounted using the fair value assumptions noted in Note 5. The Company recorded a derivative liability and corresponding debt discount of approximately $372,800 at the inception date of the Term Loan. The Company is amortizing the debt discount associated with the derivative liability using the effective interest method over the term of the Term Loan. Interest expense under the Term loan, including amortization of the debt discount was approximately $237,700, of which approximately $113,600 was non-cash interest expense for the year ended December 31, 2019. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Common Stock | Note 7 — Common Stock In February 2019, the Company completed an underwritten public offering in which it sold 151,417 shares of its common stock generating net proceeds of approximately $5,604,000. In conjunction with the offering, the Company issued to the underwriter a warrant to purchase 12,113 shares of common stock at an exercise price of $52.50 per share. The fair value of the grant was included in the net proceeds from the public offering. 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. Concurrent with the follow-on public offering in February 2019, the Company suspended the Sales Agreement, under which it has not sold any common stock. During the year ended December 31, 2019 and 2018, the Company issued 331 and 39 shares of common stock through the exercise of stock options for proceeds of $15 and $2, respectively. During the years ended December 31, 2019 and 2018, the Company issued 6,490 and 1,426 shares of common stock, net of 1,836 and 760 shares withheld for employee taxes, respectively, upon the vesting of restricted stock units. During the year ended December 31, 2019 and 2018, the Company issued 1,280 and 2,034 shares of common stock upon the vesting of restricted stock awards, respectively. |
Stock Award Plans and Stock-bas
Stock Award Plans and Stock-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Award Plans and Stock-based Compensation | Note 8 — Stock Award Plans and Stock-based Compensation Equity Incentive Plan 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 was equal to 23,537 shares which carried over the remaining 2,870 shares available for grant under the 2016 Plan on April 1, 2018 and an increase of the share reserve by 20,667 shares. On January 1, 2019 and each January thereafter, the number of shares of common stock reserved and available for issuance under the 2018 Plan will cumulatively increase 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. At December 31, 2019, there were 10,151 shares available for future grant under the 2018 Plan. Under the terms of the 2018 Plan, incentive stock options (ISOs) may be granted to officers and employees and non-qualified stock options and awards may be granted to directors, consultants, officers and employees of the Company. The exercise price of ISOs cannot be less than the fair market value of the Company’s Common Stock on the date of grant. The options vest over a period determined by the Company’s Board of Directors, ranging from immediate to four years, and expire not more than ten years from the date of grant. Stock Option Awards Stock option activity under the Stock Option Plans during the years ended December 31, 2019 and 2018 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Life (years) Intrinsic Value Balance at January 1, 2018 12,300 $ 52.9600 8.65 $ 732,399 Granted 12,506 92.1000 Forfeited or cancelled (454 ) 93.3000 Expired (188 ) 50.7000 Exercised (39 ) 116.1000 Balance at December 31, 2018 24,125 72.6000 8.51 $ 157,260 Granted 6,033 31.7700 Forfeited or cancelled (4,236 ) 69.0200 Expired (3,786 ) 72.9700 Exercised (331 ) 0.0500 Balance at December 31, 2019 21,805 $ 63.0000 7.83 $ 17,581 Options exercisable at December 31, 2018 11,223 $ 58.5000 7.74 $ 141,506 Options exercisable at December 31, 2019 13,763 $ 70.2800 7.17 $ 17,581 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 years ended December 31, 2019 and 2018. The weighted-average grant date fair value per share was $57.37 and $53.10 for the years ended December 31, 2019 and 2018, respectively. The following weighted average assumptions underlying the calculation of grant date fair value are as follows: 2019 2018 Volatility 62.55% 61.03% Risk-free interest rate 2.16% 2.88% Weighted-average expected option term (in years) 6.46 6.33 Dividend yield 0% 0% 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. Restricted Stock Awards Restricted stock activity for the years ended December 31, 2019 and 2018 is summarized below: Number of Shares Weighted average grant date fair value Weighted average remaining contractual life (in years) Outstanding as January 1, 2018 1,473 $ 202.50 6.75 Awarded 1,836 98.10 Vested (2,034 ) 144.90 Canceled — — Outstanding as December 31, 2018 1,275 144.00 1.39 Awarded 569 17.83 Vested (1,185 ) 102.45 Canceled — Outstanding as of December 31, 2019 659 $ 109.91 0.97 On January 3, 2018, the Company issued an aggregate of 508 shares of restricted stock to non-employee members of the Company’s board of directors. The shares of stock were fully vested on the date of issuance and the Company recorded a charge to operations for the fair value of shares in the amount of $60,000. On June 19, 2018, the Company issued an aggregate of 1,329 shares of restricted stock to non-employee members of its board of directors. The Company determined the fair value of the shares 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 becomes fully vested on June 30, 2019. Restricted Stock Units Restricted stock unit activity for the years ended December 31, 2019 and 2018 is summarized below: Number of Shares Weighted average grant date fair value Weighted average remaining contractual life (in years) Outstanding as of January 1, 2018 — $ - — Awarded 3,457 106.80 Vested (2,187 ) 110.40 Canceled — — Outstanding as of December 31, 2018 1,270 100.50 1.49 Awarded 26,501 28.75 Vested (8,105 ) 47.38 Canceled (1,271 ) 35.83 Outstanding as of December 31, 2019 18,395 $ 25.00 1.65 On January 2, 2018, the Company granted an aggregate of 2,957 restricted stock units to key employees. They were issued with lapsing forfeiture rights extending up to 24 months. At December 31, 2018, 770 restricted stock units were subject to forfeiture. On July 9, 2018, the Company granted 166 restricted stock units to an officer of the Company which vest in full on the first anniversary date. On this date, the Company also issued 333 restricted stock units to the same officer which vest over four years. On February 18, 2019 the Company granted 1,666 restricted stock units to an executive officer which vest over four years. On June 5, 2019, the Company granted an aggregate of 7,666 restricted stock units to executive officers and a key employee, which vest over two years. On October 18, 2019, the Company granted 6,666 restricted stock units to its Chief Executive Officer. These units become eligible for vesting upon the completion of five individual performance goals, with each tranche worth 1,333 units. Upon completion of each performance objective, the tranche becomes eligible for vesting. Vesting occurs in equal annual installments beginning September 25, 2020. As of December 31, 2019, two performance goals had been achieved and the vesting period commenced on 2,666 units. On June 5, 2019, the Company issued 1,111 restricted stock units to each non-employee member of its board of directors, with 83 restricted stock units being forfeited in October 2019 when one director resigned. The restricted stock units become fully vested on June 5, 2020. The Company determined the fair value of these grants based on the closing price of the Company’s common stock on the respective grant dates. The compensation expense is being amortized over the respective vesting periods. Awards of restricted stock units are frequently 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 recognized stock-based compensation expense related to the issuance of stock option awards to employees and non-employees and restricted stock awards to employees and directors, and restricted stock units to employees in the statements of operations as follow: 2019 2018 Research and development $ 121,931 $ 103,457 Selling, general and administrative 786,062 711,209 Total $ 907,993 $ 814,666 As of December 31, 2019, there was approximately $212,200 of unrecognized compensation cost related to unvested stock options and is expected to recognized over a weighted-average period of 2.68 years. As of December 31, 2019, there was approximately $52,1000 of total unrecognized compensation cost related to unvested restricted stock awards and is expected to recognized over a weighted-average period of 0.97 years. As of December 31, 2019, there was approximately $ 339,500 of unrecognized compensation cost related to unvested restricted stock unit awards and is expected to recognized over a weighted-average period of 1.65 years. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2019 | |
Warrants And Rights Note Disclosure [Abstract] | |
Warrants | Note 9 — Warrants On June 9, 2017, the Company issued warrants for the purchase of 1,109 shares of common stock to its IPO selling agent. On February 12, 2019, the Company issued to the underwriter of its public equity offering a warrant (the “Underwriter Warrant”) to purchase 12,113 shares of common stock. The Underwriter Warrant has an exercise price of $52.50 per share and may be exercised on a cashless basis in certain circumstances as specified in the Underwriter Warrant. The Underwriter Warrant is exercisable six months from the date of issuance and expires on February 12, 2023. The Underwriter Warrant provides for adjustment in the number and price of such Underwriter Warrant (and the shares of common stock underlying such Underwriter Warrant) in the event of a recapitalization, merger or other fundamental transaction. In the event of a fundamental transaction, the warrant may be payable to the holder in cash in certain circumstances. For that reason, the Company is accounting for the warrant as a derivative liability, which is recorded at fair value. At inception, the Company recorded a derivative liability of approximately $196,200. At December 31, 2019, the fair value of the derivative liability is approximately $7,300, and the Company recorded a gain from the change in fair value of derivative liabilities of approximately $189,000 for the year ended December 31, 2019. See Note 5 – Fair Value of Financial Instruments, for a description of the valuation assumptions used to value the derivative liability. The following table presents the Company’s common stock warrant activity for the years ended December 31, 2019 and 2018: Warrants Weighted Average Exercise Price Outstanding Exercisable Outstanding Exercisable Balance, Jan 1, 2018 209,248 206,465 $ 115.50 $ 115.80 Previously issued warrants which became exerciseable — 2,783 72.00 72.00 Issued — — — — Exercised (40,185 ) (40,185 ) 88.50 88.50 Balance, Dec 31, 2018 169,063 169,063 121.50 121.80 Issued 12,113 12,113 52.50 52.50 Exercised — — — — Balance, Dec 31, 2019 181,176 181,176 $ 86.40 $ 86.40 On June 2, 2018, 2,783 warrants issued to the underwriter of the Company’s follow-on public offering in December 2017 became exercisable. The weighted average remaining contractual life of warrants outstanding and exercisable at December 31, 2019 was 2.29 years. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
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 minority shareholder and employee executive officer of the Company. Sales to this related party are sold at standard list prices. During the years ended December 31, 2019 and 2018 revenue recognized on sales to this orthotics and prosthetics practice amounted to approximately $51,700 and $306,200, respectively. Accounts receivable from the related party were $25,900 at December 31, 2019. There were no amounts due from this related party at December 31, 2018. The Company also obtains consulting and fabrication services from the same related party. Charges for these services amounted to approximately $490,500 and $530,300 during the years ended December 31, 2019 and 2018, respectively. Included in accounts payable and accrued expenses at December 31, 2019 and 2018 is approximately $47,400 and $54,300, respectively, due to the related party. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 — Commitments and Contingencies Litigation 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. Operating Leases The Company has a month-to-month lease agreement for office space in Cambridge, MA and a six-month lease arrangement for office space in Fort Worth, TX. Rent expense for the years ended December 31, 2019 and 2018 was approximately $542,600 and $352,800, respectively. Licensing Agreement During 2006, the Company entered into an exclusive licensing agreement (the “MIT License”) with Massachusetts Institute of Technology (“MIT”)for access to certain patent rights that require the payment of royalties, which vary based on the level of the Company’s net sales and whether the customer is located in the U.S., or in an international location. As part of the agreement, the Company must pay to MIT a nonrefundable annual license maintenance fee which may be credited to any royalty amounts due in that same year. The license agreement can be terminated if certain sales targets are not achieved. The royalty charge for each of the years ended December 31, 2019 and 2018 was $69,600 and $49,300, respectively, and is included as a component of cost of revenue. The future minimum amounts due under this agreement for the next four years are as follows: 2020 $ 25,000 2021 25,000 2022 25,000 2023 (year patents expire) 25,000 Under the MIT License, the Company has issued 205 shares of Common Stock to MIT. On November 15, 2016, the Company and MIT entered into a waiver agreement with regard to certain revenue and commercialization milestones of the Company required under the License Agreement. Under the waiver agreement, MIT waived the compliance with any and all of such milestone obligations prior to the date of the waiver agreement. For the year ended December 31, 2019 the Company met its minimum sales covenant of $750,000. Warranty Liability The Company accrues an estimate of their exposure to warranty claims based on historical warranty costs incurred and a projection of future warranty costs to be incurred. Most of the Company’s current product sales include a three-year warranty, but prior to 2017 most products included a one-year warranty. The Company assesses the adequacy of their recorded warranty liability annually and adjusts the amount as necessary. Changes in warranty liability were as follows: 2019 2018 Accrued warranty liability, beginning of year $ 92,000 $ 50,725 Accrual provided for warranties issued during the period 4,174 23,452 Adjustments to prior accruals 29,227 38,382 Actual warranty expenditures (43,420 ) (20,559 ) Accrued warranty liability, end of year $ 81,981 $ 92,000 Credit Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist primarily of cash, cash equivalents and restricted cash and accounts receivable. The Company maintains its cash, cash equivalents and restricted cash, with balances in excess of federally insured limits, with major financial institutions that management believes are financially sound and have minimum credit risk. The Company has not experienced any losses in such accounts and believes credit risks related to its cash, cash equivalents and restricted cash are limited based upon the creditworthiness of the financial institutions holding these funds. Major Customers For the year ended December 31, 2019, there were no customers which accounted for more than 10% of revenues. For the year ended December 31, 2018, two customers accounted for approximately 25% of revenues, excluding grant income, which includes 13% from a related party. The Company sells its product to an orthotics and prosthetics practice whose ownership includes an individual who is both a shareholder employee and executive officer of the company. As of December 31, 2019, two customers accounted for approximately 15% and 13% of accounts receivable. As of December 31, 2018, two customers accounted for approximately 20% and 16% of accounts receivable. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 — Income Taxes The income tax provision (benefit) for the years ended December 31, 2019 and 2018 consist of the following: 2019 2018 U.S. federal Current $ — $ — Deferred (2,196,000 ) (2,065,000 ) State and local Current — — Deferred (706,000 ) (571,000 ) (2,902,000 ) (2,636,000 ) Deferred tax expense related to tax law change — — Change in valuation allowance 2,902,000 2,636,000 Income tax provision $ — $ — The reconciliation between the U.S statutory federal income tax rate and the Company’s effective rate for the years ended December 31, 2019 and 2018 is as follows: 2019 2018 U.S. federal statutory rate 21.00 % 21.00 % State income taxes, net of federal benefit 5.57 % 5.57 % State rate change and other 1.22 % (0.03 )% Other permanent items (0.70 )% (0.98 )% Change in valuation allowance (27.09 )% (25.56 )% Effective rate 0.00 % 0.00 % As of December 31, 2019, and 2018, the Company’s deferred tax assets consisted of the effects of temporary differences attributable to the following: 2019 2018 Net operating loss carryover $ 11,378,000 $ 8,378,000 Tax credits 173,000 178,000 Stock-based compensation 28,000 27,000 Other 346,000 440,000 Total deferred tax asset 11,925,000 9,023,000 Less: valuation allowance (11,925,000 ) (9,023,000 ) Deferred tax asset, net of valuation allowance $ — $ — There were no deferred tax liabilities at December 31, 2019 or 2018. As of December 31, 2019 and 2018, the Company had approximately $46,326,000 and $35,519,000 of Federal net operating loss (“NOL”), and $ 41,194,000 and $31,228,000 of state NOLs, respectively, available to offset future taxable income. The Federal NOLs incurred prior to 2018 of $26,425,000, if not utilized, begins expiring in the year 2028. The Federal NOLs incurred after 2017 of $19,901,000 have an indefinite carryforward period. The state NOLs, if not utilized will expire in 2022 through 2038. NOL carryforwards may face limitations caused by changes in ownership under Section 382 of the Internal Revenue Code. The Company completed a study documenting changes in ownership which concluded there were no changes as of December 31, 2019. However, due to the issuance of additional shares and a reverse stock split in 2020, a triggering event did occur. See Note 13- Subsequent Events. ASC 740, “Income Taxes” requires that a valuation allowance be established when it is “more likely than not” that all, or a portion of, deferred tax assets will not be realized. A review of all available positive and negative evidence needs to be considered, including the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. After consideration of all the information available, management believes that uncertainty exists with respect to future realization of its deferred tax assets and has, therefore, established a full valuation allowance as of December 31, 2019 and 2018. For the years ended December 31, 2019 and December 31, 2018, the change in valuation allowance was an increase of $ 2,902,000 and a decrease of $2,636,000, respectively. The Company recognizes interest and penalties relating to unrecognized tax benefits on the income tax expense line in the statement of operations. There are no tax penalties and interest on the statement of operations as of December 31, 2019 and 2018. The Company operates in multiple tax jurisdictions and, in the normal course of business, its tax returns are subject to examination by various taxing authorities. Such examinations may result in future assessments by these taxing authorities. The Company is subject to examination by U.S. tax authorities beginning with the year ended December 31, 2016. No accrued interest and penalties are included on the related tax liability accrual on the balance sheet. There are no accrued interest and penalties at December 31, 2019 and December 31, 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13 — Subsequent Events Amended Certificate of Incorporation and Reverse Stock Split On January 30, 2020, the Company filed with the State of Delaware an amendment to its Eighth Amended and Restated Certificate of Incorporation for a one-for-thirty reverse split of the Company’s common stock. All share and per share information has been restated retroactively, giving effect to the reverse stock split for all periods presented. There was no change to reported net loss in any period presented. Underwritten Public Offering On February 13, 2020, the Company completed an underwritten public offering (the “February Offering”) in which the Company sold 1,660,000 shares of its common stock at a price of $7.00 per share and 483,000 pre-funded warrants at a price of $6.9999 per share. The pre-funded warrants had a nominal exercise price of $0.0001 per share. Investors also received 2,143,000 warrants (“Investor Warrants”), each entitling the holder to purchase one share of the Company’s common stock at an exercise price of $7.50 per share. The Investor Warrants expire on February 13, 2025. The underwriters in the February Offering are entitled to an over-allotment option to purchase to up to 321,450 shares of common stock at $6.99 per share, and 321,450 Investor Warrants at a price of $0.01 per share. The underwriters exercised their option to purchase the additional Investor Warrants concurrent with the closing of the transaction. The February Offering was conducted pursuant to a registration statement on Form S-1 (Registration No. 333-235538) as amended, which the SEC declared effective on February 10, 2020. The gross proceeds to the Company were approximately $15.0 million. After deducting the underwriting discount and other offering expenses, net proceeds are estimated to be approximately $13.7 million. On February 13, 2020, the Company issued to the underwriters warrants (the “Underwriter Warrants”) to purchase 214,300 shares of common stock. The Underwriter Warrants have an exercise price $7.00 per share. The Underwriter Warrants expire on February 13, 2025. As of the issuance date of these financial statements, investors have exercised all of the pre-funded warrants. A director, certain officers and a board advisor of the Company purchased 63,000 shares of the Company’s common stock and 63,000 Investor Warrants in the February Offering, at a combined price of $7.00 per share. The Company issued warrants (the “2017 Warrants”) in its December 2017 public offering. As of December 31, 2019, 118,696 of these warrants remain outstanding. Pursuant to the terms of the warrants, the sale and issuance in this underwritten public offering of common stock and Investor Warrants at a combined public offering price of $7.00 per share triggered an adjustment to the exercise price of the outstanding 2017 Warrants. The exercise price of such warrants was reduced from $42.00 per share to $0.0001 per share, pursuant to the terms of the 2017 Warrants. As of the filing date of this Annual Report on Form 10-K, 74,670 warrants have been subsequently exercised. Under the terms of the MIT License, MIT is entitled to receive an additional 265 shares of common stock upon completion of the offering. As a result of the February Offering, the Company experienced an ownership change within the meaning of Section 382. As a result of this change, the Company’s ability to utilize NOL’s generated from the date of its last ownership change in December 2017 to the date of the February Offering will be additionally limited by approximately $281,000. Including the prior annual limitation, the cumulative annual limitation will be approximately $1,840,000 during the carryforward period. An additional $437,000 of NOL’s will expire unutilized. Prepayment of Term Loan Under the terms of the Term Loan, should the Company complete an equity offering, 50% of the outstanding balance of the Term Loan must be repaid to CVP, plus a 15% prepayment fee. On February 14, 2020, the Company paid CVP approximately $1,959,100, representing a payment against the outstanding balance of approximately $1,703,600 and the prepayment fee of approximately $255,500 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
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, valuation of stock-based compensation, valuation of embedded derivative liabilities, warranty obligations and reserves for slow-moving inventory. |
Cash and Cash Equivalents | Cash and Cash Equivalents 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 December 31, 2019 and 2018. 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 balance sheets that sum to the total of the same amounts show in the statement of cash flows. 2019 2018 Cash and cash equivalents $ 4,465,455 $ 6,540,794 Restricted cash 75,000 75,000 Total cash, cash equivalents, and restricted cash in the balance sheet $ 4,540,455 $ 6,615,794 |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company reports accounts receivable at invoiced amounts less an allowance for doubtful accounts. The Company evaluates its accounts receivable on a continuous basis, and if necessary, establishes an allowance for |
Inventories | Inventories Inventories are recorded at the lower of cost or net realizable value. Cost is determined using a specific identification method. The Company reduces the carrying value of inventory for those items that are potentially excess, obsolete or slow-moving based on changes in customer demand, technology developments or other economic factors. In addition, the carrying value of consigned inventories is reduced by the value of MyoPro devices that will not be sold based on historical experience. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs are comprised of direct incremental legal, accounting and financial advisor fees related relating to capital raising efforts. Deferred offering costs are offset against proceeds of an offering. In the event a capital raising effort is terminated, deferred offering costs are expensed. |
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 by the Company’s to its indirect sales channel for marketing and patient evaluation purposes. These units are manufactured by the Company and are expensed in the statements of operations to selling, general, and administrative expense. During the years ended December 31, 2019 and 2018, the Company charged to operations approximately $152,200 and $256,700, respectively, for these units. Demonstrations units provided to its own sales force are capitalized as equipment on the Company’s balance sheet. Test units are 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 their 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 expensed in the statements of operations as part of research and development expense. During the year ended December 31, 2019 and 2018 the Company charged to operations approximately $31,100 and $17,700, respectively, of these units. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses the recoverability of its long-lived assets, including equipment when there are indications that the assets might be impaired. When evaluating assets for potential impairment, the Company compares the carrying value of the asset to its estimated undiscounted future cash flows. If an asset’s carrying value exceeds such estimated undiscounted cash flows, the Company records an impairment charge for the difference. Based on its assessments, the Company did not record any impairment charges for the years ended December 31, 2019 and 2018. Accounts Payable and Other Accrued Expenses: 2019 2018 Trade payables $ 450,101 $ 426,727 Accrued compensation and benefits 889,583 1,027,757 Accrued professional services 142,804 73,722 Warranty reserve 81,981 92,000 Other 173,981 123,221 $ 1,738,450 $ 1,743,427 |
Derivative Liabilities | Derivative Liabilities The Company accounts for warrants determined to be derivative financial instruments and any embedded equity-linked component in debt instruments determined to be a derivative liability by recording them as a liability at fair value and then it marks-to-market the instruments at fair values as of each subsequent balance sheet date. Any change in fair value is recorded as a change in the fair value of derivative liabilities for each reporting period at each balance sheet date. The Company reassesses the classification at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. The Company has recorded derivative liabilities for warrants it issued with certain equity offerings (see Note 9) as well as a derivative liability for an embedded derivative liability in its Term Loan (see Note 6). |
Debt | Debt The Company elects not to use the fair value option for recording debt arrangements and elects to record the debt at the stated value of the loan agreement on the date of issuance. Any other elements present are reviewed to determine if they are embedded derivatives requiring bifurcation and requiring valuation. Elements of the host contract which are not clearly and closely related to the debt are considered derivatives and are recorded at fair value. The carrying value assigned to the host instrument will be the difference between the previous carrying value of the host instrument and the fair value of the derivatives. There is no immediate gain/loss from the initial recognition and measurement if the embedded derivative is accounted for separately from its host contract. There is an offsetting debt discount or premium as a result of the fair value assigned to the derivatives, as well as any debt issuance costs, which are amortized under the effective interest method over the term of the loan. Each reporting period, fair value is assessed for the derivative liabilities with the change in value being recorded as other income/loss. |
Revenue Recognition | Revenue Recognition On January 1, 2019, the Company adopted the new accounting standard ASC 606, “Revenue from Contracts with Customers” and all the related amendments (Topic 606) using the modified retrospective method for all contracts not completed as of the date of adoption. For contracts that were modified before the effective date, the Company reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price in accordance with practical expedient ASC 606-10-65-1-(f)-4, which did not have a material effect on the Company’s assessment of the cumulative effect adjustment upon adoption. The Company recognized the cumulative effect of initially applying the new standard as an adjustment to the opening balance of accumulated deficit. Results for reporting periods beginning after January 1, 2019 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Revenues under Topic 606 are required to be recognized either at a “point in time” or “over time,” depending on the facts and circumstances of the arrangement and are evaluated using a five-step model. Generally, the Company recognizes revenue at a point in time. The adoption of Topic 606 did not have a material impact on the financial statements at initial implementation. The Company recognizes revenue after applying the following five steps: 1) Identification of the contract, or contracts, with a customer, 2) Identification of the performance obligations in the contract, including whether they are distinct within the context of the contract 3) Determination of the transaction price, including the constraint on variable consideration 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, performance obligations are satisfied Revenue is recognized when control of these services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Increasingly, the Company derives its revenue from direct billing. The Company also derives revenue from the sale of its products to O&P providers in the U.S. and internationally, the Veterans Administration (“VA”) and rehabilitation hospitals. Under direct billing, the Company recognizes revenue when all of the following criteria are met: (i) The product has been delivered to the patient, including completion of initial instruction on its use. (ii) Collection is deemed probable and it has been determined that a significant reversal of the revenue to be recognized is not deemed probable when the uncertainty associated with the variable consideration is resolved. (iii) The amount to be collected is estimable using the “expected value” estimation techniques, or the “most likely amount” as defined in ASC 606. Depending on the timing of product deliveries to customers, which is when cost of revenue must be recorded, and when the Company meets the criteria to record revenue, there may be fluctuations in gross margin on an ongoing basis. During the year ended December 31, 2019, the Company recognized revenue of approximately $427,000 from O&P providers or third-party payers for which costs related to the completion of the Company’s performance obligations were recorded in a prior period. For revenues derived from O&P providers, the VA and rehabilitation hospitals, the Company recognizes revenue when control passes to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those services, which may be recognized upon shipment or upon delivery, depending on the terms of the arrangement, provided that persuasive evidence of an arrangement exists, there are no uncertainties regarding customer acceptance and collectability is deemed probable. In certain cases, the Company ships its products to O&P providers pending reimbursement from non-government, third party payers. As a result of this arrangement, elements of the revenue recognition criteria have not been met upon shipment. In this instance, the Company recognizes revenue when payment has been received, as then all of the revenue recognition criteria has been met. The Company receives federally-funded grants that require it 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. Prior to January 1, 2019, the Company’s grant revenue was recognized when persuasive evidence of the arrangement existed, the service had been provided and adherence to specific parameters of the awarded grant had been met, the amount was fixed and determinable and collection was reasonably assured. The Company recognized approximately The Company has elected to record taxes collected from customers on a net basis and does not include tax amounts in revenue or cost of revenue. Contract Balances The timing of revenue recognition may differ from the timing of payment by customers. The Company records a receivable when revenue is recognized prior to payment and there is an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company had immaterial amounts of deferred revenue as of December 31, 2019 and 2018. Disaggregated Revenue from Contracts with Customers The following table presents revenue by major source: 2019 Clinical/medical providers $ 2,553,099 Direct-to-patient 1,284,631 Total revenue from contracts with customers $ 3,837,730 Cost of Revenue In conjunction with the adoption of ASC 606, there are certain cases in which the Company will expense costs when incurred as required by ASC 340-40-25, such as when the Company ships the MyoPro device to O&P providers, or provides the device directly to patients, pending reimbursement from third party payers. Prior to the implementation of ASC 606, the Company had been accounting for this transaction at the time of shipping to an O&P provider by leaving consigned inventory on the balance sheet until the uncertainty regarding payment had been resolved and by providing a consignment inventory reserve based upon the amounts historically collected under this program. Under ASC 340-40-25, this inventory is expensed as of the date of shipment. For the year ended December 31, 2019, the Company recorded cost of goods sold of approximately $120,300 without corresponding revenue. The cost of clinical services by O&P providers for which they are paid a fee in conjunction with devices being sold directly to patients and billing their insurance companies directly are expensed as incurred as required by ASC 340-40-25, as a cost of obtaining a contract. These costs are recorded as sales and marketing expense, with the remaining costs associated with the patient being expensed to cost of revenue. The Company recorded a net increase to opening accumulated deficit of approximately $123,000 as of January 1, 2019 due to the cumulative impact of adopting Topic 606. The cumulative effect of the changes made to the Company’s consolidated balance sheet for the adoption of Topic 606 were as follows: Selected Balance Sheet Accounts Balance at 12/31/18 Adjustments due to ASC 2014-09 Balance at 1/1/19 Assets Inventories, net $ 256,149 $ (84,635 ) $ 171,514 Prepaid expenses and other 695,276 (38,812 ) 656,464 Stockholders’ Equity Accumulated deficit (45,289,526 ) (123,447 ) (45,412,973 ) |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs paid by customers are netted against the related shipping costs we incur. The net cost is recorded in cost of revenues. Historically, such costs have not been material. |
Income Taxes | Income Taxes The Company accounts for income taxes under Accounting Standards Codification ASC 740 Income Taxes (“ASC 740”). Under ASC 740, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. ASC 740 requires that the tax effects of changes in tax laws or rates be recognized in the financial statement in the period in which the law is enacted. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Tax benefits claimed or expected to be claimed on a tax return are recorded in the Company’s financial statements. A tax benefit from an uncertain tax position is only recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Uncertain tax positions have had no impact on the Company’s financial condition, results of operations or cash flows. The Company files income tax returns in federal and state jurisdictions and is no longer subject to examinations by tax authorities for years prior to 2016. Currently, there are no income tax audits in process. |
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. Stock-based compensation expense of approximately $908,000 and $814,700 was recorded in research and development, selling, general and administrative expense in 2019 and 2018, 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 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 years ended December 31, 2019 and 2018, respectively, and as a result, all potentially dilutive common shares are considered antidilutive for these periods. Potentially common shares issuable at December 31, 2019 and 2018 consist of: 2019 2018 Options 21,806 24,125 Warrants 181,176 169,063 Restricted stock units 18,395 1,270 Restricted stock 659 1,275 Total 222,036 195,733 |
Advertising | Advertising The Company charges the costs of advertising to operating expenses as incurred. Advertising expense amounted to approximately $301,700 and $136,300 in 2019 and 2018, respectively. |
Research and Development Costs | Research and Development Costs The Company expenses research and development costs as incurred. Research and development costs primarily consist of salaries and benefits, facility and overhead costs, and outsourced research activities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, or 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. We lease or facilities on month-to-month basis and do not carry any equipment leases, therefore we do not believe that the adoption of ASU No. 2016-02 will have a material impact on our financial statements. As an emerging growth company, we delayed adoption of ASU 2016-02 until January 1, 2020. In June 2018, the FASB issued ASU No. 2018-07, “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. We have adopted this standard and the adoption of this standard did not have a material impact on our financial statements or disclosures. 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. We are currently evaluating the accounting, transition, and disclosure requirements of the standard to determine the impact, if any, on our financial statements. In April 2019, The FASB issued ASU 2019-04 “ Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” to clarify and improve guidance within the recently issued standards on credit losses, hedging, and recognition and measurement of financial instruments. Among other updates, this ASU amended provisions of ASU 2016-01, “ Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” relating to fair value disclosures for held-to-maturity debt securities. The amendments related to ASU 2016-01 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in any interim period as long as the entity has adopted all of the amendments in ASU 2016-01. The amendments should be applied on a modified-retrospective basis through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-01. We are currently evaluating the accounting, transition, and disclosure requirements of the standard to determine the impact, if any, on our financial statements. In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740) -- Simplifying the Accounting for Income Taxes. This ASU modifies certain provisions of ASC 740 to simplify the accounting for income taxes. The amendments in ASU 2019-12 are effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. |
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 other 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) | 12 Months Ended |
Dec. 31, 2019 | |
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 balance sheets that sum to the total of the same amounts show in the statement of cash flows. 2019 2018 Cash and cash equivalents $ 4,465,455 $ 6,540,794 Restricted cash 75,000 75,000 Total cash, cash equivalents, and restricted cash in the balance sheet $ 4,540,455 $ 6,615,794 |
Summary of Accounts Payable and Other Accrued Expenses | Accounts Payable and Other Accrued Expenses: 2019 2018 Trade payables $ 450,101 $ 426,727 Accrued compensation and benefits 889,583 1,027,757 Accrued professional services 142,804 73,722 Warranty reserve 81,981 92,000 Other 173,981 123,221 $ 1,738,450 $ 1,743,427 |
Summary of Revenue by Major Source | The following table presents revenue by major source: 2019 Clinical/medical providers $ 2,553,099 Direct-to-patient 1,284,631 Total revenue from contracts with customers $ 3,837,730 |
Summary of Potentially Common Shares Issuable | Potentially common shares issuable at December 31, 2019 and 2018 consist of: 2019 2018 Options 21,806 24,125 Warrants 181,176 169,063 Restricted stock units 18,395 1,270 Restricted stock 659 1,275 Total 222,036 195,733 |
Adoption of ASC 606 [Member] | |
Cumulative Effect of Changes in Consolidated Balance Sheet for Adoption of Topic 606 | The cumulative effect of the changes made to the Company’s consolidated balance sheet for the adoption of Topic 606 were as follows: Selected Balance Sheet Accounts Balance at 12/31/18 Adjustments due to ASC 2014-09 Balance at 1/1/19 Assets Inventories, net $ 256,149 $ (84,635 ) $ 171,514 Prepaid expenses and other 695,276 (38,812 ) 656,464 Stockholders’ Equity Accumulated deficit (45,289,526 ) (123,447 ) (45,412,973 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following at December 31: 2019 2018 Finished goods $ 46,854 $ - Rental units 23,418 - Consigned inventory - 135,635 Parts and subassemblies 372,996 195,514 443,268 331,149 Less: Reserve for rental units (3,735 ) - Excess and obsolete inventory reserves - (24,000 ) Consigned inventory reserves - (51,000 ) Inventories, net $ 439,533 $ 256,149 |
Equipment, net (Tables)
Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Equipment | Equipment consists of the following at December 31: 2019 2018 Computer equipment $ 104,384 $ 76,424 Sales demonstration units 186,951 155,293 R&D tools and molds 52,644 52,644 Furniture and fixtures 3,270 3,270 347,249 287,631 Less: accumulated depreciation (192,277 ) (100,118 ) Equipment, net $ 154,972 $ 187,513 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Cash Equivalents and Derivative Liabilities Measured at Fair Value on Recurring Basis | Cash equivalents, which are measured at fair value, and derivative liabilities (see Notes 6 and 9), which are measured at fair value on a recurring basis at December 31, 2019 were as follows: In Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019 Total Cash equivalents $ 3,964,250 — — $ 3,964,250 Derivative liabilities — — $ 378,239 $ 378,239 Cash equivalents, which are measured at fair value, and derivative liabilities (see Note 9), which are measured at fair value on a recurring basis at December 31, 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) December 31, 2018 Total Cash equivalents $ 6,037,456 — — $ 6,037,456 Derivative liabilities — — $ 3,661 $ 3,661 |
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 year ended December 31, 2019 and 2018: Derivative Liabilities Balance – January 1, 2018 $ 39,930 Change in fair value of derivative liability (36,269 ) Balance – December 31, 2018 3,661 Fair value of common stock warrant issued 196,236 Fair value of debt derivative liability 372,827 Change in fair value of derivative liabilities (194,485 ) Balance – December 31, 2019 $ 378,239 |
Significant Unobservable Inputs (Level 3) [Member] | Discounted Cash Flow [Member] | |
Schedule of Fair Value Assumptions | Assumptions utilized in the discounted cash flow valuation of the Level 3 liability for the debt derivative liability at December 31, 2019 were as follows: 2019 Effective annual coupon rate 10.52% Discount rate 29.32% Expected life 1.5 years |
Significant Unobservable Inputs (Level 3) [Member] | Warrants [Member] | |
Schedule of Fair Value Assumptions | Weighted average assumptions utilized in the valuation of Level 3 liabilities for warrants at December 31, were as follows: 2019 2018 Risk-free interest rate 1.62% 2.51% Expected life 3.05 years 3.44 years Expected volatility of underlying stock 66% 62% Expected dividend yield — — |
Stock Award Plans and Stock-b_2
Stock Award Plans and Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | Stock option activity under the Stock Option Plans during the years ended December 31, 2019 and 2018 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Life (years) Intrinsic Value Balance at January 1, 2018 12,300 $ 52.9600 8.65 $ 732,399 Granted 12,506 92.1000 Forfeited or cancelled (454 ) 93.3000 Expired (188 ) 50.7000 Exercised (39 ) 116.1000 Balance at December 31, 2018 24,125 72.6000 8.51 $ 157,260 Granted 6,033 31.7700 Forfeited or cancelled (4,236 ) 69.0200 Expired (3,786 ) 72.9700 Exercised (331 ) 0.0500 Balance at December 31, 2019 21,805 $ 63.0000 7.83 $ 17,581 Options exercisable at December 31, 2018 11,223 $ 58.5000 7.74 $ 141,506 Options exercisable at December 31, 2019 13,763 $ 70.2800 7.17 $ 17,581 |
Schedule of Grant Date Fair Value | The following weighted average assumptions underlying the calculation of grant date fair value are as follows: 2019 2018 Volatility 62.55% 61.03% Risk-free interest rate 2.16% 2.88% Weighted-average expected option term (in years) 6.46 6.33 Dividend yield 0% 0% |
Summary of Restricted Stock Activity | Restricted stock activity for the years ended December 31, 2019 and 2018 is summarized below: Number of Shares Weighted average grant date fair value Weighted average remaining contractual life (in years) Outstanding as January 1, 2018 1,473 $ 202.50 6.75 Awarded 1,836 98.10 Vested (2,034 ) 144.90 Canceled — — Outstanding as December 31, 2018 1,275 144.00 1.39 Awarded 569 17.83 Vested (1,185 ) 102.45 Canceled — Outstanding as of December 31, 2019 659 $ 109.91 0.97 |
Summary of Restricted Stock Unit Activity | Restricted stock unit activity for the years ended December 31, 2019 and 2018 is summarized below: Number of Shares Weighted average grant date fair value Weighted average remaining contractual life (in years) Outstanding as of January 1, 2018 — $ - — Awarded 3,457 106.80 Vested (2,187 ) 110.40 Canceled — — Outstanding as of December 31, 2018 1,270 100.50 1.49 Awarded 26,501 28.75 Vested (8,105 ) 47.38 Canceled (1,271 ) 35.83 Outstanding as of December 31, 2019 18,395 $ 25.00 1.65 |
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 and restricted stock awards to employees and directors, and restricted stock units to employees in the statements of operations as follow: 2019 2018 Research and development $ 121,931 $ 103,457 Selling, general and administrative 786,062 711,209 Total $ 907,993 $ 814,666 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Warrants And Rights Note Disclosure [Abstract] | |
Summary of Common Stock Warrants Activity | The following table presents the Company’s common stock warrant activity for the years ended December 31, 2019 and 2018: Warrants Weighted Average Exercise Price Outstanding Exercisable Outstanding Exercisable Balance, Jan 1, 2018 209,248 206,465 $ 115.50 $ 115.80 Previously issued warrants which became exerciseable — 2,783 72.00 72.00 Issued — — — — Exercised (40,185 ) (40,185 ) 88.50 88.50 Balance, Dec 31, 2018 169,063 169,063 121.50 121.80 Issued 12,113 12,113 52.50 52.50 Exercised — — — — Balance, Dec 31, 2019 181,176 181,176 $ 86.40 $ 86.40 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Amounts Due under Agreement | The future minimum amounts due under this agreement for the next four years are as follows: 2020 $ 25,000 2021 25,000 2022 25,000 2023 (year patents expire) 25,000 |
Summary of Changes in Warranty Liability | Changes in warranty liability were as follows: 2019 2018 Accrued warranty liability, beginning of year $ 92,000 $ 50,725 Accrual provided for warranties issued during the period 4,174 23,452 Adjustments to prior accruals 29,227 38,382 Actual warranty expenditures (43,420 ) (20,559 ) Accrued warranty liability, end of year $ 81,981 $ 92,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Tax Provision (Benefit) | The income tax provision (benefit) for the years ended December 31, 2019 and 2018 consist of the following: 2019 2018 U.S. federal Current $ — $ — Deferred (2,196,000 ) (2,065,000 ) State and local Current — — Deferred (706,000 ) (571,000 ) (2,902,000 ) (2,636,000 ) Deferred tax expense related to tax law change — — Change in valuation allowance 2,902,000 2,636,000 Income tax provision $ — $ — |
Summary of Reconciliation between U.S. Statutory Federal Income Tax Rate and Effective Rate | The reconciliation between the U.S statutory federal income tax rate and the Company’s effective rate for the years ended December 31, 2019 and 2018 is as follows: 2019 2018 U.S. federal statutory rate 21.00 % 21.00 % State income taxes, net of federal benefit 5.57 % 5.57 % State rate change and other 1.22 % (0.03 )% Other permanent items (0.70 )% (0.98 )% Change in valuation allowance (27.09 )% (25.56 )% Effective rate 0.00 % 0.00 % |
Summary of Deferred Tax Assets | As of December 31, 2019, and 2018, the Company’s deferred tax assets consisted of the effects of temporary differences attributable to the following: 2019 2018 Net operating loss carryover $ 11,378,000 $ 8,378,000 Tax credits 173,000 178,000 Stock-based compensation 28,000 27,000 Other 346,000 440,000 Total deferred tax asset 11,925,000 9,023,000 Less: valuation allowance (11,925,000 ) (9,023,000 ) Deferred tax asset, net of valuation allowance $ — $ — |
Description of Business - Addit
Description of Business - Additional Information (Detail) | Feb. 13, 2020shares$ / shares | Oct. 22, 2019USD ($) | Jul. 02, 2018USD ($) | Feb. 29, 2020USD ($)shares$ / shares | Feb. 28, 2019USD ($)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Jan. 01, 2019USD ($) |
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Authorized issue of shares | 125,000,000 | |||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Preferred stock, shares authorized | 25,000,000 | |||||||
Preferred stock, par value | $ / shares | $ 0.0001 | |||||||
Net loss | $ | $ 10,713,009 | $ 10,316,739 | ||||||
Accumulated deficit | $ | 56,125,982 | 45,289,526 | $ 45,412,973 | |||||
Cash used in operating activities | $ | $ 10,341,817 | $ 9,606,310 | ||||||
Substantial doubt about going concern, management's plans, substantial doubt alleviated | As a result of the net proceeds raised in the February 2020 equity offering and after consideration of management’s plans described below, the Company believes that substantial doubt about the Company’s ability to continue as a going concern has been alleviated. | |||||||
Chicago Venture Partners [Member] | Term Loan [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Proceeds from term loan | $ | $ 3,000,000 | |||||||
Proposed repayment of term loan including original issue discount | $ | $ 3,300,000 | |||||||
Subsequent Event [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Number of shares entitled to warrant holder | 1 | |||||||
Proceeds from FPO, net of offering costs | $ | $ 13,700,000 | |||||||
Common Stock [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Stock issued during period | 151,417 | |||||||
Pre-funded Warrants [Member] | Subsequent Event [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Warrants to purchase common stock | 483,000 | |||||||
Common stock warrants, sale price per share | $ / shares | $ 6.9999 | |||||||
Investor Warrants [Member] | Subsequent Event [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Warrants to purchase common stock | 2,143,000 | |||||||
FPO [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Stock issued during period | 151,417 | |||||||
Proceeds from FPO, net of offering costs | $ | $ 5,600,000 | |||||||
FPO [Member] | Subsequent Event [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Warrants to purchase common stock | 1,660,000 | |||||||
Proceeds from FPO, net of offering costs | $ | $ 13,700,000 | |||||||
FPO [Member] | Common Stock [Member] | Subsequent Event [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Stock issued during period | 1,660,000 | |||||||
FPO [Member] | Common Stock and Investor Warrants [Member] | Subsequent Event [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Sale of common stock price per share | $ / shares | $ 7 | |||||||
Number of shares entitled to warrant holder | 1 | |||||||
FPO [Member] | Pre-funded Warrants [Member] | Subsequent Event [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Warrants to purchase common stock | 483,000 | |||||||
FPO [Member] | Investor Warrants [Member] | Subsequent Event [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Warrants to purchase common stock | 483,000 | |||||||
FPO [Member] | Pre Funded and Investor Warrants [Member] | Subsequent Event [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Common stock warrants, sale price per share | $ / shares | $ 6.999 | |||||||
Number of shares entitled to warrant holder | 1 | |||||||
Maximum [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [Line Items] | ||||||||
Aggregate public offering price | $ | $ 75,000,000 | |||||||
Maximum [Member] | Sales Agreement with B. Riley FBR, Inc. [Member] | ||||||||
Organization Consolidation and Presentation of Financial Statements [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 ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 4,465,455 | $ 6,540,794 | |
Restricted cash | 75,000 | 75,000 | |
Total cash, cash equivalents, and restricted cash in the balance sheet | $ 4,540,455 | $ 6,615,794 | $ 13,011,373 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Equipment estimated useful lives | 3 years | |
Impairment charges | $ 0 | $ 0 |
Reimbursable costs | 31,600 | |
Cost of goods sold | $ 490,500 | 530,300 |
Measurement of tax benefit, minimum likelihood of the largest amount being realized upon ultimate resolution | 50.00% | |
Stock-based compensation expense | $ 907,993 | 814,666 |
Advertising expense | 301,700 | 136,300 |
Adoption of ASC 606 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Cost of goods sold | 120,300 | |
Cumulative adjustment to equity | 123,000 | |
Grant Income [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Grant income recognized | 64,600 | |
O&P Providers or Third Party Payors [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Revenue recognized | 427,000 | |
Selling, General and Administrative [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Demonstration units, expenses | 152,200 | 256,700 |
Stock-based compensation expense | 786,062 | 711,209 |
Research and Development [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Test units, expenses | 31,100 | 17,700 |
Stock-based compensation expense | $ 121,931 | $ 103,457 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Accounts Payable and Other Accrued Expenses (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 450,101 | $ 426,727 |
Accrued compensation and benefits | 889,583 | 1,027,757 |
Accrued professional services | 142,804 | 73,722 |
Warranty reserve | 81,981 | 92,000 |
Other | 173,981 | 123,221 |
Total | $ 1,738,450 | $ 1,743,427 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Revenue by Major Source (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 3,837,730 | $ 2,444,104 |
Clinical/Medical Providers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2,553,099 | |
Direct to Patient [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 1,284,631 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Cumulative Effect of Changes in Consolidated Balance Sheet for Adoption of Topic 606 (Detail) - USD ($) | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Inventories, net | $ 439,533 | $ 171,514 | $ 256,149 |
Prepaid expenses and other | 820,206 | 656,464 | 695,276 |
Stockholders’ Equity | |||
Accumulated deficit | $ (56,125,982) | (45,412,973) | (45,289,526) |
Adoption of ASC 606 [Member] | Balance [Member] | |||
Assets | |||
Inventories, net | 256,149 | ||
Prepaid expenses and other | 695,276 | ||
Stockholders’ Equity | |||
Accumulated deficit | $ (45,289,526) | ||
Adoption of ASC 606 [Member] | Adjustments due to ASC 2014-09 | |||
Assets | |||
Inventories, net | (84,635) | ||
Prepaid expenses and other | (38,812) | ||
Stockholders’ Equity | |||
Accumulated deficit | $ (123,447) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Potentially Common Shares Issuable (Detail) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 222,036 | 195,733 |
Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 21,806 | 24,125 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 181,176 | 169,063 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 18,395 | 1,270 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 659 | 1,275 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 46,854 | ||
Rental units | 23,418 | ||
Consigned inventory | $ 135,635 | ||
Parts and subassemblies | 372,996 | 195,514 | |
Total cost | 443,268 | 331,149 | |
Less: Reserve for rental units | (3,735) | ||
Excess and obsolete inventory reserves | (24,000) | ||
Consigned inventory reserves | (51,000) | ||
Inventories, net | $ 439,533 | $ 171,514 | $ 256,149 |
Equipment, net - Schedule of Eq
Equipment, net - Schedule of Equipment (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | $ 347,249 | $ 287,631 |
Less: accumulated depreciation | (192,277) | (100,118) |
Equipment, net | 154,972 | 187,513 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | 104,384 | 76,424 |
Sales Demonstration Units [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | 186,951 | 155,293 |
R&D Tools and Molds [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | 52,644 | 52,644 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | $ 3,270 | $ 3,270 |
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 ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 3,964,250 | $ 6,037,456 |
Derivative liabilities | 378,239 | 3,661 |
In Active Markets for Identical Assets or Liabilities (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 3,964,250 | 6,037,456 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative liabilities | $ 378,239 | $ 3,661 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Fair Value Reconciliation of Level 3 Liabilities Measured (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 3,661 | $ 39,930 |
Fair value of common stock warrant issued | 196,236 | |
Fair value of debt derivative liability | 372,827 | |
Change in fair value of derivative liabilities | (194,485) | (36,269) |
Ending balance | $ 378,239 | $ 3,661 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Weighted Average Assumptions Utilized in Valuation of Level 3 Liabilities for Warrants (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Risk-free Interest Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value assumptions | 1.62 | 2.51 |
Expected Life [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value assumptions | 3.05 | 3.44 |
Expected Volatility of Underlying Stock [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value assumptions | 66 | 62 |
Expected Dividend Yield [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value assumptions | 0 | 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Schedule of Assumptions Utilized in Discounted Cash Flow Valuation of the Level 3 Liability (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Effective Annual Coupon Rate [Member] | Discounted Cash Flow [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value assumptions | 10.52 | |
Discount Rate [Member] | Discounted Cash Flow [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value assumptions | 29.32 | |
Expected Life [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value assumptions | 3.05 | 3.44 |
Expected Life [Member] | Discounted Cash Flow [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value assumptions | 1.5 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Oct. 22, 2019USD ($)Payment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||
long-term portion of unamortized debt discount | $ 36,169 | |||
Derivative liability | 378,239 | $ 3,661 | $ 39,930 | |
Amortization of Debt Issuance Costs and Discounts | $ 58,296 | |||
Chicago Venture Partners [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from term loan | $ 3,000,000 | |||
Proposed repayment of term loan including original issue discount | $ 3,300,000 | |||
Term loan, interest rate | 10.00% | |||
Term loan, maturity period | 18 months | |||
Debt instrument first defer redemption payment, fee percentage | 1.00% | |||
Debt instrument second defer redemption payment, fee percentage | 1.25% | |||
Debt instrument third defer redemption payment, fee percentage | 1.50% | |||
Rate of penalty prepayment of outstanding balance of term loan | 15.00% | 15.00% | ||
Percentage of outstanding balance of term loan on proceeds from sale of common stock or other equity | 50.00% | 50.00% | ||
Debt instrument, Minor event of default penalty rate | 5.00% | |||
Debt instrument, Major event of default penalty rate | 15.00% | |||
Debt instrument, default penalty capped rate | 25.00% | |||
Unamortized debt discount | $ 3,366,000 | |||
long-term portion of unamortized debt discount | 925,000 | |||
Debt issuance costs, commission paid | $ 212,000 | |||
Percentage of provision in term loan | 50.00% | |||
Percentage of prepayment fee from equity offering | 15.00% | |||
Derivative liability | $ 372,800 | |||
Debt discount | 372,800 | $ 237,700 | ||
Amortization of Debt Issuance Costs and Discounts | $ 113,600 | |||
Chicago Venture Partners [Member] | Term Loan [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of monthly redemption of term loan | $ 300,000 | |||
Number of options granted for deferred redemption payments | Payment | 3 | |||
Debt instrument, defer redemption payments fee | $ 35,000 | |||
Interest on term loan accrued,after default | 18.00% |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - USD ($) | Jul. 02, 2018 | Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 12, 2019 |
Class of Stock [Line Items] | |||||
Common stock issued for the exercise of common stock options, Shares | 331 | 39 | |||
Proceeds from exercise of stock options | $ 15 | $ 2 | |||
Net withheld for employee taxes | 1,836 | 760 | |||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Stock issued during period | 151,417 | ||||
Common stock issued for the exercise of common stock options, Shares | 331 | 39 | |||
Proceeds from exercise of stock options | $ 15 | $ 2 | |||
Common stock issued upon vesting of restricted stock units, Shares | 6,490 | 1,426 | |||
Net withheld for employee taxes | 1,280 | 2,034 | |||
Restricted Stock Units [Member] | Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock issued upon vesting of restricted stock units, Shares | 6,490 | 1,426 | |||
Net withheld for employee taxes | 1,836 | 760 | |||
Restricted Stock [Member] | Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock issued upon vesting of restricted stock units, Shares | 1,280 | 2,034 | |||
Maximum [Member] | |||||
Class of Stock [Line Items] | |||||
Aggregate public offering price | $ 75,000,000 | ||||
Underwriter Warrants [Member] | |||||
Class of Stock [Line Items] | |||||
Warrants to purchase common stock | 12,113 | 12,113 | |||
Common stock warrants, exercise price per share | $ 52.50 | $ 52.50 | |||
Underwritten Public Offering [Member] | |||||
Class of Stock [Line Items] | |||||
Stock issued during period | 151,417 | ||||
Net proceeds from issuance of common stock | $ 5,604,000 | ||||
Sales Agreement with B. Riley FBR, Inc. [Member] | Maximum [Member] | |||||
Class of Stock [Line Items] | |||||
At-the-market offering price | $ 15,000,000 | ||||
At-the-market offering, agent's commission as percent | 3.00% |
Stock Award Plans and Stock-b_3
Stock Award Plans and Stock-based Compensation - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Oct. 18, 2019 | Jun. 05, 2019 | Feb. 18, 2019 | Jul. 09, 2018 | Jun. 19, 2018 | Jan. 03, 2018 | Jan. 02, 2018 | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | Apr. 01, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Income tax benefit recognized | $ 0 | $ 0 | |||||||||||
weighted-average grant date fair value per share | $ 57.37 | $ 53.10 | |||||||||||
Number of shares, granted | 12,113 | ||||||||||||
Restricted Stock [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, granted | 569 | 1,836 | |||||||||||
Number of shares, vesting period commenced | 1,185 | 2,034 | |||||||||||
Unrecognized compensation cost | $ 521,000 | $ 521,000 | |||||||||||
Weighted-average remaining contractual term | 11 months 19 days | ||||||||||||
Restricted Stock [Member] | Board of Directors [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, issued | 1,329 | 508 | |||||||||||
Compensation expense | $ 60,000 | ||||||||||||
Restricted Stock Units [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, granted | 2,957 | 26,501 | 3,457 | ||||||||||
Provisions for lapsing forfeiture rights extended period | 24 months | ||||||||||||
Restricted Stock Units subject to forfeiture | 770 | ||||||||||||
Number of shares, vesting period commenced | 8,105 | 2,187 | |||||||||||
Unrecognized compensation cost | $ 339,500 | $ 339,500 | |||||||||||
Weighted-average remaining contractual term | 1 year 7 months 24 days | ||||||||||||
Restricted Stock Units [Member] | Two Performance Goals [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, vesting period commenced | 2,666 | ||||||||||||
Restricted Stock Units [Member] | Board of Directors [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, issued | 1,111 | ||||||||||||
Restricted Stock Units [Member] | Officer [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 4 years | ||||||||||||
Restricted Stock Units [Member] | Officer [Member] | Vest in Full on the First Anniversary [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, granted | 166 | ||||||||||||
Restricted Stock Units [Member] | Officer [Member] | Vest Over Four Years [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, granted | 333 | ||||||||||||
Restricted Stock Units [Member] | Executive Officer [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 4 years | ||||||||||||
Number of shares, granted | 1,666 | ||||||||||||
Restricted Stock Units [Member] | Executive Officers And Key Employee [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 2 years | ||||||||||||
Number of shares, granted | 7,666 | ||||||||||||
Restricted Stock Units [Member] | Chief Executive Officer [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, granted | 6,666 | ||||||||||||
Restricted Stock Units [Member] | Chief Executive Officer [Member] | Vest in Full on the First Anniversary [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, granted | 1,333 | ||||||||||||
Restricted Stock Units [Member] | Chief Executive Officer [Member] | Vest Over Four Years [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, granted | 1,333 | ||||||||||||
Restricted Stock Units [Member] | Chief Executive Officer [Member] | Tranche 3 [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, granted | 1,333 | ||||||||||||
Restricted Stock Units [Member] | Chief Executive Officer [Member] | Tranche 4 [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, granted | 1,333 | ||||||||||||
Restricted Stock Units [Member] | Chief Executive Officer [Member] | Tranche 5 [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares, granted | 1,333 | ||||||||||||
Restricted Stock Units [Member] | Resignation of One Director [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restricted Stock Units subject to forfeiture | 83 | ||||||||||||
Stock Option [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Unrecognized compensation cost | $ 212,200 | $ 212,200 | |||||||||||
Weighted-average remaining contractual term | 2 years 8 months 4 days | ||||||||||||
Minimum [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 4 years | ||||||||||||
Maximum [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 10 years | ||||||||||||
2018 Stock Options and Incentive Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares available for future grant | 10,151 | 23,537 | 10,151 | ||||||||||
Number of common shares reserved for issuance | 20,667 | ||||||||||||
Percentage increase in number of shares of common stock reserved and available for issuance | 4.00% | ||||||||||||
2016 Equity Incentive Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares available for future grant | 2,870 |
Stock Award Plans and Stock-b_4
Stock Award Plans and Stock-based Compensation - Summary of Stock Option Activity (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Shares, Beginning balance | 24,125 | 12,300 | |
Shares, Granted | 6,033 | 12,506 | |
Shares, Forfeited or cancelled | (4,236) | (454) | |
Shares, Expired | (3,786) | (188) | |
Shares, Exercised | (331) | (39) | |
Shares, Ending balance | 21,805 | 24,125 | 12,300 |
Shares, Options exercisable | 13,763 | 11,223 | |
Weighted average exercise price, Beginning balance | $ 72.6000 | $ 52.9600 | |
Weighted average exercise price, Granted | 31.7700 | 92.1000 | |
Weighted average exercise price, Forfeited or cancelled | 69.0200 | 93.3000 | |
Weighted average exercise price, Expired | 72.9700 | 50.7000 | |
Weighted average exercise price, Exercised | 0.0500 | 116.1000 | |
Weighted average exercise price, Ending balance | 63 | 72.6000 | $ 52.9600 |
Weighted average exercise price, Options exercisable | $ 70.2800 | $ 58.5000 | |
Weighted average remaining life | 7 years 9 months 29 days | 8 years 6 months 3 days | 8 years 7 months 24 days |
Weighted average remaining life, Options exercisable | 7 years 2 months 1 day | 7 years 8 months 26 days | |
Intrinsic value, Beginning balance | $ 157,260 | $ 732,399 | |
Intrinsic value, Ending balance | 17,581 | 157,260 | $ 732,399 |
Intrinsic value, Options exercisable | $ 17,581 | $ 141,506 |
Stock Award Plans and Stock-b_5
Stock Award Plans and Stock-based Compensation - Schedule of Grant Date Fair Value (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Volatility | 62.55% | 61.03% |
Risk-free interest rate | 2.16% | 2.88% |
Weighted-average expected option term (in years) | 6 years 5 months 15 days | 6 years 3 months 29 days |
Dividend yield | 0.00% | 0.00% |
Stock Award Plans and Stock-b_6
Stock Award Plans and Stock-based Compensation - Summary of Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, Awarded | 12,113 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares outstanding, beginning balance | 1,275 | 1,473 | |
Number of shares, Awarded | 569 | 1,836 | |
Number of shares, Vested | (1,185) | (2,034) | |
Number of shares outstanding, ending balance | 659 | 1,275 | 1,473 |
Weighted average grant date fair value outstanding, beginning balance | $ 144 | $ 202.50 | |
Weighted average grant date fair value, Awarded | 17.83 | 98.10 | |
Weighted average grant date fair value, Vested | 102.45 | 144.90 | |
Weighted average grant date fair value outstanding, ending balance | $ 109.91 | $ 144 | $ 202.50 |
Weighted average remaining contractual life | 11 months 19 days | 1 year 4 months 20 days | 6 years 9 months |
Stock Award Plans and Stock-b_7
Stock Award Plans and Stock-based Compensation - Summary of Restricted Stock Unit Activity (Detail) - $ / shares | Jan. 02, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, Awarded | 12,113 | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares outstanding, beginning balance | 1,270 | ||
Number of shares, Awarded | 2,957 | 26,501 | 3,457 |
Number of shares, Vested | (8,105) | (2,187) | |
Number of shares, Canceled | (1,271) | ||
Number of shares outstanding, ending balance | 18,395 | 1,270 | |
Weighted average grant date fair value outstanding, beginning balance | $ 100.50 | ||
Weighted average grant date fair value, Awarded | 28.75 | $ 106.80 | |
Weighted average grant date fair value, Vested | 47.38 | 110.40 | |
Weighted average grant date fair value, Canceled | 35.83 | ||
Weighted average grant date fair value outstanding, ending balance | $ 25 | $ 100.50 | |
Weighted average remaining contractual life | 1 year 7 months 24 days | 1 year 5 months 26 days |
Stock Award Plans and Stock-b_8
Stock Award Plans and Stock-based Compensation - Schedule of Stock-based Compensation Expense (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | $ 907,993 | $ 814,666 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | 121,931 | 103,457 |
Selling, General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | $ 786,062 | $ 711,209 |
Warrants - Additional Informati
Warrants - Additional Information (Detail) - USD ($) | Feb. 12, 2019 | Jun. 02, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2019 | Jun. 09, 2017 |
Class of Warrant or Right [Line Items] | ||||||
Change in fair value of derivative liabilities | $ (194,485) | $ (36,269) | ||||
Previously issued warrants which became exercisable | 2,783 | |||||
Weighted average remaining contractual life of warrants outstanding and exercisable | 7 years 2 months 1 day | 7 years 8 months 26 days | ||||
Underwriter Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Fair value of the warrants derivative liability | $ 196,200 | |||||
Fair value of warrants | $ 7,300 | |||||
Change in fair value of derivative liabilities | 189,000 | |||||
Warrants to purchase common stock | 12,113 | 12,113 | ||||
Common stock warrants, exercise price per share | $ 52.50 | $ 52.50 | ||||
Warrant exercisable period | 6 months | |||||
Warrant expiration date | Feb. 12, 2023 | |||||
June 2017 Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Fair value of the warrants derivative liability | $ 156,725 | |||||
Fair value of warrants | 0 | |||||
Change in fair value of derivative liabilities | $ 3,700 | $ 36,300 | ||||
Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Weighted average remaining contractual life of warrants outstanding and exercisable | 2 years 3 months 14 days | |||||
IPO Selling Agent [Member] | June 2017 Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Purchase of warrants issued | 1,109 | |||||
Underwriters Follow on Public Offering [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Previously issued warrants which became exercisable | 2,783 |
Warrants - Summary of Common St
Warrants - Summary of Common Stock Warrants Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Warrants outstanding, beginning balance | 169,063 | 209,248 |
Warrants outstanding, issued | 12,113 | |
Warrants outstanding, exercised | (40,185) | |
Warrants outstanding, ending balance | 181,176 | 169,063 |
Warrants exercisable, beginning balance | 169,063 | 206,465 |
Warrants exercisable, previously issued warrants which became exerciseable | 2,783 | |
Warrants exercisable, issued | 12,113 | |
Warrants exercisable, exercised | (40,185) | |
Warrants exercisable, ending balance | 181,176 | 169,063 |
Weighted average exercise price outstanding, beginning balance | $ 121.50 | $ 115.50 |
Weighted average exercise price outstanding, previously issued warrants which became exerciseable | 72 | |
Weighted average exercise price outstanding, issued | 52.50 | |
Weighted average exercise price outstanding, exercised | 88.50 | |
Weighted average exercise price outstanding, ending balance | 86.40 | 121.50 |
Weighted average exercise price exercisable, beginning balance | 121.80 | 115.80 |
Weighted average exercise price exercisable, previously issued warrants which became exerciseable | 72 | |
Weighted average exercise price exercisable, issued | 52.50 | |
Weighted average exercise price exercisable, exercised | 88.50 | |
Weighted average exercise price exercisable, ending balance | $ 86.40 | $ 121.80 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||
Revenue recognized from related party | $ 51,700 | $ 306,200 |
Accounts receivable | 25,900 | 0 |
Charges for services | 490,500 | 530,300 |
Accounts payable and accrued expenses | $ 47,400 | $ 54,300 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Customershares | Dec. 31, 2018USD ($)Customer | Dec. 31, 2016 | |
Commitments And Contingencies [Line Items] | |||
Description of operating lease agreement for office space | The Company has a month-to-month lease agreement for office space in Cambridge, MA and a six-month lease arrangement for office space in Fort Worth, TX. | ||
Rent expense | $ 542,600 | $ 352,800 | |
Product warranty period | 3 years | 1 year | |
Sales Revenue, Net [Member] | |||
Commitments And Contingencies [Line Items] | |||
Number of customers | Customer | 0 | 2 | |
Accounts Receivable [Member] | |||
Commitments And Contingencies [Line Items] | |||
Number of customers | Customer | 2 | 2 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Commitments And Contingencies [Line Items] | |||
Concentration risk, percentage | 25.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Customer [Member] | |||
Commitments And Contingencies [Line Items] | |||
Concentration risk, percentage | 15.00% | 20.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customers [Member] | |||
Commitments And Contingencies [Line Items] | |||
Concentration risk, percentage | 13.00% | 16.00% | |
Due From Related Party [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Commitments And Contingencies [Line Items] | |||
Concentration risk, percentage | 13.00% | ||
MIT License [Member] | |||
Commitments And Contingencies [Line Items] | |||
Minimum sales covenant | $ 750,000 | ||
MIT License [Member] | MIT [Member] | |||
Commitments And Contingencies [Line Items] | |||
Stock issued during period | shares | 205 | ||
Minimum percentage of outstanding common stock to be maintained | 1.00% | ||
MIT License [Member] | Cost of Revenue [Member] | |||
Commitments And Contingencies [Line Items] | |||
Royalty charge | $ 69,600 | $ 49,300 | |
Cambridge, MA [Member] | |||
Commitments And Contingencies [Line Items] | |||
Renewal term of operating lease agreement for office space | 1 month | ||
Fort Worth, TX [Member] | |||
Commitments And Contingencies [Line Items] | |||
Term of operating lease agreement for office space | 6 months |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Amounts Due under Agreement (Detail) - MIT License [Member] | Dec. 31, 2019USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2020 | $ 25,000 |
2021 | 25,000 |
2022 | 25,000 |
2023 (year patents expire) | $ 25,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Changes in Warranty Liability (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Product Warranties Disclosures [Abstract] | ||
Accrual provided for warranties issued during the period Accrued warranty liability, beginning of year | $ 92,000 | $ 50,725 |
Accrual provided for warranties issued during the period | 4,174 | 23,452 |
Adjustments to prior accruals | 29,227 | 38,382 |
Actual warranty expenditures | (43,420) | (20,559) |
Accrued warranty liability, end of year | $ 81,981 | $ 92,000 |
Income Taxes - Summary of Tax P
Income Taxes - Summary of Tax Provision (Benefit) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. federal | ||
Deferred | $ (2,196,000) | $ (2,065,000) |
State and local | ||
Deferred | (706,000) | (571,000) |
Total | (2,902,000) | (2,636,000) |
Change in valuation allowance | $ 2,902,000 | $ 2,636,000 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation between U.S. Statutory Federal Income Tax Rate and Effective Rate (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | ||
U.S. federal statutory rate | 21.00% | 21.00% |
State income taxes, net of federal benefit | 5.57% | 5.57% |
State rate change and other | 1.22% | (0.03%) |
Other permanent items | (0.70%) | (0.98%) |
Change in valuation allowance | (27.09%) | (25.56%) |
Effective rate | 0.00% | 0.00% |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Components Of Deferred Tax Assets [Abstract] | ||
Net operating loss carryover | $ 11,378,000 | $ 8,378,000 |
Tax credits | 173,000 | 178,000 |
Stock-based compensation | 28,000 | 27,000 |
Other | 346,000 | 440,000 |
Total deferred tax asset | 11,925,000 | 9,023,000 |
Less: valuation allowance | $ (11,925,000) | $ (9,023,000) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 13, 2017 | |
Income Tax [Line Items] | |||
Deferred tax liabilities | $ 0 | $ 0 | |
Change in valuation allowance | (2,902,000) | (2,636,000) | |
Tax penalties and interest | 0 | 0 | |
Accrued interest and penalties | 0 | 0 | |
Tax Liability [Member] | |||
Income Tax [Line Items] | |||
Accrued interest and penalties | 0 | ||
Federal [Member] | |||
Income Tax [Line Items] | |||
Net operating loss | $ 46,326,000 | 35,519,000 | $ 26,425,000 |
Net operating loss beginning year | begins expiring in the year 2028 | ||
Federal [Member] | Tax Year 2018 [Member] | |||
Income Tax [Line Items] | |||
Net operating loss | 19,901,000 | ||
State [Member] | |||
Income Tax [Line Items] | |||
Net operating loss | $ 41,194,000 | $ 31,228,000 | |
Net operating loss beginning year | will expire in 2022 through 2038 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Mar. 13, 2020 | Feb. 14, 2020 | Feb. 13, 2020 | Dec. 30, 2017 | Feb. 29, 2020 | Feb. 28, 2019 | Dec. 31, 2017 | Dec. 31, 2019 | Oct. 22, 2019 | Feb. 12, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||||||||||
Warrants outstanding | 209,248 | 181,176 | 169,063 | ||||||||
Term Loan [Member] | Chicago Venture Partners [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Percentage of term loan payment on gross proceeds from sale of common stock or other equity | 50.00% | 50.00% | |||||||||
Rate of penalty prepayment of outstanding balance of term loan | 15.00% | 15.00% | |||||||||
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of shares entitled to warrant holder | 1 | ||||||||||
Proceeds from FPO, net of offering costs | $ 13,700,000 | ||||||||||
Subsequent Event [Member] | Term Loan [Member] | Chicago Venture Partners [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payment of debt | $ 1,959,100 | ||||||||||
Debt instrument outstanding amount | 1,703,600 | ||||||||||
Prepayment fees | $ 255,500 | ||||||||||
Pre-funded Warrants [Member] | Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrants to purchase common stock | 483,000 | ||||||||||
Common stock warrants, sale price per share | $ 6.9999 | ||||||||||
Nominal exercise price per warrant | $ 0.0001 | ||||||||||
Investor Warrants [Member] | Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrants to purchase common stock | 2,143,000 | ||||||||||
Common stock warrants, exercise price per share | $ 7.50 | ||||||||||
Warrants maturity date | Feb. 13, 2025 | ||||||||||
Underwriter Warrants [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrants to purchase common stock | 12,113 | 12,113 | |||||||||
Common stock warrants, exercise price per share | $ 52.50 | $ 52.50 | |||||||||
Underwriter Warrants [Member] | Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrants to purchase common stock | 214,300 | ||||||||||
Common stock warrants, exercise price per share | $ 7 | ||||||||||
Warrants maturity date | Feb. 13, 2025 | ||||||||||
2017 Warrants [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Exercise price of warrants | $ 42 | $ 0.0001 | |||||||||
Warrants outstanding | 118,696 | ||||||||||
2017 Warrants [Member] | Common Stock and Investor Warrants [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Sale of common stock price per share | $ 7 | ||||||||||
2017 Warrants [Member] | Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrants exercised amount | $ 74,670 | ||||||||||
Underwritten Public Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Proceeds from offering costs, shares | 151,417 | ||||||||||
Proceeds from FPO, net of offering costs | $ 5,604,000 | ||||||||||
Underwritten Public Offering [Member] | Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Proceeds from offering costs, shares | 1,660,000 | ||||||||||
Sale of common stock price per share | $ 7 | ||||||||||
Gross proceeds from issuance of common stock | $ 15,000,000 | ||||||||||
Proceeds from FPO, net of offering costs | 13,700,000 | ||||||||||
Net operating loss carryforwards additional limitations | 281,000 | ||||||||||
Net operating loss carryforwards limitations | 1,840,000 | ||||||||||
Operating loss carryforward unutilized | $ 437,000 | ||||||||||
Underwritten Public Offering [Member] | Subsequent Event [Member] | MIT [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Proceeds from offering costs, shares | 265 | ||||||||||
Underwriters [Member] | Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Proceeds from offering costs, shares | 321,450 | ||||||||||
Sale of common stock price per share | $ 6.99 | ||||||||||
Warrants to purchase common stock | 321,450 | ||||||||||
Underwriters [Member] | Investor Warrants [Member] | Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common stock warrants, exercise price per share | $ 0.01 | ||||||||||
February Offering [Member] | Subsequent Event [Member] | Director, Certain Officers and Board Advisor [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrants to purchase common stock | 63,000 | ||||||||||
Stock Issued During Period, Shares, Issued for Services | 63,000 | ||||||||||
February Offering [Member] | Subsequent Event [Member] | Director, Certain Officers and Board Advisor [Member] | Common Stock and Investor Warrants [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Sale of common stock price per share | $ 7 |