CombiMatrix 10-Q 5 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
Document And Entity Information
Entity Registrant Name	CombiMatrix Corp
Entity Central Index Key	1,383,183
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,377,629
Trading Symbol	CBMX
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 4,727	$ 653
Short-term investments	500	3,248
Accounts receivable, net of allowance for doubtful accounts of $279 and $235	3,164	2,682
Supplies	484	418
Prepaid expenses and other assets	131	200
Total current assets	9,006	7,201
Property and equipment, net	717	691
Other assets	30	30
Total assets	9,753	7,922
Current liabilities:
Accounts payable, accrued expenses and other	1,772	1,591
Current portion, long-term debt	160	193
Total current liabilities	1,932	1,784
Capital lease obligations, net of current portion	49	71
Secured promissory note payable, net of current portion		34
Deferred rent	161	177
Total liabilities	2,142	2,066
Commitments and contingencies (Note 7)
Stockholders' equity:
Common stock; $0.001 par value; 50,000,000 shares authorized; 1,676,582 and 845,374 shares issued and outstanding	14	13
Additional paid-in capital	108,772	102,651
Accumulated other comprehensive loss		(2)
Accumulated deficit	(101,175)	(96,806)
Total stockholders' equity	7,611	5,856
Total liabilities and stockholders' equity	9,753	7,922
Series F Preferred Stock [Member]
Stockholders' equity:
Convertible preferred stock; $0.001 par value; 5,000,000 shares authorized; Series F - 8,000 shares authorized; 4,828 and none issued and outstanding Series E - 2,202 shares authorized; none and 2,201.493 issued and outstanding
Series E Preferred Stock [Member]
Stockholders' equity:
Convertible preferred stock; $0.001 par value; 5,000,000 shares authorized; Series F - 8,000 shares authorized; 4,828 and none issued and outstanding Series E - 2,202 shares authorized; none and 2,201.493 issued and outstanding

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Allowance for doubtful accounts	$ 279	$ 235
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock; shares authorized	5,000,000	5,000,000
Common stock par value	$ 0.001	$ 0.001
Common stock authorized	50,000,000	50,000,000
Common stock ,shares issued	1,676,582	845,374
Common stock, shares outstanding	1,676,582	845,374
Series F Preferred Stock [Member]
Convertible preferred stock; shares authorized	8,000	8,000
Convertible preferred stock, shares issued	4,828
Convertible preferred stock, shares outstanding	4,828
Series E Preferred Stock [Member]
Convertible preferred stock; shares authorized	2,202	2,202
Convertible preferred stock, shares issued		2,201.493
Convertible preferred stock, shares outstanding		2,201.493

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Diagnostic services	$ 3,049	$ 2,524	$ 5,979	$ 4,811
Royalties	58	25	100	67
Total revenues	3,107	2,549	6,079	4,878
Operating expenses:
Cost of services	1,432	1,398	2,851	2,628
Research and development	149	62	292	219
Sales and marketing	1,141	1,173	2,477	2,363
General and administrative	1,586	1,488	3,112	2,963
Patent amortization and royalties	25	25	50	50
Total operating expenses	4,333	4,146	8,782	8,223
Operating loss	(1,226)	(1,597)	(2,703)	(3,345)
Other income (expense):
Interest income	8	5	12	8
Interest expense	(17)	(20)	(35)	(40)
Total other income (expense)	(9)	(15)	(23)	(32)
Net loss	(1,235)	(1,612)	(2,726)	(3,377)
Deemed dividend paid for right to repurchase Series E convertible preferred stock			(656)
Deemed dividend from issuing Series E convertible preferred stock and warrants			890	(890)
Deemed dividend from issuing Series F convertible preferred stock and warrants			(1,877)
Net loss attributable to common stockholders	$ (1,235)	$ (1,612)	$ (4,369)	$ (4,267)
Basic and diluted net loss per share	$ (0.89)	$ (1.91)	$ (2.43)	$ (4.14)
Deemed dividend paid for right to repurchase Series E convertible preferred stock			(0.58)
Deemed dividend from issuing Series E convertible preferred stock			0.79	(1.09)
Deemed dividend from issuing Series F convertible preferred stock			(1.67)
Basic and diluted net loss per share attributable to common stockholders	$ (0.89)	$ (1.91)	$ (3.89)	$ (5.23)
Basic and diluted weighted average common shares outstanding	1,382,019	845,395	1,122,975	816,076

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,235)	$ (1,612)	$ (2,726)	$ (3,377)
Unrealized gain on available-for-sale investments			2	4
Total comprehensive loss	$ (1,235)	$ (1,612)	$ (2,724)	$ (3,373)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities:
Net loss	$ (2,726)	$ (3,377)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization	130	168
Non-cash stock compensation	405	346
Provision for bad debts	205	127
Changes in assets and liabilities:
Accounts receivable	(687)	(303)
Supplies, prepaid expenses and other assets	(22)	(177)
Accounts payable, accrued expenses and other	151	567
Net cash flows from operating activities	(2,544)	(2,649)
Investing activities:
Purchase of property and equipment	(147)	(62)
Purchase of available-for-sale investments	(4,998)	(3,000)
Sale of available-for-sale investments	7,748	3,230
Net cash flows from investing activities	2,603	168
Financing activities:
Proceeds from issuance of Series F convertible stock and common stock warrants	8,000
Costs from issuance of Series F convertible stock and common stock warrants	(1,048)
Repurchase of Series E convertible preferred stock and dividends	(2,842)
Proceeds from issuance of Series E convertible stock, common stock and warrants		4,900
Costs from issuance of Series E convertible stock, common stock and warrants		(217)
Repayments of long-term debt	(95)	(89)
Net cash flows from financing activities	4,015	4,594
Change in cash and cash equivalents	4,074	2,113
Cash and cash equivalents, beginning	653	1,010
Cash and cash equivalents, ending	4,727	3,123
Non-cash financing activities:
Deemed dividends from issuing Series E convertible preferred stock	(890)	890
Deemed dividends from issuing Series F convertible preferred stock	1,877
Accrued public offering costs	10
Accrued property, plant and equipment	20
Property and equipment purchased under capital lease	6	40
Warrant modifications recognized as non-cash Series E offering-related costs		336
Tenant improvements recognized as deferred rent		$ 164

Overview and Background

Overview and Background	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Overview and Background	1. OVERVIEW AND BACKGROUND CombiMatrix Corporation (the “Company,” “we,” “us” and “our”) was originally incorporated in October 1995 as a California corporation and later reincorporated as a Delaware corporation in September 2000. In December 2002, we merged with, and became a wholly owned subsidiary of Acacia Research Corporation (“Acacia”). In August 2007, we split-off from Acacia and became publicly traded on The Nasdaq Stock Market. As a result of the split-off, we ceased to be a subsidiary of, or affiliated with, Acacia. Description of the Company We provide valuable molecular diagnostic solutions and comprehensive clinical support for the highest quality of care. We specialize in pre-implantation genetic diagnostics and screening, miscarriage analysis, prenatal and pediatric diagnostics, offering DNA-based testing for the detection of genetic abnormalities beyond what can be identified through traditional methodologies. We perform genetic testing utilizing a variety of advanced cytogenomic techniques, including chromosomal microarray analysis, standardized and customized fluorescent in-situ hybridization (“FISH”) and high resolution karyotyping. We emphasize support for healthcare professionals, to ensure data understanding and communication of results to patients. We deliver high technology driven answers, with a high degree of assistance for the ordering physician and staff. Our laboratory facilities and corporate headquarters are located in Irvine, California. We also own a one-third minority interest in Leuchemix, Inc. (“Leuchemix”), a private drug development company focused on developing a series of compounds to address a number of oncology-related diseases. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, certain information and notes required by generally accepted accounting principles in annual financial statements have been omitted or condensed. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2015, as reported by us in our Annual Report on Form 10-K filed with the SEC on February 18, 2016. The year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The consolidated financial statements include all adjustments of a normal recurring nature which, in the opinion of management, are necessary for a fair statement of our financial position as of March 31, 2016, and results of operations and cash flows for the interim periods presented. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the entire year. Reverse Stock Split On January 29, 2016, we filed a Certificate of Amendment to our Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a reverse split of our common stock at a ratio of one-for-fifteen (the “Reverse Stock Split”), which became effective at the close of business on that day. As a result, each share of CombiMatrix common stock outstanding as of January 29, 2016 was automatically changed into one-fifteenth of a share of common stock. No fractional shares were issued in connection with the Reverse Stock Split, and cash paid to stockholders for potential fractional shares was insignificant. The number of shares of common stock subject to outstanding options, warrants and convertible securities were also reduced by a factor of fifteen as of January 29, 2016. All historical share and per share amounts reflected throughout this document have been adjusted to reflect the Reverse Stock Split. The authorized number of shares and the par value per share of our common stock were not affected by the Reverse Stock Split. Liquidity and Risks We have a history of incurring net losses and net operating cash flow deficits. We are also deploying new technologies and continue to develop new and improve existing commercial diagnostic testing services and related technologies. On March 31, 2016, we had cash, cash equivalents and short-term investments of $6.6 million and anticipate that our cash and cash equivalent balances will be sufficient to meet our cash requirements for at least the next twelve months. In order for us to achieve profitability, we may be required to obtain capital from external sources, increase revenues and reduce operating costs. However, there can be no assurance that our operations will become profitable or that external sources of financing, including the issuance of debt and/or equity securities, will be available at times and at terms acceptable to us, or at all. The issuance of additional equity or convertible debt securities will also cause dilution to our stockholders. If external financing sources are not available or are inadequate to fund our operations, we will be required to reduce operating costs, including research projects and personnel, which could jeopardize our future strategic initiatives and business plans. Our business operations are also subject to certain risks and uncertainties, including: ● market acceptance of our technologies and services; ● technological advances that may make our technologies and services obsolete or less competitive; ● increases in operating costs, including costs for supplies, personnel and equipment; ● variability in third-party reimbursement of our tests; ● the availability and cost of capital; and ● governmental regulation that may restrict our business. Our services are concentrated in a highly competitive market that is characterized by rapid technological advances, frequent changes in customer requirements and evolving regulatory requirements and industry standards. Failure to anticipate or respond adequately to technological advances, changes in customer requirements, changes in regulatory requirements or industry standards, or any significant delays in the development or introduction of planned technologies or services, could have a material adverse effect on our business and operating results. The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the matters discussed herein.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates. Principles of Consolidation Revenue Recognition Service revenues from providing diagnostic tests are recognized when the testing process is complete and test results are reported to the ordering physician or clinic. These diagnostic services are billed to various payors, including commercial insurance companies, healthcare institutions, government payors including various state Medicaid programs, and individuals. We report revenues from contracted payors based on a contractual rate, or in the case of state Medicaid contracts, published fee schedules for our tests. We report revenues from non-contracted payors based on the amounts expected to be collected. The differences between the amounts billed and the amounts expected to be collected from non-contracted payors are recorded as contractual allowances to arrive at net recognized revenues. The expected revenues from non-contracted payors are based on the historical collection experience of each payor or payor group, as appropriate, and also take into account recent collection trends. In each reporting period, we review our historical collection experience for non-contracted payors and adjust our expected revenues for current and subsequent periods accordingly. We also recognize additional revenue from actual cash payments that exceed amounts initially recognized, in the period the payments are received. For the three and six months ended June 30, 2016 and 2015, net positive revenue adjustments were $404,000, $804,000, $149,000 and $277,000, respectively. Because a substantial portion of our revenues is from non-contracted third-party payors, it is likely that we will be required to make adjustments to accounting estimates with respect to contractual allowances in the future, which may positively or adversely affect our results of operations. In all cases described above, we report revenues net of any applicable statutory taxes collected from customers, as applicable. For the six months ended June 30, 2015, 10% of our revenues were from one customer. No single customer exceeded 10% of revenues for the three or six months ending June 30, 2016 nor for the three months ended June 30, 2015. Cash Equivalents and Short-Term Investments. Fair Value Measurements. ● Level 1: Observable market inputs such as quoted prices in active markets; ● Level 2: Observable market inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and ● Level 3: Unobservable inputs where there is little or no market data, which require the reporting entity to develop its own assumptions. We classify our cash equivalents within the fair value hierarchy as Level 1 as these assets are valued using quoted prices in active markets for identical assets at the measurement date. We classify short-term investments within the fair value hierarchy as Level 2, primarily utilizing broker quotes in a non-active market for valuation of these investments. Financial instruments that contain valuation inputs that are not readily determinable from active markets or from similar securities trading in active markets, such as derivative financial instruments, are classified within the fair value hierarchy as Level 3. Impairment of Long-Lived Assets Derivative Financial Instruments. Concentration of Credit Risks Substantially all of the components and raw materials used in providing our testing services, including array slides and reagents, are currently provided to us from a limited number of sources or in some cases from a single source. Although we believe that alternative sources for those components and raw materials are available, any supply interruption in a sole-sourced component or raw material might result in up to a several-month production delay and materially harm our ability to provide testing services until a new source of supply, if any, could be located and qualified. Accounts Receivable and Allowance for Doubtful Accounts. Collection of receivables due from patients and private-pay clients is generally subject to increased credit risk due to credit-worthiness or inability to pay. For these customers, an allowance for doubtful accounts is recorded for estimated uncollectible amounts, and involves significant assumptions and judgments. Specifically, the allowance for doubtful accounts is adjusted periodically and is principally based upon specific identification of past due or disputed accounts. We also review the age of receivables to assess our allowance at each period end. Additions to the allowance for doubtful accounts are charged to bad debt expense as a component of general and administrative expenses in the consolidated statements of operations. Stock-Based Compensation Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of services $ 4 $ 5 $ 20 $ 10 Research and development - - - - Sales and marketing 17 5 44 31 General and administrative 169 161 341 305 Total non-cash stock compensation $ 190 $ 171 $ 405 $ 346 Net Loss Per Share Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Common stock options 71,749 58,623 71,749 58,623 Restricted stock units 59,000 38,800 59,000 38,800 Common stock warrants 2,701,754 643,260 2,701,754 643,260 Series E preferred stock convertible into common stock - 83,866 - 83,866 Series F preferred stock convertible into common stock 1,247,530 - 1,247,530 - Excluded potentially dilutive securities . 4,080,033 824,549 4,080,033 824,549 Segments. Recent Accounting Pronouncements. In February 2016, the FASB issued guidance regarding leases, which requires lessees to recognize on the balance sheet a right-of-use asset, representing their right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. The guidance is effective for the Company beginning January 1, 2019, and we are currently evaluating the impact that this guidance will have on our consolidated financial statements. In January 2016, the FASB issued accounting guidance regarding recognition and measurement of financial assets and financial liabilities. This guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. We do not expect the adoption of this guidance to have any impact on our consolidated financial statements. In July 2015, the FASB issued accounting guidance regarding simplifying the measurement of inventory. The new guidance applies only to inventory for which cost is determined by methods other than last-in, first-out and the retail inventory method, which includes inventory that is measured using first-in, first-out or average cost. Inventory within the scope of this standard is required to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new standard will be effective for us on January 1, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In April 2015, the FASB issued new accounting guidance that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The guidance requires retrospective application and represents a change in accounting principle. This guidance is effective for us beginning in the first quarter of 2016. Implementation of this guidance did not have a material impact on our consolidated financial statements. Reclassifications

Cash and Short-term Investments

Cash and Short-term Investments	6 Months Ended
	Jun. 30, 2016
Cash and Cash Equivalents [Abstract]
Cash and Short-term Investments	3. CASH AND SHORT-TERM INVESTMENTS As of June 30, 2016, we held $5.2 million in cash, cash equivalents and short-term investments, which are reported at fair value. Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2016 and December 31, 2015 (in thousands): As of June 30, 2016 As of December 31, 2015 Unrealized Fair Unrealized Fsair Cost Gains Losses Value Cost Gains Losses Value Cash and money market securities $ 3,228 $ - $ - $ 3,228 $ 653 $ - $ - $ 653 Commercial paper 1,499 - - 1,499 - - - - Certificates of deposit 500 - - 500 3,250 - (2 ) 3,248 $ 5,227 $ - $ - $ 5,227 $ 3,903 $ - $ (2 ) $ 3,901 There were no realized gains or losses for the periods ended June 30, 2016 or 2015.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. FAIR VALUE MEASUREMENTS The following table summarizes, for each major category of financial assets measured on a recurring basis, the respective fair value at June 30, 2016 and December 31, 2015 and the classification by level of input within the fair value hierarchy defined above (in thousands): Fair Value Measurements June 30, 2016 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 3,527 $ 3,527 $ - $ - Short-term investments 500 - 500 - Cash equivalents $ 4,027 $ 3,527 $ 500 $ - Fair Value Measurements December 31, 2015 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 99 $ 99 $ - $ - Short-term investments 3,248 - 3,248 - Cash equivalents $ 3,347 $ 99 $ 3,248 $ - The carrying amounts of accounts receivable, accounts payable, accrued expenses, capital leases and the secured promissory note approximate fair value due primarily to the short-term nature of these financial instruments.

Secured Promissory Note

Secured Promissory Note	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Secured Promissory Note	5. SECURED PROMISSORY NOTE On May 20, 2014 (“Execution Date”), we executed a secured promissory note (the “Note”) with ACC Investment Ltd. in the amount of $350,000, payable in equal amortized payments over a thirty-six month period (the “Term”) from the Execution Date. The Note bears an annual interest rate of 10% and is secured by certain laboratory equipment used in our microarray services business. Legal and other closing costs totaling $22,000 were capitalized with the Note and are being amortized over the Term as interest expense. As of June 30, 2016 and December 31, 2015, components of the Note were as follows (in thousands): June 30, 2016 December 31, 2015 Carrying value $ 108 $ 168 Unamortized legal and closing costs (6 ) (10 ) 102 158 Less- current portion (102 ) (124 ) Long-term portion . $ - $ 34

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Stockholders' Equity	6. STOCKHOLDERS’ EQUITY Series A through E Convertible Preferred Stock and Warrants Financings Between 2012 and 2015, we executed several financing transactions whereby we issued convertible preferred stock and warrants to purchase common stock to investors. As of June 30, 2016, none of the Series A through E convertible preferred stock remained outstanding. For as long as the Series A warrants remain unexercised through their expiration date, except under certain permitted circumstances, we may not issue, or enter into any agreement to issue, common stock or common stock equivalents at a price per share below the $73.65 exercise price of the Series A warrants, unless waivers from the Series A investors are obtained. Until the time that less than 7.5% of the Series B, C and E warrants remain unexercised through their expiration date, except under certain permitted circumstances, we may not issue, or enter into any agreement to issue, common stock or common stock equivalents at prices per share below the $29.55, $29.55 and $32.51 exercise prices of the Series B, C and E warrants, respectively, unless waivers from the Series B, C and E investors are obtained. In addition, until there are no longer Series A, C and E warrants outstanding we may not sell any variable rate securities except for certain exempt issuances. Series E Convertible Preferred Stock Financing On February 13, 2015, we and certain accredited institutional pre-existing investors (the “Series E Investors”) entered into a securities purchase agreement (the “Series E Purchase Agreement”), pursuant to which we sold 102,800 shares common stock at a price of $26.25 per share, 2,201.493 shares of Series E 6% Convertible Preferred Stock (the “Series E Preferred Stock”) and warrants to purchase 46,676 shares of common stock initially at an exercise price of $29.55 per share, which was the consolidated closing bid price of our common stock on NASDAQ immediately prior to entering into the Series E Purchase Agreement (the “Series E Warrants”, and the transactions contemplated by the Series E Purchase Agreement, the “Series E Financing”). The Series E Preferred Stock and Series E Warrants were sold in a fixed combination consisting of one share of Series E Preferred Stock and a Series E Warrant to purchase approximately 21.1977 shares of common stock. Each fixed combination of Series E Preferred Stock and Series E Warrants were sold at a price of $1,000. The Series E Preferred Stock sold was convertible into 83,871 shares of common stock at an initial conversion price of $26.25 per share. The closing under the Series E Purchase Agreement occurred on February 18, 2015 (the “Series E Closing Date”), where we received gross proceeds of $4.9 million from the Series E Investors. After closing-related costs and expenses, net proceeds from the Series E Financing were approximately $4.7 million. Given that the effective conversion price of the Series E Preferred Stock, inclusive of amounts allocated to common stock and Series E Warrants, was below the closing market price of our common stock at the time of the Series E Closing Date, we recognized a beneficial conversion feature in the amount of $890,000. Since the Series E Preferred Stock was immediately convertible into common stock, the beneficial conversion feature was treated as a deemed dividend charged to retained earnings. The Series E Warrants issued have a 5 ½ year term and have a cashless exercise provision in the event there is no effective registration statement covering the common stock issuable upon exercise of the Series E Warrants. The Series E Warrants are not subject to price based anti-dilution protection. See below for modifications made to the Series E Preferred Stock and the Series E Warrants. Private Placement Warrant Financing Substantially concurrently with the closing of the Series E Financing, on February 13, 2015, we entered into a separate securities purchase agreement (the “Warrant Purchase Agreement”) with selected accredited institutional pre-existing investors (the “Private Placement Investors”), pursuant to which we agreed to sell to the Private Placement Investors warrants to purchase 102,678 shares of Common Stock (the “Private Placement Warrants”, and the transactions contemplated by the Warrant Purchase Agreement, the “Warrant Financing”). In consideration of an aggregate of $1,000, we had agreed to sell the Private Placement Warrants, which would not be issued unless and until our stockholders approved amending our Certificate of Incorporation to increase our authorized common stock to permit the issuance of the common stock issuable upon exercise of the Private Placement Warrants (the “Charter Amendment”). We estimated the fair value of the Private Placement Warrants using the Black-Scholes valuation model to be $1.82 million, which was classified as a warrant subscription payable within additional paid-in capital in our consolidated balance sheet using the following assumptions: (i) closing stock price and Private Placement Warrants contractual exercise price; (ii) 5.5 year term; (iii) historical volatilities commensurate with the term of the Private Placement Warrants of 113.2%; and (iv) risk-free interest rates commensurate with the term of the Private Placement Warrants of 1.5%. We allocated the proceeds received from the Series E Financing to the Private Placement Warrants based on the relative fair value of the instruments issued to the Series E Investors. As a result of the special stockholders meeting held on April 28 2015, we issued the Private Placement Warrants to the Private Placement Investors and the warrant subscription payable was reclassified to additional paid-in capital. Each Private Placement Warrant initially had an exercise price of $32.505 per share of common stock (subject to adjustment for stock splits and the like), which was 110% of the consolidated closing bid price of our common stock on NASDAQ immediately prior to entering into the Warrant Purchase Agreement, and is exercisable at any time after the six month anniversary of entering into the Warrant Purchase Agreement and on or prior to the close of business on the five year anniversary of the initial exercise date, subject to a beneficial ownership limitation. The Private Placement Warrants are not subject to price based anti-dilution protection. If, at the time of exercise of a Private Placement Warrant, there is no effective registration statement registering for resale the shares of common stock issuable upon exercise of the Private Placement Warrant, the holder may exercise the Private Placement Warrant on a cashless basis. When exercised on a cashless basis, a portion of the Private Placement Warrant is cancelled in payment of the purchase price payable in respect of the number of shares of common stock purchasable upon such exercise. Modification of Certain Other Outstanding Warrants In connection with the purchase of the Private Placement Warrants, we modified previously issued and outstanding warrants held by the Private Placement Investors that were issued in connection with the Series A, B and C financings described above, to (i) reduce the exercise prices thereunder to $29.55, which represents the consolidated closing bid price of our common stock on NASDAQ immediately prior to the date we entered into the Warrant Purchase Agreement; (ii) prohibit the exercise of such modified warrants for a period of six months after the date of the modification; and (iii) extend the exercise period of such modified warrants for an additional six months (such modifications, collectively, the “Warrant Price Modifications”). Separately, we also agreed to a Warrant Price Modification with a holder of Series C Warrants solely in consideration for such holder’s waiver of certain preemptive rights. We estimated the change in fair value of these warrants immediately prior to and immediately subsequent to the Warrant Price Modification to be $336,000, and such amount was recorded as a non-cash equity offering cost. Series E Modifications On October 12, 2015, we entered into an Amendment No. 1 to Common Stock Purchase Warrants (the “Warrants Amendment”) with each of the holders of the Series E Warrants and each of the holders of the Private Placement Warrants. Under the terms of the Warrants Amendment, all of the Series E Warrants and 100,847 of the Private Placement Warrants had their exercise prices reduced to $16.50 per share. Accordingly, with respect to the Private Placement Warrants, 100,847 of the Private Placement Warrants have an exercise price of $16.50 per share and 1,831 of the Private Placement Warrants retain their original exercise price of $32.505 per share. In consideration for entering into the Warrants Amendment, each Series E Investor agreed to irrevocably waive ab initio On February 4, 2016, we entered into a Series E 6% Convertible Preferred Stock Repurchase Agreement (the “Repurchase Agreement”) with the Series E Investors. Pursuant to the terms of the Repurchase Agreement, we agreed to pay each Series E Investor $300 per share of Series E Preferred Stock, or approximately $656,000, in consideration for the right to repurchase the Series E Investor’s Series E Preferred Stock at a price per share of $1,000 (the “Repurchase Price”), which was the original price per share paid by the Series E Investors for their Series E Preferred Stock in February 2015. We recognized the $656,000 payments as a deemed dividend paid to the Series E investors. Immediately following the closing of our Series F public offering discussed below, we paid $2.2 million to the Series E Investors to repurchase all of the outstanding Series E Preferred Stock, in accordance with the terms of the Repurchase Agreement. Since none of the Series E Preferred Stock had converted by the time we repurchased the Series E Preferred Stock, the original $890,000 beneficial conversion feature that we recognized as a deemed dividend in 2015 was reversed as a return of capital from the Series E Preferred stockholders to the common stockholders. Series F Convertible Preferred Stock and Warrants Financing On March 24, 2016 (the “Series F Closing”), we closed an underwritten public offering (the “Series F Offering”) and issued 8,000 immediately separable units of securities to investors, with each unit consisting of: (i) one share of Series F convertible preferred stock (“Series F Preferred Stock”) convertible into shares of our common stock equal to 1,000 divided by the conversion price of $3.87, which was 75% of the consolidated closing bid price of our common stock on the NASDAQ Capital Market on March 18, 2016, the date we executed the underwriting agreement (“UA date”); and (ii) 258.397875 warrants, each to purchase one share of our common stock at an exercise price per share equal to $5.17 (“Series F Warrants”), which was 100% of the consolidated closing bid price of our common stock on the NASDAQ Capital Market on the UA date. The Series F Preferred Stock, the Series F Warrants, and the shares of common stock underlying the Series F Preferred Stock and Series F Warrants were registered on Form S-1, which was declared effective by the SEC on March 18, 2016. The Series F Preferred Stock was immediately convertible and the Series F Warrants were immediately exercisable for shares of common stock and have a term of five years. The Series F Warrants are exercisable for cash or, solely in the absence of an effective registration statement or prospectus, by cashless exercise. In total, there were 2,067,183 shares of common stock issuable upon conversion of the Series F Preferred Stock and up to 2,067,183 shares of common stock issuable upon exercise of the Series F Warrants. The units were sold for a purchase price equal to $1,000 per unit, resulting in gross proceeds received by us of $8 million. Total offering-related costs paid through June 30, 2016 were $1.1 million, resulting in net proceeds recognized of $6.9 million. Given that the effective conversion price of the Series F Preferred Stock was below the closing market price of our common stock at the time of the Series F Closing, we recognized a beneficial conversion feature in the amount of $1.9 million. Since the Series F Preferred Stock was immediately convertible into common stock, the beneficial conversion feature was treated as a deemed dividend charged to retained earnings at closing. Also, from the time of the Series F Closing through June 30, 2016 3,172 shares of the Series F Preferred Stock have converted into 819,653 shares of common stock. Subsequent to June 30, 2016 and through the date of this report, an additional 2,713 shares of Series F Preferred Stock have converted into 701,047 shares of common stock. The Series F Preferred Stock is non-voting (except to the extent required by law and except for certain consent rights relating to amending the certificate of incorporation or bylaws, and the like), but ranks senior to our common stock with respect to distributions upon our dissolution, liquidation or winding-up. Until the volume weighted average price of our common stock on NASDAQ exceeds 200% of the conversion price of the Series F Preferred Stock for any 20 of 30 consecutive trading days, and the daily dollar trading volume during such period exceeds $200,000 per trading day, the Series F Preferred Stock is subject to full ratchet price based anti-dilution protection, subject to certain limitations. Also, the Company can force holders of Series F Preferred Stock to convert into our common stock if the volume-weighted average price of our common stock exceeds 200% of the Series F Preferred Stock conversion price for any 20 of 30 consecutive trading days, and the daily dollar trading volume during such period exceeds $200,000 per trading day, subject to certain other conditions. The Series F investors have agreed to be subject to a blocker that would prevent each of their respective common stock ownership at any given time from exceeding 4.99% of our outstanding common stock (which may be increased on 61 days’ notice, but not above 9.99%). The Series F Warrants have a 5-year term and have a cashless exercise provision in the event there is no effective registration statement covering the common stock issuable upon exercise of the Series F Warrants. The Series F Warrants are not subject to price based anti-dilution protection. The Series F Warrants are listed on the NASDAQ Capital Market under the trading symbol “CBMXW.” Warrants Outstanding warrants to purchase common stock are as follows: Shares of Common Stock Issuable from Warrants Outstanding as of June 30, December 31, Exercise 2016 2015 Price Expiration Equity-classified warrants: March 2016 2,067,183 - $ 5.17 March 2021 April 2015 100,847 100,847 $ 16.50 August 2020 April 2015 1,831 1,831 $ 32.51 August 2020 February 2015 46,676 46,676 $ 16.50 August 2020 June 2014 1,690 1,690 $ 30.90 April 2018 December 2013 388,365 388,365 $ 46.80 December 2018 June 2013 32,788 32,788 $ 29.55 June 2019 May 2013 32,788 32,788 $ 29.55 May 2019 March 2013 18,334 18,334 $ 29.55 March 2019 October 2012 11,252 11,252 $ 29.55 September 2018 April 2011 - 8,746 $ 321.00 April 2016 Total 2,701,754 643,317

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. COMMITMENTS AND CONTINGENCIES Executive Severance We provide certain severance benefits such that if an executive officer of CombiMatrix Corporation is terminated for other than cause, death or disability, the executive will receive payments equal to three months’ base salary plus medical and dental benefits. In addition, we have implemented a Restated Executive Change of Control Severance Plan (as amended, the “Severance Plan”) that affects certain of our senior management-level employees who are classified as “Section 16 Officers” of the Company. Pursuant to the Severance Plan, if a participating employee is involuntarily terminated (other than for death, disability or for cause) or resigns for “good reason” (as defined in the Severance Plan) during the two-year period following a “change of control” (as defined in the Severance Plan) of the Company, then, subject to execution of a release of claims against the Company, the employee will be entitled to receive: (i) one-half times annual base salary (one times annual base salary for the CEO); (ii) immediate vesting of outstanding compensatory equity awards; and (iii) payment of COBRA premiums for the participating employee and eligible dependents for a pre-determined period of time. Payment of benefits under the Severance Plan will be limited by provisions contained in Section 409A of the U.S. Internal Revenue Code. The Severance Plan is administered by a plan administrator, which initially is the Compensation Committee of the Board of Directors. In order to participate in the Severance Plan, an eligible employee must waive any prior retention or severance agreements. The Severance Plan automatically renews annually unless terminated upon 12 months prior written notice. Also, our Board of Directors has adopted a Transaction Bonus Plan (the “Transaction Bonus Plan”), which provides for certain bonus payments to be made, upon the consummation of a qualifying change of control transaction, to certain employees of the Company as shall be determined by the Compensation Committee of our Board of Directors. The aggregate value of the bonuses payable under the Transaction Bonus Plan shall be the greater of (i) $1,000,000 or (ii) ten percent of the net proceeds received in connection with a qualifying change of control transaction, and the percentage of such bonus pool awarded to each eligible participant shall be determined by our Compensation Committee. Litigation In 2002, we entered into a settlement agreement with Nanogen, Inc. (“Nanogen”) to settle all pending litigation between the parties. Pursuant to the terms of the settlement agreement, we agreed to make quarterly payments to Nanogen equal to 12.5% of total sales of products developed by us and our affiliates based on the patents that had been in dispute in the litigation, up to an annual maximum amount of $1.5 million. The minimum quarterly payments under the settlement agreement are $25,000 per quarter until the patents expire in 2018. Royalty expenses recognized under the agreement were $25,000 and $50,000 for both of the three and six months ended June 30, 2016 and 2015, respectively, and are included in patent amortization and royalties in the accompanying consolidated statements of operations. From time to time, we are subject to other claims and legal actions that arise in the ordinary course of business. We believe that the ultimate liability with respect to these claims and legal actions, if any, will not have a material effect on our financial position, results of operations or cash flows. Any legal costs resulting from claims or legal actions are expensed as incurred.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	8. SUBSEQUENT EVENTS Common Stock Purchase Warrants Repurchase Agreement On July 11, 2016, we entered into a Common Stock Purchase Warrants Repurchase Agreement (the “Repurchase Agreement”) with the holders (the “Holders”) of our outstanding common stock purchase warrants (the “Warrants”) issued in October 2012, March 2013, May 2013, June 2013, June 2014, February 2015 and April 2015 in connection with our Series A, Series B, Series C and Series E financings. Pursuant to the terms of the Repurchase Agreement, we have agreed to repurchase the Warrants from each Holder upon execution of a “Fundamental Transaction” (as defined in the Warrants) at various negotiated prices per Warrant share as set forth in the Repurchase Agreement. Under the terms of the Repurchase Agreement, we will repurchase half of the Warrants upon the announcement of a Fundamental Transaction and the remaining half of the Warrants upon the closing of a Fundamental Transaction. In addition, upon the closing of a Fundamental Transaction, all Securities Purchase Agreements and Registration Rights Agreements associated with the original issuances of the Warrants will be terminated and the various restrictions set forth therein will no longer be of any force or effect. In connection with entering into the Repurchase Agreement, we were granted certain consents and waivers relating to a Fundamental Transaction. In the event that a Fundamental Transaction is announced and consummated, we will be obligated to repurchase the Warrants for approximately $459,000 of cash consideration paid to the Holders. One half of this amount will be due within three business days of announcing the Fundamental Transaction, and the remaining half will be due within three business days of closing the Fundamental Transaction. In the event that we announce a Fundamental Transaction but never close, for whatever reason, then one-half of the Warrants will be repurchased and cancelled and one-half will remain issued and outstanding. In the event that a Fundamental Transaction is never announced nor consummated, we will not be obligated to repurchase the Warrants, and the underlying terms and conditions of the Warrants will remain in effect.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates.
Principles of Consolidation	Principles of Consolidation
Revenue Recognition	Revenue Recognition Service revenues from providing diagnostic tests are recognized when the testing process is complete and test results are reported to the ordering physician or clinic. These diagnostic services are billed to various payors, including commercial insurance companies, healthcare institutions, government payors including various state Medicaid programs, and individuals. We report revenues from contracted payors based on a contractual rate, or in the case of state Medicaid contracts, published fee schedules for our tests. We report revenues from non-contracted payors based on the amounts expected to be collected. The differences between the amounts billed and the amounts expected to be collected from non-contracted payors are recorded as contractual allowances to arrive at net recognized revenues. The expected revenues from non-contracted payors are based on the historical collection experience of each payor or payor group, as appropriate, and also take into account recent collection trends. In each reporting period, we review our historical collection experience for non-contracted payors and adjust our expected revenues for current and subsequent periods accordingly. We also recognize additional revenue from actual cash payments that exceed amounts initially recognized, in the period the payments are received. For the three and six months ended June 30, 2016 and 2015, net positive revenue adjustments were $404,000, $804,000, $149,000 and $277,000, respectively. Because a substantial portion of our revenues is from non-contracted third-party payors, it is likely that we will be required to make adjustments to accounting estimates with respect to contractual allowances in the future, which may positively or adversely affect our results of operations. In all cases described above, we report revenues net of any applicable statutory taxes collected from customers, as applicable. For the six months ended June 30, 2015, 10% of our revenues were from one customer. No single customer exceeded 10% of revenues for the three or six months ending June 30, 2016 nor for the three months ended June 30, 2015.
Cash Equivalents and Short Term Investments	Cash Equivalents and Short-Term Investments.
Fair Value Measurements	Fair Value Measurements. ● Level 1: Observable market inputs such as quoted prices in active markets; ● Level 2: Observable market inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and ● Level 3: Unobservable inputs where there is little or no market data, which require the reporting entity to develop its own assumptions. We classify our cash equivalents within the fair value hierarchy as Level 1 as these assets are valued using quoted prices in active markets for identical assets at the measurement date. We classify short-term investments within the fair value hierarchy as Level 2, primarily utilizing broker quotes in a non-active market for valuation of these investments. Financial instruments that contain valuation inputs that are not readily determinable from active markets or from similar securities trading in active markets, such as derivative financial instruments, are classified within the fair value hierarchy as Level 3.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets
Derivative Financial Instruments	Derivative Financial Instruments.
Concentration of Credit Risks	Concentration of Credit Risks Substantially all of the components and raw materials used in providing our testing services, including array slides and reagents, are currently provided to us from a limited number of sources or in some cases from a single source. Although we believe that alternative sources for those components and raw materials are available, any supply interruption in a sole-sourced component or raw material might result in up to a several-month production delay and materially harm our ability to provide testing services until a new source of supply, if any, could be located and qualified.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts. Collection of receivables due from patients and private-pay clients is generally subject to increased credit risk due to credit-worthiness or inability to pay. For these customers, an allowance for doubtful accounts is recorded for estimated uncollectible amounts, and involves significant assumptions and judgments. Specifically, the allowance for doubtful accounts is adjusted periodically and is principally based upon specific identification of past due or disputed accounts. We also review the age of receivables to assess our allowance at each period end. Additions to the allowance for doubtful accounts are charged to bad debt expense as a component of general and administrative expenses in the consolidated statements of operations.
Stock-Based Compensation	Stock-Based Compensation Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of services $ 4 $ 5 $ 20 $ 10 Research and development - - - - Sales and marketing 17 5 44 31 General and administrative 169 161 341 305 Total non-cash stock compensation $ 190 $ 171 $ 405 $ 346
Net Loss Per Share	Net Loss Per Share Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Common stock options 71,749 58,623 71,749 58,623 Restricted stock units 59,000 38,800 59,000 38,800 Common stock warrants 2,701,754 643,260 2,701,754 643,260 Series E preferred stock convertible into common stock - 83,866 - 83,866 Series F preferred stock convertible into common stock 1,247,530 - 1,247,530 - Excluded potentially dilutive securities . 4,080,033 824,549 4,080,033 824,549
Segments	Segments.
Recent Accounting Pronouncements	Recent Accounting Pronouncements. In February 2016, the FASB issued guidance regarding leases, which requires lessees to recognize on the balance sheet a right-of-use asset, representing their right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. The guidance is effective for the Company beginning January 1, 2019, and we are currently evaluating the impact that this guidance will have on our consolidated financial statements. In January 2016, the FASB issued accounting guidance regarding recognition and measurement of financial assets and financial liabilities. This guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. We do not expect the adoption of this guidance to have any impact on our consolidated financial statements. In July 2015, the FASB issued accounting guidance regarding simplifying the measurement of inventory. The new guidance applies only to inventory for which cost is determined by methods other than last-in, first-out and the retail inventory method, which includes inventory that is measured using first-in, first-out or average cost. Inventory within the scope of this standard is required to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new standard will be effective for us on January 1, 2017. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In April 2015, the FASB issued new accounting guidance that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The guidance requires retrospective application and represents a change in accounting principle. This guidance is effective for us beginning in the first quarter of 2016. Implementation of this guidance did not have a material impact on our consolidated financial statements.
Reclassifications	Reclassifications

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Schedule of Employee Service Share-based Compensation, Allocation	Stock-based compensation expense for all periods presented attributable to our functional expense categories from stock option and RSU awards vesting during the periods presented were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of services $ 4 $ 5 $ 20 $ 10 Research and development - - - - Sales and marketing 17 5 44 31 General and administrative 169 161 341 305 Total non-cash stock compensation $ 190 $ 171 $ 405 $ 346
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table reflects the excluded dilutive securities: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Common stock options 71,749 58,623 71,749 58,623 Restricted stock units 59,000 38,800 59,000 38,800 Common stock warrants 2,701,754 643,260 2,701,754 643,260 Series E preferred stock convertible into common stock - 83,866 - 83,866 Series F preferred stock convertible into common stock 1,247,530 - 1,247,530 - Excluded potentially dilutive securities . 4,080,033 824,549 4,080,033 824,549

Cash and Short-term Investmen17

Cash and Short-term Investments (Tables)	6 Months Ended
	Jun. 30, 2016
Cash and Cash Equivalents [Abstract]
Schedule of Cash, Cash Equivalents and Investments	Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2016 and December 31, 2015 (in thousands): As of June 30, 2016 As of December 31, 2015 Unrealized Fair Unrealized Fsair Cost Gains Losses Value Cost Gains Losses Value Cash and money market securities $ 3,228 $ - $ - $ 3,228 $ 653 $ - $ - $ 653 Commercial paper 1,499 - - 1,499 - - - - Certificates of deposit 500 - - 500 3,250 - (2 ) 3,248 $ 5,227 $ - $ - $ 5,227 $ 3,903 $ - $ (2 ) $ 3,901

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	The following table summarizes, for each major category of financial assets measured on a recurring basis, the respective fair value at June 30, 2016 and December 31, 2015 and the classification by level of input within the fair value hierarchy defined above (in thousands): Fair Value Measurements June 30, 2016 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 3,527 $ 3,527 $ - $ - Short-term investments 500 - 500 - Cash equivalents $ 4,027 $ 3,527 $ 500 $ - Fair Value Measurements December 31, 2015 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 99 $ 99 $ - $ - Short-term investments 3,248 - 3,248 - Cash equivalents $ 3,347 $ 99 $ 3,248 $ -

Secured Promissory Note (Tables

Secured Promissory Note (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Secured Promissory Note	As of June 30, 2016 and December 31, 2015, components of the Note were as follows (in thousands): June 30, 2016 December 31, 2015 Carrying value $ 108 $ 168 Unamortized legal and closing costs (6 ) (10 ) 102 158 Less- current portion (102 ) (124 ) Long-term portion . $ - $ 34

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2016
Stockholders Equity Tables
Schedule of Stockholders' Equity Note, Warrants or Rights	Outstanding warrants to purchase common stock are as follows: Shares of Common Stock Issuable from Warrants Outstanding as of June 30, December 31, Exercise 2016 2015 Price Expiration Equity-classified warrants: March 2016 2,067,183 - $ 5.17 March 2021 April 2015 100,847 100,847 $ 16.50 August 2020 April 2015 1,831 1,831 $ 32.51 August 2020 February 2015 46,676 46,676 $ 16.50 August 2020 June 2014 1,690 1,690 $ 30.90 April 2018 December 2013 388,365 388,365 $ 46.80 December 2018 June 2013 32,788 32,788 $ 29.55 June 2019 May 2013 32,788 32,788 $ 29.55 May 2019 March 2013 18,334 18,334 $ 29.55 March 2019 October 2012 11,252 11,252 $ 29.55 September 2018 April 2011 - 8,746 $ 321.00 April 2016 Total 2,701,754 643,317

Overview and Background (Detail

Overview and Background (Details Narrative) $ in Thousands	Jun. 30, 2016USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash, cash equivalents and short term investments	$ 5,200

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Cost method, description			The cost method is used where we maintain ownership interests of less than 20% and do not exercise significant influence over the investee.
Net revenue adjustments	$ 404	$ 804	$ 149	$ 277
Revenue [Member] | One Customer [Member]
Concentration credit risk percentage			10.00%
Revenue [Member] | No Single Customer [Member]
Concentration credit risk percentage			10.00%
Accounts Receivable [Member] | One Commercial Insurance Carrier [Member]
Concentration credit risk percentage			10.00%		10.00%
Fair value, concentration of risk, accounts receivable	$ 427		$ 427		$ 316
Maximum [Member]
Equity method investment, ownership percentage	20.00%		20.00%
Minimum [Member]
Equity method investment, ownership percentage	50.00%		50.00%

Summary of Significant Accoun23

Summary of Significant Accounting Policies - Schedule of Employee Service Share-based Compensation Allocation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Allocated Share-based Compensation Expense	$ 190	$ 171	$ 405	$ 346
Cost of Service [Member]
Allocated Share-based Compensation Expense	4	5	20	10
Research and Development [Member]
Allocated Share-based Compensation Expense
Sales and Marketing [Member]
Allocated Share-based Compensation Expense	17	5	44	31
General and Administrative Expense [Member]
Allocated Share-based Compensation Expense	$ 169	$ 161	$ 341	$ 305

Summary of Significant Accoun24

Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Anit-dilutive Securities	4,080,033	824,549	4,080,033	824,549
Common Stock Options [Member]
Anit-dilutive Securities	71,749	58,623	71,749	58,623
Restricted Stock [Member]
Anit-dilutive Securities	59,000	38,800	59,000	38,800
Common Stock Warrants [Member]
Anit-dilutive Securities	2,701,754	643,260	2,701,754	643,260
Series E Convertible Preferred Stock [Member]
Anit-dilutive Securities		83,866		83,866
Series F Convertible Preferred Stock [Member]
Anit-dilutive Securities	1,247,530		1,247,530

Cash and Short-term Investmen25

Cash and Short-term Investments (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash and Cash Equivalents [Abstract]
Cash, cash equivalents and short-term investments	$ 5,200
Realized investment gains losses	$ 0	$ 0

Cash and Short-term Investmen26

Cash and Short-term Investments - Schedule of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Cost	$ 5,227	$ 3,903
Unrealized Gain
Unrealized Loss		(2)
Fair Value	5,227	3,901
Commercial Paper [Member]
Cost	1,499
Unrealized Gain
Unrealized Loss
Fair Value	1,499
Certificates of Deposit [Member]
Cost	500	3,250
Unrealized Gain
Unrealized Loss		(2)
Fair Value	500	3,248
Cash and Money Market Securities [Member]
Cost	3,228	653
Unrealized Gain
Unrealized Loss
Fair Value	$ 3,228	$ 653

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Short-term Investments	$ 500	$ 3,248
Total	5,200
Fair Value, Measurements, Recurring [Member]
Cash equivalents	3,527	99
Short-term Investments	500	3,248
Total	4,027	3,347
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Cash equivalents	3,527	99
Short-term Investments
Total	3,527	99
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Cash equivalents
Short-term Investments	500	3,248
Total	500	3,248
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Cash equivalents
Short-term Investments
Total

Secured Promissory Note (Detail

Secured Promissory Note (Details Narrative) - Secured Debt [Member] $ in Thousands	May 20, 2014USD ($)
Debt Instrument, Face Amount	$ 350
Debt Instrument, Term	36 months
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Debt Issuance Cost	$ 22

Secured Promissory Note - Sched

Secured Promissory Note - Schedule of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Carrying value	$ 108	$ 168
Unamortized legal and closing costs	(6)	(10)
Notes Payable	102	158
Less- current portion	(102)	(124)
Long-term portion		$ 34

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Mar. 24, 2016	Feb. 04, 2016	Oct. 12, 2015	Feb. 18, 2015	Feb. 13, 2015	Feb. 13, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Proceeds from issuance of convertible preferred stock							$ 8,000
Class of warrant or right, outstanding							2,701,754		643,317
Private Placement [Member]
Class of warrant or right, exercise price of warrants or rights			$ 32.505				$ 32.505
Percentage of closing bid price of common stock							110.00%
Class of warrant or right, outstanding			1,831
Series E Warrant [Member]
Warrant term				5 years 6 months
Series F Preferred Stock [Member]
Convertible preferred stock, shares issued upon conversion	2,067,183
Minimum percentage of weighted average price of common stock							200.00%
Warrant term							5 years
Sold for purchase price equal to per unit	$ 1,000
Gross proceeds received	$ 8,000
Trading volume during such period exceeds							$ 200
Preferred stock, description							The Series F investors have agreed to be subject to a blocker that would prevent each of their respective common stock ownership at any given time from exceeding 4.99% of our outstanding common stock (which may be increased on 61 days’ notice, but not above 9.99%).
Series E 6% Convertible Preferred Stock [Member]
Debt instrument, convertible, beneficial conversion feature				$ 890
Series C Convertible Preferred Stock [Member]
Preferred stock, dividend rate, percentage		6.00%
Stock repurchase program, authorized amount per share		$ 300
Stock repurchase program, authorized amount		$ 656
Stock repurchase program, original share price, per share		$ 1,000
Series E Investors [Member]
Debt instrument, convertible, beneficial conversion feature		$ 890
Payments as deemed dividend paid		656
Repurchase all outstanding stock		$ 2,200
Series F Offering [Member]
Stock issued during period, shares, new issues	8,000
Convertible preferred stock, shares issued upon conversion	1,000
Convertible preferred stock conversion price	$ 3.87
Debt instrument, convertible, beneficial conversion feature							$ 1,900
Percentage of conversion price of common stock	75.00%
Total offering related costs paid							1,100
Net proceeds from issuance of stock							$ 6,900
Series F Offering [Member] | Common Stock [Member]
Convertible preferred stock, shares issued upon conversion							819,653
Series F Offering [Member] | Common Stock [Member] | Subsequent Event [Member]
Convertible preferred stock, shares issued upon conversion							701,047
Series F Offering [Member] | Series F Preferred Stock [Member]
Convertible preferred stock, shares issued upon conversion							3,172
Series F Offering [Member] | Series F Preferred Stock [Member] | Subsequent Event [Member]
Convertible preferred stock, shares issued upon conversion							2,713
Series E Purchase Agreement [Member]
Share price					$ 26.25	$ 26.25
Stock issued during period, shares, new issues					102,800
Convertible preferred stock conversion price					$ 26.25	26.25
Series E Purchase Agreement [Member] | Fixed Combination [Member]
Share price					$ 1,000	$ 1,000
Series E Purchase Agreement [Member] | Series E 6% Convertible Preferred Stock [Member]
Stock issued during period, shares, new issues					2,201.493
Proceeds from issuance of convertible preferred stock				4,900
Proceeds from issuance of convertible preferred stock net				$ 4,700
Series E Purchase Agreement [Member] | Series E 6% Convertible Preferred Stock [Member] | Common Stock [Member]
Convertible preferred stock, shares issued upon conversion					83,871	83,871
Warrant Purchase Agreement [Member] | Private Placement [Member]
Class of warrant or right, exercise price of warrants or rights			$ 16.50
Warrants not settleable in cash, fair value disclosure					$ 1,820	$ 1,820
Expected term							5 years 6 months
Expected volatility rate							113.20%
Risk free interest rate							1.50%
Class of warrant or right, outstanding			100,847
Warrant Purchase Agreement [Member] | Modification of Certain Outstanding Warrants [Member] | Private Placement [Member]
Class of warrant or right, exercise price of warrants or rights					$ 29.55	$ 29.55
Warrant Purchase Agreement [Member] | Common Stock [Member] | Private Placement Investors [Member]
Warrants to purchase of common stock initially					102,678	102,678
Warrant Purchase Agreement [Member] | Private Placement Investors [Member]
Proceeds from issuance of warrants						$ 1
Modification Of Certain Other Outstanding Warrants [Member]
Class of warrant or right, exercise price of warrants or rights							$ 29.55
Fair value adjustment of warrants							$ 336
Series E Modifications [Member] | Private Placement [Member]
Class of warrant or right, exercise price of warrants or rights			$ 16.50
Class of warrant or right, outstanding			100,847
Warrants Amendment [Member]
Fair value adjustment of warrants			$ 168
Series F Convertible Preferred Stock And Warrants Financing [Member]
Class of warrant or right, exercise price of warrants or rights	$ 5.17
Warrants to purchase of common stock initially	258.397875
Percentage of closing bid price of common stock	100.00%
Maximum [Member] | Series F Preferred Stock [Member]
Convertible preferred stock, shares issued upon conversion	2,067,183
Series A Warrants [Member] | Maximum [Member]
Share price							$ 73.65
Percentage of warrant remain unexercised through expiration date							7.50%
Series B Warrants [Member]
Class of warrant or right, exercise price of warrants or rights							$ 29.55
Series C Warrants [Member]
Class of warrant or right, exercise price of warrants or rights							29.55
Series E Preferred Stock [Member]
Class of warrant or right, exercise price of warrants or rights							$ 32.51
Series E Warrant [Member] | Series E Purchase Agreement [Member] | Common Stock [Member]
Warrants to purchase of common stock initially					46,676	46,676
Class of warrant or right, number of securities called by each warrant or right					21.1977	21.1977

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - $ / shares	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Shares of Common Stock Issuable from Warrants Outstanding	2,701,754	643,317
March, 2016 [Member]
Shares of Common Stock Issuable from Warrants Outstanding	2,067,183
Exercise Price	$ 5.17	$ 5.17
Expiration term	Mar. 31, 2021
April 2015 [Member]
Shares of Common Stock Issuable from Warrants Outstanding	100,847	100,847
Exercise Price	$ 16.50	$ 16.50
Expiration term	Aug. 31, 2020
April 2015 [Member]
Shares of Common Stock Issuable from Warrants Outstanding	1,831	1,831
Exercise Price	$ 32.51	$ 32.51
Expiration term	Aug. 31, 2020
February 2015 [Member]
Shares of Common Stock Issuable from Warrants Outstanding	46,676	46,676
Exercise Price	$ 16.50	$ 16.50
Expiration term	Aug. 31, 2020
June 2014 [Member]
Shares of Common Stock Issuable from Warrants Outstanding	1,690	1,690
Exercise Price	$ 30.90	$ 30.90
Expiration term	Apr. 30, 2018
December 2013 [Member]
Shares of Common Stock Issuable from Warrants Outstanding	388,365	388,365
Exercise Price	$ 46.80	$ 46.80
Expiration term	Dec. 31, 2018
June 2013 [Member]
Shares of Common Stock Issuable from Warrants Outstanding	32,788	32,788
Exercise Price	$ 29.55	$ 29.55
Expiration term	Jun. 30, 2019
May 2013 [Member]
Shares of Common Stock Issuable from Warrants Outstanding	32,788	32,788
Exercise Price	$ 29.55	$ 29.55
Expiration term	May 31, 2019
March 2013 [Member]
Shares of Common Stock Issuable from Warrants Outstanding	18,334	18,334
Exercise Price	$ 29.55	$ 29.55
Expiration term	Mar. 31, 2019
October 2012 [Member]
Shares of Common Stock Issuable from Warrants Outstanding	11,252	11,252
Exercise Price	$ 29.55	$ 29.55
Expiration term	Sep. 30, 2018
April 2011 [Member]
Shares of Common Stock Issuable from Warrants Outstanding		8,746
Exercise Price	$ 321	$ 321
Expiration term	Apr. 30, 2016

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2002
Transaction Bonus Plan [Member]
Maximum bonuses payable	$ 1,000		$ 1,000
Maximum bonuses payable, percent	10.00%		10.00%
Litigation [Member] | Settlement Agreement [Member]
Litigation settlement percentage					12.50%
Maximum annual litigation payment					$ 1,500
Minimum quarterly litigation payment					$ 25
Patent expire year					2,018
Royalty expenses	$ 25	$ 50	$ 25	$ 50

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - Warrant Repurchase Agreements [Member] $ in Thousands	Jul. 11, 2016USD ($)
Common stock purchase warrants repurchase agreement, description	On July 11, 2016, we entered into a Common Stock Purchase Warrants Repurchase Agreement (the “Repurchase Agreement”) with the holders (the “Holders”) of our outstanding common stock purchase warrants (the “Warrants”) issued in October 2012, March 2013, May 2013, June 2013, June 2014, February 2015 and April 2015 in connection with our Series A, Series B, Series C and Series E financings.
Repurchase of warrant	$ 459