ReShape Lifesciences (RSLS) 10-Q 14 Nov 24 2024 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Nov. 12, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Securities Act File Number	1-37897
Entity Registrant Name	RESHAPE LIFESCIENCES INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-1828101
Entity Address, Address Line One	18 Technology Dr, Suite 110
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92618
City Area Code	949
Local Phone Number	429-6680
Title of 12(b) Security	Common stock, $0.001 par value per share
Trading Symbol	RSLS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		712,680
Entity Central Index Key	0001427570
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 743	$ 4,459
Restricted cash	100	100
Accounts and other receivables (net of allowance for doubtful accounts of $866 and $804, respectively)	1,344	1,659
Inventory	2,934	3,741
Prepaid expenses and other current assets	217	337
Total current assets	5,338	10,296
Property and equipment, net	43	60
Operating lease right-of-use assets	177	250
Deferred tax asset, net	28	28
Other assets	29	29
Total assets	5,615	10,663
Current liabilities:
Accounts payable	2,105	1,689
Accrued and other liabilities	1,643	1,814
Warranty liability, current	163	163
Operating lease liabilities, current	114	111
Total current liabilities	4,025	3,777
Operating lease liabilities, noncurrent	77	151
Common stock warrant liabilities	26	72
Total liabilities	4,128	4,000
Commitments and contingencies (Note 10)
Stockholders' equity:
Additional paid-in capital	642,518	642,325
Accumulated deficit	(640,943)	(635,574)
Accumulated other comprehensive loss	(88)	(88)
Total stockholders' equity	1,487	6,663
Total liabilities and stockholders' equity	5,615	10,663
Series C convertible preferred stock
Stockholders' equity:
Preferred stock, 10,000,000 shares authorized: Series C convertible preferred stock, $0.001 par value; 95,388 shares issued and outstanding at September 30, 2024 and December 31, 2023

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Allowance for doubtful accounts	$ 866	$ 804
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	704,697	404,437
Common stock, shares outstanding	704,697	404,437
Series C convertible preferred stock
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, issued	95,388	95,388
Preferred stock outstanding	95,388	95,388

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statements of Operations
Revenue	$ 2,292	$ 2,155	$ 6,201	$ 6,696
Cost of revenue	853	867	2,463	2,990
Gross profit	1,439	1,288	3,738	3,706
Operating expenses:
Sales and marketing	719	1,791	2,408	6,150
General and administrative	2,082	2,058	6,074	8,724
Research and development	399	542	1,282	1,576
Impairment of long-lived assets		777		777
Gain on disposal of assets, net				(33)
Total operating expenses	3,200	5,168	9,764	17,194
Operating loss	(1,761)	(3,880)	(6,026)	(13,488)
Other expense (income), net:
Interest income, net		(5)	(13)	(9)
Gain on changes in fair value of liability warrants	(27)	(412)	(46)	(3,850)
Gain on extinguishment of debt			(429)
Loss (gain) on foreign currency exchange, net	(50)	68	(10)	47
Other	(109)		(193)	(8)
Loss before income tax provision	(1,575)	(3,531)	(5,335)	(9,668)
Income tax expense	6	3	34	21
Net loss	$ (1,581)	$ (3,534)	$ (5,369)	$ (9,689)
Net loss per share - basic and diluted:
Net loss per share - basic (in dollars per share)	$ (3.11)	$ (59.36)	$ (11.94)	$ (199.98)
Net loss per share - diluted (in dollars per share)	$ (3.11)	$ (59.36)	$ (11.94)	$ (199.98)
Shares used to compute basic net loss per share (in shares)	508,851	59,538	449,614	48,451
Shares used to compute diluted net loss per share (in shares)	508,851	59,538	449,614	48,451

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Condensed Consolidated Statements of Comprehensive Loss
Net loss	$ (1,581)	$ (3,534)	$ (5,369)	$ (9,689)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	1	1		(6)
Other comprehensive income (loss), net of tax	1	1		(6)
Comprehensive loss	$ (1,580)	$ (3,533)	$ (5,369)	$ (9,695)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2022			$ 627,936	$ (624,187)	$ (88)	$ 3,661
Balance (in shares) at Dec. 31, 2022	95,388	8,955
Changes in Stockholders' (Deficit) Equity
Net loss				(9,689)		(9,689)
Other comprehensive income, net of tax					(6)	(6)
Issuance of common stock pursuant to reverse stock split (in shares)		318
Stock compensation			656			656
Common stock purchased			895			895
Common stock purchased (in shares)		25,456
Equity issuance costs			(247)			(247)
Issuance of stock from RSUs (in shares)		41
Exercise of warrants			7,813			7,813
Exercise of warrants (in shares)		24,768
Balance at Sep. 30, 2023			637,053	(633,876)	(94)	3,083
Balance (in shares) at Sep. 30, 2023	95,388	59,538
Balance at Jun. 30, 2023			637,175	(630,342)	(95)	6,738
Balance (in shares) at Jun. 30, 2023	95,388	59,526
Changes in Stockholders' (Deficit) Equity
Net loss				(3,534)		(3,534)
Other comprehensive income, net of tax					1	1
Stock compensation			216			216
Equity issuance costs			(338)			(338)
Issuance of stock from RSUs (in shares)		12
Balance at Sep. 30, 2023			637,053	(633,876)	(94)	3,083
Balance (in shares) at Sep. 30, 2023	95,388	59,538
Balance at Dec. 31, 2023			642,325	(635,574)	(88)	6,663
Balance (in shares) at Dec. 31, 2023	95,388	404,437
Changes in Stockholders' (Deficit) Equity
Net loss				(5,369)		(5,369)
Issuance of common stock pursuant to reverse stock split (in shares)		198,014
Stock compensation			169			169
Issuance of stock from RSUs (in shares)		5
Exercise of warrants			24			24
Exercise of warrants (in shares)		102,241
Balance at Sep. 30, 2024			642,518	(640,943)	(88)	1,487
Balance (in shares) at Sep. 30, 2024	95,388	704,697
Balance at Jun. 30, 2024			642,486	(639,362)	(89)	3,035
Balance (in shares) at Jun. 30, 2024	95,388	506,680
Changes in Stockholders' (Deficit) Equity
Net loss				(1,581)		(1,581)
Other comprehensive income, net of tax					1	1
Issuance of common stock pursuant to reverse stock split (in shares)		198,014
Stock compensation			32			32
Issuance of stock from RSUs (in shares)		3
Balance at Sep. 30, 2024			$ 642,518	$ (640,943)	$ (88)	$ 1,487
Balance (in shares) at Sep. 30, 2024	95,388	704,697

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net loss	$ (5,369)	$ (9,689)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	17	114
Amortization of intangible assets		33
Impairment of long-lived assets		777
Gain on extinguishment of debt	(429)
Gain on disposal of assets, net		(33)
Stock-based compensation	169	656
Bad debt expense	61	450
Provision for inventory excess and obsolescence	140	101
Deferred income tax		1
Gain on changes in fair value of liability warrants	(46)	(3,850)
Offering cost		298
Other noncash items	2	12
Change in operating assets and liabilities:
Accounts and other receivables	256	(422)
Inventory	667	307
Prepaid expenses and other current assets	119	(329)
Accounts payable and accrued liabilities	673	(2,764)
Warranty liability		(182)
Other		17
Net cash used in operating activities	(3,740)	(14,503)
Cash flows from investing activities:
Capital expenditures		(43)
Proceeds from sale of capital assets		33
Cash used in investing activities:		(10)
Cash flows from financing activities:
Proceeds from sale and issuance of securities		12,451
Exercise of warrants	24
Payments of equity issuance costs		(338)
Net cash provided by financing activities	24	12,113
Effect of currency exchange rate changes on cash and cash equivalents		(6)
Net change in cash, cash equivalents and restricted cash	(3,716)	(2,406)
Cash, cash equivalents and restricted cash at beginning of period	4,559	3,955
Cash, cash equivalents and restricted cash at end of period	843	1,549
Supplemental disclosure:
Cash paid for income taxes	$ 12	$ 2

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2024
Basis of Presentation
Basis of Presentation	(1) Basis of Presentation ​ The accompanying interim condensed consolidated financial statements and related disclosures of Reshape Lifesciences Inc. (the “Company” or “ReShape”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed on April 1, 2024. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") have been condensed or omitted. ​ In the opinion of management, the interim consolidated condensed financial statements reflect all adjustments considered necessary for a fair statement of the interim periods. All such adjustments are of a normal, recurring nature. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. ​ Reverse Stock Split ​ On September 23, 2024, at the commencement of trading, the Company effected a 1 ​ ​ Summary of Significant Accounting Policies ​ The Company’s significant accounting policies are described in Note 2 to its audited consolidated financial statements for the year ended December 31, 2023, which are included in the Company’s 2023 Annual Report on Form 10-K which was filed with the SEC on April 1, 2024. ​ Use of Estimates ​ The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may materially differ from these estimates. The Company reviews its estimates on an ongoing basis or as new information becomes available to ensure that these estimates appropriately reflect changes in its business. ​ Inventory ​ The Company accounts for inventory at the lower of cost or net realizable value, where net realizable value is based on market prices less costs to sell. The Company establishes inventory reserves for obsolescence based upon specific identification of expired or unusable units with a corresponding provision included in cost of revenue. ​ Long-Lived Assets ​ We assess the potential impairment of long-lived assets, principally property and equipment, whenever events or changes in circumstances indicate that the carrying value of the asset group may not be fully recoverable. If an indicator of impairment exists for any of its asset groups, an estimate of undiscounted future cash flows over the life of the primary asset for each asset group is compared to that long-lived asset group's carrying value. If the carrying value of the asset group is greater than the estimated future undiscounted cash flow, the Company then determines the fair value of the assets, and if an asset is determined to be impaired, the impairment loss is measured by the excess of the carrying amount of the asset over its fair value. ​ Fair Value of Financial Instruments ​ The carrying amounts of cash equivalents, accounts receivable, accounts payable and certain accrued and other liabilities approximate fair value due to their short-term maturities. Refer to Note 6 regarding fair value measurements and inputs of warrants. ​ Net Loss Per Share ​ The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive as of the end of each period presented: ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ 2024 2023 Stock options 144 305 Unvested restricted stock units ​ 8 ​ 45 Convertible preferred stock ​ 10 ​ 10 Warrants 81,432 28,147 ​ Recent Accounting Pronouncements ​ New accounting standards not yet adopted are discussed below. In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ​ In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) ​ In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280)

Liquidity and Management's Plan

Liquidity and Management's Plans	9 Months Ended
	Sep. 30, 2024
Liquidity and Management's Plans
Liquidity and Management's Plans	(2) Liquidity and Management’s Plans ​ The Company currently does not generate revenue sufficient to offset operating costs and anticipates such shortfalls to continue as the Company has modified its strategy to a metrics-driven approach through a sustainable and scalable business model, via a digital lead generation and re-engagement strategy. As of September 30, 2024, the Company had net working capital of approximately $1.3 million, primarily due to cash and cash equivalents and restricted cash of $0.8 million, and $1.3 million of net accounts receivable. The Company has raised gross proceeds of $0.7 million from the issuance of a senior secured convertible note on October 16, 2024, for further details see Note 11. Based on its available cash resources, the Company will not have sufficient cash on hand to fund its current operations for more than twelve months from the date of filing this Quarterly Report on Form 10-Q. This condition raises substantial doubt about the Company’s ability to continue as a going concern. ​ The Company’s anticipated operations include plans to (i) merge with Vyome Therapeutics, Inc and sell certain assets to Biorad, which will continue the operations, (ii) grow sales and operations of the Company with the Lap-Band product line both domestically and internationally as well as to obtain cost savings synergies, (iii) introduce to the market Lap-Band 2.0 FLEX, (iv) continue development of the Diabetes Bloc-Stim Neuromodulation (“DBSN”) device, and (v) prior to such merger and sale, explore and capitalize on synergistic opportunities to expand our portfolio and offer future minimally invasive treatments and therapies in the obesity continuum of care. The Company believes that it has the flexibility to manage the growth of its expenditures and operations depending on the amount of available cash flows, which could include reducing expenditures for marketing and product development activities. ​ There can be no assurance as to whether the Company will close the planned transactions or whether additional financing will be available on terms acceptable to the Company, if at all. If sufficient funds on acceptable terms are not available when needed, it would have a negative impact on the Company’s financial condition and could force the Company to delay, limit, reduce, or terminate product development or future commercialization efforts or grant rights to develop and market product candidates or testing products that the Company would otherwise plan to develop. ​ Therefore, the plans cannot be deemed probable of being implemented. As a result, the Company’s plans do not alleviate substantial doubt about our ability to continue as a going concern. ​ The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above. ​

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information	9 Months Ended
	Sep. 30, 2024
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information	(3) Supplemental Balance Sheet Information ​ Components of selected captions in the condensed consolidated balance sheets consisted of the following: ​ Inventory: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2024 2023 Raw materials ​ $ 965 ​ $ 1,020 Sub-assemblies ​ ​ 1,163 ​ ​ 1,379 Finished goods ​ 806 ​ 1,342 Total inventory ​ $ 2,934 ​ $ 3,741 ​ Prepaid expenses and other current assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2024 2023 Prepaid insurance ​ $ 95 ​ $ 110 Professional services ​ ​ 29 ​ ​ — Patents ​ ​ 5 ​ ​ 13 Prepaid advertising and marketing ​ ​ 21 ​ ​ 41 Taxes ​ ​ 16 ​ ​ 47 Other current assets ​ ​ 51 ​ ​ 126 Total prepaid expenses and other current assets ​ $ 217 ​ $ 337 ​ Accrued and other liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2024 2023 Payroll and benefits ​ $ 702 ​ $ 701 Accrued legal settlements ​ ​ — ​ ​ 200 Customer deposits ​ ​ 683 ​ ​ 639 Taxes ​ ​ 44 ​ ​ 61 Accrued professional ​ ​ 169 ​ ​ 155 Other liabilities ​ 45 ​ 58 Total accrued and other liabilities ​ $ 1,643 ​ $ 1,814 ​ ​ Accounts payable: ​ During the second quarter of 2024, management requested outside legal counsel to provide guidance with respect to various accounts payables carried on the books from 2020 and prior. Based on the review of the statute of limitations for the various states these vendors were located, legal counsel provided a conclusion regarding whether the laws per the respective states provided that the statute of limitations has expired. The statute of limitations is an affirmative defense in which the defendant introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if it is proven the defendant committed the alleged acts. The party raising the affirmative defense has the burden of proof on establishing that it applies. In a civil action in which a creditor demands payment on a written instrument evidencing a debt, the successful assertion of the statute of limitations defense will bar collection of the debt. In order to assert the statute of limitations as a defense, a defendant must specifically assert the defense is the answer. If a defendant fails to specifically plead the defense, it will be deemed to be waived. Since no action to enforce such liabilities was brought before September 30, 2024, it is our opinion that the liability is time-barred from collection under the respective state laws and should be removed from the Company’s balance sheet. ​ Therefore, the Company made the decision to write-off the payables totaling $429 thousand. As of September 30, 2024, the write-off of $429 thousand resulted in a gain on extinguishment of debt which was reported on the statement of operations for the nine months ended September 30, 2024.

Leases

Leases	9 Months Ended
	Sep. 30, 2024
Leases
Leases	(4) Leases ​ The Company had a noncancelable operating lease for office and warehouse space in San Clemente, which expired June 30, 2023. On March 13, 2023, the Company entered into a lease for approximately 5,038 square feet of office and warehouse space at 18 Technology Drive, Suite 110, Irvine, California 92618 and relocated its principal executive offices from our former San Clemente, California location to the Irvine, California location. The Irvine lease has a term of 36 months, commencing on May 1, 2023. ​ The Company does not have any short-term leases or financing lease arrangements. Lease and non-lease components are accounted for separately. ​ Operating lease costs were $0.1 million and $16 thousand for the three months ended September 30, 2024 and 2023, respectively, and $0.1 million and $0.3 million for the nine months ended September 30, 2024 and 2023, respectively. Variable lease costs were not material. ​ Supplemental information related to operating leases is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, Balance Sheet information ​ 2024 ​ 2023 Operating lease ROU assets ​ $ 177 ​ $ 250 ​ ​ ​ ​ ​ ​ ​ Operating lease liabilities, current portion ​ $ 114 ​ $ 111 Operating lease liabilities, long-term portion ​ ​ 77 ​ ​ 151 Total operating lease liabilities ​ $ 191 ​ $ 262 ​ ​ ​ ​ ​ ​ ​ Cash flow information for the nine months ended September 30, ​ 2024 ​ 2023 Cash paid for amounts included in the measurement of operating leases liabilities ​ $ 83 ​ $ 174 ​ Maturities of operating lease liabilities were as follows as of September 30, 2024: ​ ​ ​ ​ ​ ​ 2024 (balance of year) ​ $ 28 ​ 2025 ​ ​ 115 ​ 2026 ​ ​ 59 ​ Total lease payments ​ ​ 202 ​ Less: imputed interest ​ ​ 11 ​ Total lease liabilities ​ $ 191 ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term at end of period (in years) ​ ​ 1.9 ​ Weighted-average discount rate at end of period ​ ​ 6.9 % ​

Equity

Equity	9 Months Ended
	Sep. 30, 2024
Equity
Equity	(5) Equity ​ Common Stock Issued Related to Restricted Stock Units ​ During the three months ended September 30, 2024 and 2023, the Company issued 3 shares of common stock and 12 shares of common stock, respectively, subject to vesting of the restricted stock units. During the nine months ended September 30, 2024 and 2023, the Company issued 5 shares of common stock and 41 shares of common stock, respectively, subject to vesting of restricted stock units. For further details see Note 9. ​ May 2024 Exercise of Warrants for Common Stock ​ On May 30, 2024, an accredited investor exercised outstanding warrants, of which 1,811 shares of common stock were issued in accordance with the terms of the warrant agreement. The Company received approximately $24 thousand of cash. ​ June 2024 Exercise of Warrants for Common Stock ​ On June 4, 2024, the Company issued 100,430 shares of common stock in exchange for 185,604 common stock purchase warrants. These warrants were exercised using the cashless mechanism within the warrant agreement. ​ February 2023 Public Offering of Common Stock and Warrants ​ On February 8, 2023, the Company closed a public offering of 21,983 units, with each consisting of one share of its common stock, or one pre-funded warrant to purchase one share of its common stock, and one warrant to purchase one and one -half shares of its common stock. Each unit was sold at the public offering price of $464.00 . The warrants in the units are immediately exercisable at a price of $464.00 per share and expire five years from the date of issuance. Alternatively, each warrant can be exercised pursuant to the “alternative cashless exercise” provision, to which the holders would receive an aggregate number of shares of common stock equal the product of (x) the aggregate number of shares of common stock that would be issuable upon a cash exercise and (y) 0.50 . For purposes of clarity, one common warrant to purchase one and one -half shares would be exercisable for 0.75 shares under this alternative cashless exercise provision. The shares of common stock (or pre-funded warrants in lieu thereof) and accompanying warrants were only purchasable together in this offering but were issued separately and immediately separable upon issuance. As of September 30, 2024 warrants to purchase 28,869 shares of common stock have been exercised under the alternative cashless exercise for a total of 14,402 shares of common stock. ​ Net proceeds, after deducting underwriting discounts and commissions and estimated offering expenses, were approximately $10.2 million. The Company has been using the net proceeds of this offering to continue implementation of its growth strategies, for working capital and general corporate purposes. ​ The Company also granted the underwriters an option to purchase an additional 3,298 shares of common stock and/or additional warrants to purchase up to 4,947 shares of common stock, to cover over-allotments, of which Maxim Group LLC exercised its option to purchase additional warrants to purchase 4,947 shares of common stock. ​

Warrants

Warrants	9 Months Ended
	Sep. 30, 2024
Warrants
Warrants	​ ​ (6) Warrants ​ The Company’s grants of warrants to purchase common stock are primarily in connection with equity financing. See Note 5 for additional information about equity financings and the related issuance of warrants. Warrant activity for the nine months ended September 30, 2024 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares ​ Balance December 31, 2023 ​ 268,937 ​ Issued ​ — ​ Exercised ​ (187,415) Cancelled ​ (90) Balance September 30, 2024 ​ 81,432 ​ ​ On February 8, 2023, the Company completed a public offering in which three classes of warrants were issued. There were 37,921 common stock purchase warrants issued with an alternative cashless exercise provision. The alternative cashless exercise allows the holder to exercise one warrant share for 0.5 shares of common stock or exercise via the cash exercise price of $464.00 per share of common stock per warrant. The Company classifies these warrants as a liability, and the Company utilized a bifurcated Black-Scholes option pricing model to consider the cash exercise option and cashless exercise option. The bifurcated Black-Scholes option pricing model used an exercise price where the two exercise methods would be indifferent with market inputs of the stock price on the issuance, risk free interest rate, expected share price volatility and dividend yield. The Company calculates the fair value of the warrants at each reporting period and when a warrant is exercised, with the changes in fair value recognized in the statement of operations. ​ Below is a summary of the initial inputs used in the bifurcated Black-Scholes option pricing model. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Exercise ​ Cashless Exercise Stock Price ​ $ 5.905 ​ $ 5.905 Exercise Price ​ $ 16.00 ​ $ 0.00 Term (years) ​ ​ 5.00 ​ ​ 5.00 Volatility ​ ​ 96.50% ​ ​ 96.50% Risk Free Rate ​ ​ 3.784% ​ ​ 3.784% Dividend Yield ​ ​ 0% ​ ​ 0% ​ The following table presents the changes in the fair value of warrant liabilities: ​ ​ ​ ​ ​ ​ ​ Common Stock ​ ​ Purchase Warrants Fair value as of December 31, 2023 ​ $ 72 Gain on changes in fair value of liability warrants ​ ​ (46) Fair value as of September 30, 2024 ​ $ 26 ​ In addition, one of the investors purchased 1,552 pre-funded warrants at a price of $463.94 per warrant. These warrants have an exercise price of $0.01 per share and do not expire. The pre-funded warrants were valued at $0.5 million using the fair value approach at the time of issuance. The fair value of the pre-funded warrants was determined using a Black Scholes option pricing model using a risk-free rate of 3.784%, an expected term of 5.0 years, expected dividends of zero and expected volatility of 96.5%. ​ As part of the terms of the offering, the Company issued 1,265 representative’s warrants with an exercise price of $510.40 per share and expiration date on February 3, 2028. The representative’s warrants were valued at $0.3 million using the fair value approach at the time of issuance. The fair value of the representative’s warrants was determined using a Black Scholes option pricing model using a risk-free rate of 3.786%, an expected term of 4.99 years, expected dividends of zero and expected volatility of 96.5%.

Revenue Disaggregation and Oper

Revenue Disaggregation and Operating Segments	9 Months Ended
	Sep. 30, 2024
Revenue Disaggregation and Operating Segments
Revenue Disaggregation and Operating Segments	(7) Revenue Disaggregation and Operating Segments ​ The Company conducts operations worldwide and has sales in the following regions: United States, Australia, Europe and Rest of World. For the three and nine months ended September 30, 2024 and 2023, the Company primarily sold the Lap-Band system and accessories. The following table presents the Company’s revenue disaggregated by geography: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2024 2023 2024 2023 United States ​ $ 2,009 ​ $ 1,732 ​ $ 5,290 ​ $ 5,473 Australia ​ ​ 111 ​ ​ 139 ​ ​ 316 ​ ​ 419 Europe ​ ​ 168 ​ ​ 258 ​ ​ 564 ​ ​ 756 Rest of World ​ ​ 4 ​ ​ 26 ​ ​ 31 ​ ​ 48 Total revenue ​ $ 2,292 ​ $ 2,155 ​ $ 6,201 ​ $ 6,696 ​ Operating Segments ​ The Company conducts operations worldwide and is managed in the following geographical regions: United States, Australia, Europe and the Rest of World (primarily in the Middle East). All regions sell the Lap-Band system, which consisted of nearly all our revenue and gross profit for the three and nine months ended September 30, 2024 and 2023. There was no revenue or gross profit recorded for the DBSN device for the three and nine months ended September 30, 2024 and 2023, as this product is still in the development stage. Additionally, there was no revenue recorded for the Obalon Balloon system during the three months and nine months ended September 30, 2024 and 2023.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2024
Income Taxes
Income Taxes	(8) Income Taxes ​ During the three months ended September 30, 2024 and 2023, the Company recorded income tax expense of $6 thousand and $3 thousand, respectively. During the nine months ended September 30, 2024 and 2023, the Company recorded income tax expense of $34 thousand and $21 thousand, respectively. The income tax expense is related to minimum state taxes and projected Australian and Netherlands income, respectively. The income tax provisions for the three and nine months ended September 30, 2024 were calculated using the discrete year-to-date method. The effective tax rate differs from the statutory tax rate of 21% primarily due to the existence of valuation allowances against net deferred tax assets and current liabilities resulting from the estimated state income tax liabilities and foreign tax liabilities. ​ In assessing the realization of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Based on the level of historical losses, projections of losses in future periods and potential limitations pursuant to changes in ownership under Internal Revenue Code Section 382, the Company provided a full valuation allowance at both September 30, 2024 and December 31, 2023. ​

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2024
Stock-based Compensation
Stock-based Compensation	(9) Stock-based Compensation ​ Stock-based compensation expense related to stock options and RSUs issued under the ReShape Lifesciences Inc. 2022 Stock Incentive Plan (the “Plan”) for the three months and nine months ended September 30, 2024 and 2023 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2024 ​ 2023 ​ 2024 ​ 2023 Sales and marketing ​ $ 4 ​ $ 30 ​ $ 19 ​ $ 89 General and administrative ​ ​ 13 ​ ​ 128 ​ ​ 83 ​ ​ 384 Research and development ​ ​ 15 ​ ​ 58 ​ ​ 67 ​ ​ 183 Total stock-based compensation expense ​ $ 32 ​ $ 216 ​ $ 169 ​ $ 656 ​ Stock Options ​ A summary of the status of the Company’s stock options as of September 30, 2024, and changes during the nine months ended September 30, 2024, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ Aggregate ​ ​ ​ ​ Average ​ Remaining ​ Intrinsic ​ ​ ​ Exercise Price ​ Contractual ​ Value ​ ​ Shares ​ Per Share ​ Life (years) ​ (in thousands) Outstanding at December 31, 2023 263 ​ $ 21,909.50 ​ ​ ​ $ — Options granted — ​ ​ — ​ ​ ​ ​ ​ Options exercised — ​ ​ — ​ ​ ​ ​ ​ Options cancelled (105) ​ ​ 7,629.90 ​ ​ ​ ​ ​ Outstanding at September 30, 2024 158 ​ $ 31,381.48 ​ 6.10 ​ $ — Exercisable at September 30, 2024 ​ 144 ​ $ 34,101.10 ​ 5.97 ​ $ — Vested and expected to vest at September 30, 2024 ​ 158 ​ $ 31,381.48 ​ 6.10 ​ $ — ​ There was no intrinsic value to outstanding stock options at September 30, 2024. The unrecognized share-based expense at September 30, 2024 was $34 thousand and will be recognized over a weighted average period of 1.05 years. ​ Stock option awards outstanding under the Company’s incentive plans have been granted at exercise prices that are equal to the market value of its common stock on the date of grant. Such options generally vest over a period of four years and expire at ten years after the grant date. The Company recognized compensation expense ratably over the vesting period. The Company uses a Black-Scholes option-pricing model to estimate the fair value of stock options granted, which requires the input of both subjective and objective assumptions as follows: ​ Expected Term ​ Expected Volatility ​ Risk-free Interest Rate ​ Expected Dividend Yield ​ Restricted Stock Units ​ A summary of the Company’s unvested RSUs award activity for the nine months ended September 30, 2024, is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ Grant Date ​ ​ Shares ​ Fair Value Unvested RSUs at December 31, 2023 25 ​ $ 7,505.04 Granted — ​ ​ — Vested (1) (17) ​ $ (9,333.94) Cancelled/Forfeited — ​ ​ — Non-vested RSUs at September 30, 2024 8 ​ $ 3,847.14 ​ (1) At September 30, 2024, there were 2 shares of common stock related to RSU awards that had vested and the shares were not distributed to the participants. ​ The fair value of each RSU is the closing stock price on the Nasdaq of the Company’s common stock on the date of grant. Upon vesting, a portion of the RSU award may be withheld to satisfy the statutory income tax withholding obligation. The remaining RSUs will be settled in shares of the Company’s common stock after the vesting period. The unrecognized compensation cost related to the RSUs at September 30, 2024 was $25 thousand and expected to be recognized over a period of 0.92 years.

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitment and Contingencies
Commitment and Contingencies	​ (10) Commitment and Contingencies ​ Litigation ​ On August 6, 2021, Cowen and Company, LLC filed a complaint against ReShape, as successor in interest to Obalon Therapeutics, in the Supreme Court of the State of New York based on an alleged breach of contract arising out of Cowen’s prior engagement as Obalon’s financial advisor. The complaint alleges that Cowen is entitled to be paid a $1.35 million fee in connection with ReShape’s merger with Obalon under the terms of Cowen’s engagement agreement with Obalon. The complaint also sought reimbursement of Cowen’s attorneys’ fees and interest in connection with its claim. On May 11, 2023, the Supreme Court of the State of New York issued the final judgement in favor of Cowen & Company in the amount of $1.35 million, plus interest at the statutory rate of 9% per annum from June 16, 2021 until judgement is paid in full, and reimbursement of $675,000 of Cowen’s attorneys’ fees, with $275,000 to be paid upfront, $200,000 paid after six months and $200,000 paid after 12 months. As of September 30, 2024, the Company has paid the judgement, interest and legal fees in full. ​ The Company is not aware of any pending or threatened litigation against it that could have a material adverse effect on the Company’s business, operating results or financial condition, other than what was disclosed above. The medical device industry in which the Company operates is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. As a result, the Company may be involved in various legal proceedings from time to time. ​ Product Liability Claims The Company is exposed to product liability claims that are inherent in the testing, production, marketing, and sale of medical devices. Management believes any losses that may occur from these matters are adequately covered by insurance, and the ultimate outcome of these matters will not have a material effect on the Company’s financial position or results of operations. The Company is not currently a party to any product liability litigation and is not aware of any pending or threatened product liability litigation that is reasonably possible to have a material adverse effect on the Company’s business, operating results or financial condition.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2024
Subsequent Events
Subsequent Events	​ ​ ​ ​ (11) Subsequent Events ​ In a private transaction, on October 16, 2024, the Company entered into a securities purchase agreement (the “SPA”) with an institutional investor (the “Investor”). Pursuant to the SPA, the Company agreed to issue the Investor a senior secured convertible note in the aggregate original principal amount of $833,333.34 (the “Note”), and also issue to the Investor 7,983 shares of common stock, par value $0.001, of the Company (“Common Stock”) as “commitment shares” to the Investor. The Company is the issuer of the Note, and its respective subsidiaries will guaranty the obligations under the Note pursuant to a Guaranty, dated October 16, 2024 (the “Guaranty”). The Note is fully secured by collateral of the Company and its subsidiaries. The security interest in favor of the Investor, as collateral agent, covers substantially all assets of the Company including, without limitation, the intellectual property, trademark, and patent rights of the Company. The parties entered into a Security Agreement (the “Security Agreement”) and certain intellectual property security agreements granting such security interest in favor of the Investor. In connection with the SPA, the Company issued to the Investor the Note on October 16, 2024, which bears an interest rate of 10% per annum and is due and payable on the earlier of (i) January 16, 2025 and (ii) the date of consummation or termination of the Company’s previously announced merger with Vyome Therapeutics, Inc. The initial conversion price of the Note is $5.22 per share of Common Stock. The Note may not be converted by the Investor into shares of Common Stock if such conversion would result in the Investor and its affiliates owning in excess of 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of all shares issuable upon conversion of the Note. The Note provides for certain events of default that are typical for a transaction of this type, including, among other things, any breach of the representations or warranties made by the Company or its subsidiaries. In connection with any event of default that results in the acceleration of payment of the Note and while it is continuing, the interest rate on the Note shall accrue at an interest rate equal to the lesser of 24% per annum or the maximum rate permitted under applicable law. ​

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (1,581)	$ (3,534)	$ (5,369)	$ (9,689)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2024
Basis of Presentation
Basis of Presentation	(1) Basis of Presentation ​ The accompanying interim condensed consolidated financial statements and related disclosures of Reshape Lifesciences Inc. (the “Company” or “ReShape”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed on April 1, 2024. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") have been condensed or omitted. ​ In the opinion of management, the interim consolidated condensed financial statements reflect all adjustments considered necessary for a fair statement of the interim periods. All such adjustments are of a normal, recurring nature. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year.
Reverse Stock Split	Reverse Stock Split ​ On September 23, 2024, at the commencement of trading, the Company effected a 1
Use of Estimates	Use of Estimates ​ The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may materially differ from these estimates. The Company reviews its estimates on an ongoing basis or as new information becomes available to ensure that these estimates appropriately reflect changes in its business.
Inventory	Inventory ​ The Company accounts for inventory at the lower of cost or net realizable value, where net realizable value is based on market prices less costs to sell. The Company establishes inventory reserves for obsolescence based upon specific identification of expired or unusable units with a corresponding provision included in cost of revenue.
Long-Lived Assets	​ Long-Lived Assets ​ We assess the potential impairment of long-lived assets, principally property and equipment, whenever events or changes in circumstances indicate that the carrying value of the asset group may not be fully recoverable. If an indicator of impairment exists for any of its asset groups, an estimate of undiscounted future cash flows over the life of the primary asset for each asset group is compared to that long-lived asset group's carrying value. If the carrying value of the asset group is greater than the estimated future undiscounted cash flow, the Company then determines the fair value of the assets, and if an asset is determined to be impaired, the impairment loss is measured by the excess of the carrying amount of the asset over its fair value.
Fair Value of Financial Instruments	Fair Value of Financial Instruments ​ The carrying amounts of cash equivalents, accounts receivable, accounts payable and certain accrued and other liabilities approximate fair value due to their short-term maturities. Refer to Note 6 regarding fair value measurements and inputs of warrants.
Net Loss Per Share	Net Loss Per Share ​ The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive as of the end of each period presented: ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ 2024 2023 Stock options 144 305 Unvested restricted stock units ​ 8 ​ 45 Convertible preferred stock ​ 10 ​ 10 Warrants 81,432 28,147
Recent Accounting Pronouncements	Recent Accounting Pronouncements ​ New accounting standards not yet adopted are discussed below. In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ​ In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) ​ In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280)

Basis of Presentation (Tables)

Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2024
Basis of Presentation
Schedule of anti-dilutive securities	The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive as of the end of each period presented: ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ 2024 2023 Stock options 144 305 Unvested restricted stock units ​ 8 ​ 45 Convertible preferred stock ​ 10 ​ 10 Warrants 81,432 28,147

Supplemental Balance Sheet In_2

Supplemental Balance Sheet Information (Tables)	9 Months Ended
	Sep. 30, 2024
Supplemental Balance Sheet Information
Schedule of components of inventory	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2024 2023 Raw materials ​ $ 965 ​ $ 1,020 Sub-assemblies ​ ​ 1,163 ​ ​ 1,379 Finished goods ​ 806 ​ 1,342 Total inventory ​ $ 2,934 ​ $ 3,741
Schedule of components of prepaid expenses and other current assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2024 2023 Prepaid insurance ​ $ 95 ​ $ 110 Professional services ​ ​ 29 ​ ​ — Patents ​ ​ 5 ​ ​ 13 Prepaid advertising and marketing ​ ​ 21 ​ ​ 41 Taxes ​ ​ 16 ​ ​ 47 Other current assets ​ ​ 51 ​ ​ 126 Total prepaid expenses and other current assets ​ $ 217 ​ $ 337
Schedule of components of accrued and other liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2024 2023 Payroll and benefits ​ $ 702 ​ $ 701 Accrued legal settlements ​ ​ — ​ ​ 200 Customer deposits ​ ​ 683 ​ ​ 639 Taxes ​ ​ 44 ​ ​ 61 Accrued professional ​ ​ 169 ​ ​ 155 Other liabilities ​ 45 ​ 58 Total accrued and other liabilities ​ $ 1,643 ​ $ 1,814

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2024
Leases
Schedule of supplemental information related to operating leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, Balance Sheet information ​ 2024 ​ 2023 Operating lease ROU assets ​ $ 177 ​ $ 250 ​ ​ ​ ​ ​ ​ ​ Operating lease liabilities, current portion ​ $ 114 ​ $ 111 Operating lease liabilities, long-term portion ​ ​ 77 ​ ​ 151 Total operating lease liabilities ​ $ 191 ​ $ 262 ​ ​ ​ ​ ​ ​ ​ Cash flow information for the nine months ended September 30, ​ 2024 ​ 2023 Cash paid for amounts included in the measurement of operating leases liabilities ​ $ 83 ​ $ 174
Schedule of maturities of operating lease liabilities	​ ​ ​ ​ ​ ​ 2024 (balance of year) ​ $ 28 ​ 2025 ​ ​ 115 ​ 2026 ​ ​ 59 ​ Total lease payments ​ ​ 202 ​ Less: imputed interest ​ ​ 11 ​ Total lease liabilities ​ $ 191 ​ ​ ​ ​ ​ ​ Weighted-average remaining lease term at end of period (in years) ​ ​ 1.9 ​ Weighted-average discount rate at end of period ​ ​ 6.9 % ​

Warrants (Tables)

Warrants (Tables)	9 Months Ended
	Sep. 30, 2024
Schedule of warrant activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares ​ Balance December 31, 2023 ​ 268,937 ​ Issued ​ — ​ Exercised ​ (187,415) Cancelled ​ (90) Balance September 30, 2024 ​ 81,432 ​
Schedule of changes in the fair value of warrant liabilities	​ ​ ​ ​ ​ ​ ​ Common Stock ​ ​ Purchase Warrants Fair value as of December 31, 2023 ​ $ 72 Gain on changes in fair value of liability warrants ​ ​ (46) Fair value as of September 30, 2024 ​ $ 26
Black-Scholes model
Schedule of Warrant Assumptions Used to Calculate Fair Value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Exercise ​ Cashless Exercise Stock Price ​ $ 5.905 ​ $ 5.905 Exercise Price ​ $ 16.00 ​ $ 0.00 Term (years) ​ ​ 5.00 ​ ​ 5.00 Volatility ​ ​ 96.50% ​ ​ 96.50% Risk Free Rate ​ ​ 3.784% ​ ​ 3.784% Dividend Yield ​ ​ 0% ​ ​ 0%

Revenue Disaggregation and Op_2

Revenue Disaggregation and Operating Segments (Tables)	9 Months Ended
	Sep. 30, 2024
Revenue Disaggregation and Operating Segments
Schedule of revenue disaggregated by geography	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2024 2023 2024 2023 United States ​ $ 2,009 ​ $ 1,732 ​ $ 5,290 ​ $ 5,473 Australia ​ ​ 111 ​ ​ 139 ​ ​ 316 ​ ​ 419 Europe ​ ​ 168 ​ ​ 258 ​ ​ 564 ​ ​ 756 Rest of World ​ ​ 4 ​ ​ 26 ​ ​ 31 ​ ​ 48 Total revenue ​ $ 2,292 ​ $ 2,155 ​ $ 6,201 ​ $ 6,696

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2024
Stock-based Compensation
Schedule of stock-based compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2024 ​ 2023 ​ 2024 ​ 2023 Sales and marketing ​ $ 4 ​ $ 30 ​ $ 19 ​ $ 89 General and administrative ​ ​ 13 ​ ​ 128 ​ ​ 83 ​ ​ 384 Research and development ​ ​ 15 ​ ​ 58 ​ ​ 67 ​ ​ 183 Total stock-based compensation expense ​ $ 32 ​ $ 216 ​ $ 169 ​ $ 656
Summary of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ Aggregate ​ ​ ​ ​ Average ​ Remaining ​ Intrinsic ​ ​ ​ Exercise Price ​ Contractual ​ Value ​ ​ Shares ​ Per Share ​ Life (years) ​ (in thousands) Outstanding at December 31, 2023 263 ​ $ 21,909.50 ​ ​ ​ $ — Options granted — ​ ​ — ​ ​ ​ ​ ​ Options exercised — ​ ​ — ​ ​ ​ ​ ​ Options cancelled (105) ​ ​ 7,629.90 ​ ​ ​ ​ ​ Outstanding at September 30, 2024 158 ​ $ 31,381.48 ​ 6.10 ​ $ — Exercisable at September 30, 2024 ​ 144 ​ $ 34,101.10 ​ 5.97 ​ $ — Vested and expected to vest at September 30, 2024 ​ 158 ​ $ 31,381.48 ​ 6.10 ​ $ —
Summary of unvested RSUs award activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ Grant Date ​ ​ Shares ​ Fair Value Unvested RSUs at December 31, 2023 25 ​ $ 7,505.04 Granted — ​ ​ — Vested (1) (17) ​ $ (9,333.94) Cancelled/Forfeited — ​ ​ — Non-vested RSUs at September 30, 2024 8 ​ $ 3,847.14 ​ (1) At September 30, 2024, there were 2 shares of common stock related to RSU awards that had vested and the shares were not distributed to the participants. ​

Basis of Presentation - Reverse

Basis of Presentation - Reverse Stock Split and Inventory (Details)	Sep. 23, 2024
Basis of Presentation
Reverse stock split ratio	0.017

Basis of Presentation - Net Los

Basis of Presentation - Net Loss Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Employee Stock Option
Anti-dilutive securities
Anti-dilutive securities (in shares)	144	305
Unvested restricted stock units
Anti-dilutive securities
Anti-dilutive securities (in shares)	8	45
Convertible preferred stock
Anti-dilutive securities
Anti-dilutive securities (in shares)	10	10
Warrants
Anti-dilutive securities
Anti-dilutive securities (in shares)	81,432	28,147

Liquidity and Management's Pl_2

Liquidity and Management's Plans (Details) - USD ($) $ in Thousands	Oct. 16, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Liquidity and Management Plans
Net working capital		$ 1,300
Cash and cash equivalents and restricted cash		843	$ 4,559	$ 1,549	$ 3,955
Accounts receivable		$ 1,300
Subsequent Event
Liquidity and Management Plans
Gross proceeds from issuance of shares	$ 700

Supplemental Balance Sheet In_3

Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Inventory:
Raw materials	$ 965	$ 1,020
Sub-assemblies	1,163	1,379
Finished goods	806	1,342
Total inventory	2,934	3,741
Prepaid expenses and other current assets:
Prepaid insurance	95	110
Professional services	29
Patents	5	13
Prepaid advertising and marketing	21	41
Taxes	16	47
Other current assets	51	126
Total prepaid expenses and other current assets	217	337
Accrued and other liabilities:
Payroll and benefits	702	701
Accrued legal settlements		200
Customer deposits	683	639
Taxes	44	61
Accrued professional	169	155
Other liabilities	45	58
Total accrued and other liabilities	1,643	$ 1,814
Gain on extinguishment of debt	429
Accounts payable
Accrued and other liabilities:
Write-off of the payables	$ 429

Leases - Supplemental Informati

Leases - Supplemental Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Mar. 13, 2023 ft²
Leases
Operating lease costs	$ 100	$ 16	$ 100	$ 300
Balance Sheet information related to operating leases
Operating lease ROU assets	177		177		$ 250
Operating lease liabilities, current portion	114		114		111
Operating lease liabilities, long-term portion	77		77		151
Total operating lease liabilities	$ 191		191		$ 262
Cash flow information related to operating leases
Cash paid for amounts included in the measurement of operating leases liabilities			$ 83	$ 174
Office and warehouse space in Irvine
Leases
Area of land | ft²						5,038
Lease term						36 months

Leases - Maturities of Liabilit

Leases - Maturities of Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Maturities of operating lease liabilities
2024 (balance of year)	$ 28
2025	115
2026	59
Total lease payments	202
Less: imputed interest	11
Total lease liabilities	$ 191	$ 262
Weighted-average remaining lease term at end of period (in years)	1 year 10 months 24 days
Weighted-average discount rate at end of period	6.90%

Equity (Details)

Equity (Details) $ / shares in Units, $ in Thousands				3 Months Ended		9 Months Ended
	Jun. 04, 2024 shares	May 30, 2024 USD ($) shares	Feb. 08, 2023 USD ($) $ / shares shares	Sep. 30, 2024 shares	Sep. 30, 2023 shares	Sep. 30, 2024 USD ($) shares	Sep. 30, 2023 USD ($) shares
Equity
Proceeds from sale and issuance of securities, net | $			$ 10,200				$ 12,451
Exercise of warrants | $		$ 24				$ 24
Common stock warrants with alternative cashless exercise
Equity
Warrants, cashless exercise provision, shares, multiplier			0.50
Exercise of warrants, shares	185,604					28,869
Aggregate number of shares issued from exercise of warrants						14,402
Public offering
Equity
Number of units issued			21,983
Offering price (in dollars per share) | $ / shares			$ 464
Warrant exercise price (in dollars per share) | $ / shares			$ 464
Warrants term			5 years
Public offering | Pre funded warrants
Equity
Number of warrants for each unit			1
Number of securities called by each warrant			1
Warrant exercise price (in dollars per share) | $ / shares			$ 0.01
Public offering | Public warrants
Equity
Number of warrants for each unit			1
Number of securities called by each warrant			1.5
Public offering | Common stock warrants with alternative cashless exercise
Equity
Number of securities called by each warrant			0.5
Warrant exercise price (in dollars per share) | $ / shares			$ 464
Over-allotment option
Equity
Exercise of warrants, shares			4,947
Common stock purchased (in shares)			3,298
Number of shares in exchange of warrant exercise			4,947
Common Stock
Equity
Issuance of stock from RSUs (in shares)				3	12	5	41
Number of units issued	100,430
Aggregate number of shares issued from exercise of warrants		1,811
Common stock purchased (in shares)							25,456
Common Stock | Public offering
Equity
Number of shares for each unit			1
Common Stock | Public offering | Common stock warrants with alternative cashless exercise
Equity
Number of securities called by each warrant			0.75

Warrants - Warrant activity (De

Warrants - Warrant activity (Details)	9 Months Ended
	Sep. 30, 2024 shares
Warrants
Balance at beginning of period (in shares)	268,937
Exercised (in shares)	(187,415)
Cancelled (in shares)	(90)
Balance at end of period (in shares)	81,432

Warrants (Details)

Warrants (Details) - Public offering $ / shares in Units, $ in Millions	Feb. 08, 2023 USD ($) Y item $ / shares shares
Warrants
Number of classes of warrants issued | item	3
Exercise price of warrants (in dollars per share) | $ / shares	$ 464
Common stock warrants with alternative cashless exercise
Warrants
Number of warrants issued | shares	37,921
Number of securities called by each warrant | shares	0.5
Exercise price of warrants (in dollars per share) | $ / shares	$ 464
Pre funded warrants
Warrants
Number of investors | item	1
Number of warrants issued | shares	1,552
Price per warrant | $ / shares	$ 463.94
Number of securities called by each warrant | shares	1
Exercise price of warrants (in dollars per share) | $ / shares	$ 0.01
Fair value portion of warrants | $	$ 0.5
Pre funded warrants | Risk Free Rate
Warrants
Warrant fair value measurement inputs	0.03784
Pre funded warrants | Term (years)
Warrants
Warrant fair value measurement inputs | Y	5
Pre funded warrants | Dividend Yield
Warrants
Warrant fair value measurement inputs	0
Pre funded warrants | Volatility
Warrants
Warrant fair value measurement inputs	0.965
Representative's warrants
Warrants
Number of warrants issued | shares	1,265
Exercise price of warrants (in dollars per share) | $ / shares	$ 510.40
Fair value portion of warrants | $	$ 0.3
Representative's warrants | Risk Free Rate
Warrants
Warrant fair value measurement inputs	0.03786
Representative's warrants | Term (years)
Warrants
Warrant fair value measurement inputs | Y	4.99
Representative's warrants | Dividend Yield
Warrants
Warrant fair value measurement inputs	0
Representative's warrants | Volatility
Warrants
Warrant fair value measurement inputs	0.965

Warrants - Black-Scholes Option

Warrants - Black-Scholes Option Pricing Model (Details) - Black-Scholes model	Feb. 08, 2023 $ / shares Y
Stock Price | Cash exercise
Warrants
Warrant fair value measurement inputs	5.905
Stock Price | Cashless exercise
Warrants
Warrant fair value measurement inputs	5.905
Exercise Price | Cash exercise
Warrants
Warrant fair value measurement inputs	16
Exercise Price | Cashless exercise
Warrants
Warrant fair value measurement inputs	0
Term (years) | Cash exercise
Warrants
Warrant fair value measurement inputs | Y	5
Term (years) | Cashless exercise
Warrants
Warrant fair value measurement inputs | Y	5
Volatility | Cash exercise
Warrants
Warrant fair value measurement inputs	0.9650
Volatility | Cashless exercise
Warrants
Warrant fair value measurement inputs	0.9650
Risk Free Rate | Cash exercise
Warrants
Warrant fair value measurement inputs	0.03784
Risk Free Rate | Cashless exercise
Warrants
Warrant fair value measurement inputs	0.03784
Dividend Yield | Cash exercise
Warrants
Warrant fair value measurement inputs	0
Dividend Yield | Cashless exercise
Warrants
Warrant fair value measurement inputs	0

Warrants - Fair Value of Warran

Warrants - Fair Value of Warrant Liabilities (Details) - Common Stock Purchase Warrants $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Warrants
Fair value at beginning of period	$ 72
Gain on changes in fair value of liability warrants	(46)
Fair value at end of period	$ 26

Revenue Disaggregation and Op_3

Revenue Disaggregation and Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue Recognition
Total revenue	$ 2,292	$ 2,155	$ 6,201	$ 6,696
United States
Revenue Recognition
Total revenue	2,009	1,732	5,290	5,473
Australia
Revenue Recognition
Total revenue	111	139	316	419
Europe
Revenue Recognition
Total revenue	168	258	564	756
Rest of World
Revenue Recognition
Total revenue	4	26	31	48
DBSN Device
Revenue Recognition
Total revenue	0	0	0	0
Obalon Balloon system
Revenue Recognition
Total revenue	$ 0	$ 0	$ 0	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Taxes
Income tax expense	$ 6	$ 3	$ 34	$ 21
U.S. federal income tax rate (as a percent)			21%

Stock-based Compensation - Stoc

Stock-based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Compensation expense recognized
Total stock-based compensation expense	$ 32	$ 216	$ 169	$ 656
Sales and marketing
Compensation expense recognized
Total stock-based compensation expense	4	30	19	89
General and administrative
Compensation expense recognized
Total stock-based compensation expense	13	128	83	384
Research and development
Compensation expense recognized
Total stock-based compensation expense	$ 15	$ 58	$ 67	$ 183

Stock-based Compensation - St_2

Stock-based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Additional disclosures
Weighted average recognition period	1 year 18 days
Employee Stock Option
Shares
Shares outstanding, Beginning balance (in shares) | shares	263
Shares, Options cancelled (in shares) | shares	(105)
Shares outstanding, Ending balance (in shares) | shares	158
Shares, Exercisable (in shares) | shares	144
Shares, Vested and expected to vest (in shares) | shares	158
Weighted Average Exercise Price Per Share
Weighted Average Exercise Price Per Share, Outstanding, Beginning balance (in dollars per share) | $ / shares	$ 21,909.50
Weighted Average Exercise Price Per Share, Options cancelled (in dollars per share) | $ / shares	7,629.90
Weighted Average Exercise Price Per Share, Outstanding, Ending balance (in dollars per share) | $ / shares	31,381.48
Weighted Average Exercise Price Per Share, Exercisable (in dollars per share) | $ / shares	34,101.10
Weighted Average Exercise Price Per Share, Vested and expected to vest (in dollars per share) | $ / shares	$ 31,381.48
Weighted Average Remaining Contractual Life
Weighted Average Remaining Contractual Life Outstanding	6 years 1 month 6 days
Weighted Average Remaining Contractual Life, Exercisable	5 years 11 months 19 days
Weighted Average Remaining Contractual Life, Vested and expected to vest	6 years 1 month 6 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value Outstanding (in dollars) | $	$ 0
Additional disclosures
Unrecognized share-based expenses | $	$ 34
Vesting period	4 years
Option expiration period	10 years

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock Units (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Additional disclosures
Recognition period	1 year 18 days
Restricted stock units
Shares
Shares Unvested RSUs, Beginning balance (in shares)	25
Shares, Vested (in shares)	(17)
Shares Non-vested RSUs, Ending balance (in shares)	8
Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value, Unvested RSUs, Beginning balance (in dollars per share) | $ / shares	$ 7,505.04
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares	(9,333.94)
Weighted Average Grant Date Fair Value, Non-vested RSUs, Ending balance (in dollars per share) | $ / shares	$ 3,847.14
Additional disclosures
Vested and undistributed	2
Unrecognized compensation costs | $	$ 25
Recognition period	11 months 1 day

Commitment and Contingencies (D

Commitment and Contingencies (Details) - Cowen and Company - USD ($)	May 11, 2023	Aug. 06, 2021
Litigation
Service fees sought		$ 1,350,000
Agreed settlement amount	$ 1,350,000
Litigation settlement, interest percent	9%
Litigation settlement, attorney fees payable	$ 675,000
Litigation settlement, attorney fees to be paid up front	275,000
Litigation settlement, attorney fees to be paid after six months	200,000
Litigation settlement, attorney fees to be paid after twelve months	$ 200,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Oct. 16, 2024	Sep. 30, 2024	Dec. 31, 2023
Subsequent Events
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001
Subsequent Event
Subsequent Events
Principal amount	$ 833,333.34
Shares issued to the investor	7,983
Common stock, par value (in dollars per share)	$ 0.001
Interest rate of notes	10%
Conversion price	$ 5.22
Shares held by investor and its affiliates	4.99%
Interest rate in case of default	24%