Marrone Bio Innovations (MBII) 10-Q 14 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 10, 2018
Document And Entity Information
Entity Registrant Name	MARRONE BIO INNOVATIONS INC
Entity Central Index Key	1,441,693
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		110,588,949
Trading Symbol	MBII
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 23,250	$ 786
Restricted cash, current portion	46	487
Accounts receivable	4,722	3,785
Inventories, net	9,181	9,827
Deferred cost of product revenues	3	3,063
Prepaid expenses and other current assets	766	1,170
Total current assets	37,968	19,118
Property, plant and equipment, net	15,275	16,016
Restricted cash, less current portion	1,560	1,560
Other assets	337	219
Total assets	55,140	36,913
Current liabilities:
Accounts payable	1,486	3,800
Accrued liabilities	5,986	8,189
Accrued interest due to related parties		1,622
Deferred revenue, current portion	356	6,193
Derivative liability		674
Debt, current portion	2,608	1,524
Total current liabilities	10,436	22,002
Deferred revenue, less current portion	2,669	2,046
Debt, less current portion	11,929	24,407
Debt due to related parties	7,300	37,822
Other liabilities	843	1,287
Total liabilities	33,177	87,564
Commitments and contingencies (Note 9)
Stockholders' equity (deficit):
Preferred stock: $0.00001 par value; 20,000 shares authorized and no shares issued or outstanding at June 30, 2018 and December 31, 2017
Common stock: $0.00001 par value; 250,000 shares authorized, 110,473 and 31,351 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively	1
Additional paid in capital	292,985	214,921
Accumulated deficit	(271,023)	(265,572)
Total stockholders' equity (deficit)	21,963	(50,651)
Total liabilities and stockholders' equity (deficit)	$ 55,140	$ 36,913

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	110,473,000	31,351,000
Common stock, shares outstanding	110,473,000	31,351,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018		Jun. 30, 2017	Jun. 30, 2018		Jun. 30, 2017
Revenues:
Total revenues	$ 5,752		$ 6,476	$ 10,076		$ 10,630
Cost of product revenues	3,030		3,966	5,272		6,245
Gross profit	2,722		2,510	4,804		4,385
Operating Expenses:
Research, development and patent	2,493		2,853	5,027		5,297
Selling, general and administrative	4,720		5,073	9,744		10,416
Total operating expenses	7,213		7,926	14,771		15,713
Loss from operations	(4,491)		(5,416)	(9,967)		(11,328)
Other income (expense):
Interest expense	(340)		(869)	(1,459)		(1,505)
Interest expense, related parties	(17)		(1,085)	(451)		(2,159)
Change in fair value of financial instruments				(5,177)
Loss on extinguishment of debt, net				(303)
Gain on extinguishment of debt, related party				9,622
Other income (expense), net	4		(15)	(27)		(22)
Total other income (expense), net	(353)		(1,969)	2,205		(3,686)
Net loss	$ (4,844)	[1]	$ (7,385)	$ (7,762)	[1]	$ (15,014)
Basic and diluted net loss per common share:	$ (0.04)		$ (0.25)	$ (0.08)		$ (0.55)
Weighted-average shares outstanding used in computing basic and diluted net loss per common share:	108,647,000		29,401,000	91,713,000		27,070,000
Product [Member]
Revenues:
Total revenues	$ 5,637		$ 6,418	$ 9,861		$ 10,514
License [Member]
Revenues:
Total revenues	$ 115		$ 58	$ 215		$ 116
[1]	The impact in conjunction with the adoption of ASC 606 did not change the basic and diluted net loss per common share as reported.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018		Jun. 30, 2017
Cash flows from operating activities
Net loss	$ (7,762)	[1]	$ (15,014)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	983		1,034
Gain on disposal of equipment			(4)
Share-based compensation	873		1,169
Non-cash interest expense	722		730
Change in fair value of financial instruments	5,177
Loss on extinguishment of debt, net	303
Gain on extinguishment of debt, related party, net	(9,622)
Net changes in operating assets and liabilities:
Accounts receivable	(937)		(2,202)
Inventories	646		118
Prepaid Expenses and other assets	163		738
Deferred cost of product revenues	2		(722)
Accounts payable	(2,192)		1,595
Accrued and other liabilities	(1,692)		1,242
Accrued interest due to related parties	(1,614)		(22)
Deferred revenue			1,507
Net cash used in operating activities	(14,950)		(9,831)
Cash flows from investing activities
Purchases of property, plant and equipment	(478)		(160)
Net cash used in investing activities	(478)		(160)
Cash flows from financing activities
Proceeds from issuance of common stock, net of offering costs	34,496		8,223
Proceeds from issuance of debt	2,000
Proceeds from secured borrowings	9,754		6,151
Repayments in secured borrowings	(8,670)		(3,281)
Repayment of debt	(129)		(134)
Repayment of capital leases			(352)
Exercise of stock options			17
Net cash provided by financing activities	37,451		10,624
Net increase in cash and cash equivalents and restricted cash	22,023		633
Cash and cash equivalents and restricted cash, beginning of period	2,833		12,613
Cash and cash equivalents and restricted cash, end of period	24,856		13,246
Supplemental disclosure of cash flow information
Cash paid for interest	2,481		2,938
Supplemental disclosure of non-cash investing and financing activities
Property, plant and equipment included in accounts payable and accrued liabilities	236		7
Financing costs in accounts payable			215
Embedded derivative liability associated with bridge loan	573
Conversion of debt to equity	10,000
Conversion of bridge loan (convertible note) to equity	6,000
Conversion of debt, related party to equity	35,000
Conversion of accrued liabilities into equity associated with the granting of restricted stock units	$ 205
[1]	The impact in conjunction with the adoption of ASC 606 did not change the basic and diluted net loss per common share as reported.

Summary of Business, Basis of P

Summary of Business, Basis of Presentation and Liquidity	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Business, Basis of Presentation and Liquidity	1. Summary of Business, Basis of Presentation and Liquidity Marrone Bio Innovations, Inc. (the “Company”), formerly Marrone Organic Innovations, Inc., was incorporated under the laws of the State of Delaware on June 15, 2006, and is located in Davis, California. In July 2012, the Company formed a wholly-owned subsidiary, Marrone Michigan Manufacturing LLC (“MMM LLC”), which holds the assets of a manufacturing plant the Company purchased in July 2012. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. The Company makes bio-based pest management and plant health products. The Company targets the major markets that use conventional chemical pesticides, including certain agricultural and water markets where its bio-based products are used as alternatives for, or mixed with, conventional chemical pesticides. The Company also targets new markets for which (i) there are no available conventional chemical pesticides or (ii) the use of conventional chemical pesticides may not be desirable or permissible either because of health and environmental concerns (including for organically certified crops) or because the development of pest resistance has reduced the efficacy of conventional chemical pesticides. The Company delivers EPA-approved and registered biopesticide products and other bio-based products that address the global demand for effective, safe and environmentally responsible products. From October 2017 through January 2018, the Company borrowed, pursuant to a convertible promissory note (the “Secured December 2017 Convertible Note”) as amended and restated on December 22, 2017, $6,000,000, including $4,000,000 borrowed in 2017 and $2,000,000 borrowed in January 2018 Pursuant to a securities purchase agreement (the “Securities Purchase Agreement”) entered into on December 15, 2017, in February 2018, the Company issued, 70,514,000 unregistered shares of its common stock and converted $51,000,000 in outstanding debt principal of which $6,000,000 was outstanding under the Secured December 2017 Convertible Note and $45,000,000 was outstanding under long-term senior secured debt instruments (the “February Stock and Debt Conversion Transaction”). The gross proceeds to the Company from the offering were approximately $24,000,000, which excludes the $6,000,000 in debt converted under the Secured December 2017 Convertible Note. After deducting underwriting discounts and commissions and estimated offering expenses payable by the Company, the aggregate net proceeds to the Company totaled approximately $21,800,000. See Notes 6, 11 and 12 for further discussion of the February Stock and Debt Conversion Transaction. In April 2018, the Company completed a public offering of 8,366,250 registered shares of its common stock The Company is an early stage company with a limited operating history and has a limited number of commercialized products. As of June 30, 2018, the Company had an accumulated deficit of $271,023,000, has incurred significant losses since inception and expects to continue to incur losses for the foreseeable future. Until the completion of the IPO in August 2013, the Company had funded operations primarily with net proceeds from the private placements of convertible preferred stock, convertible notes, promissory notes and term loans, as well as with the proceeds from the sale of its products and payments under strategic collaboration and distribution agreements and government grants. The Company will need to generate significant revenue growth to achieve and maintain profitability. As of June 30, 2018, the Company had working capital of $27,532,000, including cash and cash equivalents of $23,250,000. In addition, as of June 30, 2018, the Company had debt and debt due to related parties of $14,537,000 and $7,300,000, respectively, for which the underlying debt agreements contain various financial and non-financial covenants, as well as certain material adverse change clauses. In addition, as of June 30, 2018, the Company had a total of $1,606,000 of restricted cash relating to these debt agreements (see Note 6). The June 2014 Secured Promissory Note (as defined in Note 6) contains a material adverse change clause that could be invoked by the lender as a result of the uncertainty related to the Company’s ability to continue as a going concern. If the lender were to declare an event of default, the entire amount of borrowings related to all debt agreements at that time would have to be reclassified as current in the financial statements. The lender has waived their right to deem recurring losses, liquidity, going concern, and financial condition a material adverse change through November 15, 2019. As a result, none of the long term portion of the Company’s outstanding debt has been reclassified to current in these financial statements as of June 30, 2018. If the Company breaches any of the covenants contained within the debt agreements or if the material adverse change clauses are triggered, the entire unpaid principal and interest balances would be due and payable upon demand. Without entering into a continuation of its current waiver, which expires November 15, 2019, entering into strategic agreements that include significant cash payments upfront, significantly increasing revenues from sales or raising additional capital through the issuance of equity, the Company expects it will exceed its maximum debt-to-worth requirement under a promissory note with Five Star Bank. Further, a violation of a covenant in one debt agreement will cause the Company to be in violation of certain covenants under each of its other debt agreements. Breach of covenants included in the Company’s debt agreements, which could result in the lenders demanding payment of the unpaid principal and interest balances, would have a material adverse effect upon the Company and would likely require the Company to seek to renegotiate these debt arrangements with the lenders. If such negotiations are unsuccessful, the Company may be required to seek protection from creditors through bankruptcy proceedings. The Company’s inability to maintain compliance with its debt covenants could have a negative impact on the Company’s financial condition and ability to continue as a going concern. The Company participates in a heavily regulated and highly competitive crop protection industry and believes that adverse changes in any of the following areas could have a material effect on the Company’s future financial position, results of operations or cash flows: inability to obtain regulatory approvals, increased competition in the pesticide market, market acceptance of the Company’s products, weather and other seasonal factors beyond the Company’s control, litigation or claims against the Company related to intellectual property, patents, products or governmental regulation, and the Company’s ability to support increased growth. It is possible the Company may need to raise additional funds in the future. If so there can be no assurance that such efforts will be successful or that, in the event that they are successful, the terms and conditions of such financing will not be unfavorable. Any future equity financing may result in dilution to existing shareholders and any debt financing may include additional restrictive covenants. Any failure to obtain additional financing or to achieve the revenue growth necessary to fund the Company with cash flows from operations will have a material adverse effect upon the Company and will likely result in a substantial reduction in the scope of the Company’s operations and impact the Company’s ability to achieve its planned business objectives. The accompanying financial statements have been prepared under the assumption that the Company will continue to operate as a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts of liabilities that may result from any inability of the Company to continue as a going concern. The Company’s historical operating results indicate substantial doubt exists related to the Company’s ability to continue as a going concern. The Company believes that its existing cash and cash equivalents of $23,250,000 at June 30, 2018, expected revenues and, the net proceeds from equity financing discussed in Note 9 will be sufficient to fund operations as currently planned through at least one year from the date of the issuance of these financial statements. The Company believes that the actions discussed above are probable of occurring and mitigating the substantial doubt raised by the Company’s historical operating results and satisfying the Company’s estimated liquidity needs 12 months from the issuance of the financial statements. Cash on hand as of the issuance of these financial statements is estimated to be $19.7 million. However, the Company cannot predict, with certainty, the outcome of its actions to grow revenues or manage or reduce costs. The Company has based this belief on assumptions and estimates that may prove to be wrong, and the Company could spend its available financial resources less or more rapidly than currently expected. The Company may continue to require additional sources of cash for general corporate purposes, which may include operating expenses, working capital to improve and promote its commercially available products, advance product candidates, expand international presence and commercialization, general capital expenditures and satisfaction of debt obligations. Management may seek additional capital through debt financings, collaborative or other funding arrangements with partners, or through other sources of financing. Should the Company seek additional financing from outside sources, the Company may not be able to raise such financing on terms acceptable to the Company or at all. If the Company is unable to raise additional capital when required or on acceptable terms, the Company may be required to scale back or to discontinue the promotion of currently available products, scale back or discontinue the advancement of product candidates, reduce headcount, file for bankruptcy, reorganize, merge with another entity, or cease operations.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies Basis of Presentation The accompanying financial information as of June 30, 2018, and for the three and six months ended June 30, 2018 and 2017, has been prepared by the Company, without audit, in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such SEC rules and regulations and accounting principles applicable for interim periods. However, the Company believes that the disclosures are adequate to make the information presented not misleading. The information included in this Quarterly Report on Form 10-Q should be read in connection with the consolidated financial statements and accompanying notes included in the Company’s Annual Report filed on Form 10-K for the fiscal year ended December 31, 2017. In the opinion of management, the condensed consolidated financial statements as of June 30, 2018, and for the three and six months ended June 30, 2018 and 2017, reflect all adjustments, which are normal recurring adjustments, necessary to present a fair statement of financial position, results of operations and cash flows. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the operating results for the full fiscal year or any future periods. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the 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. Actual results could differ from those estimates. The Company used significant estimates in accounting for the useful lives of property, plant and equipment, reserves for inventory obsolescence, fair value estimates and in its going concern analysis. Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the statement of cash flows in thousands: JUNE 30, 2018 2017 Cash and cash equivalents $ 23,250 $ 10,242 Restricted cash, current portion 46 1,444 Restricted cash, less current portion 1,560 1,560 Total cash, cash equivalents and restricted cash $ 24,856 $ 13,246 Restricted Cash The Company’s restricted cash consists of cash that the Company is contractually obligated to maintain in accordance with the terms of its June 2014 Secured Promissory Note. See Note 6 for further discussion. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, accounts receivable and debt. The Company deposits its cash and cash equivalents with high credit quality domestic financial institutions with locations in the U.S. Such deposits may exceed federal deposit insurance limits. The Company believes the financial risks associated with these financial instruments are minimal. The Company’s customer base is dispersed across many different geographic areas, and currently most customers are pest management distributors in the U.S. Generally, receivables are due up to 120 days from the invoice date and are considered past due after this date, although the Company may offer extended terms from time to time. The Company’s principal sources of revenues are its Regalia, Grandevo and Venerate product lines. These three product lines accounted for 92% and 84% of the Company’s total revenues for the three months ended June 30, 2018 and 2017, respectively. These three product lines accounted for 92% and 87% of the Company’s total revenues for the six months ended June 30, 2018 and 2017, respectively. Revenues generated from international customers were 6% for each of the three months ended June 30, 2018 and 2017, respectively, and 11% and 9% for each of the six months ended June 30, 2018 and 2017, respectively. Customers to which 10% or more of the Company’s total revenues are attributable for any one of the periods presented consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D Three months ended June 30, 2018 21 % 19 % 15 % 11 % 2017 0 % 34 % 9 % 6 % CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D Six months ended June 30, 2018 18 % 21 % 11 % 11 % 2017 0 % 27 % 10 % 5 % Customers to which 10% or more of the Company’s outstanding accounts receivable are attributable as of either June 30, 2018 or December 31, 2017 consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D CUSTOMER E CUSTOMER F June 30, 2018 24 % 11% 10 % 4% 9 % 5% December 31, 2017 22 % 2% 3 % 16% 11 % 11% Concentrations of Supplier Dependence The active ingredient in the Company’s Regalia product line is derived from the giant knotweed plant, which the Company obtains from China. The Company currently has one supplier of this plant. Such single supplier acquires raw knotweed from numerous regional sources and performs an extraction process on this plant, creating a dried extract that is shipped to the Company’s manufacturing plant. While the Company does not have a long-term supply contract with this supplier, the Company does have a long term business relationship with this supplier. The Company maintains 6-12 months of knotweed extract at any given time, but an unexpected disruption in supply could have an effect on Regalia supply and revenues. Although the Company has identified additional sources of raw knotweed, there can be no assurance that the Company will continue to be able to obtain dried extract from China at a competitive price Deferred Cost of Product Revenues Deferred cost of product revenues are stated at the lower of cost or net realizable value and include product sold where title has transferred but the criteria for revenue recognition have not been met. As of June 30, 2018 and December 31, 2017, the Company recorded deferred cost of product revenues of $3,000 and $3,063,000 respectively. Deferred Revenue When the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring control of goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. The Company recognizes deferred revenue as net sales after the Company has transferred control of the goods or services to the customer and all revenue recognition criteria are met. The Company’s deferred revenue is broken out as follows (in thousands): JUNE 30, 2018 DECEMBER 31, 2017 Product revenues $ 532 $ 6,449 Financing costs (1) 580 - License revenues 1,913 1,790 3,025 8,239 Less current portion (356 ) (6,193 ) $ 2,669 $ 2,046 (1) Financing costs relate to the implementation of ASC 606. Refer to the Company’s revenue recognition policy in this note. Revenue Recognition On January 1, 2018, the Company adopted the new accounting standard Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers The cumulative effect of the changes made to the Company’s condensed consolidated balance sheet on January 1, 2018 for the adoption of the new revenue standard was as follows (in thousands): BALANCE SHEET As Reported December 31, 2017 Adjustments Due to ASC 606 Balance at January 1, 2018 ASSETS Deferred cost of product revenues $ 3,063 $ (3,058 ) $ 5 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue, current portion 6,193 (5,893 ) 300 Deferred revenue, less current portion 2,046 524 2,570 Accumulated deficit $ (265,572 ) $ 2,311 $ (263,261 ) In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the Company’s Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations was as follows (in thousands): June 30, 2018 BALANCE SHEET As Reported Impacts Due to ASC 606 Balance without Impacts of ASC 606 ASSETS Deferred cost of product revenues $ 3 $ 2,832 $ 2,835 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue, current portion 356 5,389 5,745 Deferred revenue, less current portion 2,669 (580 ) 2,089 Accrued liabilities 5,986 405 6,391 Accumulated deficit (271,023 ) $ (2,382 ) $ (273,405 ) For the Three Months Ended June 30, 2018 As Reported Impacts Due to ASC 606 Results without Impacts of ASC 606 STATEMENT OF OPERATIONS Revenues Product $ 5,637 $ 559 $ 6,196 License 115 (52 ) 63 Cost of product revenues 3,030 549 3,579 Interest expense (340 ) 87 (253 ) Net loss (1) $ (4,844 ) $ 45 $ (4,799 ) For the Six Months Ended June 30, 2018 As Reported Impacts Due to ASC 606 Results without Impacts of ASC 606 STATEMENT OF OPERATIONS Revenues Product $ 9,861 $ 90 $ 9,951 License 215 (94 ) 121 Cost of product revenues 5,272 226 5,498 Interest expense (1,459 ) 159 (1,300 ) Net loss (1) $ (7,762 ) $ (71 ) $ (7,833 ) (1) The impact in conjunction with the adoption of ASC 606 did not change the basic and diluted net loss per common share as reported. Product Sales. Licenses Revenues. Financing Component Revenues. Revenue recognition requires the Company to make a number of estimates that include variable consideration. For example, customers may receive sales or volume-based pricing incentives or receive incentives for providing the Company with marketing-related information. The Company makes estimates surrounding variable consideration and the net impact to revenues. In making such estimates, significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives and the likelihood that customers will achieve them. In the event estimates related to variable consideration change, the cumulative effect of these changes is recognized as if the revised estimates had been used since revenue was initially recognized under the contract. Such revisions could occur in any reporting period, and the effects may be material. From time to time, the Company offers certain product rebates to its distributors and growers, which are estimated and recorded as reductions to product revenues, and an accrued liability is recorded at the later of when the revenues are recorded or the rebate is being offered. Contract Assets. Contract Liabilities. Research, Development and Patent Expenses Research and development expenses include payroll-related expenses, field trial costs, toxicology costs, regulatory costs, consulting costs and lab costs. Patent expenses include legal costs relating to the patents and patent filing costs. These costs are expensed to operations as incurred. For the three months ended June 30, 2018 and 2017, research and development expenses totaled $2,231,000 and $2,555,000, respectively, and patent expenses totaled $262,000 and $298,000, respectively. For the six months ended June 30, 2018 and 2017, research and development expenses totaled $4,517,000 and $4,693,000, respectively, and patent expenses totaled $510,000 and $604,000, respectively. Shipping and Handling Costs Amounts billed for shipping and handling are included as a component of product revenues. Related costs for shipping and handling have been included as a component of cost of product revenues. Shipping and handling costs for the three months ended June 30, 2018 and 2017 were $282,000 and $70,000, respectively. Shipping and handling costs for the six months ended June 30, 2018 and 2017 were $456,000 and $175,000, respectively. Advertising The Company expenses advertising costs as incurred. Advertising costs for the three months ended June 30, 2018 and 2017 were $316,000 and $30,000, respectively. The Company expenses advertising costs as incurred. Advertising costs for the six months ended June 30, 2018 and 2017 were $602,000 and $204,000, respectively. Segment Information The Company is organized as a single operating segment, whereby its chief operating decision maker assesses the performance of and allocates resources to the business as a whole. Net Loss Per Share Net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period. The calculation of basic and diluted net loss per share is the same for all periods presented as the effect of certain potential common stock equivalents, which consist of stock options and warrants to purchase common stock and restricted stock units, are anti-dilutive due to the Company’s net loss position. Anti-dilutive common stock equivalents are excluded from diluted net loss per share. The following table sets forth the potential shares of common stock as of the end of each period presented that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive (in thousands): JUNE 30, 2018 2017 Stock options outstanding 7,256 3,325 Warrants to purchase common stock 52,725 4,152 Restricted stock units outstanding 1,049 415 Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The Company adopted ASU 2014-09 in the first quarter of 2018 using the modified-retrospective method. This adoption primarily affected the Company’s product revenues accounted for using the sell-through method under ASC 605 , Revenue Recognition, The Company adopted Accounting Standards Update 2014-09 (“ASU 2014-09”), which supersedes the revenue guidance under ASC 605, generally requires the Company to recognize revenue and profit from its product sales arrangements earlier and in a more linear fashion than historical practice under ASC 605, including the estimation of sell-through revenue and variable consideration that would otherwise have been deferred. Following the adoption of ASU 2014-09, the revenue recognition for the Company’s license arrangements remained materially consistent with its historical practice. See the tables above in this note for the effects of the adoption of ASU 2014-09 on the Company’s condensed consolidated financial statements as of January 1, 2018 and for the six months ended June 30, 2018. See “Revenue Recognition” above for further discussion of the effects of the adoption of ASU 2014-09 on the Company’s significant accounting policies. The adoption of this standard had a material impact on the Company’s condensed consolidated financial statements as disclosed above and is expected to continue to have a material impact for the foreseeable future. The Company adopted Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The amendment updated and clarified how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. The adoption of this standard did not have a material impact on the condensed consolidated financial statements and is not expected to have a material impact on future periods. The Company adopted Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). The amendment requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted ASU 2016-18 in the first quarter of 2018. The adoption primarily resulted in the inclusion of the restricted cash balances within the overall cash balances and a reconciliation of cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheet. The adoption of this standard did not have a material impact on the condensed consolidated financial statements and is not expected to have a material impact for the foreseeable future. See “Cash and Cash Equivalents and Restricted Cash” above for further discussion of the effects of the adoption of ASU 2016-18 on the Company’s significant accounting policies. In March 2018, the Financial Accounting Standards Board (“FASB”) issued guidance pertaining to the accounting of the Tax Cuts and Jobs Act (“TCJA”), allowing companies a year to finalize and record any provisional or inestimable impacts of the TCJA. This guidance is effective upon issuance during this quarter. The adoption of this particular guidance did not have a material effect on the Company’s condensed consolidated financial statements. In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815), (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception,” (ASU No. 2017-11) which allows for the exclusion of a down round feature, when evaluating whether or not an instrument or embedded feature requires derivative classification. The Company early adopted this guidance beginning January 1, 2018. The adoption of this standard had a material impact on the Company’s condensed consolidated financial statements as the Company was not required to classify the warrants issued in conjunction with the February 5, 2018 equity financing as derivatives. In March 2018, the FASB issued ASU No. 2018-05, “Income Taxes (Topic 740)—Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118,” (ASU No. 2018-05) which amends certain Securities and Exchange Commission (SEC) material in Topic 740 for the income tax accounting implications of the recently issued Tax Reform. This guidance clarifies the application of Topic 740 in situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting under Topic 740 for certain income tax effects of Tax Reform for the reporting period in which Tax Reform was enacted. The adoption of this guidance did not have a material impact on the condensed consolidated financial statements of the Company. In June 2018, the FASB issued ASU No. 2018-07, “Compensation – Stock Compensation (Topic 718); Improvements to Nonemployee Share-Based Payment Accounting” (ASU No. 2018-07) which aligned certain aspects of share based payments accounting between employees and non-employees. Specifically nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied and an entity considers the probability of satisfying performance conditions when nonemployee share-based payment awards contain such conditions. The Company early adopted this guidance beginning January 1, 2018 using the modified –retrospective method. The adoption of this standard did not have a material impact on the condensed consolidated financial statements. Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) Leases: Amendments to the FASB Accounting Standards Codifications (“ASU 2016-02”), to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key quantitative and qualitative disclosures regarding leasing arrangements with terms longer than 12 months. ASU 2016-02 is effective for public companies for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Companies must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with certain practical expedients available. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating its leasing arrangements under ASU 2016-02, and related ASUs issued after February 2016, including Accounting Standard Update No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”) and Accounting Standard Update No. 2018-11, Leases (Topic 842): Targeted Improvement (“ASU 2018-11”) issued in July 2018, to determine the potential impact to its condensed consolidated financial statements and related disclosures. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 introduces a new forward looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. ASU 2016-13 also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. For public business entities that meet the definition of a Securities and Exchange Commission filer, ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using the modified-retrospective approach. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. The Company is currently evaluating ASU 2016-13 to determine the impact to its condensed consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220),” (ASU No. 2018-02) which allows for the stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (Tax Reform) to be reclassified from accumulated other comprehensive income to retained earnings. The provisions of ASU No. 2018-02 are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual periods, with early adoption permitted. This ASU shall be applied either at the beginning of the annual or interim period of adoption or retrospectively to each period in which the income tax effects of Tax Reform affects the items remaining in accumulated other comprehensive income (loss). The Company has not yet determined the impact of implementing this new standard.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value Measurements Accounting Standards Codification (“ASC”) 820, Fair Value Measurements ASC 820 requires that the valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 establishes a three tier value hierarchy, which prioritizes inputs that may be used to measure fair value as follows: ● Level 1—Quoted prices in active markets for identical assets or liabilities. ● Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The following table presents the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 (in thousands): JUNE 30, 2018 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 Derivative liability $ — $ — $ — $ — DECEMBER 31, 2017 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 Derivative liability $ 674 $ — $ — $ 674 The Company estimated the fair value of the derivative liability as of February 5, 2018 and as of December 31, 2017 using an option pricing model. See Note 6 for further discussion of the extinguishment of the derivative liability in conjunction with the conversion of debt into common shares and issuance of warrants. The fair value is subjective and is affected by certain significant inputs to the valuation model, which are disclosed in the table below. The fair value of the derivative liability is based upon the outputs of the option pricing model. As the option pricing model estimates the fair value of derivative liability using unobservable inputs, it is considered to be a Level 3 fair value measurement. As a result of the change in the estimated fair value between December 31, 2017 and February 5, 2018, the Company recognized a net loss from the total change in estimated fair value of the derivative liabilities as shown in the tables below. This loss is included in the change in estimated fair value of derivative liability in the Company’s condensed consolidated statement of operations. The following table provides a reconciliation of the activity between the beginning date and ending balances for the derivative liability measured at fair value using significant unobservable inputs (Level 3) (in thousands): DERIVATIVE LIABILITY Fair value at December 31, 2017 $ 674 Derivative liability issued 573 Change fair value of financial instruments 5,177 Derivative liability extinguished (6,424 ) Fair value at June 30, 2018 $ — The following table represents significant unobservable inputs used in determining the fair value of the derivative liability: FEBRUARY 5, 2018 DECEMBER 31, 2017 Stock Price volatility 60 % 60 % Risk-free rate 1.46 % 1.28 % Probability weighted term in years 0.18 0.42

Inventories

Inventories	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventories	4. Inventories Inventories, net consist of the following (in thousands): JUNE 30, 2018 DECEMBER 31, 2017 Raw materials $ 3,003 $ 2,310 Work in progress 2,057 2,441 Finished goods 4,121 5,076 $ 9,181 $ 9,827 As of June 30, 2018 and December 31, 2017, the Company had $302,000 and $252,000, respectively, in reserves against its inventories.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accrued Liabilities	5. Accrued Liabilities Accrued liabilities consist of the following (in thousands): JUNE 30, 2018 DECEMBER 31, 2017 Accrued compensation $ 1,614 $ 1,825 Accrued warranty costs 458 556 Accrued legal costs 629 1,558 Accrued customer incentives 1,417 1,986 Accrued liabilities, other 1,868 2,264 $ 5,986 $ 8,189 The Company warrants the specifications and/or performance of its products through implied product warranties and has extended product warranties to qualifying customers on a contractual basis. The Company estimates the costs that may be incurred during the warranty period and records a liability in the amount of such costs at the time product is shipped. The Company’s estimate is based on historical experience and estimates of future warranty costs as a result of increasing usage of the Company’s products. During the three and six months ended June 30, 2018, the Company recognized $61,000 and $105,000, respectively, in warranty expense associated with product shipments for the period. This expense was reduced by $75,000 and $197,000, respectively, for the three and six months ended June 30, 2018 as a result of the historical usage of warranty reserves being lower than previously estimated. Additionally, during the three and six months ended June 30, 2018,the Company settled warranty claims in the amounts of $0 and $7,000, respectively. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amount as necessary. Changes in the Company’s accrued warranty costs during the period are as follows (in thousands): Balance at December 31, 2017 $ 556 Warranties issued (released) during the period (91 ) Settlements made during the period (7 ) Balance at June 30, 2018 $ 458

Debt

Debt	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt	6. Debt Debt, including debt due to related parties, consists of the following (in thousands): JUNE 30, 2018 DECEMBER 31, 2017 Secured promissory notes (“October 2012 and April 2013 Secured Promissory Notes”) bearing interest at 8.00% per annum, interest and principal due at maturity (December 31, 2022), collateralized by substantially all of the Company’s assets, net of unamortized debt discount as of June 30, 2018 and December 31, 2017 of $0 and $103, respectively, imputed interest rate of 0% 3,425 12,347 Secured promissory note (“June 2014 Secured Promissory Note”) bearing interest at prime plus 2% (7.0% as of June 30, 2018) per annum, payable monthly through June 2036, collateralized by certain of the Company’s deposit accounts and MMM LLC’s inventories, chattel paper, accounts, equipment and general intangibles, net of unamortized debt discount as of June 30, 2018 and December 31, 2017 of $215 and $226, respectively, discount is based on imputed interest rate of 6.8% 8,753 8,872 Senior secured convertible promissory notes (“Secured December 2017 Convertible Note”) bearing interest at 10% per annum, interest and principal through the conversion date in February 2018, collateralized by substantially all of the Company’s assets, net of unamortized discount as of June 30, 2018 and December 31, 2017 of $0 and $510, respectively — 3,490 Secured revolving borrowing (“LSQ Financing”) bearing interest at (12.8% annually) payable through the lenders direct collection of certain accounts receivable through May 2018, collateralized by substantially all of the Company’s personal property, net of unamortized debt discount as of June 30, 2018 and December 31, 2017 of $0 and $54, respectively, with an imputed interest rate of 27.3% 2,359 1,222 Senior secured promissory notes due to related parties (“August 2015 Senior Secured Promissory Notes”) bearing interest at 8% per annum, interest and principal payable at maturity (December 31, 2022), collateralized by substantially all of the Company’s assets, net of unamortized discount as of June 30, 2018 and December 31, 2017 of $0 and $2,178, respectively, debt discount is based on imputed interest rate of 0% (see Note 11 and 12) 7,300 37,822 Debt, including debt due to related parties 21,837 63,753 Less debt due to related parties (7,300 ) (37,822 ) Less current portion (2,608 ) (1,524 ) $ 11,929 $ 24,407 As of June 30, 2018, aggregate contractual future principal payments on the Company’s debt, including debt due to related parties, are due as follows (in thousands): Period ended June 30, 2018 2018 $ 2,491 2019 279 2020 296 2021 318 2022 7,789 Thereafter 7,606 Total future principal payments 18,779 Interest payments included in debt balance (1) 3,275 $ 22,054 (1) Due to the debt extinguishment requirement, the Company has included both accrued interest and future interest in the debt balance for certain outstanding debt as further discussed in Notes 11 and 12. The fair value of the Company’s outstanding debt obligations as of June 30, 2018 and December 31, 2017 was $13,154,000 and $21,133,000, respectively, which as of June 30, 2018 was estimated based on a discounted cash flow model using an estimated market rate of interest of 15% for the fixed rate debt and 7.0% for the variable rate debt, and is classified as Level 3 within the fair value hierarchy. As of December 31, 2017, for the October 2012 and April 2013 Secured Promissory Notes, the debt was valued by applying the ratio of the value of common stock the lender agreed to take as consideration in connection with the conversion to equity and applying this ratio to the outstanding principal balance. The Company used 7.0%, the current interest rate, to value the variable rate debt. This debt is classified as Level 3 within the fair value hierarchy. The debt entered into during 2017 was valued using the outstanding principal balance. The following is a reconciliation of interest expense for the debt outstanding during the three and six months ended (in thousands). JUNE 30, 2018 Interest Three Months Expense Related Party, Net Non cash October 2012 and April 2013 Secured Promissory Notes $ — $ — $ — June 2014 Secured promissory note 156 — 5 December 2017 Convertible Note (1) — — — LSQ Financing 98 — 3 August 2015 Senior Secured Promissory Notes — 17 17 ASC 606 Financing Component (2) 86 — 86 $ 340 $ 17 $ 111 JUNE 30, 2017 Interest Three Months Expense Related Party, Net Non cash October 2012 and April 2013 Secured Promissory Notes $ 480 $ — $ 46 June 2014 Secured promissory note 142 — 5 December 2017 Convertible Note (1) — — — LSQ Financing 228 — 54 August 2015 Senior Secured Promissory Notes — 1,085 288 ASC 606 Financing Component (2) — — — Capital leases and other 19 — — $ 869 $ 1,085 $ 393 JUNE 30, 2018 Interest Six Months Expense Related Party, Net Non cash October 2012 and April 2013 Secured Promissory Notes $ 213 $ — $ 42 June 2014 Secured promissory note 308 — 11 December 2017 Convertible Note (1) 529 — 322 LSQ Financing 250 — 57 August 2015 Senior Secured Promissory Notes — 451 131 ASC 606 Financing Component (2) 159 — 159 $ 1,459 $ 451 $ 722 June 30, 2017 Interest Six Months Expense Related Party, Net Non cash October 2012 and April 2013 Secured Promissory Notes $ 963 $ — $ 92 June 2014 Secured promissory note 276 — 10 December 2017 Convertible Note (1) — — — LSQ Financing 228 — 54 August 2015 Senior Secured Promissory Notes — 2,159 574 ASC 606 Financing Component (2) — — — Capital leases and other 38 — — $ 1,505 $ 2,159 $ 730 (1) This agreement was terminated in February 2018 (2) The Company adopted ASC 606 on January 1, 2018. Secured Promissory Notes On October 2, 2012, the Company borrowed $7,500,000 pursuant to senior notes (“October 2012 Secured Promissory Notes”) with a group of lenders. On April 10, 2013 (“Conversion Date”), the Company entered into an amendment to increase, by up to $5,000,000, the amount available under the terms of the loan agreement with respect to the October 2012 Secured Promissory Notes. Under this amendment, an additional $4,950,000 was issued in partial consideration for $3,700,000 in cash received and in partial conversion for the cancellation of a $1,250,000 subordinated convertible note (collectively, “April 2013 Secured Promissory Notes”). The total amount borrowed under the amended loan agreement for the October 2012 Secured Promissory Notes and the April 2013 Secured Promissory Notes increased from $7,500,000 to $12,450,000 as of the Conversion Date. The October 2012 and April 2013 Secured Promissory Notes bore interest at 14% at until February 5, 2018. On February 5, 2018, the Company converted, pursuant to an amendment, dated December 15, 2017, to the October 2012 and April 2013 Secured Promissory Notes, $10,000,000 aggregate principal amount of indebtedness outstanding under the October 2012 and April 2013 Secured Promissory Notes to an aggregate of 5,714,285 shares of common stock and warrants to purchase 1,142,856 shares of common stock (such conversion, the “Snyder Debt Conversion”), such that $2,450,000 of principal under the October 2012 and April 2013 Secured Promissory Notes is outstanding as of June 30, 2018. Simultaneously with the Snyder Debt Conversion, the maturity of the October 2012 and April 2013 Secured Promissory Notes was extended to December 31, 2022 (“Maturity Date”), the interest was reduced from 14% to 8% and all interest payments under the October 2012 and April 2013 Secured Promissory Notes were deferred to the Maturity Date. This loan is collateralized by substantially all of the Company’s assets. The October 2012 and April 2013 Secured Promissory Notes contain representations and warranties by the Company and the lender, certain indemnification provisions in favor of the lenders and customary covenants (including limitations on other debt, liens, acquisitions, investments and dividends), and events of default (including payment defaults, breaches of covenants, a material impairment in the lender’s security interest or in the collateral, and events relating to bankruptcy or insolvency). The October 2012 and April 2013 Secured Promissory Notes contain several restrictive covenants. The Company is in compliance with all related covenants, or has received an appropriate waiver of these covenants. In conjunction with the Snyder Debt Conversion, the Company accounted for the partial debt extinguishment under the troubled debt restructuring accounting guidance. The Company recognized a gain of $2,821,000 for the six months ended June 30, 2018 on partial extinguishment of the October 2012 and April 2013 Secured Promissory Notes. Because the Company recognized a gain on the partial extinguishment of debt, the Company was required to include all future interest and additional consideration, which included accrued interest, under the terms of this agreement as a reduction of the gain. As a result, the amount of the debt on the Company’s balance sheet related to the October 2012 and April 2013 Secured Promissory Notes is $3,425,000, as compared to $2,450,000 of contractual principal outstanding thereunder. Going forward, subject to future amendments to debt agreement or costs, the Company will not recognize future interest expense on the October 2012 and April 2013 Secured Promissory Notes. The accounting for the change due to the Snyder Debt Conversion is as follows (in thousands): December 31, 2017 $ 12,347 Conversion of debt into equity (10,000 ) Change in discount, net 103 Future interest expense 975 June 30, 2018 $ 3,425 Secured Promissory Note In June 2014, the Company borrowed $10,000,000 pursuant to a business loan agreement and promissory note (“June 2014 Secured Promissory Note”) with Five Star Bank (“Lender”) which bears interest at 7.0% as of June 30, 2018. The interest rate is subject to change and is based on the prime rate plus 2.00% per annum. The June 2014 Secured Promissory Note is repayable in monthly payments of $71,051 and adjusted from time-to-time as the interest rate changes, with the final payment due in June 2036. Certain of the Company’s deposit accounts and MMM LLC’s inventories, chattel paper, accounts, equipment and general intangibles have been pledged as collateral for the promissory note. The Company is required to maintain a deposit balance with the Lender of $1,560,000, which is recorded as restricted cash included in non-current assets. In addition, until the Company provides documentation that the proceeds were used for construction of the Company’s manufacturing plant, proceeds from the loan will be maintained in a restricted deposit account with the Lender. As of June 30, 2018, the Company had $46,000 remaining in this restricted deposit account, which is recorded as restricted cash included in current assets. The June 2014 Secured Promissory Note contains representations and warranties by the Company and the Lender, certain indemnification provisions in favor of the Lender and customary covenants (including limitations on other debt, liens, acquisitions, investments and dividends), and events of default (including payment defaults, breaches of covenants, a material impairment in the Lender’s security interest or in the collateral, and events relating to bankruptcy or insolvency). The June 2014 Secured Promissory Note contains several restrictive covenants and the most significant of which requires the Company to maintain a debt to net worth ratio of no greater than 4.0 to 1.0 at all times. The Company is in compliance with all related covenants, or has received an appropriate waiver of these covenants. Secured Convertible Promissory Note On October 12, 2017, the Company and Dwight W. Anderson (“Anderson”) entered into a $1,000,000 convertible promissory note, which was restated in its entirety by a convertible promissory note entered into by the Company and Anderson on October 23, 2017 (the “October 2017 Convertible Note”). The October 2017 Convertible Note was an unsecured promissory note in the aggregate principal amount of up to $6,000,000. The Company’s ability to borrow under the October 2017 Convertible Note was subject to Anderson’s approval and due on October 23, 2020 (the “Anderson Maturity Date”). Under the terms of the October 2017 Convertible Note, from the date of the closing through December 31, 2017, the October 2017 Convertible Note bore interest at a rate of 1% per annum, payable in arrears on the Anderson Maturity Date, unless earlier converted into shares of the Company’s common stock as described below. Thereafter, beginning January 1, 2018, the October 2017 Convertible Note bore interest at a rate of 10% per annum, payable in arrears on the Anderson Maturity Date, unless earlier converted into shares of the Company’s common stock as described below. Any or all of the principal or accrued interest under the October 2017 Convertible Note was convertible into shares of the Company’s common stock at a rate of one share of common stock per $1.00 of converting principal or interest, rounded down to the nearest share with any fractional amounts cancelled, at the election of Anderson by delivery of written notice to the Company. In addition, upon the consummation of a qualified equity financing of the Company prior to the Anderson Maturity Date, the aggregate outstanding principal balance of the October 2017 Convertible Note and all accrued and unpaid interest thereon could be converted, at the option of Anderson, into that number of the securities issued and sold in such financing, determined by dividing (a) such aggregate principal and accrued interest amounts, by (b) the purchase price per share or unit paid by the purchasers of the Company’s securities issued and sold in such financing. Notwithstanding the foregoing, Anderson’s ability to affect any such conversions was limited by applicable provisions governing issuances of shares of the Company’s common stock under the rules of The Nasdaq Capital Market, subject to the Company’s receipt of any applicable waivers thereof, and any amounts not issuable to Anderson in the Company’s equity securities as a result of this limitation will be payable in cash. On December 15, 2017, the Company entered into the Securities Purchase Agreement with an affiliate of Anderson and certain other accredited investors (collectively, the “Buyers”). In conjunction with the transaction contemplated in the Securities Purchase Agreement, Anderson was entitled to convert any portion of the balance outstanding under the October 2017 Convertible Note and any accrued interest into shares of the Company’s common stock at a rate of one share of common stock per $0.50. Anderson’s ability to affect conversions at the $0.50 rate was subject to, among other things, approval of the Company’s shareholders, which was received on January 31, 2018. On December 22, 2017, the Company and Anderson amended and restated in its entirety the terms of the October 2017 Convertible Note (“Secured December 2017 Convertible Note”). The Secured December 2017 Convertible Note was a secured promissory note in the aggregate principal amount of up to $6,000,000, at Anderson’s sole discretion, due on October 12, 2020 (the “Maturity Date”). As of February 5, 2018, the outstanding principal balance under the Secured December Convertible Note was $6,000,000. The interest rate and conversion terms of the Secured December 2017 Convertible Note remained unchanged from the terms of the October 2017 Convertible Note as described above. On February 5, 2018, the holder converted the outstanding principal of $6,000,000 under the Secured December 2017 Convertible Note into common shares of the Company in accordance with the terms of the Securities Purchase Agreement which provided for conversion of the outstanding balance at a rate of $0.50 per common share. After the conversion into common shares on February 5, 2018, there was no outstanding balance under the Secured December 2017 Convertible Note. The Company accounted for the full conversion of the Secured December 2017 Convertible Note using the accounting guidance related to an induced debt conversion of convertible notes. Under the induced conversion guidance, the Company recognized a loss on conversion in the amount of $9,867,000 associated with the change between the debt’s original terms and the induced conversion terms. This loss related to the induced conversion feature was partially offset by a gain on extinguishment of $6,424,000 of certain other elements of the Secured December 2017 Convertible Note. The accounting for the change due to the Secured December 2017 Convertible Note is as follows (in thousands): December 31, 2017 $ 3,490 Increase in debt 2,000 Conversion of debt into equity (6,000 ) Change in discount, net 510 June 30, 2018 $ - LSQ Financing On March 24, 2017, the Company entered into an Invoice Purchase Agreement (the “LSQ Financing”) with LSQ Funding Group, L.C. (“LSQ”), pursuant to which LSQ may elect to purchase up to $7,000,000 of eligible customer invoices from the Company. The Company’s obligations under the LSQ Financing are secured by a lien on substantially all of the Company’s personal property; such lien is first priority with respect to the Company’s accounts receivable, inventory, and related property, pursuant to an intercreditor agreement, dated March 22, 2017 (the “Three Party Intercreditor Agreement”), with Gordon Snyder, an individual, as administrative agent for the Snyder lenders (the “Snyder Agent”), on behalf of the Snyder lenders, and the agent for the holders of the August 2015 Senior Secured Promissory Notes. Advances by LSQ may be made at an advance rate of 80% of the face value of the receivables being sold. The Company also pays to LSQ (i) an invoice purchase fee equal to 1% of the face amount of each purchased invoice, at the time of the purchase, and (ii) a funds usage fee equal to 0.035%, payable monthly in arrears. An aging and collection fee is charged at the time when the purchased invoice is collected, calculated as a percentage of the face amount of such invoice while unpaid (which percentage ranges from 0% to 0.35% depending upon the duration the invoice remains outstanding). The original LSQ Financing was effective for one year with automatic one year renewals thereafter unless terminated within a 30-day window near the end of the then-effective term; a termination fee is due upon early termination by the Company if such termination is not requested within such 30-day window. The agreement contains representations and warranties by the Company and LSQ, certain indemnification provisions in favor of LSQ and customary covenants (including limitations on other debt, liens, acquisitions, investments and dividends), and events of default (including payment defaults, breaches of covenants, a material impairment in LSQ’s security interest or in the collateral, and events relating to bankruptcy or insolvency). The Company is in compliance with all terms of the agreement, In January 2018, the Company notified LSQ that it would be terminating the LSQ Financing in March 2018. In March 2018, the Company and LSQ amended the LSQ Financing agreement and extended the term for an additional 60 days. In June 2018, the Company amended the LSQ Financing arrangement, which effectively decreased the (i) invoice purchase fee from 1.00% to a range of 0.40% to 1.00% ii) funds usage fee from 0.035% to a range of 0.020% to 0.035% and extended the terms of the agreement to June 30, 2019. The events of default under the LSQ Financing include failure to pay amounts due, failure to turn over amounts due to LSQ within a cure period, breach of covenants, falsity of representations, and certain insolvency events. As of June 30, 2018, $2,359,000 was outstanding under the LSQ Financing.

Warrants

Warrants	6 Months Ended
	Jun. 30, 2018
Warrants and Rights Note Disclosure [Abstract]
Warrants	7. Warrants The following table summarizes information about the Company’s common stock warrants outstanding as of June 30, 2018 (in thousands, except exercise price data): DESCRIPTION ISSUE DATE EXPIRATION DATE NUMBER OF SHARES SUBJECT TO WARRANTS ISSUED EXERCISE PRICE In connection with June 2013 Credit Facility (June 2013 Warrants) June 2013 June 2023 (1) 27 $ 8.40 In connection with August 2015 Senior Secured Promissory Notes (August 2015 Warrants) August 2015 August 2023 4,000 $ 1.91 In connection with October 2012 and April 2013 Secured Promissory Notes (November 2016 Warrants) November 2016 November 2026 125 $ 2.38 In connection with June 2017 Consulting Agreement (November 2017 Warrants) June 2017 June 2027 80 $ 1.10 In connection with February 2018 Financing Transaction (February 2018 Warrants 1) February 2018 December 2020 43,350 $ 1.00 In connection with February 2018 Financing Transaction (February 2018 Warrants 2) February 2018 December 2020 5,143 $ 1.25 52,725 As of June 30, 2018, the weighted average remaining contractual life and exercise price for these warrants is 2.65 years and $1.10, respectively. (1) The June 2013 Warrants expire upon the earlier to occur of (i) the date listed above; (ii) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any transfer of more than 50% of the voting power of the Company, reorganization, merger or consolidation, but excluding any merger effected exclusively for the purpose of changing the domicile of the Company); or (iii) a sale of all or substantially all of the assets of the Company unless the Company’s stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Company’s acquisition or sale or otherwise), hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity.

Share-Based Plans

Share-Based Plans	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Plans	8. Share-Based Plans As of June 30, 2018, there were 7,256,000 options outstanding, 1,049,000 restricted stock units outstanding and 6,360,000 share-based awards available for grant under the outstanding equity incentive plans. For the three months ended June 30, 2018 and 2017, the Company recognized share-based compensation of $382,000 and $587,000, respectively. For the six months ended June 30, 2018 and 2017, the Company recognized share-based compensation of $873,000 and $1,169,000, respectively. During the three months ended June 30, 2018 and 2017, the Company granted options to purchase 2,075,000 and 25,000 shares of common stock, respectively, at a weighted average exercise price of $1.67 and $1.31, respectively. During the three months ended June 30, 2018, 3,000 options were exercised at a weighted average exercise price of $1.37. During months ended June 30, 2017 there were no options exercised. During the six months ended June 30, 2018 and 2017, the Company granted options to purchase 4,471,000 and 56,000 shares of common stock, respectively, at a weighted average exercise price of $1.78 and $1.75, respectively. During the six months ended June 30, 2018 and 2017, options to purchase 3,000 and 14,000 shares were exercised at a weighted average exercise prices of $1.37 and $1.21 per share, respectively. The following table summarizes the activity of restricted stock units from December 31, 2017 to June 30, 2018 (in thousands, except weighted average grant date fair value): WEIGHTED AVERAGE GRANT SHARES DATE FAIR OUTSTANDING VALUE Nonvested at December 31, 2017 335 $ 0.94 Granted 497 1.67 Vested (394 ) 1.25 Forfeited (32 ) 1.06 Nonvested at June 30, 2018 406 1.13 During the three and six months ended June 30, 2018, the Company granted 0 and 105,000 restricted stock units, respectively, in partial satisfaction of incentive compensation due to certain executives as of December 31, 2017. There were no such grants during the three and six months ended June 30, 2017. These grants resulted in the reclassification of $205,000 from accrued liabilities to additional paid in capital as of June 30, 2018.

Common Stock Offering

Common Stock Offering	6 Months Ended
	Jun. 30, 2018
Common Stock Offering
Common Stock Offering	9. Common Stock Offering In April 2018, the Company completed an underwritten public offering of 8,366,250 registered shares of its common stock

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Operating Leases In September 2013 and then amended in April 2014, the Company entered into a lease agreement for approximately 27,300 square feet of office and laboratory space located in Davis, California. The initial term of the lease is for a period of 60 months and commenced in August 2014. The monthly base rent is $44,000 per month for the first 12 months with a 3% increase each year thereafter. Concurrent with this amendment, in April 2014, the Company entered into a lease agreement with an affiliate of the landlord to lease approximately 17,400 square feet of office and laboratory space in the same building complex in Davis, California. The initial term of the lease is for a period of 60 months and commenced in August 2014. The monthly base rent is $28,000 with a 3% increase each year thereafter. On January 19, 2016, the Company entered into an agreement with a sublessee to sublease approximately 3,800 square feet of vacant office space located in Davis, California pursuant to the terms of its lease agreement. The initial term of the sublease is for a period of approximately 43 months and commenced on February 1, 2016. The monthly base rent is approximately $5,000 per month for the first 12 months with a 5% increase each year thereafter. Litigation On April 3, 2018, the Company was named as a defendant in a complaint filed by Piper Jaffray, Inc. (“Piper”) with the Superior Court of the State of Delaware. The Company was informed of and received Piper’s complaint and related documents on April 5, 2018, following the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Piper’s complaint alleges one breach of contract claim, specifically, that the Company breached an engagement letter with Piper by failure to pay a $2,000,000 transaction fee, which Piper alleges is due under the engagement letter as a result of the Company’s consummation of its private placement and debt refinancing transactions in February 2018. Piper’s complaint includes a demand for payment of the foregoing transaction fee, in addition to interest and costs and expenses incurred in pursuing the action, including reasonable attorneys’ fees. While the Company believes Piper’s complaint is without merit, this matter is at an early stage, and the outcome of this matter is not presently determinable

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	11. Related Party Transactions August 2015 Senior Secured Promissory Notes On August 20, 2015, the Company entered into a purchase agreement with Ivy Science & Technology Fund, Waddell & Reed Advisors Science & Technology Fund and Ivy Funds VIP Science and Technology, each an affiliate of Waddell & Reed, which is a beneficial owner of more than 5% of the Company’s common stock. Pursuant to such purchase agreement, the Company sold to such affiliates senior secured promissory notes (“August 2015 Senior Secured Promissory Notes”) in the aggregate principal amount of $40,000,000. The August 2015 Senior Secured Promissory Notes bear interest at a rate of 8% per annum. The first interest payment was payable December 31, 2015 and until February 5, 2018, interest was payable semi-annually on June 30 and December 31. Until February 5, 2018, principal payments of $10,000,000, $10,000,000, and $20,000,000 were payable on the third, fourth and fifth anniversaries of the closing date of the August 2015 Senior Secured Promissory Notes. Debt due to related parties as of June 30, 2018 was $7,300,000. The fair value of the Company’s debt due to related parties was $3,892,000 and $21,714,000 as of June 30, 2018 and December 31, 2017, respectively. This debt was valued by applying the same ratio of the value of common stock the lender agreed to take as consideration for a reduction in the outstanding principal balance and applying this ratio to the outstanding principal balance. The August 2015 Senior Secured Promissory Notes contain representations and warranties by the Company and the lenders, certain indemnification provisions in favor of the lenders and customary covenants (including limitations on other debt, liens, acquisitions, investments and dividends), and events of default (including payment defaults, breaches of covenants, a material impairment in the Lender’s security interest or in the collateral, and events relating to bankruptcy or insolvency). The August 2015 Senior Secured Promissory Notes contain several restrictive covenants and the most significant of which requires the Company to maintain a minimum cash balance of $15,000,000. In May 2016, the agreement was amended to remove this minimum cash balance requirement. The Company is in compliance with all other related covenants, or has received an appropriate waiver of these covenants. On February 5, 2018, the holders of the August 2015 Senior Secured Promissory Notes, pursuant to an amendment dated December 15, 2017, converted $35,000,000 of the then outstanding debt into 20,000,000 shares of common stock and warrants to purchase 4,000,000 shares of common stock (such conversion, the “Waddell Debt Conversion”). After the conversion, $5,000,000 in principal remained outstanding. Simultaneously with the Waddell Debt Conversion, the maturity of the August 2015 Senior Secured Promissory Notes was extended to December 31, 2022, and payment of all future interest was deferred to maturity on December 31, 2022, and Ospraie was granted a right of first refusal to acquire the August 2015 Senior Secured Promissory Notes. In conjunction with the Waddell Debt Conversion, the Company accounted for the partial debt extinguishment under the troubled debt restructuring accounting guidance. The Company recognized a gain of $9,622,000 for the six months ended June 30, 2018 on partial extinguishment of the August 2015 Senior Secured Promissory Notes. Because the Company recognized a gain on the partial extinguishment of debt, the Company was required to include all future interest and additional consideration, which included accrued interest, under the terms of this agreement as a reduction of the gain. As a result, the amount of the debt on the Company’s balance sheet related to the August 2015 Senior Secured Promissory Notes is $7,300,000, as compared to $5,000,000 of contractual principal amount outstanding thereunder. Going forward, subject to future amendments to debt agreement or costs, the Company will not recognize future interest expense on the August 2015 Senior Secured Promissory Notes. The accounting for the change due to the August 2015 Senior Secured Promissory Notes is as follows (in thousands): December 31, 2017 $ 37,822 Conversion of debt into equity (35,000 ) Change in discount, net 2,178 Accrued and future interest expense (1) 2,300 June 30, 2018 $ 7,300 (1) Includes reclassification of $498 thousand in accrued interest to debt.

Equity Offering and Related Tra

Equity Offering and Related Transactions	6 Months Ended
	Jun. 30, 2018
Equity Offering And Related Transactions
Equity Offering and Related Transactions	12. Equity Offering and Related Transactions On February 5, 2018, pursuant to a private placement, the Company issued 70,514,000 shares of common stock and warrants to purchase 48,493,000 shares of common stock. Of the shares issued, 44,000,000, 25,714,000 and 800,000 shares were issued pursuant to the Securities Purchase Agreement, certain debt agreement amendments (see Notes 6 and 11) and as part of a placement agent fee, respectively. Of the warrants, warrants to purchase 41,333,000, 5,143,000 and 2,017,000 shares were issued pursuant to the Securities Purchase Agreement, certain debt agreements (see Notes 6 and 11) and as part of a placement agent fee, respectively. For further discussion of the warrants, see Note 7. The gross proceeds from the 44,000,000 shares issued under the Securities Purchase Agreement were $30,000,000 which included the conversion of $6,000,000 in convertible debt under the then outstanding December 2017 Convertible Note. Also, the Company converted $10,000,000 in debt under the October 2012 and April 2013 Secured Promissory Notes and $35,000,000 in debt under the Senior Secured Promissory Notes into a total of 25,714,000 shares. The estimated net proceeds from this private placement, inclusive of the cash received from the December 2017 Convertible Note, was $27,300,000. The Company incurred $2,700,000 in expenses associated with the private placement and debt conversion of which $2,180,000 was related to the equity component of these transactions. The Company classified the warrants issued in connection with the Securities Purchase Agreement and conversion of debt into equity as equity. As a result of the financing transaction discussed above, the Company’s additional paid in capital and common stock increased by $64,312,000 and $1,000, respectively. The Company allocated the value of the financing transaction to the common shares issued in the amount of $53,385,000 and to the warrants issued in the amount of $10,928,000 based on the relative fair values of each on the transaction date. In April 2018, the Company completed an underwritten public offering of 8,366,250 registered shares of its common stock

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	13. Subsequent Events None.

Significant Accounting Polici19

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying financial information as of June 30, 2018, and for the three and six months ended June 30, 2018 and 2017, has been prepared by the Company, without audit, in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such SEC rules and regulations and accounting principles applicable for interim periods. However, the Company believes that the disclosures are adequate to make the information presented not misleading. The information included in this Quarterly Report on Form 10-Q should be read in connection with the consolidated financial statements and accompanying notes included in the Company’s Annual Report filed on Form 10-K for the fiscal year ended December 31, 2017. In the opinion of management, the condensed consolidated financial statements as of June 30, 2018, and for the three and six months ended June 30, 2018 and 2017, reflect all adjustments, which are normal recurring adjustments, necessary to present a fair statement of financial position, results of operations and cash flows. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the operating results for the full fiscal year or any future periods.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the 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. Actual results could differ from those estimates. The Company used significant estimates in accounting for the useful lives of property, plant and equipment, reserves for inventory obsolescence, fair value estimates and in its going concern analysis.
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the statement of cash flows in thousands: JUNE 30, 2018 2017 Cash and cash equivalents $ 23,250 $ 10,242 Restricted cash, current portion 46 1,444 Restricted cash, less current portion 1,560 1,560 Total cash, cash equivalents and restricted cash $ 24,856 $ 13,246
Restricted Cash	Restricted Cash The Company’s restricted cash consists of cash that the Company is contractually obligated to maintain in accordance with the terms of its June 2014 Secured Promissory Note. See Note 6 for further discussion.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, accounts receivable and debt. The Company deposits its cash and cash equivalents with high credit quality domestic financial institutions with locations in the U.S. Such deposits may exceed federal deposit insurance limits. The Company believes the financial risks associated with these financial instruments are minimal. The Company’s customer base is dispersed across many different geographic areas, and currently most customers are pest management distributors in the U.S. Generally, receivables are due up to 120 days from the invoice date and are considered past due after this date, although the Company may offer extended terms from time to time. The Company’s principal sources of revenues are its Regalia, Grandevo and Venerate product lines. These three product lines accounted for 92% and 84% of the Company’s total revenues for the three months ended June 30, 2018 and 2017, respectively. These three product lines accounted for 92% and 87% of the Company’s total revenues for the six months ended June 30, 2018 and 2017, respectively. Revenues generated from international customers were 6% for each of the three months ended June 30, 2018 and 2017, respectively, and 11% and 9% for each of the six months ended June 30, 2018 and 2017, respectively. Customers to which 10% or more of the Company’s total revenues are attributable for any one of the periods presented consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D Three months ended June 30, 2018 21 % 19 % 15 % 11 % 2017 0 % 34 % 9 % 6 % CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D Six months ended June 30, 2018 18 % 21 % 11 % 11 % 2017 0 % 27 % 10 % 5 % Customers to which 10% or more of the Company’s outstanding accounts receivable are attributable as of either June 30, 2018 or December 31, 2017 consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D CUSTOMER E CUSTOMER F June 30, 2018 24 % 11% 10 % 4% 9 % 5% December 31, 2017 22 % 2% 3 % 16% 11 % 11%
Concentrations of Supplier Dependence	Concentrations of Supplier Dependence The active ingredient in the Company’s Regalia product line is derived from the giant knotweed plant, which the Company obtains from China. The Company currently has one supplier of this plant. Such single supplier acquires raw knotweed from numerous regional sources and performs an extraction process on this plant, creating a dried extract that is shipped to the Company’s manufacturing plant. While the Company does not have a long-term supply contract with this supplier, the Company does have a long term business relationship with this supplier. The Company maintains 6-12 months of knotweed extract at any given time, but an unexpected disruption in supply could have an effect on Regalia supply and revenues. Although the Company has identified additional sources of raw knotweed, there can be no assurance that the Company will continue to be able to obtain dried extract from China at a competitive price
Deferred Cost of Product Revenues	Deferred Cost of Product Revenues Deferred cost of product revenues are stated at the lower of cost or net realizable value and include product sold where title has transferred but the criteria for revenue recognition have not been met. As of June 30, 2018 and December 31, 2017, the Company recorded deferred cost of product revenues of $3,000 and $3,063,000 respectively.
Deferred Revenue	Deferred Revenue When the Company receives consideration, or such consideration is unconditionally due, from a customer prior to transferring control of goods or services to the customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. The Company recognizes deferred revenue as net sales after the Company has transferred control of the goods or services to the customer and all revenue recognition criteria are met. The Company’s deferred revenue is broken out as follows (in thousands): JUNE 30, 2018 DECEMBER 31, 2017 Product revenues $ 532 $ 6,449 Financing costs (1) 580 - License revenues 1,913 1,790 3,025 8,239 Less current portion (356 ) (6,193 ) $ 2,669 $ 2,046 (1) Financing costs relate to the implementation of ASC 606. Refer to the Company’s revenue recognition policy in this note.
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted the new accounting standard Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers The cumulative effect of the changes made to the Company’s condensed consolidated balance sheet on January 1, 2018 for the adoption of the new revenue standard was as follows (in thousands): BALANCE SHEET As Reported December 31, 2017 Adjustments Due to ASC 606 Balance at January 1, 2018 ASSETS Deferred cost of product revenues $ 3,063 $ (3,058 ) $ 5 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue, current portion 6,193 (5,893 ) 300 Deferred revenue, less current portion 2,046 524 2,570 Accumulated deficit $ (265,572 ) $ 2,311 $ (263,261 ) In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the Company’s Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations was as follows (in thousands): June 30, 2018 BALANCE SHEET As Reported Impacts Due to ASC 606 Balance without Impacts of ASC 606 ASSETS Deferred cost of product revenues $ 3 $ 2,832 $ 2,835 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue, current portion 356 5,389 5,745 Deferred revenue, less current portion 2,669 (580 ) 2,089 Accrued liabilities 5,986 405 6,391 Accumulated deficit (271,023 ) $ (2,382 ) $ (273,405 ) For the Three Months Ended June 30, 2018 As Reported Impacts Due to ASC 606 Results without Impacts of ASC 606 STATEMENT OF OPERATIONS Revenues Product $ 5,637 $ 559 $ 6,196 License 115 (52 ) 63 Cost of product revenues 3,030 549 3,579 Interest expense (340 ) 87 (253 ) Net loss (1) $ (4,844 ) $ 45 $ (4,799 ) For the Six Months Ended June 30, 2018 As Reported Impacts Due to ASC 606 Results without Impacts of ASC 606 STATEMENT OF OPERATIONS Revenues Product $ 9,861 $ 90 $ 9,951 License 215 (94 ) 121 Cost of product revenues 5,272 226 5,498 Interest expense (1,459 ) 159 (1,300 ) Net loss (1) $ (7,762 ) $ (71 ) $ (7,833 ) (1) The impact in conjunction with the adoption of ASC 606 did not change the basic and diluted net loss per common share as reported. Product Sales. Licenses Revenues. Financing Component Revenues. Revenue recognition requires the Company to make a number of estimates that include variable consideration. For example, customers may receive sales or volume-based pricing incentives or receive incentives for providing the Company with marketing-related information. The Company makes estimates surrounding variable consideration and the net impact to revenues. In making such estimates, significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives and the likelihood that customers will achieve them. In the event estimates related to variable consideration change, the cumulative effect of these changes is recognized as if the revised estimates had been used since revenue was initially recognized under the contract. Such revisions could occur in any reporting period, and the effects may be material. From time to time, the Company offers certain product rebates to its distributors and growers, which are estimated and recorded as reductions to product revenues, and an accrued liability is recorded at the later of when the revenues are recorded or the rebate is being offered. Contract Assets. Contract Liabilities.
Research, Development and Patent Expenses	Research, Development and Patent Expenses Research and development expenses include payroll-related expenses, field trial costs, toxicology costs, regulatory costs, consulting costs and lab costs. Patent expenses include legal costs relating to the patents and patent filing costs. These costs are expensed to operations as incurred. For the three months ended June 30, 2018 and 2017, research and development expenses totaled $2,231,000 and $2,555,000, respectively, and patent expenses totaled $262,000 and $298,000, respectively. For the six months ended June 30, 2018 and 2017, research and development expenses totaled $4,517,000 and $4,693,000, respectively, and patent expenses totaled $510,000 and $604,000, respectively.
Shipping and Handling Costs	Shipping and Handling Costs Amounts billed for shipping and handling are included as a component of product revenues. Related costs for shipping and handling have been included as a component of cost of product revenues. Shipping and handling costs for the three months ended June 30, 2018 and 2017 were $282,000 and $70,000, respectively. Shipping and handling costs for the six months ended June 30, 2018 and 2017 were $456,000 and $175,000, respectively.
Advertising	Advertising The Company expenses advertising costs as incurred. Advertising costs for the three months ended June 30, 2018 and 2017 were $316,000 and $30,000, respectively. The Company expenses advertising costs as incurred. Advertising costs for the six months ended June 30, 2018 and 2017 were $602,000 and $204,000, respectively.
Segment Information	Segment Information The Company is organized as a single operating segment, whereby its chief operating decision maker assesses the performance of and allocates resources to the business as a whole.
Net Loss Per Share	Net Loss Per Share Net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period. The calculation of basic and diluted net loss per share is the same for all periods presented as the effect of certain potential common stock equivalents, which consist of stock options and warrants to purchase common stock and restricted stock units, are anti-dilutive due to the Company’s net loss position. Anti-dilutive common stock equivalents are excluded from diluted net loss per share. The following table sets forth the potential shares of common stock as of the end of each period presented that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive (in thousands): JUNE 30, 2018 2017 Stock options outstanding 7,256 3,325 Warrants to purchase common stock 52,725 4,152 Restricted stock units outstanding 1,049 415
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The Company adopted ASU 2014-09 in the first quarter of 2018 using the modified-retrospective method. This adoption primarily affected the Company’s product revenues accounted for using the sell-through method under ASC 605 , Revenue Recognition, The Company adopted Accounting Standards Update 2014-09 (“ASU 2014-09”), which supersedes the revenue guidance under ASC 605, generally requires the Company to recognize revenue and profit from its product sales arrangements earlier and in a more linear fashion than historical practice under ASC 605, including the estimation of sell-through revenue and variable consideration that would otherwise have been deferred. Following the adoption of ASU 2014-09, the revenue recognition for the Company’s license arrangements remained materially consistent with its historical practice. See the tables above in this note for the effects of the adoption of ASU 2014-09 on the Company’s condensed consolidated financial statements as of January 1, 2018 and for the six months ended June 30, 2018. See “Revenue Recognition” above for further discussion of the effects of the adoption of ASU 2014-09 on the Company’s significant accounting policies. The adoption of this standard had a material impact on the Company’s condensed consolidated financial statements as disclosed above and is expected to continue to have a material impact for the foreseeable future. The Company adopted Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The amendment updated and clarified how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. The adoption of this standard did not have a material impact on the condensed consolidated financial statements and is not expected to have a material impact on future periods. The Company adopted Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). The amendment requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted ASU 2016-18 in the first quarter of 2018. The adoption primarily resulted in the inclusion of the restricted cash balances within the overall cash balances and a reconciliation of cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheet. The adoption of this standard did not have a material impact on the condensed consolidated financial statements and is not expected to have a material impact for the foreseeable future. See “Cash and Cash Equivalents and Restricted Cash” above for further discussion of the effects of the adoption of ASU 2016-18 on the Company’s significant accounting policies. In March 2018, the Financial Accounting Standards Board (“FASB”) issued guidance pertaining to the accounting of the Tax Cuts and Jobs Act (“TCJA”), allowing companies a year to finalize and record any provisional or inestimable impacts of the TCJA. This guidance is effective upon issuance during this quarter. The adoption of this particular guidance did not have a material effect on the Company’s condensed consolidated financial statements. In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815), (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception,” (ASU No. 2017-11) which allows for the exclusion of a down round feature, when evaluating whether or not an instrument or embedded feature requires derivative classification. The Company early adopted this guidance beginning January 1, 2018. The adoption of this standard had a material impact on the Company’s condensed consolidated financial statements as the Company was not required to classify the warrants issued in conjunction with the February 5, 2018 equity financing as derivatives. In March 2018, the FASB issued ASU No. 2018-05, “Income Taxes (Topic 740)—Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118,” (ASU No. 2018-05) which amends certain Securities and Exchange Commission (SEC) material in Topic 740 for the income tax accounting implications of the recently issued Tax Reform. This guidance clarifies the application of Topic 740 in situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting under Topic 740 for certain income tax effects of Tax Reform for the reporting period in which Tax Reform was enacted. The adoption of this guidance did not have a material impact on the condensed consolidated financial statements of the Company. In June 2018, the FASB issued ASU No. 2018-07, “Compensation – Stock Compensation (Topic 718); Improvements to Nonemployee Share-Based Payment Accounting” (ASU No. 2018-07) which aligned certain aspects of share based payments accounting between employees and non-employees. Specifically nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied and an entity considers the probability of satisfying performance conditions when nonemployee share-based payment awards contain such conditions. The Company early adopted this guidance beginning January 1, 2018 using the modified –retrospective method. The adoption of this standard did not have a material impact on the condensed consolidated financial statements.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) Leases: Amendments to the FASB Accounting Standards Codifications (“ASU 2016-02”), to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key quantitative and qualitative disclosures regarding leasing arrangements with terms longer than 12 months. ASU 2016-02 is effective for public companies for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Companies must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with certain practical expedients available. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating its leasing arrangements under ASU 2016-02, and related ASUs issued after February 2016, including Accounting Standard Update No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”) and Accounting Standard Update No. 2018-11, Leases (Topic 842): Targeted Improvement (“ASU 2018-11”) issued in July 2018, to determine the potential impact to its condensed consolidated financial statements and related disclosures. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 introduces a new forward looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. ASU 2016-13 also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. For public business entities that meet the definition of a Securities and Exchange Commission filer, ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using the modified-retrospective approach. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. The Company is currently evaluating ASU 2016-13 to determine the impact to its condensed consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220),” (ASU No. 2018-02) which allows for the stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (Tax Reform) to be reclassified from accumulated other comprehensive income to retained earnings. The provisions of ASU No. 2018-02 are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual periods, with early adoption permitted. This ASU shall be applied either at the beginning of the annual or interim period of adoption or retrospectively to each period in which the income tax effects of Tax Reform affects the items remaining in accumulated other comprehensive income (loss). The Company has not yet determined the impact of implementing this new standard.

Significant Accounting Polici20

Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the statement of cash flows in thousands: JUNE 30, 2018 2017 Cash and cash equivalents $ 23,250 $ 10,242 Restricted cash, current portion 46 1,444 Restricted cash, less current portion 1,560 1,560 Total cash, cash equivalents and restricted cash $ 24,856 $ 13,246
Schedule of Significant Customer's Revenues and Account Receivable Percentage	Customers to which 10% or more of the Company’s total revenues are attributable for any one of the periods presented consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D Three months ended June 30, 2018 21 % 19 % 15 % 11 % 2017 0 % 34 % 9 % 6 % CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D Six months ended June 30, 2018 18 % 21 % 11 % 11 % 2017 0 % 27 % 10 % 5 % Customers to which 10% or more of the Company’s outstanding accounts receivable are attributable as of either June 30, 2018 or December 31, 2017 consist of the following: CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D CUSTOMER E CUSTOMER F June 30, 2018 24 % 11% 10 % 4% 9 % 5% December 31, 2017 22 % 2% 3 % 16% 11 % 11%
Schedule of Deferred Revenue	The Company’s deferred revenue is broken out as follows (in thousands): JUNE 30, 2018 DECEMBER 31, 2017 Product revenues $ 532 $ 6,449 Financing costs (1) 580 - License revenues 1,913 1,790 3,025 8,239 Less current portion (356 ) (6,193 ) $ 2,669 $ 2,046 (1) Financing costs relate to the implementation of ASC 606. Refer to the Company’s revenue recognition policy in this note.
Schedule of Condensed Balance Sheet	BALANCE SHEET As Reported December 31, 2017 Adjustments Due to ASC 606 Balance at January 1, 2018 ASSETS Deferred cost of product revenues $ 3,063 $ (3,058 ) $ 5 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue, current portion 6,193 (5,893 ) 300 Deferred revenue, less current portion 2,046 524 2,570 Accumulated deficit $ (265,572 ) $ 2,311 $ (263,261 ) June 30, 2018 BALANCE SHEET As Reported Impacts Due to ASC 606 Balance without Impacts of ASC 606 ASSETS Deferred cost of product revenues $ 3 $ 2,832 $ 2,835 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue, current portion 356 5,389 5,745 Deferred revenue, less current portion 2,669 (580 ) 2,089 Accrued liabilities 5,986 405 6,391 Accumulated deficit (271,023 ) $ (2,382 ) $ (273,405 )
Schedule of Condensed Financial Statements	For the Three Months Ended June 30, 2018 As Reported Impacts Due to ASC 606 Results without Impacts of ASC 606 STATEMENT OF OPERATIONS Revenues Product $ 5,637 $ 559 $ 6,196 License 115 (52 ) 63 Cost of product revenues 3,030 549 3,579 Interest expense (340 ) 87 (253 ) Net loss (1) $ (4,844 ) $ 45 $ (4,799 ) For the Six Months Ended June 30, 2018 As Reported Impacts Due to ASC 606 Results without Impacts of ASC 606 STATEMENT OF OPERATIONS Revenues Product $ 9,861 $ 90 $ 9,951 License 215 (94 ) 121 Cost of product revenues 5,272 226 5,498 Interest expense (1,459 ) 159 (1,300 ) Net loss (1) $ (7,762 ) $ (71 ) $ (7,833 ) (1) The impact in conjunction with the adoption of ASC 606 did not change the basic and diluted net loss per common share as reported.
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table sets forth the potential shares of common stock as of the end of each period presented that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive (in thousands): JUNE 30, 2018 2017 Stock options outstanding 7,256 3,325 Warrants to purchase common stock 52,725 4,152 Restricted stock units outstanding 1,049 415

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of Derivative Liability Level 1 Valuation Hierarchy	The following table presents the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 (in thousands): JUNE 30, 2018 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 Derivative liability $ — $ — $ — $ — DECEMBER 31, 2017 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 Derivative liability $ 674 $ — $ — $ 674
Schedule of Derivative Liability Measured at Fair Value Using Unobservable Inputs	The following table provides a reconciliation of the activity between the beginning date and ending balances for the derivative liability measured at fair value using significant unobservable inputs (Level 3) (in thousands): DERIVATIVE LIABILITY Fair value at December 31, 2017 $ 674 Derivative liability issued 573 Change fair value of financial instruments 5,177 Derivative liability extinguished (6,424 ) Fair value at June 30, 2018 $ —
Schedule of Fair Value of Derivative Liability	The following table represents significant unobservable inputs used in determining the fair value of the derivative liability: FEBRUARY 5, 2018 DECEMBER 31, 2017 Stock Price volatility 60 % 60 % Risk-free rate 1.46 % 1.28 % Probability weighted term in years 0.18 0.42

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories, Net	Inventories, net consist of the following (in thousands): JUNE 30, 2018 DECEMBER 31, 2017 Raw materials $ 3,003 $ 2,310 Work in progress 2,057 2,441 Finished goods 4,121 5,076 $ 9,181 $ 9,827

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): JUNE 30, 2018 DECEMBER 31, 2017 Accrued compensation $ 1,614 $ 1,825 Accrued warranty costs 458 556 Accrued legal costs 629 1,558 Accrued customer incentives 1,417 1,986 Accrued liabilities, other 1,868 2,264 $ 5,986 $ 8,189
Schedule of Changes in Accrued Warranty Costs	Changes in the Company’s accrued warranty costs during the period are as follows (in thousands): Balance at December 31, 2017 $ 556 Warranties issued (released) during the period (91 ) Settlements made during the period (7 ) Balance at June 30, 2018 $ 458

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Debt Including Debt to Related Parties	Debt, including debt due to related parties, consists of the following (in thousands): JUNE 30, 2018 DECEMBER 31, 2017 Secured promissory notes (“October 2012 and April 2013 Secured Promissory Notes”) bearing interest at 8.00% per annum, interest and principal due at maturity (December 31, 2022), collateralized by substantially all of the Company’s assets, net of unamortized debt discount as of June 30, 2018 and December 31, 2017 of $0 and $103, respectively, imputed interest rate of 0% 3,425 12,347 Secured promissory note (“June 2014 Secured Promissory Note”) bearing interest at prime plus 2% (7.0% as of June 30, 2018) per annum, payable monthly through June 2036, collateralized by certain of the Company’s deposit accounts and MMM LLC’s inventories, chattel paper, accounts, equipment and general intangibles, net of unamortized debt discount as of June 30, 2018 and December 31, 2017 of $215 and $226, respectively, discount is based on imputed interest rate of 6.8% 8,753 8,872 Senior secured convertible promissory notes (“Secured December 2017 Convertible Note”) bearing interest at 10% per annum, interest and principal through the conversion date in February 2018, collateralized by substantially all of the Company’s assets, net of unamortized discount as of June 30, 2018 and December 31, 2017 of $0 and $510, respectively — 3,490 Secured revolving borrowing (“LSQ Financing”) bearing interest at (12.8% annually) payable through the lenders direct collection of certain accounts receivable through May 2018, collateralized by substantially all of the Company’s personal property, net of unamortized debt discount as of June 30, 2018 and December 31, 2017 of $0 and $54, respectively, with an imputed interest rate of 27.3% 2,359 1,222 Senior secured promissory notes due to related parties (“August 2015 Senior Secured Promissory Notes”) bearing interest at 8% per annum, interest and principal payable at maturity (December 31, 2022), collateralized by substantially all of the Company’s assets, net of unamortized discount as of June 30, 2018 and December 31, 2017 of $0 and $2,178, respectively, debt discount is based on imputed interest rate of 0% (see Note 11 and 12) 7,300 37,822 Debt, including debt due to related parties 21,837 63,753 Less debt due to related parties (7,300 ) (37,822 ) Less current portion (2,608 ) (1,524 ) $ 11,929 $ 24,407
Schedule of Contractual Future Principal Payments	As of June 30, 2018, aggregate contractual future principal payments on the Company’s debt, including debt due to related parties, are due as follows (in thousands): Period ended June 30, 2018 2018 $ 2,491 2019 279 2020 296 2021 318 2022 7,789 Thereafter 7,606 Total future principal payments 18,779 Interest payments included in debt balance (1) 3,275 $ 22,054 (1) Due to the debt extinguishment requirement, the Company has included both accrued interest and future interest in the debt balance for certain outstanding debt as further discussed in Notes 11 and 12.
Reconciliation of Interest Expense for Debt Outstanding	The following is a reconciliation of interest expense for the debt outstanding during the three and six months ended (in thousands). JUNE 30, 2018 Interest Three Months Expense Related Party, Net Non cash October 2012 and April 2013 Secured Promissory Notes $ — $ — $ — June 2014 Secured promissory note 156 — 5 December 2017 Convertible Note (1) — — — LSQ Financing 98 — 3 August 2015 Senior Secured Promissory Notes — 17 17 ASC 606 Financing Component (2) 86 — 86 $ 340 $ 17 $ 111 JUNE 30, 2017 Interest Three Months Expense Related Party, Net Non cash October 2012 and April 2013 Secured Promissory Notes $ 480 $ — $ 46 June 2014 Secured promissory note 142 — 5 December 2017 Convertible Note (1) — — — LSQ Financing 228 — 54 August 2015 Senior Secured Promissory Notes — 1,085 288 ASC 606 Financing Component (2) — — — Capital leases and other 19 — — $ 869 $ 1,085 $ 393 JUNE 30, 2018 Interest Six Months Expense Related Party, Net Non cash October 2012 and April 2013 Secured Promissory Notes $ 213 $ — $ 42 June 2014 Secured promissory note 308 — 11 December 2017 Convertible Note (1) 529 — 322 LSQ Financing 250 — 57 August 2015 Senior Secured Promissory Notes — 451 131 ASC 606 Financing Component (2) 159 — 159 $ 1,459 $ 451 $ 722 June 30, 2017 Interest Six Months Expense Related Party, Net Non cash October 2012 and April 2013 Secured Promissory Notes $ 963 $ — $ 92 June 2014 Secured promissory note 276 — 10 December 2017 Convertible Note (1) — — — LSQ Financing 228 — 54 August 2015 Senior Secured Promissory Notes — 2,159 574 ASC 606 Financing Component (2) — — — Capital leases and other 38 — — $ 1,505 $ 2,159 $ 730 (1) This agreement was terminated in February 2018 (2) The Company adopted ASC 606 on January 1, 2018.
Schedule of Debt Conversion	The accounting for the change due to the Snyder Debt Conversion is as follows (in thousands): December 31, 2017 $ 12,347 Conversion of debt into equity (10,000 ) Change in discount, net 103 Future interest expense 975 June 30, 2018 $ 3,425 The accounting for the change due to the Secured December 2017 Convertible Note is as follows (in thousands): December 31, 2017 $ 3,490 Increase in debt 2,000 Conversion of debt into equity (6,000 ) Change in discount, net 510 June 30, 2018 $ -

Warrants (Tables)

Warrants (Tables)	6 Months Ended
	Jun. 30, 2018
Warrants and Rights Note Disclosure [Abstract]
Summary of Information about Common Stock Warrants Outstanding	The following table summarizes information about the Company’s common stock warrants outstanding as of June 30, 2018 (in thousands, except exercise price data): DESCRIPTION ISSUE DATE EXPIRATION DATE NUMBER OF SHARES SUBJECT TO WARRANTS ISSUED EXERCISE PRICE In connection with June 2013 Credit Facility (June 2013 Warrants) June 2013 June 2023 (1) 27 $ 8.40 In connection with August 2015 Senior Secured Promissory Notes (August 2015 Warrants) August 2015 August 2023 4,000 $ 1.91 In connection with October 2012 and April 2013 Secured Promissory Notes (November 2016 Warrants) November 2016 November 2026 125 $ 2.38 In connection with June 2017 Consulting Agreement (November 2017 Warrants) June 2017 June 2027 80 $ 1.10 In connection with February 2018 Financing Transaction (February 2018 Warrants 1) February 2018 December 2020 43,350 $ 1.00 In connection with February 2018 Financing Transaction (February 2018 Warrants 2) February 2018 December 2020 5,143 $ 1.25 52,725 (1) The June 2013 Warrants expire upon the earlier to occur of (i) the date listed above; (ii) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any transfer of more than 50% of the voting power of the Company, reorganization, merger or consolidation, but excluding any merger effected exclusively for the purpose of changing the domicile of the Company); or (iii) a sale of all or substantially all of the assets of the Company unless the Company’s stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Company’s acquisition or sale or otherwise), hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity.

Share-Based Plans (Tables)

Share-Based Plans (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Restricted Stock Units Activity	The following table summarizes the activity of restricted stock units from December 31, 2017 to June 30, 2018 (in thousands, except weighted average grant date fair value): WEIGHTED AVERAGE GRANT SHARES DATE FAIR OUTSTANDING VALUE Nonvested at December 31, 2017 335 $ 0.94 Granted 497 1.67 Vested (394 ) 1.25 Forfeited (32 ) 1.06 Nonvested at June 30, 2018 406 1.13

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of Debt Conversion	The accounting for the change due to the Snyder Debt Conversion is as follows (in thousands): December 31, 2017 $ 12,347 Conversion of debt into equity (10,000 ) Change in discount, net 103 Future interest expense 975 June 30, 2018 $ 3,425 The accounting for the change due to the Secured December 2017 Convertible Note is as follows (in thousands): December 31, 2017 $ 3,490 Increase in debt 2,000 Conversion of debt into equity (6,000 ) Change in discount, net 510 June 30, 2018 $ -
August 2015 Senior Secured Promissory Notes [Member]
Schedule of Debt Conversion	The accounting for the change due to the August 2015 Senior Secured Promissory Notes is as follows (in thousands): December 31, 2017 $ 37,822 Conversion of debt into equity (35,000 ) Change in discount, net 2,178 Accrued and future interest expense (1) 2,300 June 30, 2018 $ 7,300 (1) Includes reclassification of $498 thousand in accrued interest to debt.

Summary of Business, Basis of28

Summary of Business, Basis of Presentation and Liquidity (Details Narrative) - USD ($)	Feb. 05, 2018	Apr. 30, 2018	Feb. 28, 2018	Jun. 30, 2018	Jun. 30, 2017	Jan. 31, 2018	Dec. 31, 2017	Dec. 22, 2017
Date of incorporation				Jun. 15, 2006
Debt conversion amount				$ 6,000,000
Proceeds from offering		$ 13,804,000
Proceeds from issuance of common stock		$ 12,675,000		$ 34,496,000	8,223,000
Debt agreements financial and non-financial covenants				As of June 30, 2018, the Company had an accumulated deficit of $271,023,000, has incurred significant losses since inception and expects to continue to incur losses for the foreseeable future. Until the completion of the IPO in August 2013, the Company had funded operations primarily with net proceeds from the private placements of convertible preferred stock, convertible notes, promissory notes and term loans, as well as with the proceeds from the sale of its products and payments under strategic collaboration and distribution agreements and government grants. The Company will need to generate significant revenue growth to achieve and maintain profitability. As of June 30, 2018, the Company had working capital of $27,532,000, including cash and cash equivalents of $23,250,000.
Accumulated deficit				$ 271,023,000			$ 265,572,000
Working capital				27,532,000
Cash and cash equivalents				23,250,000	$ 10,242,000		786,000
Debt excluding related parties				14,537,000
Debt due to related parties				7,300,000			37,822,000
Restricted cash				1,606,000
Cash on hand				0
Securities Purchase Agreement [Member]
Number of shares issued during period			70,514,000
Debt conversion amount			$ 51,000,000
Proceeds from offering			24,000,000
Proceeds from issuance of debt			21,800,000
Secured December 2017 Convertible Note [Member]
Debt conversion amount	$ 6,000,000		6,000,000	$ 6,000,000
Secured debt			6,000,000
Long-term Senior Secured Debt [Member]
Secured debt			$ 45,000,000
October 2017 Through January 2018 [Member] | Secured December 2017 Convertible Note [Member]
Convertible promissory note						$ 2,000,000	$ 4,000,000	$ 6,000,000
April 2018 [Member]
Number of shares issued during period		8,366,250
Proceeds from offering		$ 13,804,000
Shares issued price per share		$ 1.65
Proceeds from issuance of common stock		$ 12,675,000

Significant Accounting Polici29

Significant Accounting Policies (Details Narrative) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)Number	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Concentration risk, supplier			The active ingredient in the Company's Regalia product line is derived from the giant knotweed plant, which the Company obtains from China. The Company currently has one supplier of this plant. Such single supplier acquires raw knotweed from numerous regional sources and performs an extraction process on this plant, creating a dried extract that is shipped to the Company's manufacturing plant. While the Company does not have a long-term supply contract with this supplier, the Company does have a long term business relationship with this supplier. The Company maintains 6-12 months of knotweed extract at any given time, but an unexpected disruption in supply could have an effect on Regalia supply and revenues. Although the Company has identified additional sources of raw knotweed, there can be no assurance that the Company will continue to be able to obtain dried extract from China at a competitive price
Deferred cost of product revenues	$ 3		$ 3		$ 3,063
Deferred product revenue	532		532		$ 6,449
Research and development expenses	2,231	$ 2,555	4,517	$ 4,693
Patent expenses	262	298	510	604
Shipping and handling costs	282	70	456	175
Advertising costs	$ 316	$ 30	$ 602	$ 204
Operating segment | Number			1
Sales Revenue Net [Member] | Three Product [Member] | International [Member]
Customers accounted for percentage of company's total revenues	92.00%	84.00%	92.00%	87.00%
Sales Revenue Net [Member] | Customer Concentration Risk [Member] | International [Member]
Customers accounted for percentage of company's total revenues	6.00%	6.00%	11.00%	9.00%
Maximum [Member]
Receivables due period			120 days

Significant Accounting Polici30

Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and cash equivalents	$ 23,250	$ 786	$ 10,242
Restricted cash, current portion	46	487	1,444
Restricted cash, less current portion	1,560	1,560	1,560
Total cash, cash equivalents and restricted cash	$ 24,856	$ 2,833	$ 13,246	$ 12,613

Significant Accounting Polici31

Significant Accounting Policies - Schedule of Significant Customer's Revenues and Account Receivable Percentage (Details) - Customer Concentration Risk [Member]	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Customer A [Member] | Sales Revenue Net [Member]
Customers accounted for percentage of company's total revenues and accounts receivable	21.00%	0.00%	18.00%	0.00%
Customer A [Member] | Accounts Receivable [Member]
Customers accounted for percentage of company's total revenues and accounts receivable			24.00%		22.00%
Customer B [Member] | Sales Revenue Net [Member]
Customers accounted for percentage of company's total revenues and accounts receivable	19.00%	34.00%	21.00%	27.00%
Customer B [Member] | Accounts Receivable [Member]
Customers accounted for percentage of company's total revenues and accounts receivable			11.00%		2.00%
Customer C [Member] | Sales Revenue Net [Member]
Customers accounted for percentage of company's total revenues and accounts receivable	15.00%	9.00%	11.00%	10.00%
Customer C [Member] | Accounts Receivable [Member]
Customers accounted for percentage of company's total revenues and accounts receivable			10.00%		3.00%
Customer D [Member] | Sales Revenue Net [Member]
Customers accounted for percentage of company's total revenues and accounts receivable	11.00%	6.00%	11.00%	5.00%
Customer D [Member] | Accounts Receivable [Member]
Customers accounted for percentage of company's total revenues and accounts receivable			4.00%		16.00%
Customer E [Member] | Accounts Receivable [Member]
Customers accounted for percentage of company's total revenues and accounts receivable			9.00%		11.00%
Customer F [Member] | Accounts Receivable [Member]
Customers accounted for percentage of company's total revenues and accounts receivable			5.00%		11.00%

Significant Accounting Polici32

Significant Accounting Policies - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Product revenues		$ 532	$ 6,449
Financing costs	[1]	580
License revenues		1,913	1,790
Deferred revenue		3,025	8,239
Less current portion		(356)	(6,193)
Deferred revenue		$ 2,669	$ 2,046
[1]	Financing costs relate to the implementation of ASC 606. Refer to the Company's revenue recognition policy in this note.

Significant Accounting Polici33

Significant Accounting Policies - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Deferred cost of product revenues	$ 3	$ 3,063
Deferred revenue, current portion	356	6,193
Deferred revenue, less current portion	2,669	2,046
Accrued liabilities	5,986	8,189
Accumulated deficit	(271,023)	(265,572)
January 1, 2018 [Member]
Deferred cost of product revenues	5
Deferred revenue, current portion	300
Deferred revenue, less current portion	2,570
Accumulated deficit	(263,261)
Adjustments Due to ASC 606 [Member]
Deferred cost of product revenues		(3,058)
Deferred revenue, current portion		(5,893)
Deferred revenue, less current portion		524
Accumulated deficit		$ 2,311
Impact Due to ASC 606 [Member]
Deferred cost of product revenues	2,832
Deferred revenue, current portion	5,389
Deferred revenue, less current portion	(580)
Accrued liabilities	405
Accumulated deficit	(2,382)
Balance Without Impact of ASC 606 [Member]
Deferred cost of product revenues	2,835
Deferred revenue, current portion	5,745
Deferred revenue, less current portion	2,089
Accrued liabilities	6,391
Accumulated deficit	$ (273,405)

Significant Accounting Polici34

Significant Accounting Policies - Schedule of Condensed Financial Statements (Details) - USD ($) $ in Thousands		3 Months Ended			6 Months Ended
		Jun. 30, 2018		Jun. 30, 2017	Jun. 30, 2018		Jun. 30, 2017
Revenues		$ 5,752		$ 6,476	$ 10,076		$ 10,630
Cost of product revenues		3,030		3,966	5,272		6,245
Interest expense		(340)		(869)	(1,459)		(1,505)
Net loss		(4,844)	[1]	(7,385)	(7,762)	[1]	(15,014)
Impact Due to ASC 606 [Member]
Cost of product revenues		549			226
Interest expense		87			159
Net loss	[1]	45			(71)
Results Without Impact of ASC 606 [Member]
Cost of product revenues		3,579			5,498
Interest expense		(253)			(1,300)
Net loss	[1]	(4,799)			(7,833)
Product [Member]
Revenues		5,637		6,418	9,861		10,514
Product [Member] | Impact Due to ASC 606 [Member]
Revenues		559			90
Product [Member] | Results Without Impact of ASC 606 [Member]
Revenues		6,196			9,951
License [Member]
Revenues		115		$ 58	215		$ 116
License [Member] | Impact Due to ASC 606 [Member]
Revenues		(52)			(94)
License [Member] | Results Without Impact of ASC 606 [Member]
Revenues		$ 63			$ 121
[1]	The impact in conjunction with the adoption of ASC 606 did not change the basic and diluted net loss per common share as reported.

Significant Accounting Polici35

Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Stock Options Outstanding [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earning per share	7,256,000	3,325,000
Warrants to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earning per share	52,725,000	4,152,000
Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earning per share	1,049,000	415,000

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Derivative Liability Level 1 Valuation Hierarchy (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Derivative liability		$ 674
Derivative Liability [Member]
Derivative liability		674
Derivative Liability [Member] | Fair Value, Inputs, Level 1 [Member]
Derivative liability
Derivative Liability [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative liability
Derivative Liability [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative liability		$ 674

Fair Value Measurements - Sch37

Fair Value Measurements - Schedule of Derivative Liability Measured at Fair Value Using Unobservable Inputs (Details) - Fair Value, Inputs, Level 3 [Member] - Derivative Liability [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Fair value at December 31, 2017	$ 674
Derivative liability issued	573
Change fair value of financial instruments	5,177
Derivative liability extinguished	(6,424)
Fair value at June 30, 2018

Fair Value Measurements - Sch38

Fair Value Measurements - Schedule of Fair Value of Derivative Liability (Details)	Feb. 05, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Stock Price volatility	60.00%	60.00%
Risk-free rate	1.46%	1.28%
Probability weighted term in years	2 months 5 days	5 months 1 day

Inventories (Details Narratives

Inventories (Details Narratives) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Inventory reserve	$ 302	$ 252

Inventories - Schedule of Inven

Inventories - Schedule of Inventories, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Raw materials	$ 3,003	$ 2,310
Work in progress	2,057	2,441
Finished goods	4,121	5,076
Inventories, total	$ 9,181	$ 9,827

Accrued Liabilities (Details Na

Accrued Liabilities (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Payables and Accruals [Abstract]
Warranty expense	$ 61	$ 105
Warranty reserve	75	197
Settlement of warrant	$ 0	$ 7

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued compensation	$ 1,614	$ 1,825
Accrued warranty costs	458	556
Accrued legal costs	629	1,558
Accrued customer incentives	1,417	1,986
Accrued liabilities, other	1,868	2,264
Accrued liabilities, total	$ 5,986	$ 8,189

Accrued Liabilities - Schedul43

Accrued Liabilities - Schedule of Changes in Accrued Warranty Costs (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Payables and Accruals [Abstract]
Beginning Balance		$ 556
Warranties issued (released) during the period		(91)
Settlements made during the period	$ 0	(7)
Ending Balance	$ 458	$ 458

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	Feb. 05, 2018	Dec. 22, 2017	Dec. 15, 2017	Oct. 12, 2017	Mar. 24, 2017	Apr. 10, 2013	Oct. 02, 2012	Jun. 30, 2018	Feb. 28, 2018	Jun. 30, 2014	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Debt conversion amount													$ 6,000,000
Warrants to purchase common stock								52,725,000			52,725,000		52,725,000
Extinguishment of debt													$ (303,000)
Amount of debt, outstanding								$ 22,054,000			22,054,000		22,054,000
Required deposit balance								1,560,000			1,560,000	1,560,000	1,560,000	1,560,000	$ 1,560,000
Restricted cash, current portion								$ 46,000			46,000	$ 1,444,000	46,000	$ 1,444,000	487,000
LSQ Funding Group L C [Member]
Debt instrument, maturity date								Jun. 30, 2019
Short term debt, outstanding								$ 2,359,000			2,359,000		2,359,000
Sale of certain accounts receivable to third-party					$ 7,000,000
Advancement rate of receivables face value					80.00%
Invoice purchase fee percentage					1.00%
Additional monthly funds usage rate					0.035%
Automatic renewal receivable financing agreement duration					1 year
Maximum [Member]
Aging collection fee percentage					0.00%
Maximum [Member] | LSQ Funding Group L C [Member]
Invoice purchase fee percentage								1.00%
Additional monthly funds usage rate								0.035%
Minimum [Member]
Aging collection fee percentage					0.35%
Minimum [Member] | LSQ Funding Group L C [Member]
Invoice purchase fee percentage								0.40%
Additional monthly funds usage rate								0.02%
Securities Purchase Agreement [Member]
Debt conversion amount									$ 51,000,000
Secured Debt [Member]
Amount of debt, outstanding								$ 21,837,000			21,837,000		$ 21,837,000		$ 63,753,000
Debt instrument description													The June 2014 Secured Promissory Note contains several restrictive covenants and the most significant of which requires the Company to maintain a debt to net worth ratio of no greater than 4.0 to 1.0 at all times
Secured Convertible Debt [Member] | Securities Purchase Agreement [Member] | Dwight W. Anderson [Member]
Common stock price per share description			Company’s common stock at a rate of one share of common stock per $0.50.
Conversion price per share			$ 0.50
October 2012 and April 2013 Secured Promissory Notes [Member]
Debt instrument, interest rate	14.00%
Debt conversion amount	$ 10,000,000
Conversion of debt, shares	5,714,285
Warrants to purchase common stock	1,142,856
Secured debt								2,450,000			2,450,000		$ 2,450,000
Debt instrument, maturity date	Dec. 31, 2022
Extinguishment of debt													2,821,000
Amount of debt, outstanding								$ 3,425,000			$ 3,425,000		$ 3,425,000
October 2012 and April 2013 Secured Promissory Notes [Member] | Maximum [Member]
Debt instrument borrowing amount							$ 12,450,000
Debt instrument, interest rate	14.00%
October 2012 and April 2013 Secured Promissory Notes [Member] | Minimum [Member]
Debt instrument borrowing amount							7,500,000
Debt instrument, interest rate	8.00%
October 2012 and April 2013 Secured Promissory Notes [Member] | Loan Agreement [Member]
Debt instrument borrowing amount						$ 4,950,000
Issued in partial consideration						3,700,000
Partial conversion for the cancellation amount						1,250,000
October 2012 and April 2013 Secured Promissory Notes [Member] | Loan Agreement [Member] | Maximum [Member]
Debt instrument borrowing amount						$ 5,000,000
October 2012 and April 2013 Secured Promissory Notes [Member] | Secured Debt [Member]
Debt instrument borrowing amount							$ 7,500,000
Secured Promissory Note Interest Rate at Prime Plus 2% Through June 2036 [Member] | Secured Debt [Member]
Debt instrument, prime rate													2.00%		2.00%
Debt instrument borrowing amount										$ 10,000,000
Debt instrument, interest rate								7.00%			7.00%		7.00%
Debt instrument, maturity date													Jun. 30, 2036
Amount of debt, outstanding								$ 8,753,000			$ 8,753,000		$ 8,753,000		$ 8,872,000
Required deposit balance								1,560,000			1,560,000		1,560,000
Restricted cash, current portion								46,000			46,000		46,000
October 2017 Convertible Note [Member] | Secured Convertible Debt [Member] | Due through December 1, 2017 [Member]
Debt instrument, interest rate				1.00%
October 2017 Convertible Note [Member] | Secured Convertible Debt [Member] | beginning January 1, 2018 [Member]
Debt instrument, interest rate				10.00%
October 2017 Convertible Note [Member] | Secured Convertible Debt [Member] | Dwight W. Anderson [Member]
Debt instrument, maturity date				Oct. 23, 2020
Convertible promissory note				$ 1,000,000
Common stock price per share description				Company’s common stock at a rate of one share of common stock per $1.00
Conversion price per share				$ 1
October 2017 Convertible Note [Member] | Secured Convertible Debt [Member] | Maximum [Member] | Dwight W. Anderson [Member]
Unsecured debt				$ 6,000,000
Secured December 2017 Convertible Note [Member]
Debt conversion amount	$ 6,000,000								6,000,000				6,000,000
Secured debt									$ 6,000,000
Extinguishment of debt	$ 6,424,000
Amount of debt, outstanding															3,490,000
Common stock price per share description	conversion of the outstanding balance at a rate of $0.50 per common share
Conversion price per share	$ 0.50
Loss on induced conversion of debt	$ 9,867,000
Secured December 2017 Convertible Note [Member] | Dwight W. Anderson [Member]
Secured debt	$ 6,000,000
Debt instrument, maturity date		Oct. 12, 2020
Secured December 2017 Convertible Note [Member] | Maximum [Member] | Dwight W. Anderson [Member]
Secured debt		$ 6,000,000
Fair Value, Inputs, Level 3 [Member]
Fair value of debt								$ 13,154,000			$ 13,154,000		$ 13,154,000		$ 21,133,000
Current interest rate													0.15
Debt instrument, prime rate													7.00%
Fair Value, Inputs, Level 3 [Member] | Variable Income Interest Rate [Member]
Current interest rate													0.070

Debt - Schedule of Debt Includi

Debt - Schedule of Debt Including Debt to Related Parties (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt, including debt due to related parties	$ 22,054
Less debt due to related parties	(7,300)	$ (37,822)
Debt	11,929	24,407
Secured Debt [Member]
Debt, including debt due to related parties	21,837	63,753
Less debt due to related parties	(7,300)	(37,822)
Less current portion	(2,608)	(1,524)
Debt	11,929	24,407
Secured Debt [Member] | Secured Promissory Notes Interest Rate at 8.00% [Member]
Debt, including debt due to related parties	3,425	12,347
Secured Debt [Member] | Secured Promissory Note Interest Rate at Prime Plus 2% Through June 2036 [Member]
Debt, including debt due to related parties	8,753	8,872
Secured Debt [Member] | Secured Promissory Note Interest Rate at 10% Through February 2018 [Member]
Debt, including debt due to related parties		3,490
Secured Debt [Member] | Secured Revolving Borrowing Interest Rate at 12.8% Through May 2018 [Member]
Debt, including debt due to related parties	2,359	1,222
Secured Debt [Member] | Senior Secured Promissory Note Interest Rate at 8% [Member]
Debt, including debt due to related parties	$ 7,300	$ 37,822

Debt - Schedule of Debt Inclu46

Debt - Schedule of Debt Including Debt to Related Parties (Details) (Parenthetical) - Secured Debt [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Secured Promissory Notes Interest Rate at 8.00% [Member]
Debt instrument, interest rate	8.00%	8.00%
Debt instrument, maturity date	Dec. 31, 2022	Dec. 31, 2022
Unamortized debt discount	$ 0	$ 103
Debt instrument, imputed interest rate	0.00%	0.00%
Secured Promissory Note Interest Rate at Prime Plus 2% Through June 2036 [Member]
Debt instrument, interest rate	7.00%
Debt instrument, maturity date	Jun. 30, 2036
Unamortized debt discount	$ 215	$ 226
Debt instrument, imputed interest rate	6.80%	6.80%
Debt instrument, payment terms	Payable monthly through June 2036	Payable monthly through June 2036
Debt instrument, prime rate	2.00%	2.00%
Secured Promissory Note Interest Rate at 10% Through February 2018 [Member]
Debt instrument, interest rate	10.00%	10.00%
Unamortized debt discount	$ 0	$ 510
Debt instrument, payment terms	through the conversion date in February 2018	through the conversion date in February 2018
Secured Revolving Borrowing Interest Rate at 12.8% Through May 2018 [Member]
Debt instrument, interest rate	12.80%	12.80%
Unamortized debt discount	$ 0	$ 54
Debt instrument, imputed interest rate	27.30%	27.30%
Debt instrument, payment terms	through May 2018	through May 2018
Senior Secured Promissory Note Interest Rate at 8% [Member]
Debt instrument, interest rate	8.00%	8.00%
Debt instrument, maturity date	Dec. 31, 2022	Dec. 31, 2022
Unamortized debt discount	$ 0	$ 2,178
Debt instrument, imputed interest rate	0.00%	0.00%

Debt - Schedule of Contractual

Debt - Schedule of Contractual Future Principal Payments (Details) $ in Thousands	Jun. 30, 2018USD ($)
Debt Disclosure [Abstract]
2,018	$ 2,491
2,019	279
2,020	296
2,021	318
2,022	7,789
Thereafter	7,606
Total future principal payments	18,779
Interest payments included in debt balance	3,275	[1]
Debt, including debt due to related parties	$ 22,054
[1]	Due to the debt extinguishment requirement, the Company has included both accrued interest and future interest in the debt balance for certain outstanding debt as further discussed in Notes 11 and 12.

Debt - Reconciliation of Intere

Debt - Reconciliation of Interest Expense for Debt Outstanding (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Expense		$ 340	$ 869	$ 1,459	$ 1,505
Related Party		17	1,085	451	2,159
Non cash		111	393	722	730
Secured Debt [Member] | October 2012 and April 2013 Secured Promissory Notes [Member]
Expense			480	213	963
Related Party
Non cash			46	42	92
Secured Debt [Member] | June 2014 Secured Promissory Notes [Member]
Expense		156	142	308	276
Related Party
Non cash		5	5	11	10
Secured Debt [Member] | December 2017 Convertible Note [Member]
Expense	[1]			529
Related Party	[1]
Non cash	[1]			322
Secured Debt [Member] | LSQ Financing [Member]
Expense		98	228	250	228
Related Party
Non cash		3	54	57	54
Secured Debt [Member] | August 2015 Senior Secured Promissory Notes [Member]
Expense
Related Party		17	1,085	451	2,159
Non cash		17	288	131	574
Secured Debt [Member] | ASC 606 Financing Component [Member]
Expense	[2]	86		159
Related Party	[2]
Non cash	[2]	$ 86		$ 159
Secured Debt [Member] | Capital Leases and Other [Member]
Expense			19		38
Related Party
Non cash
[1]	This agreement was terminated in February 2018
[2]	The Company adopted ASC 606 on January 1, 2018.

Debt - Schedule of Debt Convers

Debt - Schedule of Debt Conversion (Details) - USD ($)	Feb. 05, 2018	Feb. 28, 2018	Jun. 30, 2018	Jun. 30, 2017
Conversion of debt into equity			$ (6,000,000)
Ending balance			22,054,000
Snyder Debt Conversion [Member]
Beginning balance			12,347,000
Conversion of debt into equity			(10,000,000)
Change in discount, net			103,000
Future interest expense			975,000
Ending balance			3,425,000
Secured December 2017 Convertible Note [Member]
Beginning balance			3,490,000
Conversion of debt into equity	$ (6,000,000)	$ (6,000,000)	(6,000,000)
Change in discount, net			510,000
Increase in debt			2,000,000
Ending balance

Warrants (Details Narrative)

Warrants (Details Narrative)	6 Months Ended
	Jun. 30, 2018$ / shares
Warrants Details Narrative Abstract
Warrant weighted average remaining contractual life	2 years 7 months 24 days
Warrant exercise price	$ 1.10

Warrants - Summary of Informati

Warrants - Summary of Information about Common Stock Warrants Outstanding (Details)	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Class of Warrant or Right [Line Items]
Number of shares subject to warrant issued | shares	52,725,000
Exercise price | $ / shares	$ 1.10
June 2013 Warrants [Member]
Class of Warrant or Right [Line Items]
Issue date	2013-06
Expiration date	2023-06	[1]
Number of shares subject to warrant issued | shares	27,000
Exercise price | $ / shares	$ 8.40
August 2015 Warrants [Member]
Class of Warrant or Right [Line Items]
Issue date	2015-08
Expiration date	2023-08
Number of shares subject to warrant issued | shares	4,000,000
Exercise price | $ / shares	$ 1.91
November 2016 Warrants [Member]
Class of Warrant or Right [Line Items]
Issue date	2016-11
Expiration date	2026-11
Number of shares subject to warrant issued | shares	125,000
Exercise price | $ / shares	$ 2.38
November 2017 Warrants [Member]
Class of Warrant or Right [Line Items]
Issue date	2017-06
Expiration date	2027-06
Number of shares subject to warrant issued | shares	80,000
Exercise price | $ / shares	$ 1.10
February 2018 Warrants 1 [Member]
Class of Warrant or Right [Line Items]
Issue date	2018-02
Expiration date	2020-12
Number of shares subject to warrant issued | shares	43,350,000
Exercise price | $ / shares	$ 1
February 2018 Warrants 2 [Member]
Class of Warrant or Right [Line Items]
Issue date	2018-02
Expiration date	2020-12
Number of shares subject to warrant issued | shares	5,143,000
Exercise price | $ / shares	$ 1.25
[1]	The June 2013 Warrants expire upon the earlier to occur of (i) the date listed above; (ii) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any transfer of more than 50% of the voting power of the Company, reorganization, merger or consolidation, but excluding any merger effected exclusively for the purpose of changing the domicile of the Company); or (iii) a sale of all or substantially all of the assets of the Company unless the Company's stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for the Company's acquisition or sale or otherwise), hold at least fifty percent (50%) of the voting power of the surviving or acquiring entity.

Warrants - Summary of Informa52

Warrants - Summary of Information about Common Stock Warrants Outstanding (Details) (Parenthetical)	Jun. 30, 2018
Warrants and Rights Note Disclosure [Abstract]
Subject to acquisition or sales percentage	50.00%

Share-Based Plans (Details Narr

Share-Based Plans (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of options outstanding	7,256,000		7,256,000
Number of restricted stock units outstanding	1,049,000		1,049,000
Number of shares available for grant	6,360,000		6,360,000
Share based compensation expense recognized	$ 382	$ 587	$ 873	$ 1,169
Number of option granted to purchase common stock	2,075,000	25,000	4,471,000	56,000
Number of options weighted-average exercise price	$ 1.67	$ 1.31	$ 1.78	$ 1.75
Option to purchase of shares	3,000		3,000	14,000
Purchase shares weighted-average exercise price	$ 1.37	$ 1.21	$ 1.37	$ 1.21
Number of restricted stock units granted in lieu of incentive compensation	0		105,000
Reclass from accrued liabilities to additional paid in capital	$ 205,000		$ 205,000

Share-Based Plans - Summary of

Share-Based Plans - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units [Member]	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Shares outstanding, Beginning balance | shares	335,000
Shares outstanding, Granted | shares	497,000
Shares outstanding, Vested | shares	(394,000)
Shares outstanding, Forfeited | shares	(32,000)
Shares outstanding, Ending balance | shares	406,000
Weighted average grant date fair value, Beginning balance | $ / shares	$ 0.94
Weighted average grant date fair value, Granted | $ / shares	1.67
Weighted average grant date fair value, Vested | $ / shares	1.25
Weighted average grant date fair value, Forfeited | $ / shares	1.06
Weighted average grant date fair value, Ending balance | $ / shares	$ 1.13

Common Stock Offering (Details

Common Stock Offering (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended
	Apr. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Common Stock Offering
Number of common stock under public offering	8,366,250
Offering price per share	$ 1.65
Gross proceeds from offering	$ 13,804
Proceeds from issuance of common stock	$ 12,675	$ 34,496	$ 8,223

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	Jan. 19, 2016USD ($)ft²	Feb. 28, 2018USD ($)	Apr. 30, 2014USD ($)ft²	Sep. 30, 2013USD ($)ft²
Piper Jaffray, Inc. [Member]
Commitments And Contingencies [Line Items]
Litigation settlement		$ 2,000,000
California [Member]
Commitments And Contingencies [Line Items]
Percentage of annual increase in base rent	5.00%
Area of vacant office space subleased | ft²	3,800
Sublease description	The initial term of the sublease is for a period of approximately 43 months and commenced on February 1, 2016. The monthly base rent is approximately $5,000 per month for the first 12 months with a 5% increase each year thereafter.
Sublease term	43 months
Sub lease commenced date	Feb. 1, 2016
Sublease agreement, monthly base rent	$ 5,000
Office and Laboratory Space One [Member]
Commitments And Contingencies [Line Items]
Office facility lease agreement | ft²				27,300
Lease agreement period				60 months
Lease commenced date				Aug. 31, 2014
Monthly base rent				$ 44,000
Initial base rent term				12 months
Percentage of annual increase in base rent				3.00%
Office and Laboratory Space Two [Member]
Commitments And Contingencies [Line Items]
Office facility lease agreement | ft²			17,400
Lease agreement period			60 months
Lease commenced date			Aug. 31, 2014
Monthly base rent			$ 28,000
Percentage of annual increase in base rent			3.00%

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	Feb. 05, 2018	Dec. 31, 2015	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Aug. 20, 2015
Debt instrument principal amount, payable two years			$ 279		$ 279
Debt instrument principal amount, payable three years			296		296
Debt instrument principal amount, payable four years			318		318
Debt due to related parties			$ 7,300		$ 7,300		$ 37,822
Warrants to purchase common stock			52,725,000		52,725,000
Gain on extinguishment of debt					$ (303)
August 2015 Senior Secured Promissory Notes [Member]
Debt due to related parties			7,300		7,300		37,822
August 2015 Senior Secured Promissory Notes [Member]
Debt due to related parties			7,300		7,300
Number of shares converted amount	$ 35,000
Number of shares converted	20,000,000
Warrants to purchase common stock	4,000,000
Principal remaining outstanding	$ 5,000		5,000		5,000
Maturity date	Dec. 31, 2022
Gain on extinguishment of debt					9,622
Beneficial Owner [Member]
Affiliate revenues percent								5.00%
Beneficial Owner [Member] | August 2015 Senior Secured Promissory Notes [Member]
Debt instrument to be issued, principal amount								$ 40,000
Debt instrument, interest rate								8.00%
Debt instrument, frequency of periodic payment of interest		semi-annually
Debt instrument principal amount, payable two years								$ 10,000
Debt instrument principal amount, payable three years								10,000
Debt instrument principal amount, payable four years								$ 20,000
Debt due to related parties			7,300		7,300
Debt due to related parties, fair value			3,892		3,892		$ 21,714
Minimum cash balance not required to maintain			$ 15,000		$ 15,000

Related Party Transactions - Sc

Related Party Transactions - Schedule of Debt Conversion (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017
Beginning balance		$ 37,822
Conversion of debt into equity		(6,000)
Ending balance		7,300
August 2015 Senior Secured Promissory Notes [Member]
Beginning balance		37,822
Conversion of debt into equity		(35,000)
Change in discount, net		2,178
Accrued and future interest expense	[1]	2,300
Ending balance		$ 7,300
[1]	Includes reclassification of $498 thousand in accrued interest to debt.

Related Party Transactions - 59

Related Party Transactions - Schedule of Debt Conversion (Details) (Parenthetical) $ in Thousands	Jun. 30, 2018USD ($)
August 2015 Senior Secured Promissory Notes [Member]
Accrued interest	$ 498

Equity Offering and Related T60

Equity Offering and Related Transactions (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Feb. 05, 2018	Apr. 30, 2018	Feb. 28, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Warrant to purchase of common stock				52,725,000		52,725,000
Gross proceeds from common stock		$ 12,675				$ 34,496	$ 8,223
Debt conversion amount						6,000
Interest expenses				$ 340	$ 869	$ 1,459	$ 1,505
Number of common stock under public offering		8,366,250
Offering price per share		$ 1.65
Gross proceeds from offering		$ 13,804
Securities Purchase Agreement [Member]
Number of common stock shares issued			70,514,000
Debt conversion amount			$ 51,000
Value of financing transaction to common shares	$ 53,385
Warrant issued amount	10,928
Gross proceeds from offering			$ 24,000
Securities Purchase Agreement [Member] | December 2017 Convertible Note [Member]
Debt conversion amount	6,000
Net proceeds from private placement	27,300
Securities Purchase Agreement [Member] | October 2012 Secured Promissory Notes [Member]
Debt conversion amount	10,000
Securities Purchase Agreement [Member] | April 2013 Secured Promissory Notes [Member]
Debt conversion amount	10,000
Securities Purchase Agreement [Member] | Senior Secured Promissory Notes [Member]
Debt conversion amount	$ 35,000
Private Placement [Member]
Number of common stock shares issued	70,514,000
Warrant to purchase of common stock	48,493,000
Debt conversion amount	$ 2,180
Interest expenses	$ 2,700
Private Placement [Member] | Securities Purchase Agreement [Member]
Number of common stock shares issued	44,000,000
Warrant to purchase of common stock	41,333,000
Gross proceeds from common stock	$ 30,000
Debt converted into shares	25,714,000
Increase in Additional paid in capital	$ 64,312
Increase in common stock	$ 1
Private Placement [Member] | Debt Agreement Amendments [Member]
Number of common stock shares issued	25,714,000
Warrant to purchase of common stock	5,143,000
Private Placement [Member] | Placement Agent Fee [Member]
Number of common stock shares issued	800,000
Warrant to purchase of common stock	2,017,000