Kips Bay Medical (KIPS) 10-Q 6 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 27, 2015	Aug. 04, 2015
Entity Registrant Name	Kips Bay Medical, Inc.
Entity Central Index Key	1,460,198
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		33,014,079
Document Type	10-Q
Document Period End Date	Jun. 27, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false

Balance Sheets (Current Period

Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 27, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 1,903,000	$ 3,138,000
Short-term investments, net	50,000	457,000
Accounts receivable	19,000	8,000
Inventories, net	0	673,000
Prepaid expenses and other current assets	174,000	109,000
Total current assets	2,146,000	4,385,000
Property and equipment, net	16,000	353,000
Total assets	2,162,000	4,738,000
Current liabilities:
Accounts payable	2,000	78,000
Accrued liabilities	466,000	355,000
Total current liabilities	$ 468,000	$ 433,000
Commitments and contingencies (Note 10)
Stockholders’ equity:
Undesignated stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding as of June 27, 2015 and December 31, 2014, respectively	$ 0	$ 0
Common stock, $0.01 par value, 90,000,000 shares authorized, 33,014,079 issued and outstanding as of June 27, 2015 and December 31, 2014, respectively	330,000	330,000
Additional paid-in capital	45,573,000	45,492,000
Accumulated deficit	(44,209,000)	(41,517,000)
Total stockholders’ equity	1,694,000	4,305,000
Total liabilities and stockholders’ equity	$ 2,162,000	$ 4,738,000

Balance Sheets (Current Period3

Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 27, 2015	Dec. 31, 2014
Undesignated stock, par value (in dollars per share)	$ 0.01	$ 0.01
Undesignated stock, shares authorized (in shares)	10,000,000	10,000,000
Undesignated stock, shares issued (in shares)	0	0
Undesignated stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	90,000,000	90,000,000
Common stock, issued (in shares)	33,014,079	33,014,079
Common stock, outstanding (in shares)	33,014,079	33,014,079

Statements of Comprehensive Los

Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Net sales	$ 16	$ 31	$ 24	$ 57
Cost of sales	(8)	(14)	(12)	(26)
Gross profit	8	17	12	31
Operating expenses
Research and development	433	652	819	1,292
Selling, general and administrative	444	$ 795	907	$ 1,609
Impairment of manufacturing equipment and inventory	979		979
Operating loss	$ (1,848)	$ (1,430)	(2,693)	$ (2,870)
Interest income		2	1	4
Net loss	$ (1,848)	$ (1,428)	$ (2,692)	$ (2,866)
Basic and diluted net loss per share (in dollars per share)	$ (0.06)	$ (0.04)	$ (0.08)	$ (0.09)
Weighted average shares outstanding – basic and diluted (in shares)	33,014,079	33,014,079	33,014,079	31,939,353
Comprehensive loss	$ (1,848)	$ (1,428)	$ (2,692)	$ (2,866)

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014
Cash flows from operating activities:
Net loss	$ (2,692,000)	$ (2,866,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment of manufacturing equipment and inventory	979,000
Depreciation expense	17,000	$ 26,000
Stock-based compensation	81,000	$ 221,000
Loss on disposal of assets	$ 2,000
Amortization of premium on short-term investments		$ 14,000
Changes in operating assets and liabilities:
Accounts receivable	$ (11,000)	14,000
Inventories	12,000	66,000
Prepaid expenses and other current assets	(65,000)	(111,000)
Accounts payable	(76,000)	(113,000)
Accrued liabilities	111,000	159,000
Net cash used in operating activities	(1,642,000)	(2,590,000)
Cash flows from investing activities:
Proceeds from sales and maturities of short-term investments	$ 406,000	2,569,000
Purchases of short-term investments		$ (1,216,000)
Proceeds from the sale of property and equipment	$ 1,000
Purchases of property and equipment		$ (2,000)
Net cash provided by investing activities	$ 407,000	1,351,000
Cash flows from financing activities:
Proceeds from sale of common stock in a public offering, net of issuance costs of $581		3,643,000
Net cash provided by financing activities		3,643,000
Net (decrease) increase in cash and cash equivalents	$ (1,235,000)	2,404,000
Cash and cash equivalents at beginning of period	3,138,000	2,316,000
Cash and cash equivalents at end of period	$ 1,903,000	$ 4,720,000

Statements of Cash Flows (Unau6

Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($)	6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014
Issuance costs		$ 581,000

Note 1 - Business

Note 1 - Business	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Business Kips Bay Medical, Inc. (“Kips Bay,” the “Company,” “we”, “us” or “our”) is a medical device company that was focused on developing, manufacturing and commercializing our external saphenous vein support technology, or eSVS ® We received authorization to apply the CE Mark to our eSVS Mesh in May 2010 and began marketing and commenced shipments in select international markets in June 2010. Sales of our eSVS Mesh were limited and we believe were adversely impacted by the limited amount of clinical data on the performance of the eSVS Mesh, limited reimbursements available to hospitals and, during the past several years, the effects of economic difficulties in certain European countries. For the past three years, we conducted the eMESH I eMESH I Subsequent Events Proposed Voluntary Dissolution and Liquidation On June 26, 2015, in light of the termination of our feasibility trial, the results of our review of available strategic alternatives and our cash position, the Board of Directors of the Company unanimously approved a plan of dissolution and liquidation of the Company (the “Plan of Dissolution and Liquidation”). Of the strategic alternatives available to the Company, the Board of Directors determined that it is in the best interests of the Company and our stockholders to dissolve the Company, wind up our operations and return remaining cash, if any, to our stockholders. The Board of Directors made this decision after completing an exhaustive evaluation of various strategic alternatives available to the Company for enhancing stockholder value, including but not limited to, continued execution of our business plan and further modification of our eSVS Mesh device and implant technique; the sale of the Company or our assets, including our intellectual property portfolio; partnering or other collaboration agreements; and a merger, reverse merger or other strategic transaction. At our upcoming 2015 Annual Meeting of Stockholders (the “2015 Annual Meeting”), currently scheduled for September 22, 2015, stockholders of record as of July 27, 2015 will be asked to approve, among other proposals, the voluntary dissolution and liquidation of the Company pursuant to the Plan of Dissolution and Liquidation.

Note 2 - Risks and Uncertaintie

Note 2 - Risks and Uncertainties	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	2. Risks and Uncertainties On June 26, 2015, the Board of Directors terminated the eMESH I Subsequent Events Although the Board of Directors has recommended that our stockholders approve the Plan of Dissolution and Liquidation at the upcoming 2015 Annual Meeting, no assurance can be provided that our stockholders will approve the Plan of Dissolution and Liquidation. If the Plan of Dissolution and Liquidation is approved by our stockholders, we plan to file a Certificate of Dissolution with the Delaware Secretary of State dissolving the Company and proceed with winding down our operations. The Board of Directors will have the authority to and may modify the Plan of Dissolution and Liquidation at any time, notwithstanding stockholder approval, should a superior alternative arise before the effective time of filing the Certificate of Dissolution with the Delaware Secretary of State and the Board of Directors determines that such action would be in the best interests of the Company and stockholders. Moreover, prior to the effective time of the filing of the Certificate of Dissolution, the Board of Directors may abandon the Plan of Dissolution and Liquidation altogether without further stockholder approval. We incurred a net loss of $2.7 million and negative cash flows from operating activities of $1.6 million for the six months ended June 27, 2015, which is down from a net loss of $2.9 million and negative cash flows from operating activities of $2.6 million for the six months ended June 28, 2014. Our net loss for the six months ended June 27, 2015 includes a $1.0 million non-cash charge for the impairment of manufacturing equipment and inventory related to our eSVS Mesh. We expect to continue to incur substantial losses and to generate negative net cash flows from operating activities as we pursue stockholder approval of the Plan of Dissolution and Liquidation. As of June 27, 2015, we did not have any existing credit facilities under which we could borrow funds. We historically have financed our operations principally from the sale of convertible debt and equity securities. If our stockholders do not approve the Plan of Dissolution and Liquidation, it is highly unlikely that we would be able to obtain additional financing under commercially reasonable terms and conditions, or at all, to fund the activities required to entertain other strategic alternatives for the Company and it is highly likely that we would be forced at that time to seek an informal dissolution and liquidation of the Company or protection under the U.S. federal bankruptcy laws. All of these factors raise substantial doubt about our ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Note 3 - Basis of Presentation

Note 3 - Basis of Presentation	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Basis of Presentation and Significant Accounting Policies [Text Block]	3. Basis of Presentation We have prepared the accompanying unaudited interim financial statements in accordance with accounting principles generally accepted in the United States (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. These interim financial statements reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to present fairly our financial position, results of operations and cash flows for the interim periods presented. Our fiscal year ends on December 31. The balance sheet as of December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. These interim financial statements should be read in conjunction with the annual financial statements and the notes thereto included in our most recent annual report on Form 10-K for the fiscal year ended December 31, 2014, as filed with the SEC on March 12, 2015. The nature of our business is such that the results of any interim period may not be indicative of the results to be expected for the entire year. Under the Financial Accounting Standards Board, or FASB, Accounting Standards Update 2013-07, Liquidation Basis of Accounting Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements and accompanying notes. Actual results could differ from those estimates. Recently Issued Accounting Pronouncement In May 2014, the FASB issued Revenue from Contracts with Customers

Note 4 - Liquidity and Manageme

Note 4 - Liquidity and Management's Plans	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Liquidity and Managements Plans [Text Block]	4. Liquidity and Management’s Plans As of June 27, 2015, we had $2.0 million of cash, cash equivalents and short-term investments. We believe our cash, cash equivalents and short-term investments as of June 27, 2015 will be sufficient to pay off all of our current and anticipated liabilities and to conduct an orderly wind down of our operations, although no assurance can be provided that we have sufficient cash resources to do so. Subsequent to our January 2014 public offering of our common stock, we have been unable to raise additional funds through various sources, such as equity and debt financings, or through strategic collaborations and license agreements. We can give no assurances that we will be able to secure additional sources of funds in the event we need them, or if such funds are available to us, that such additional financing will be sufficient to meet our needs or on terms acceptable to us. Prior to issuing any capital stock we must obtain the consent of Kips Bay Investments, LLC, one of our significant stockholders, and no assurance can be provided that Kips Bay Investments, LLC would provide such consent, which could limit our ability to raise additional financing. Although we entered into a bridge financing arrangement in March 2015, we believe it is highly unlikely that we will be able to access funds under this arrangement in light of the disappointing clinical results we have received and the termination of our eMESH I Stockholders’ Equity If our stockholders do not approve the Plan of Dissolution and Liquidation, it is highly unlikely that we would be able to obtain additional financing under commercially reasonable terms and conditions, or at all, to fund the activities required to entertain other strategic alternatives for our company and it is highly likely that we would be forced at that time to seek an informal dissolution and liquidation of our company or protection under the U.S. federal bankruptcy laws.

Note 5 - Inventories

Note 5 - Inventories	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	5. Inventories Inventories include purchased materials, labor and manufacturing overhead and are stated at the lower of cost (first-in, first-out method) or market. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating net realizable value. In July 2015, we voluntarily surrendered our CE Mark, terminated all distributor relationships and ceased all efforts to sell the eSVS Mesh. As a result, we are unable to promote or sell the eSVS Mesh device and due to the custom nature of our component inventory, we do not believe that we will be able to realize any value in the disposition of our inventory. We recorded a valuation allowance of $661,000 as of June 27, 2015, which reduced our net inventory carrying value and cost basis to zero. See note 15 entitled “ Subsequent Events Inventories, net, consist of the following (in thousands): June 27, 2015 December 31, 2014 Raw materials $ 80 $ 80 Work in process 304 306 Finished goods 277 287 Reserve for valuation allowance (661 ) — Total $ — $ 673

Note 6 - Net Loss per Share

Note 6 - Net Loss per Share	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	6. Net Loss p er Share The following table summarizes our calculation of net loss per common share for each of the periods presented (in thousands, except share and per share data): Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Net loss $ (1,848 ) $ (1,428 ) (2,692 ) $ (2,866 ) Weighted average shares outstanding—basic and diluted 33,014,079 33,014,079 33,014,079 31,939,353 Basic and diluted net loss per share $ (0.06 ) $ (0.04 ) (0.08 ) $ (0.09 ) The following outstanding potential common shares are not included in diluted net loss per share calculations as their effects would have been anti-dilutive: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Employee and non-employee stock options 2,396,250 1,936,750 2,396,250 1,936,750 Common shares issuable to underwriters under option purchase agreements 865,625 865,625 865,625 865,625 Common shares issuable to outside consultant under common stock purchase warrant 75,000 75,000 75,000 75,000

Note 7 - Cash, Cash Equivalents

Note 7 - Cash, Cash Equivalents and Short-Term Investments	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Cash, Cash Equivalents, and Short-term Investments [Text Block]	7. Cash, Cash Equivalents and Short-Term Investments Cash, cash equivalents and short-term investments consist of the following (in thousands): June 27, 2015 December 31 , 2014 Cash and cash equivalents Cash $ 467 $ 508 Money market funds 1,436 2,379 Bank certificate of deposit — 251 Total cash and cash equivalents $ 1,903 $ 3,138 Short-term investments Bank certificates of deposit $ 50 $ 50 Corporate debt securities — 407 Total short-term investments $ 50 $ 457

Note 8 - Fair Value of Financia

Note 8 - Fair Value of Financial Instruments	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Fair Value Disclosures [Text Block]	8 . Fair Value of Financial Instruments We apply the provisions of FASB Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between knowledgeable and willing market participants. Valuation techniques used to measure fair value, as required by ASC Topic 820, must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The three levels of input are: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; 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—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our cash, cash equivalents and short-term investments consist of bank deposits, bank certificates of deposit, money market funds and, as of December 31, 2014, corporate debt securities. Our money market funds are traded in active markets and are recorded at fair value based upon quoted market prices. We determine the fair value of our bank certificates of deposit, commercial paper and corporate debt securities using other observable inputs which may include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets which are not active, other quoted prices which are directly observable and/or market inputs that are not directly observable, but are derived from or corroborated by other observable market data. Accordingly, we have classified the valuation of these securities as Level 2. Other financial instruments, including accounts receivable, accounts payable and accrued liabilities, are carried at cost, which we believe approximates fair value because of the short-term maturity of these instruments. A summary of financial assets measured at fair value on a recurring basis at June 27, 2015 and December 31, 2014 is as follows (in thousands): June 27, 2015 December 31, 2014 Total Quoted Prices Other Observable Inputs (Level 2) Significant Total Quoted Prices Other Observable Inputs (Level 2) Significant Money market funds $ 1,436 $ 1,436 $ — $ — $ 2,379 $ 2,379 $ — $ — Bank certificates of deposit 50 — 50 — 301 301 — Corporate debt securities — — — — 407 407 — Total $ 1,486 $ 1,436 $ 50 $ — $ 3,087 $ 2,379 $ 708 $ — As of June 27, 2015 and December 31, 2014, the remaining contractual maturities of all short-term investments were less than six months. Due to the short-term nature of our investments, amortized cost approximates fair value for all investments.

Note 9 - Property and Equipment

Note 9 - Property and Equipment	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	9. Property and Equipment We periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful life of property and equipment or whether the remaining balance of property and equipment, or other long-lived assets, should be evaluated for possible impairment. If impairment is indicated, we write down the carrying value of the asset to its estimated fair value. We primarily employ two methodologies for determining the fair value of a long-lived asset: (i) the amount at which the asset could be bought or sold in a current transaction between willing parties or (ii) the present value of estimated expected future cash flows grouped at the lowest level for which there are identifiable independent cash flows. In July 2015, we voluntarily surrendered our CE Mark, terminated all distributor relationships and ceased all efforts to sell our eSVS Mesh. As a result, we are unable to promote or sell our eSVS Mesh device. We evaluated the recoverability of our manufacturing equipment, which is entirely related to the production of our eSVS Mesh, and determined that these assets were impaired. Due to the custom nature of our manufacturing equipment, our inability to secure a strategic partner or buyer, we do not believe that we will be able to realize any significant value in the disposition of our manufacturing equipment. We recorded an impairment charge of $318,000, which represented the full net book value of these assets, as of June 27, 2015. See note 15 entitled “ Subsequent Events Property and equipment, net, consists of the following (in thousands): June 27, 2015 December 31, 2014 Furniture and fixtures $ 58 $ 58 Machinery, equipment and tooling 18 505 Computers and software 84 193 Leasehold improvements 52 90 Accumulated depreciation (196 ) (493 ) Property and equipment, net $ 16 $ 353 Depreciation expense for the three months ended June 27, 2015 and June 28, 2014 was $17,000 and $26,000, respectively.

Note 10 - Commitments and Conti

Note 10 - Commitments and Contingencies	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	10. Commitments and Contingencies Royalty Payments The core intellectual property relating to our eSVS Mesh was acquired from Medtronic, Inc. pursuant to an Assignment and License Agreement dated October 9, 2007. As consideration for the assignment of such intellectual property, we have agreed to pay Medtronic, Inc. a royalty of 4% on sales of our eSVS Mesh. Royalty obligations are payable 60 days after the end of each fiscal quarter, are recorded as a component of our cost of sales and will terminate upon the earlier of the expiration of all of the patents and patent applications acquired from Medtronic, Inc., or when the aggregate royalties paid reaches $100.0 million. We recognized royalty expense of $1,000 and $2,000 for the six months ended June 27, 2015 and June 28, 2014, respectively. Villafaña Employment Agreement In March 2015, we entered into a new employment agreement with Manny Villafaña, Chairman and Chief Executive Officer of the Company. The new employment agreement became effective on July 1, 2015 and replaced in its entirety our prior employment agreement with Mr. Villafaña dated July 25, 2012, which , by its terms , expired on July 1, 2015. The new employment agreement will automatically terminate on June 30, 2017. The new employment agreement contemplates a succession plan for Mr. Villafaña and provides that Mr. Villafaña will continue in his current positions as our Chairman of the Board, Chief Executive Officer and President, unless and until such time as the Board of Directors notifies Mr. Villafaña of his transition to the position of Executive Chairman of the Board. The new employment agreement provides for an annual base salary equal to Mr. Villafaña’s recently reduced salary of $215,000, provided, however, that in the event Mr. Villafaña becomes Executive Chairman, we will pay Mr. Villafaña (i) a base salary of $150,500 per year for the first 12 months that Mr. Villafaña serves as Executive Chairman, and (ii) a base salary of $107,500 per year thereafter until the earlier of June 30, 2017 or the date of termination, in either event prorated to the amount of time in each period actually spent employed as Executive Chairman. In the event that the new employment agreement is terminated by us without cause, upon Mr. Villafaña’s death, or by Mr. Villafaña for good reason, Mr. Villafaña will be entitled to severance pay comprised of Mr. Villafaña’s ending base salary through June 30, 2017 and the pro-rata amount of any annual target incentive bonus that Mr. Villafaña would have been paid had he remained employed. These payments are conditioned upon our receipt of a separation agreement and a release of claims from Mr. Villafaña and Mr. Villafaña’s agreement to provide consulting and advisory services to us without additional pay, from time to time as needed by us during the severance period. In the event that the new employment agreement is terminated by us for cause, by us upon a Board determination to cease operations, upon Mr. Villafaña’s disability, by Mr. Villafaña without good reason, or automatically on June 30, 2017, Mr. Villafaña will not be entitled to any severance or additional payments or benefits.

Note 11 - Accrued Liabilities

Note 11 - Accrued Liabilities	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	11 . Accrued Liabilities Accrued liabilities consist of the following (in thousands): June 27, 2015 December 31, 2014 Clinical trial related expense $ 318 $ 256 Professional services 89 54 Payroll and related expenses 45 36 Other 14 9 Accrued liabilities $ 466 $ 355

Note 12 - Stockholders' Equity

Note 12 - Stockholders' Equity	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	12 . Stockholders’ Equity Bridge Financing On March 24, 2015, we entered into a securities purchase agreement with several investors, including Manny Villafaña, our Chairman and Chief Executive Officer, and Kips Bay Investments, LLC, one of our principal stockholders, pursuant to which we agreed to sell and the investors agreed to purchase in a private placement up to $3.25 million in shares of our common stock in four separate equal tranches. Each of the tranches was subject to a condition that the clinical data received then to date by us from the eMESH I eMESH I . We agreed to use the net proceeds from the offering for working capital and general corporate purposes, including primarily funding the process of seeking regulatory approval to market the eSVS Mesh in the United States and abroad, including continuing human clinical trials. We further agreed not to use any of the net proceeds to hire any sales personnel , without the consent of Kips Bay Investments, LLC, and to limit our cash operating expenses (other than expenses directly attributable to, and reasonably necessary for the feasibility trial or pivotal trial and certain other specified expenses) to no more than an average of $208,000 per month, evaluated on a three-month rolling average basis, commencing on February 1, 2015, and continuing until the completion by us of an additional financing in an amount equal to at least $3.0 million. We also agreed to increase the size of the Board of Directors and provide Kips Bay Investments, LLC with the right to designate two individuals for election to the Board of Directors (in addition to its current right to have two observers) and the investors party to the securities purchase agreement agreed to vote all of their shares of our common stock in favor of the election of such two director designees. To date, Kips Bay Investments, LLC has not designated two director nominees. Common Stock Offering On January 29, 2014, we completed a public offering of 6,035,000 shares of our common stock at a purchase price of $0.70 per share. All shares sold in the offering were newly issued by us. Gross proceeds from the offering were $4.2 million. After deducting the underwriting discounts and commissions and other expenses, we realized net proceeds of approximately $3.6 million. As additional consideration, we issued warrants to purchase an aggregate of 262,500 shares of our common stock to the underwriter and its designees. The warrants have a five-year term, an exercise price of $0.875 per share, or 125% of the purchase price of shares sold in the offering, and became exercisable on January 23, 2015, one year after the effective date of the offering.

Note 13 - Stock-Based Compensat

Note 13 - Stock-Based Compensation	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	1 3 . Stock-Based Compensation 2013 Equity Incentive Plan The Kips Bay Medical, Inc. 2013 Equity Incentive Plan (the “2013 Plan”) was adopted by the Board of Directors in March 2013 and approved by our stockholders at our annual meeting of stockholders held on May 22, 2013. The 2013 Plan permits the granting of incentive and non-statutory stock options, restricted stock, stock appreciation rights, performance units, performance shares and other stock awards to eligible employees, directors and consultants. We grant options to purchase shares of common stock under the 2013 Plan at no less than the fair market value of the underlying common stock as of the date of grant. Options granted under the 2013 Plan have a maximum term of ten years and generally vest over one to four years for employees, at the rate of 25% of total shares underlying the option each year, and over one to three years for non-employees. Under the 2013 Plan, a total of 2,500,000 shares of common stock have been reserved for issuance. As of June 27, 2015, options to purchase 1,215,000 shares of common stock were outstanding under the 2013 Plan. 2007 Long-Term Incentive Plan The Kips Bay Medical, Inc. 2007 Long-Term Incentive Plan (the “2007 Plan”) was adopted by the Board of Directors in July 2007. In conjunction with stockholder approval of the 2013 Plan, the Board terminated the 2007 Plan, although awards outstanding under the 2007 Plan will remain outstanding in accordance with and pursuant to the terms thereof. Options granted under the 2007 Plan have terms similar to those used under the 2013 Plan. As of June 27, 2015, options to purchase an aggregate of 1,181,250 shares of our common stock and restricted stock awards for 20,000 shares of our common stock remained outstanding under the 2007 Plan. The amount of stock-based compensation recognized is based on the value of the portion of awards that are ultimately expected to vest. Guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term “forfeitures” is distinct from “cancellations” or “expirations” and represents only the unvested portion of a surrendered option. We will re-evaluate this estimate periodically and adjust the forfeiture rate on a prospective basis as necessary. Ultimately, the actual expense recognized over the vesting period will only be for those shares that actually vest. Stock-based compensation expense for each of the periods presented is as follows (in thousands): Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Research and development $ 20 $ 32 $ 27 $ 69 Selling, general and administrative 17 68 54 152 Total stock-based compensation $ 37 $ 100 $ 81 $ 221 A summary of option activity for the three months ended June 27, 2015 is as follows: Shares Underlying Options Weighted Average Exercise Price Per Share Options outstanding at December 31, 2014 2,114,250 $ 1.98 Granted 540,000 0.21 Exercised — — Forfeitures (171,749 ) 0.85 Cancelled (86,251 ) 1.77 Options outstanding at June 27, 2015 2,396,250 $ 1.62 Current year grants include options to purchase an aggregate of 450,000 shares of our common stock that were granted to our officers and certain employees to compensate them, in part, for temporary decreases in their base salaries in connection with our January 2015 reorganization. Restricted Stock A wards A summary of restricted stock award activity is as follows: Number of Shares Weighted Average Fair Value Per Share Awards outstanding at December 31, 2014 62,500 $ 3.67 Granted — — Vested 42,500 4.81 Cancelled — — Awards outstanding at June 27, 2015 20,000 $ 1.23 The fair value of each restricted stock award is equal to the fair market value of our common stock at the date of grant. Restricted stock awards vest over a period of time that varies with the purpose of the individual award. As of June 27, 2015, outstanding awards vest over a period of three years. The estimated fair value of restricted stock awards, including the effect of estimated forfeitures, is recognized on a straight-line basis over the restricted stock’s vesting period. We recorded stock-based compensation expense for restricted stock grants of $34,000 and $102,000 for the six months ended June 27, 2015 and June 28, 2014, respectively. Other Stock-Based Payments In conjunction with the completion of our public offering in January 2014, we issued to the underwriter and its designees warrants to purchase an aggregate of 262,500 shares of our common stock at an exercise price of $0.875 per share, or 125% of the purchase price of shares sold in the public offering. These warrants have a five-year term and became exercisable on January 23, 2015, one year after the effective date of the public offering. These warrants were not issued under the 2013 Plan. See note 12 entitled “ Stockholders’ Equity

Note 14 - Employee Benefit Plan

Note 14 - Employee Benefit Plan	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	14. Employee Benefit Plan We sponsor an employee 401(k) retirement savings plan. We recorded contribution expenses of $18,000 and $32,000 for the six months ended June 27, 2015 and June 28, 2014, respectively.

Note 15 - Subsequent Events

Note 15 - Subsequent Events	6 Months Ended
	Jun. 27, 2015
Notes to Financial Statements
Subsequent Events [Text Block]	15. Subsequent Events On June 26, 2015, we terminated our eMESH I Considering the termination of our feasibility trial and intent to wind down our operations, we also implemented further cost-reduction measures, including additional staff terminations, beginning in our fiscal third quarter of this year. In July 2015, we voluntarily surrendered our CE Mark, terminated all distributor relationships and ceased all efforts to sell the eSVS Mesh. Villafaña Employment Agreement On July 20, 2015, we entered into a letter agreement with Mr. Villafaña amending his employment agreement in light of the then recent decision by the Board of Directors of the Company to seek stockholder approval of a voluntary dissolution and liquidation of the Company pursuant to the Plan of Dissolution and Liquidation. The material terms of the letter agreement with Mr. Villafaña are as follows: (1) Mr. Villafaña will continue in his present full time positions of Chairman of the Board, Chief Executive Officer and President until the completion of the 2015 Annual Meeting; (2) after completion of the 2015 Annual Meeting, Mr. Villafaña will resign from all positions with the Company including as a director, officer and employee of the Company effective immediately; (3) so long as Mr. Villafaña remains Chairman of the Board of Directors, Chief Executive Officer and President of the Company, the Company will pay him his current base salary of $215,000 per year until July 31, 2015 and thereafter a base salary of $100,000 per year until the date of the 2015 Annual Meeting; and (4) Mr. Villafaña will not be paid any severance upon the termination of his employment with the Company. Kellen Employment Agreement We entered into an employment agreement with Scott Kellen, our Chief Financial Officer, Chief Operating Officer and Secretary, on February 8, 2010. Mr. Kellen’s employment agreement provided for an annual base salary, which was subsequently increased to $230,625 effective June 25, 2013. On January 5, 2015, Mr. Kellen’s employment agreement was amended to temporarily reduce his base salary to $200,000 as part of cost-savings measures to reduce our monthly burn rate. On July 20, 2015, we entered into a letter agreement with Mr. Kellen amending his employment agreement in light of the then recent decision by the Board of Directors of the Company to seek stockholder approval of a voluntary dissolution and liquidation of the Company pursuant to the Plan of Dissolution and Liquidation. The material terms of the letter agreement with Mr. Kellen are as follows: (1) Mr. Kellen will continue in his present full time positions of Chief Operating Officer and Chief Financial Officer until the completion of the 2015 Annual Meeting; (2) after completion of the 2015 Annual Meeting, Mr. Kellen will assume the position of Chief Executive Officer of the Company in addition to his current positions, and will become a member of the Board effective immediately, subject to approval by the Board; (3) Mr. Kellen will remain an employee of the Company until 30 days after the date of the 2015 Annual Meeting, after which time he will become an independent consultant to the Company; (4) commencing on the date of the 2015 Annual Meeting and assuming the stockholders of the Company approve the dissolution and liquidation, Mr. Kellen's duties and responsibilities as an employee of the Company and the services he will provide as an independent consultant will include the winding down of the Company's business and operations; (5) so long as Mr. Kellen remains an employee of the Company, we will pay him his current base salary of $200,000 per year and commencing on the date he becomes an independent consultant to the Company, he will be paid a consulting fee of $100 per hour for each hour of consulting services performed for the Company; (6) upon the termination of his employment with the Company and the execution of a standard and customary separation agreement and release, Mr. Kellen will receive a severance payment from the Company in an amount equal to $19,231, representing one week of pay for each full year of employment with the Company, payable in accordance with the terms of the separation agreement; and (7) we will pay Mr. Kellen a retention payment in the amount of $50,000 provided he remains actively employed with the Company until the 30th day after the date of the 2015 Annual Meeting, substantially completes the winding down of the Company's business and operations and otherwise satisfies the terms of his letter agreement.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 27, 2015
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements and accompanying notes. Actual results could differ from those estimates.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Pronouncement In May 2014, the FASB issued Revenue from Contracts with Customers

Note 5 - Inventories (Tables)

Note 5 - Inventories (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]	June 27, 2015 December 31, 2014 Raw materials $ 80 $ 80 Work in process 304 306 Finished goods 277 287 Reserve for valuation allowance (661 ) — Total $ — $ 673

Note 6 - Net Loss per Share (Ta

Note 6 - Net Loss per Share (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Net loss $ (1,848 ) $ (1,428 ) (2,692 ) $ (2,866 ) Weighted average shares outstanding—basic and diluted 33,014,079 33,014,079 33,014,079 31,939,353 Basic and diluted net loss per share $ (0.06 ) $ (0.04 ) (0.08 ) $ (0.09 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Employee and non-employee stock options 2,396,250 1,936,750 2,396,250 1,936,750 Common shares issuable to underwriters under option purchase agreements 865,625 865,625 865,625 865,625 Common shares issuable to outside consultant under common stock purchase warrant 75,000 75,000 75,000 75,000

Note 7 - Cash, Cash Equivalen25

Note 7 - Cash, Cash Equivalents and Short-Term Investments (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Cash, Cash Equivalents and Investments [Table Text Block]	June 27, 2015 December 31 , 2014 Cash and cash equivalents Cash $ 467 $ 508 Money market funds 1,436 2,379 Bank certificate of deposit — 251 Total cash and cash equivalents $ 1,903 $ 3,138 Short-term investments Bank certificates of deposit $ 50 $ 50 Corporate debt securities — 407 Total short-term investments $ 50 $ 457

Note 8 - Fair Value of Financ26

Note 8 - Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	June 27, 2015 December 31, 2014 Total Quoted Prices Other Observable Inputs (Level 2) Significant Total Quoted Prices Other Observable Inputs (Level 2) Significant Money market funds $ 1,436 $ 1,436 $ — $ — $ 2,379 $ 2,379 $ — $ — Bank certificates of deposit 50 — 50 — 301 301 — Corporate debt securities — — — — 407 407 — Total $ 1,486 $ 1,436 $ 50 $ — $ 3,087 $ 2,379 $ 708 $ —

Note 9 - Property and Equipme27

Note 9 - Property and Equipment (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Property, Plant and Equipment [Table Text Block]	June 27, 2015 December 31, 2014 Furniture and fixtures $ 58 $ 58 Machinery, equipment and tooling 18 505 Computers and software 84 193 Leasehold improvements 52 90 Accumulated depreciation (196 ) (493 ) Property and equipment, net $ 16 $ 353

Note 11 - Accrued Liabilities (

Note 11 - Accrued Liabilities (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	June 27, 2015 December 31, 2014 Clinical trial related expense $ 318 $ 256 Professional services 89 54 Payroll and related expenses 45 36 Other 14 9 Accrued liabilities $ 466 $ 355

Note 13 - Stock-Based Compens29

Note 13 - Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 27, 2015
Notes Tables
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Research and development $ 20 $ 32 $ 27 $ 69 Selling, general and administrative 17 68 54 152 Total stock-based compensation $ 37 $ 100 $ 81 $ 221
Schedule of Stock Options Roll Forward [Table Text Block]	Shares Underlying Options Weighted Average Exercise Price Per Share Options outstanding at December 31, 2014 2,114,250 $ 1.98 Granted 540,000 0.21 Exercised — — Forfeitures (171,749 ) 0.85 Cancelled (86,251 ) 1.77 Options outstanding at June 27, 2015 2,396,250 $ 1.62
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	Number of Shares Weighted Average Fair Value Per Share Awards outstanding at December 31, 2014 62,500 $ 3.67 Granted — — Vested 42,500 4.81 Cancelled — — Awards outstanding at June 27, 2015 20,000 $ 1.23

Note 2 - Risks and Uncertaint30

Note 2 - Risks and Uncertainties (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Net Income (Loss) Available to Common Stockholders, Basic	$ (1,848)	$ (1,428)	$ (2,692)	$ (2,866)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations			(1,642)	$ (2,590)
Asset Impairment Charges	$ 979		$ 979

Note 4 - Liquidity and Manage31

Note 4 - Liquidity and Management's Plans (Details Textual) $ in Millions	Jun. 27, 2015USD ($)
Cash, Cash Equivalents, and Short-term Investments	$ 2

Note 5 - Inventories (Details T

Note 5 - Inventories (Details Textual) - USD ($)	Jun. 27, 2015	Dec. 31, 2014
Inventory Valuation Reserves	$ 661,000
Inventory, Net	$ 0	$ 673,000

Note 5 - Inventories - Inventor

Note 5 - Inventories - Inventories (Details) - USD ($)	Jun. 27, 2015	Dec. 31, 2014
Raw materials	$ 80,000	$ 80,000
Work in process	304,000	306,000
Finished goods	277,000	$ 287,000
Reserve for valuation allowance	(661,000)
Total	$ 0	$ 673,000

Note 6 - Net Loss per Share - C

Note 6 - Net Loss per Share - Calculation of Net Loss per Common Share (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Net Income (Loss) Available to Common Stockholders, Basic	$ (1,848)	$ (1,428)	$ (2,692)	$ (2,866)
Weighted average shares outstanding—basic and diluted (in shares)	33,014,079	33,014,079	33,014,079	31,939,353
Basic and diluted net loss per share (in dollars per share)	$ (0.06)	$ (0.04)	$ (0.08)	$ (0.09)

Note 6 - Net Loss per Share - A

Note 6 - Net Loss per Share - Antidilutive Securities (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Employee Stock Option [Member]
Employee and non-employee stock options (in shares)	2,396,250	1,936,750	2,396,250	1,936,750
Option Purchase Agreements Shares Issuable to Underwriters [Member]
Employee and non-employee stock options (in shares)	865,625	865,625	865,625	865,625
Warrant [Member]
Employee and non-employee stock options (in shares)	75,000	75,000	75,000	75,000

Note 7 - Cash, Cash Equivalen36

Note 7 - Cash, Cash Equivalents and Short-Term Investments - Cash, Cash Equivalents and Short-term Investments (Details) - USD ($)	Jun. 27, 2015	Dec. 31, 2014
Cash Equivalents [Member]
Cash and cash equivalents	$ 467,000	$ 508,000
Money Market Funds [Member]
Cash and cash equivalents	$ 1,436,000	2,379,000
Certificates of Deposit [Member]
Cash and cash equivalents		251,000
Short-term investments, net	$ 50,000	50,000
Commercial Paper [Member]
Short-term investments, net		407,000
Cash and cash equivalents	$ 1,903,000	3,138,000
Short-term investments, net	$ 50,000	$ 457,000

Note 8 - Fair Value of Financ37

Note 8 - Fair Value of Financial Instruments - Summary of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Jun. 27, 2015	Jun. 28, 2014
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Financial assets at fair value	$ 1,436	$ 2,379
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Financial assets at fair value
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Financial assets at fair value
Money Market Funds [Member]
Financial assets at fair value	$ 1,436	$ 2,379
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member]
Financial assets at fair value
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member]
Financial assets at fair value	$ 50	$ 301
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member]
Financial assets at fair value
Certificates of Deposit [Member]
Financial assets at fair value	$ 50	$ 301
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Financial assets at fair value
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Financial assets at fair value		$ 407
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Financial assets at fair value
Corporate Debt Securities [Member]
Financial assets at fair value		$ 407
Fair Value, Inputs, Level 1 [Member]
Financial assets at fair value	$ 1,436	2,379
Fair Value, Inputs, Level 2 [Member]
Financial assets at fair value	$ 50	$ 708
Fair Value, Inputs, Level 3 [Member]
Financial assets at fair value
Financial assets at fair value	$ 1,486	$ 3,087

Note 9 - Property and Equipme38

Note 9 - Property and Equipment (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Machinery and Equipment [Member]
Asset Impairment Charges			$ 318,000
Asset Impairment Charges	$ 979,000		979,000
Depreciation, Depletion and Amortization	$ 17,000	$ 26,000	$ 17,000	$ 26,000

Note 9 - Property and Equipme39

Note 9 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 27, 2015	Dec. 31, 2014
Furniture and Fixtures [Member]
Property and equipment, gross	$ 58	$ 58
Machinery and Equipment [Member]
Property and equipment, gross	18	505
Computer Equipment [Member]
Property and equipment, gross	84	193
Leasehold Improvements [Member]
Property and equipment, gross	52	90
Accumulated depreciation	(196)	(493)
Property and equipment, net	$ 16	$ 353

Note 10 - Commitments and Con40

Note 10 - Commitments and Contingencies (Details Textual) - USD ($)	1 Months Ended	6 Months Ended
	Oct. 31, 2007	Jun. 27, 2015	Jun. 28, 2014	Mar. 28, 2015
Assignment and License Agreement [Member]
Royalty Payment Rate of Royalty Percentage on Sales	4.00%
Royalty Obligation Period after Fiscal Quarter in which Royalty Payments are Due	60 days
Royalty Obligation Termination Condition Aggregate Royalty Paid	$ 100,000,000
Board of Directors Chairman [Member] | Serves as Executive Chairman, First Year [Member]
Contractual Obligation				$ 150,500
Board of Directors Chairman [Member] | Serves as Executive Chairman, after First Year [Member]
Contractual Obligation				107,500
Board of Directors Chairman [Member]
Contractual Obligation				$ 215,000
Royalty Expense		$ 1,000	$ 2,000

Note 11 - Accrued Liabilities -

Note 11 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 27, 2015	Dec. 31, 2014
Clinical trial related expense	$ 318	$ 256
Professional services	89	54
Payroll and related expenses	45	36
Other	14	9
Accrued liabilities	$ 466	$ 355

Note 12 - Stockholders' Equity

Note 12 - Stockholders' Equity (Details Textual) - USD ($)	1 Months Ended			6 Months Ended
	Mar. 24, 2015	Jan. 23, 2015	Jan. 29, 2014	Jun. 27, 2015	Jun. 28, 2014	Feb. 01, 2015
Private Placement [Member] | Maximum [Member]
Share Price	$ 0.14
Private Placement [Member]
Proceeds from Issuance of Common Stock	$ 3,250,000
Public Offering [Member]
Class of Warrant or Right, Term of Warrants or Rights		5 years
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		262,500
Common Stock [Member]
Share Price			$ 0.70
Stock Issued During Period, Shares, New Issues			6,035,000
Proceeds from Issuance of Common Stock					$ 3,643,000
Class of Warrant or Right, Term of Warrants or Rights	5 years
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1
Class of Warrant or Right, Exercise Price, Percentage of Purchase Price of Shares Sold	125.00%
Monthly Operating Expenses				$ 208,000
Additional Financing Requirement						$ 3,000,000
Gross Proceeds from Issuance of Common Stock in Public Offering			$ 4,200,000
Net Proceeds from Issuance of Common Stock			$ 3,600,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.875

Note 13 - Stock-Based Compens43

Note 13 - Stock-Based Compensation (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Mar. 24, 2015	Jan. 29, 2014	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014	Jan. 23, 2015	Dec. 31, 2014
Employee Stock Option [Member] | The 2013 Equity Incentive Plan [Member] | Minimum [Member] | Non Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					1 year
Employee Stock Option [Member] | The 2013 Equity Incentive Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					1 year
Employee Stock Option [Member] | The 2013 Equity Incentive Plan [Member] | Maximum [Member] | Non Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Employee Stock Option [Member] | The 2013 Equity Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					4 years
Employee Stock Option [Member] | The 2013 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period					10 years
Share based Compensation Arrangement by Share based Payment Award, Award Vesting Percentage Per Year					25.00%
Restricted Stock [Member] | The 2007 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			20,000		20,000
Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Restricted Stock [Member]
Allocated Share-based Compensation Expense					$ 34,000	$ 102,000
The 2013 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			2,500,000		2,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			1,215,000		1,215,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures					450,000
The 2007 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			1,181,250		1,181,250
Issued To Underwriters [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		262,500
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.875
Class of Warrant or Right, Exercise Price, Percentage of Purchase Price of Shares Sold		125.00%
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Term		5 years
Period after Public Offering after which Warrants Become Exercisable		1 year
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			2,396,250		2,396,250			2,114,250
Allocated Share-based Compensation Expense			$ 37,000	$ 100,000	$ 81,000	$ 221,000
Class of Warrant or Right, Exercise Price of Warrants or Rights							$ 0.875
Class of Warrant or Right, Exercise Price, Percentage of Purchase Price of Shares Sold	125.00%

Note 13 - Stock-Based Compens44

Note 13 - Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014	Jun. 27, 2015	Jun. 28, 2014
Research and Development Expense [Member]
Allocated Share-based Compensation Expense	$ 20	$ 32	$ 27	$ 69
Selling, General and Administrative Expenses [Member]
Allocated Share-based Compensation Expense	17	68	54	152
Allocated Share-based Compensation Expense	$ 37	$ 100	$ 81	$ 221

Note 13 - Stock-Based Compens45

Note 13 - Stock-Based Compensation - Summary of Option Activity (Details) - 6 months ended Jun. 27, 2015 - $ / shares	Total
Options outstanding (in shares)	2,396,250
Weighted average exercise price (in dollars per share)	$ 1.62
Granted (in shares)	540,000
Granted (in dollars per share)	$ 0.21
Forfeitures (in shares)	(171,749)
Forfeitures (in dollars per share)	$ 0.85
Cancelled (in shares)	(86,251)
Cancelled (in dollars per share)	$ 1.77

Note 13 - Stock-Based Compens46

Note 13 - Stock-Based Compensation - Summary of Restricted Stock Award Activity (Details) - 6 months ended Jun. 27, 2015 - Restricted Stock [Member] - $ / shares	Total
Awards outstanding (in shares)	20,000
Awards outstanding (in dollars per share)	$ 1.23
Vested (in shares)	42,500
Vested (in dollars per share)	$ 4.81

Note 14 - Employee Benefit Pl47

Note 14 - Employee Benefit Plan (Details Textual) - USD ($)	6 Months Ended
	Jun. 27, 2015	Jun. 28, 2014
Defined Contribution Plan, Cost Recognized	$ 18,000	$ 32,000

Note 15 - Subsequent Events (De

Note 15 - Subsequent Events (Details Textual) - USD ($)	Jul. 20, 2015	Jun. 27, 2015	Mar. 28, 2015	Jan. 04, 2015
Board of Directors Chairman [Member] | Annual Base Salary Until July 31, 2015 [Member] | Subsequent Event [Member]
Contractual Obligation	$ 215,000
Board of Directors Chairman [Member] | Annual Base Salary After July 31, 2015 Until the 2015 Annual Meeting [Member] | Subsequent Event [Member]
Contractual Obligation	100,000
Board of Directors Chairman [Member]
Contractual Obligation			$ 215,000
Chief Financial Officer [Member] | Annual Base Salary [Member]
Contractual Obligation		$ 200,000		$ 230,625
Chief Financial Officer [Member] | Subsequent Event [Member]
Hourly Consulting Fee	100
Potential Severance Payment	19,231
Retention Payment	$ 50,000

Uncategorized Items - kips-2015

Label	Element	Value
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice	$ 1.98
Restricted Stock [Member]
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue	$ 3.67
us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber	62,500