Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 17, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Entity Registrant Name | NEXGEL, INC. | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 102,893,779 | |
Entity Central Index Key | 0001468929 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash | $ 1,070,000 | $ 32,000 |
Accounts receivable, net | 96,000 | 73,000 |
Inventory | 252,000 | 233,000 |
Prepaid expenses and other current assets | 32,000 | 25,000 |
Total current assets | 1,450,000 | 363,000 |
Goodwill | 311,000 | 311,000 |
Intangibles | 44,000 | 47,000 |
Property and equipment, net | 796,000 | 553,000 |
Operating lease - right of use asset | 775,000 | 805,000 |
Other assets | 50,000 | 178,000 |
Total assets | 3,426,000 | 2,257,000 |
Current Liabilities: | ||
Accounts payable | 644,000 | 658,000 |
Accrued expenses and other current liabilities | 89,000 | 90,000 |
Deferred Revenue | 38,000 | 38,000 |
Convertible notes payable | 92,000 | 59,000 |
Current portion of debt | 10,000 | 10,000 |
Note payable - PPP | 275,000 | 147,000 |
Warrant liability | 247,000 | 123,000 |
Operating lease liability, current portion | 207,000 | 207,000 |
Total current liabilities | 1,602,000 | 1,332,000 |
Long-Term Liabilities: | ||
Notes payable | 256,000 | 256,000 |
Lease liability, long term | 568,000 | 598,000 |
Total long-term liabilities | 824,000 | 854,000 |
Total liabilities | 2,426,000 | 2,186,000 |
Commitments and Contingencies | ||
Preferred Stock, par value $0.001 per share, 5,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common Stock, par value $0.001 per share, 3,000,000,000 shares authorized; 102,893,779 and 99,331,279 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 103,000 | 99,000 |
Additional paid-in capital | 4,103,000 | 2,474,000 |
Accumulated deficit | (3,206,000) | (2,502,000) |
Total stockholders' equity | 1,000,000 | 71,000 |
Total liabilities and stockholders' equity | $ 3,426,000 | $ 2,257,000 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
CONDENSED BALANCE SHEETS | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, shares issued | 102,893,779 | 99,331,279 |
Common Stock, Shares, Outstanding | 102,893,779 | 99,331,279 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CONDENSED STATEMENTS OF OPERATIONS | ||
Revenues, net | $ 267,000 | $ 240,000 |
Cost of revenues | 309,000 | 173,000 |
Gross (loss)/profit | (42,000) | 67,000 |
Operating expenses | ||
Selling, general and administrative | 478,000 | 576,000 |
Total operating expenses | 478,000 | 576,000 |
Loss from operations | (520,000) | (509,000) |
Other income (expense) | ||
Interest expense | (148,000) | (1,000) |
Loss on debt extinguishment | (25,000) | 0 |
Debt discount costs | (17,000) | 0 |
Changes in fair value of warrant liability | 6,000 | 2,000 |
Total other income (expense) | (184,000) | 1,000 |
Loss before income taxes | (704,000) | (508,000) |
Income tax expense | 0 | 0 |
Net loss | $ (704,000) | $ (508,000) |
Net loss per common share - basic | $ (0.01) | $ (0.01) |
Net loss per common share - diluted | $ (0.01) | $ (0.01) |
Weighted average shares used in computing net loss per common share - basic | 100,555,284 | 64,524,652 |
Weighted average shares used in computing net loss per common share - diluted | 100,555,284 | 64,524,652 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2019 | $ 57,000 | $ 561,000 | $ (238,000) | $ 380,000 |
Balance (in Shares) at Dec. 31, 2019 | 57,505,208 | |||
Share-based compensation | $ 0 | 64,000 | 0 | 64,000 |
Issuance of common stock | $ 16,000 | 604,000 | 0 | 620,000 |
Issuance of common stock (in shares) | 15,500,000 | |||
Net loss | $ 0 | 0 | (508,000) | (508,000) |
Balance at Mar. 31, 2020 | $ 73,000 | 1,229,000 | (746,000) | 556,000 |
Balance (in Shares) at Mar. 31, 2020 | 73,005,208 | |||
Balance at Dec. 31, 2020 | $ 99,000 | 2,474,000 | (2,502,000) | 71,000 |
Balance (in Shares) at Dec. 31, 2020 | 99,331,279 | |||
Share-based compensation | 69,000 | 69,000 | ||
Restricted stock vesting | 21,000 | 21,000 | ||
Restricted stock vesting (in shares) | 0 | |||
Issuance of common stock | $ 4,000 | 281,000 | 285,000 | |
Issuance of common stock (in shares) | 3,563,000,000 | |||
Warrants issued for equity raising costs | $ 0 | (18,000) | 0 | (18,000) |
Beneficial conversion and warrant features of convertible debt | 0 | 1,276,000 | 0 | 1,276,000 |
Net loss | (704,000) | (704,000) | ||
Balance at Mar. 31, 2021 | $ 103,000 | $ 4,103,000 | $ (3,206,000) | $ 1,000,000 |
Balance (in Shares) at Mar. 31, 2021 | 102,894,279 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Operating Activities | ||||
Net loss | $ (704,000) | $ (508,000) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 27,000 | 10,000 | ||
Share-based compensation | 90,000 | 64,000 | ||
Changes in fair value of warrant liability | (6,000) | (2,000) | ||
Amortization of deferred financing costs | 108,000 | 0 | ||
Loss on debt extinguishment | 25,000 | 0 | ||
Beneficial conversion feature in excess of face value | 51,000 | 0 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (23,000) | (108,000) | ||
Inventory | (19,000) | (11,000) | ||
Prepaid expenses and other assets | 121,000 | (25,000) | ||
Accounts payable | (14,000) | (123,000) | ||
Accrued expenses and other liabilities | (1,000) | 43,000 | ||
Net Cash Used in Operating Activities | $ (345,000) | (345,000) | (660,000) | |
Investing Activities | ||||
Capital expenditures | (267,000) | (1,000) | ||
Net Cash Used in Investing Activities | (267,000) | (1,000) | ||
Financing Activities | ||||
Issuance of common stock, net of issuance costs | 285,000 | 620,000 | ||
Proceeds from notes payable | 15,000 | 0 | ||
Principle payment of notes payable | (15,000) | 0 | ||
Proceeds from notes payable (PPP) | 128,000 | 0 | ||
Proceeds from convertible notes | 1,337,000 | 0 | ||
Principal payment on convertible notes | (100,000) | 0 | ||
Net Cash Provided by Financing Activities | 1,650,000 | 620,000 | ||
Net Increase in Cash | 1,038,000 | (41,000) | ||
Cash - Beginning of period | $ 32,000 | 32,000 | 261,000 | $ 261,000 |
Cash - End of period | 1,070,000 | 220,000 | $ 32,000 | |
Cash paid during the year for: | ||||
Interest | 0 | 0 | ||
Taxes | 0 | 0 | ||
Non-cash Investing and Financing Activities | ||||
Fair value of beneficial conversion and warrant features of Convertible Notes Payable | 1,276,000 | 0 | ||
Original issue discounts recognized on Convertible Notes Payable | 343,000 | 0 | ||
Warrants issued for debt and equity financing costs | $ 130,000 | $ 0 |
Description of Business, the Sp
Description of Business, the Spin-off and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Description of Business, the Spin-off and Basis of Presentation | |
Description of Business, the Spin-off and Basis of Presentation | 1. Description of Business, the Spin-off and Basis of Presentation Description of Business NexGel, Inc. (the “Company” or “NexGel”) manufactures high water content, electron beam cross-linked, aqueous polymer hydrogels, or gels, used for wound care, medical diagnostics, transdermal drug delivery and cosmetics. The Company specializes in custom gels by capitalizing on proprietary manufacturing technologies. The Company has historically served as a contract manufacturer supplying its gels to third parties who incorporate them into their own products. NexGel was previously known as AquaMed Technologies, Inc. (“AquaMed”) before changing its name to NexGel, Inc. on November 14, 2019. The Company is implementing a new strategy to become a consumer products business focused on proprietary branded products and white label opportunities. The Spin-Off On June 21, 2019, NexGel became an independent company through the pro rata distribution (“Spin-Off”) by Adynxx, Inc. (“Adynxx” and the “Parent”) in connection with the closing of a reverse merger between Adynxx, Inc. and Alliqua BioMedical, Inc., (“Adynxx”) of NexGel’s common stock for common stock of Parent. Adynxx, Inc. was previously known as Alliqua BioMedical, Inc. and subsequently changed its name to Adynxx, Inc. on May 3, 2019. The terms and conditions of the Spin-Off provided that each record holder of Parent stock as of April 22, 2019, received one share of NexGel common stock in book-entry form and resulted in the distribution of 5,005,211 shares of common stock of NexGel. Following the distribution (“Capitalization”), all existing operations were distributed to NexGel with the exception of a corporate lease for property in Yardley, Pennsylvania which was retained by Adynxx, Inc. Pursuant to the Spin-Off and in exchange for the 5,005,211 shares of common stock,NexGel assumed the following net assets and liabilities from Parent as of June 21, 2019 ($ in thousands): Assets: Cash $ 186 Accounts receivable, net 72 Inventory, net 140 Prepaid expenses and other current assets 101 Property and equipment, net 155 Operating lease - right of use asset 976 Other assets 178 Total assets 1,808 Liabilities: Accounts payable (496) Accrued expenses and other current liabilities (395) Operating lease liability - current (207) Long-term operating lease liability (769) Total liabilities (1,867) Net liabilities assumed in Spin-Off on June 21, 2019 $ (59) Basis of Presentation The balance sheet as of March 31, 2021 and December 31, 2020 and the statements of operations, stockholders’ equity, and cash flows for the three months ended March 31, 2021 consists of the balances of NexGel as prepared on a stand-alone basis. Prior to the separation, these financial statements were derived from the consolidated financial statements and accounting records of Adynxx, Inc. Prior to the Spin-Off, Adynxx used a centralized approach to cash management and financing its operations, including the operations of the Company. Accordingly, none of the cash of Adynxx have been attributed to the Company in the financial statements. Transactions between Adynxx and the Company were accounted for through Parent’s Net Investment. The expenses, including executive compensation, have been allocated by management based either on specific attribution of those expenses or, where necessary and appropriate, based on management’s best estimate of an appropriate proportional allocation. These interim condensed financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"), which permit reduced disclosure for interim periods. The condensed balance sheet as of March 31, 2021 was derived from audited financial statements for the fiscal year then ended, but does not include all necessary disclosures required by generally accepted accounting principles in the United States of America ("GAAP") with respect to annual financial statements. In the opinion of management, the condensed financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the Company’s financial position as of March 31, 2021 and results of operations and cash flows for the three months ended March 31, 2021 and 2020. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto in the Company’s year-end financial statements for the years ended December 31, 2020 and 2019, which are included in the Company’s Form 10-K filed with SEC on March 31, 2021. Results for interim periods are not necessarily indicative of the results to be expected for a full fiscal year or for any future period. Significant Accounting Policies and Estimates The preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes. These estimates and assumptions include allowance for doubtful accounts, inventory reserves, deferred taxes, share-based compensation and related valuation allowances and fair value of long-lived assets. Actual results could differ from the estimates. Accounts receivable, net Trade accounts receivable are stated at the amount the Company expects to collect and do not bear interest. The Company evaluates the collectability of accounts receivable and records a provision to the allowance for doubtful accounts based on factors including the length of time the receivables are past due, the current business environment and the Company’s historical experience. Provisions to the allowances for doubtful accounts are recorded in selling, general and administrative expenses. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. The allowance for doubtful accounts was $3 thousand as of March 31, 2021 and $1 thousand as of December 31, 2020. Inventory Inventory is stated at the lower of cost, the value determined by the first-in, first-out method, or net realizable value. The Company evaluates inventories for excess quantities, obsolescence or shelf-life expiration. This evaluation includes an analysis of historical sales levels by product, projections of future demand, the risk of technological or competitive obsolescence for products, general market conditions, and a review of the shelf-life expiration dates for products. These factors determine when, and if, the Company adjusts the carrying value of inventory to estimated net realizable value. The balance is made up of raw materials of $197 thousand and $190 thousand, work-in-progress of $34 thousand and $22 thousand, and finished goods of $21 thousand and $21 thousand on March 31, 2021 and December 31, 2020, respectively. Property and equipment, net Property and equipment is recorded at historical cost, net of accumulated depreciation and amortization. Depreciation is provided over the assets’ useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. Repairs and maintenance costs are expensed as incurred. Management periodically assesses the estimated useful life over which assets are depreciated or amortized. If the analysis warrants a change in the estimated useful life of property and equipment, management will reduce the estimated useful life and depreciate or amortize the carrying value prospectively over the shorter remaining useful life. The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the period of disposal and the resulting gains and losses are included in the results of operations during the same period. Goodwill and Intangible Assets In applying the acquisition method of accounting, amounts assigned to identifiable assets and liabilities acquired were based on estimated fair values as of the date of acquisition, with the remainder recorded as goodwill. Identifiable intangible assets are initially valued at fair value using generally accepted valuation methods appropriate for the type of intangible asset. Identifiable intangible assets with definite lives are amortized over their estimated useful lives and are reviewed for impairment if indicators of impairment arise. Intangible assets with indefinite lives are tested for impairment within one year of acquisitions or annually as of December 1, and whenever indicators of impairment exist. The fair value of intangible assets is compared with their carrying values, and an impairment loss would be recognized for the amount by which a carrying amount exceeds its fair value. Acquired identifiable intangible assets are amortized over the following periods: Expected Life Acquired intangible Asset Amortization Basis (years) Technology-Related Straight-line basis 3 Marketing-Related Straight-line basis 4 Impairment of Long-Lived Assets We review the recoverability of our long-lived assets, including equipment and right-of-use assets, when events or changes in circumstances occur that indicate that the carrying value of the asset, or asset group, may not be recoverable. Events or circumstances that might cause management to perform impairment testing include, but are not limited to, significant underperformance relative to historical or projected future operating results of the asset or asset group, significant changes in the manner or use of assets or the strategy for our overall business; and significant negative industry or economic trends. If indicators of potential impairment are present, management performs a recoverability test and, if necessary, records an impairment loss. If the total estimated future undiscounted cash flows to be generated from the use and ultimate disposition of an asset or asset group is less than its carrying value, an impairment loss is recorded in the Company’s results of operations, measured as the amount required to reduce the carrying value to fair value. Fair value is determined in accordance with the best available information per the hierarchy described under Fair Value Measurements below. For example, the Company would first seek to identify quoted prices or other observable market data. If observable data is not available, Management would apply the best available information under the circumstances to a technique such as a discounted cash flow model to estimate fair value. Impairment analysis involves estimates and the use of assumptions due to the inherently judgmental nature of forecasting long-term estimated inflows and outflows resulting from the use and ultimate disposition of an asset, and determining the ultimate useful lives of assets. Actual results may differ from these estimates using different assumptions, which could materially impact the results of an impairment assessment. Prepaid expenses and other current assets Prepaid expenses and other current assets is recorded at historical cost and is primarily made up of $18 thousand and $16 thousand of prepaid insurance, and $14 thousand and $9 thousand general prepaid expenses and other current assets in the period ended March 31, 2021 and December 31, 2020, respectively. Other Assets Other Assets is recorded at historical costs, and as of March 31, 2021 and December 31, 2020, the balance is entirely made up of spare parts for manufacturing equipment. Other assets are stated at cost and are not subject to depreciation, until such time that they are placed into service and the part that is being replaced is disposed. Fair value measurements The Company utilizes the fair value hierarchy to apply fair value measurements. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair values that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The basis for fair value measurements for each level within the hierarchy is described below: Level 1 — Quoted prices for identical assets or liabilities in active markets. Level 2 — Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 — Valuations derived from valuation techniques in which one or more significant inputs to the valuation model are unobservable. The Company considers the carrying amounts of its financial instruments (cash, accounts receivable and accounts payable) in the balance sheet to approximate fair value because of the short-term or highly liquid nature of these financial instruments. Warrant Liability Warrants to purchase common stock were issued in connection with equity financing raises, which occurred on March 11, 2021, February 3, 2021, December 24, 2020, March 18, 2020, September 10, 2019 and November 6, 2019. The fair values of the warrants are estimated as of the date of issuance and again at each period end using a Black-Scholes option valuation model. At issuance, the fair value of the warrant is recognized as an equity issuance cost within additional paid-in-capital. Fair value adjustments to the warrant liability are recognized in other income (expense) in the statements of operations. Revenue recognition On January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing accounting principles generally accepted in the United States of America (“U.S. GAAP”) including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The Company adopted ASC 606 for all applicable contracts using the modified retrospective method, which would have required a cumulative-effect adjustment, if any, as of the date of adoption. The adoption of ASC 606 did not have a material impact on the Company’s financial statements as of the date of adoption. As a result, a cumulative-effect adjustment was not required. The Company recognizes revenue predominately from one type of revenue, contract manufacturing. Revenue from contract manufacturing is recognized at the point where the customer obtains control of the goods and the Company satisfies its performance obligation, which generally is at the time it ships the product to the customer. The Company’s customers consist of other life sciences companies and revenues are concentrated in the United States. Payment terms vary by the type and location of customer and may differ by jurisdiction and customer but payment is generally required in a term ranging from 30 to 60 days from date of shipment. Estimates for product returns, allowances and discounts are recorded as a reduction of revenue and are established at the time of sale. Returns are estimated through a comparison of historical return data and are determined for each product and adjusted for known or expected changes in the marketplace specific to each product, when appropriate. Historically, sales return provisions have not been material. Amounts accrued for sales allowances and discounts are based on estimates of amounts that are expected to be claimed on the related sales and are based on historical data. Payments for allowances and discounts have historically been immaterial. As of March 31, 2021, the Company did not have any contract assets or contract liabilities from contracts with customers. As of March 31, 2021, there were no remaining performance obligations that the Company had not satisfied. Share-based compensation On August 28, 2019, the Company adopted the 2019 Long-Term Incentive Plan (the “2019 Plan”). The 2019 Plan provides for the granting of incentive stock options, nonqualified stock options, restricted stock, stock appreciation rights (“SARs”), restricted stock units, performance awards, dividend equivalent rights and other awards, which may be granted singly, in combination, or in tandem, and which may be paid in cash, shares of common stock of the Company or a combination of cash and shares of common stock of the Company. The Company initial reserved a total of 2,000,000 shares of the Company’s common stock for awards under the 2019 Plan. Effective as of May 26, 2020 and May 3, 2021, respectively, the Board approved an increase of the number of authorized shares of common stock reserved under the 2019 Plan from 2,000,000 shares of common stock to 17,000,000 shares of common stock and from 17,000,000 shares of common stock to 20,000,000 shares of common stock, all of which may be delivered pursuant to incentive stock options. Subject to adjustments pursuant to the 2019 Plan, the maximum number of shares of common stock with respect to which stock options or SARs may be granted to an executive officer during any calendar year is 500,000 shares of common stock. The Company’s 2019 Long-Term Incentive Plan provides certain employees, contractors and outside directors with share-based compensation in the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalent rights and other awards. The fair values of incentive stock option award grants are estimated as of the date of grant using a Black-Scholes option valuation model. Compensation expense is recognized in the statements of operations on a straight-line basis over the requisite service period, which is generally the vesting period required to obtain full vesting. Forfeitures are accounted for when they occur. In June 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-07, Compensation - Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting . These amendments expand the scope of Topic 718, Compensation - Stock Compensation , to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This new standard is effective for the Company on January 1, 2020. The Company early adopted this new standard in the third quarter of 2019 and it did not have material impact to its condensed financial statements. Income taxes Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities at the applicable tax rates. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates. Tax benefits are recognized from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by a tax authority and based upon the technical merits of the tax position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement. An unrecognized tax benefit, or a portion thereof, is presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. Segment reporting The Company operates in one business segment as a contract manufacturer of aqueous polymer hydrogels. As a result, the Company’s operations are a single reportable segment, which is consistent with the Company’s internal management reporting. Comprehensive loss Comprehensive loss consists of net loss and changes in equity during a period from transactions and other equity and circumstances generated from non-owner sources. The Company’s net loss equals comprehensive loss for all periods presented. Recently Adopted Accounting Standards In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) which simplifies the accounting for convertible instruments. The guidance removes certain accounting models which separate the embedded conversion features from the host contract for convertible instruments. Either a modified retrospective method of transition or a fully retrospective method of transition is permissible for the adoption of this standard. Update No. 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted no earlier than the fiscal year beginning after December 15, 2020. The Company does not expect this ASU to have a material impact on its consolidated results of operations, cash flows and financial position. In February 2016, the Financial Accounting Standards Board (the “FASB”) established ASC Topic 842, Leases , by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize operating leases on the balance sheet and disclose key information about leasing arrangements. ASC Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements . The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases. Leases will be classified as either finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Lessor accounting under the new standard is substantially unchanged. Additional qualitative and quantitative disclosures are also required. The Company adopted the new standard on leases on January 1, 2019. The Company currently recognizes an operating lease right-of-use asset and a corresponding lease liability on its condensed balance sheet. The Company also applies the following accounting policies related to this standard: · The Company does not recognize ROU assets and liabilities for leases with a term of 12 months or less; and · The Company does not separate lease and non-lease components in the Company’s lease contracts. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption. Financial Instruments— Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a model based on expected losses to estimate credit losses for most financial assets and certain other instruments. In November 2019, the FASB issued ASU No. 2019-10 Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). The update allows the extension of the initial effective date for entities which have not yet adopted ASU No. 2016-02. The standard is effective for annual reporting periods beginning after December 15, 2022, with early adoption permitted for annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions by recording a cumulative effect adjustment to retained earnings. The Company has not yet adopted ASU 2016-13 and currently assessing the impact of this new standard on its financial statements. Collaborative Arrangements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808). This update clarifies the interaction between ASC 808, Collaborative Arrangements and ASC 606, Revenue from Contracts with Customers (“ASU 2018-18”) . The update clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, the update precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue if the counterparty is not a customer for that transaction. This update will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. ASU 2018-18 should be applied retrospectively to the date of initial application of ASC 606 and early adoption is permitted. The adoption of this standard will not have a material impact on the Company’s financial statements as the Company does not have any collaborative agreements. However, there is a potential for the Company to enter into collaborative agreements in the future, as it expands into consumer markets. Fair Value Measurement—Disclosure Framework In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which amends ASC Topic 820, Fair Value Measurements. ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The effective date is the first quarter of fiscal year 2021, with early adoption permitted for the removed disclosures and delayed adoption permitted until fiscal year 2021 for the new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company has not yet adopted ASU 2018-13 and currently assessing the impact of this new standard on its financial statements. |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2021 | |
Going Concern | |
Going Concern | 2. Going Concern As of March 31, 2021, the Company had a cash balance of $1.07 million. For the three months ended March 31, 2021, the Company incurred a net loss of $704,000 and had a net usage of cash in operating activities of $345,000. In addition, the Company had a working capital deficit of $152,000 as of March 31, 2021. The Company expects to continue incurring losses for the foreseeable future and will need to raise additional capital to support ongoing operations. The ability of the Company to continue to operate as a going concern is dependent upon its ability to raise additional capital and to ultimately achieve profitable operations. Management is evaluating various options to raise capital to fund the Company’s working capital requirements through equity offerings. There can be no assurances, however, that management will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtained on terms satisfactory to the Company. These factors raise substantial doubt as to the Company’s ability to continue as a going concern. The condensed financial statements do not include any adjustments relating to the recoverability and classification of recorded assets and liabilities that might be necessary should the Company be unable to continue as a going concern. |
Net Loss Per Common Share
Net Loss Per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Net Loss Per Common Share | |
Net Loss Per Common Share | 3. Net Loss Per Common Share Basic loss per share data is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted loss per share data is computed using the weighted-average number of common and dilutive common-equivalent shares outstanding during the period. Dilutive common-equivalent shares consist of shares that would be issued upon the exercise of stock options and other common stock equivalents, computed using the treasury stock method. The number of shares that may be issued for share-based payment awards under the Company’s 2019 Long-Term Incentive Plan are excluded from the calculation of weighted average dilutive common shares for the three months ended March 31, 2021 and 2020, to the extent they are issued and outstanding, because their effect would be anti-dilutive. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2021 | |
Acquisition | |
Acquisition | 4. Acquisition On May 29, 2020, the Company entered into a Membership Interest Purchase Agreement (the "Purchase Agreement") whereby the Company purchased all of the outstanding equity securities of Sport Defense LLC, a Delaware limited liability company ("Sports Defense"), from the members of Sport Defense (the "Sellers"). Subsequent to the Closing Date, Sport Defense is a wholly-owned subsidiary of the Company. Sport Defense is a marketing and distribution company that leverages the unique benefits of ultra-gentle, high-water content hydrogels, manufactured by the Company, to build brands that treat various ailments of the skin caused by athletic training, such as blisters, turf burns, scrapes and skin irritations. Under the terms of the Purchase Agreement, the purchase price paid to the Sellers was an aggregate of $375 thousand (the "Purchase Price") which was paid by the Company through the issuance of an aggregate of 9,375,000 shares of the Company's common stock, par value $0.001 (the "Shares"), which equates to a per share purchase price of $0.04. The Shares are "restricted securities" as such term is defined by Rule 144 promulgated under the Securities Act of 1933, as amended. Adam Levy, the Company's Chief Executive Officer and Chief Financial Officer, and Nachum Stein, a member of the Company's Board of Directors (the "Board"), were each members of Sport Defense and part of the Sellers. Mr. Levy received 1,546,875 of the Shares and Mr. Stein received 3,187,500 of the Shares. Due to the potential conflict of interest that existed because of Messrs. Levy and Stein's partial ownership of Sport Defense, the Board obtained an independent investment bank to prepare a valuation report with respect to Sport Defense. This valuation report supported the Purchase Price. Also, Mr. Stein recused himself from the vote of the Board regarding the approval to purchase Sport Defense. The Purchase Agreement and the Sport Defense acquisition were not subject to approval by the shareholders of the Company. The Purchase Agreement contained minimal representations and warranties regarding Sport Defense and certain limited representations and warranties regarding the Company and the Sellers. The provisional fair value of the purchase consideration issued to the Seller was allocated to the net tangible assets acquired. The Company accounted for the Sports Defense acquisition as the purchase of a business under GAAP under the acquisition method of accounting, and the assets and liabilities acquired were recorded as of the acquisition date, at their respective fair values and consolidated with those of the Company. The fair value of the net assets acquired was approximately $375 thousand. The excess of the aggregate fair value of the net tangible assets has been allocated to goodwill. The Company is currently in the process of completing the preliminary purchase price allocation as an acquisition of certain assets. The final purchase price allocation for Sports Defense's will be included in the Company's financial statements in future periods. The table below shows preliminary analysis for the Sports Defense acquisition: Provisional Purchase Consideration at preliminary fair value: Purchase price $ 375 Amount of consideration $ 375 Assets acquired and liabilities assumed at preliminary fair value Inventories 21 Product/Technology related intangibles 31 Marketing related intangibles 8 Customer related intangibles 17 Accounts payable and accrued expenses (13) Other liabilities — Net tangible assets acquired $ 64 Total net assets acquired $ 64 Consideration paid 375 Preliminary goodwill $ 311 The unaudited pro-forma results of operations are presented for information purposes only. The unaudited pro-forma results of operations are not intended to present actual results that would have been attained had the Sports Defense acquisition been completed as of January 1, 2019 or to project potential operating results as of any future date or for any future periods. For the Year Ended December 31, 2021 2020 Revenues, net $ 267 $ 254 Net loss allocable to common shareholders $ (655) $ (500) Net loss per share $ (0.01) $ (0.01) Weighted average number of shares outstanding 101,555,284 66,836,296 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases | |
Leases | 5. Leases The Company has one operating lease for a commercial manufacturing facility and administrative offices located in Langhorne, Pennsylvania that runs through January 2026. The right-of-use asset and lease liability from this operating lease were recognized in the opening balance sheet as of January 1, 2019 and are based on the present value of remaining lease payments over the lease term using the Company’s incremental borrowing rate. The following table presents information about the amount and timing of the liability arising from the Company’s operating lease as of March 31, 2021 ($ in thousands): Operating Lease Maturity of Lease Liability Liability 2021 (remainder of year) $ 155 2022 207 2023 207 2024 207 2025 207 Thereafter 18 Total undiscounted operating lease payments $ 1,001 Less: Imputed interest (226) Present value of operating lease liability $ 775 Weighted average remaining lease term 4.7 years Weighted average discount rate % Total operating lease expense for the three months ended March 31, 2021 and 2020 was $52 thousand, and is recorded in cost of goods sold and selling, general and administrative expenses on the statement of operations under Accounting Standards Codification Topic 840, Leases. Supplemental cash flows information related to leases was as follows ($ in thousands): March 31, 2021 Cash paid for amounts included in the measurement of lease liability: Operating cash flows from operating lease $ 52 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2021 | |
Inventory | |
Inventory | 6. Inventory Inventory consists of the following ($ in thousands): March 31, December 31, 2021 2020 Raw materials $ 197 $ 190 Work-in-progress 34 22 Finished goods 21 21 252 233 Less: Inventory reserve for excess and slow moving inventory — — Total $ 252 $ 233 As a contract manufacturer, the Company builds its products based on customer orders and immediately ships the products upon completion of the production process. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2021 | |
Property and Equipment, Net | |
Property and Equipment, Net | 7. Property and Equipment, Net Property and equipment consist of the following ($ in thousands): Useful Life March 31, December 31, (Years) 2021 2020 Machinery and equipment 3 - 10 $ 940 $ 2,894 Office furniture and equipment 3 - 10 49 49 Leasehold improvements 228 228 Construction in progress N/A — 461 1,217 3,632 Less: accumulated depreciation and amortization (421) (3,079) Property and equipment, net $ 796 $ 553 Depreciation and amortization expense for the three months ended March 31, 2021 and 2020 was $24 thousand and $10 thousand, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Intangible Assets | |
Intangible Assets | 8. Intangible Assets The following provides a breakdown of identifiable intangible assets as of March 31, 2021 and December 31, 2020: March 31, December 31, 2021 2020 Product/Technology Related Identifiable intangible assets, gross $ 31 $ 31 Accumulated amortization (8) (6) Product/Technology Related identifiable intangible assets, net 23 25 Marketing Related Customer related intangible asset, gross 17 17 Tradename related intangible asset, gross 7 7 Accumulated amortization (3) (2) Marketing related identifiable intangible assets, net 21 22 Total Identifiable intangible assets, net $ 44 $ 47 In connection with the acquisitions of Sports Defense, the Company identified intangible assets of $55 thousand representing technology related and customer related intangibles. These assets are being amortized on a straight-line basis over their weighted average estimated useful life of 4.7 years and amortization expense amounted to $3 thousand for the three months ended March 31, 2021. As of March 31, 2021, the estimated annual amortization expense for each of the next five fiscal years is as follows: 2021 (remainder of year) $ 11 2022 14 2023 8 2024 3 2025 2 Thereafter 6 Total $ 44 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 9. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following ($ in thousands): March 31, December 31, 2021 2020 Salaries, benefits and incentive compensation $ 57 $ 43 Other 32 47 Total accrued expenses and other current liabilities $ 89 $ 90 |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2021 | |
Common Stock | |
Common Stock | 10. Common Stock On September 10, 2019, the Company entered into a Stock Purchase Agreement to issue and sell shares of the Company’s common stock, par value $0.001 per share, in a private placement offering to accredited investors for an aggregate of up to $175 on the initial closing date, and an aggregate of up to $575 of shares of common stock on a subsequent closing date at a price per share equal to $0.053525. On September 10, 2019, certain accredited investors purchased 3,269,500 shares of the Company’s common stock that resulted in cash proceeds of $175 thousand. For their commitment to invest the $175 thousand, the two shareholders who invested in the September 10, 2019 private placement each became a member of the Company’s Board of Directors and gained control of the Company. Their investments carried full ratchet protection on the purchase price per share of $0.053525 because the actual price of the shares in the September 10, 2019 private placement was undetermined at that time. The final price per share of the September 10, 2019 private placement, which was governed by a term sheet dated August 27, 2019, was ultimately determined to be $0.014. On November 6, 2019 and pursuant to the Stock Purchase Agreement, the Company issued an additional 39,999,998 shares of its common stock, par value $0.001 per share, in a private placement offering to accredited investors valued at $0.014 per share and raised $560 thousand. Proceeds from this offering are expected to be used for working capital and general business operations. Upon the completion of the secondary offering on November 6, 2019 that provided for the settlement of the ratchet protection, there was a reclassification from Additional paid-in capital to Common stock for the par value of the 9,230,500 additional shares that were issued to the two shareholders who invested in the September 10, 2019 private placement. Issuance costs related to the September 10, 2019 and November 6, 2019 private placements totaled $5 dollars in legal fees and $56 thousand related to warrants issued as an equity issuance cost. See Note 15- Warrant Liability. Share issuances From January 1, 2021 through March 31, 2021, the Company entered into Securities Purchase Agreements with certain accredited investors whereby we sold 3,563,000 shares of our common stock at a price per share equal to $0.08 for an aggregate purchase price of $285,000. From February 6, 2020 through March 20, 2020, the Company entered into Securities Purchase Agreements with certain accredited investors whereby we sold 15,500,000 shares of our common stock at a price per share equal to $0.04 for an aggregate purchase price of $620,000. Proceeds from this offering are expected to be used for working capital, new product development and testing, and general business operations. The placement agent for the private placement and is entitled to receive a total fee equal to 6% of the total gross proceeds and warrants to purchase the number of shares of Common Stock equal to 10% of the number of shares of Common Stock issued to the Investors, for such services rendered. The warrants are exercisable for 3 years at an exercise price equal to $0.04. As of March 31, 2021, the Company has reserved common stock for issuance in relation to the following: Share-based compensation plan 17,000,000 Warrants to purchase common stock 19,827,500 On February 10, 2020, a majority of our stockholder through a written consent approved the following: an amendment to our Restated Certificate of Incorporation which will increase the number of authorized shares of Common Stock from 100,000,000 shares of Common Stock to 3,000,000,000 shares of Common Stock and (ii) an amendment to our Restated Certificate of Incorporation to effect a reverse stock split of our Common Stock by a ratio of not less than one-for-thirty and not more than one-for-one hundred, with the exact number to be set at a whole number within this range to be determined by our board of directors in its sole discretion and to authorize our board of directors to implement the reverse stock split by filing an amendment to our Amended and Restated Certificate of Incorporation. . On May 26, 2020, the Company filed an amendment to the certificate of incorporation to increase the number of the Company's authorized shares of common stock from 100,000,000 shares of common stock to 3,000,000,000 shares of common stock. The reverse stock split has not been effected as of date of the filing of this Form 10-Q. For more information on these amendments, please see the Company’s Definitive Information Statement on Schedule 14C filed with the SEC on March 16, 2020. |
Concentration of Risk
Concentration of Risk | 3 Months Ended |
Mar. 31, 2021 | |
Concentration of Risk | |
Concentration of Risk | 11. Concentrations of Risk The Company’s revenues are concentrated in a small group of customers with some individually having more than 10% of total revenues. 1. Revenues from three customers that exceeded 10% of total revenues for the period ended March 31, 2021 were 28%, 24%, and 16%. The accounts receivable from the top three customers were 13%, 0%, and 44% as well as 25% from one other customer of the total accounts receivable as of March 31, 2021. 2. Revenues from two customers that exceeded 10% of total revenues for the period ended March 31, 2020 were 53% and 32%. The accounts receivable from the top three customers were 57%, 0%, and 0% as well as 12% from one other customer of the total accounts receivable as of December 31, 2020. The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash. Cash balances are maintained principally at major U.S. financial institutions and are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to regulatory limits. From time to time, cash balances may exceed the FDIC insurance limit. The Company has not experienced any credit losses associated with its cash balances in the past. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Compensation | |
Share-based Compensation | 12. Share-based Compensation On August 28, 2019, the Company adopted the 2019 Long-Term Incentive Plan (the “2019 Plan”). The 2019 Plan provides for the granting of incentive stock options, nonqualified stock options, restricted stock, stock appreciation rights (“SARs”), restricted stock units, performance awards, dividend equivalent rights and other awards, which may be granted singly, in combination, or in tandem, and which may be paid in cash, shares of common stock of the Company or a combination of cash and shares of common stock of the Company. The Company initially reserved a total of 2,000,000 shares of the Company’s common stock for awards under the 2019 Plan. Effective as of May 26, 2020 and May 3, 2021, respectively, the Board approved an increase of the number of authorized shares of common stock reserved under the 2019 Plan from 2,000,000 shares of common stock to 17,000,000 shares of common stock and from 17,000,000 shares of common stock to 20,000,000 shares of common stock, all of which may be delivered pursuant to incentive stock options., all of which may be delivered pursuant to incentive stock options. Subject to adjustments pursuant to the 2019 Plan, the maximum number of shares of common stock with respect to which stock options or SARs may be granted to an executive officer during any calendar year is 500,000 shares of common stock. Incentive stock options On March 8, 2021, the Company granted Dr. Jerome Zeldis, a member of the Company Board, an option to purchase up to 666,667 shares of the Company’s common stock at a per share exercise price of $0.06 under the Company’s 2019 Long-Term Incentive Plan. This option award fully vested as of the date of grant. On March 8, 2021, the Company appointed Steven Glassman to the Board of Directors to serve for a term expiring at the next annual meeting of stockholders or until his successor is duly elected and qualified. On March 8, 2021 and in consideration for his appointment to the board of directors, the Company granted Mr. Glassman an option to purchase up to 500,000 shares of common stock at a per share exercise price of $0.08 under the Company’s 2019 Long-Term Incentive Plan. This option award fully vested as of the date of grant. On January 15, 2021, the Company awarded a contractor options to purchase an aggregate of 500,000 shares of the Company’s common stock at a per share exercise price of $0.06 under the Company’s 2019 Long-Term Incentive Plan. This option award fully vested 20% as of the date of grant and the remaining 80% in November 2022.. In May 2020 and July 2020, pursuant to the terms of the 2019 Plan, the Company awarded options to purchase an aggregate of 5,325,000 shares of common stock to two of its employees and one contractor. Pursuant to the terms of the option agreements, 325,000 of the options vested on the date of grant, and of the 5,000,000 options, 10% of such options vested on the date of grant, and the remaining of such options will vest upon meeting established criteria. The term of the options is ten years. On February 17, 2020, the Company granted certain equity awards to the members of the Company's Board of Director with the following terms: each of Messrs. Stefansky and Stein received two annual awards of stock options equal to $40,000 of the Company's common stock, granted under the Company 2019 Long-Term Incentive Plan (the "Incentive Plan"), with (i) the first grant being the right to purchase up to 2,857,141 shares of the Company's common stock at a per share exercise price of $0.014 with one-half of such option vesting on March 31, 2020 and the remaining one-half vesting in equal installments on June 30, 2020 and September 30, 2020, respectively, and with an acceleration of any unvested options upon the departure of applicable Board member from the Board for any reason and (ii) the second grant being the right to purchase up to a number of shares of the Company's common stock equal to $40,000 divided by the Fair Market Value (as defined in the Incentive Plan) of the Company's common stock as of October 10, 2020 at a per share exercise price equal to Fair Market Value of the Company's common stock as of October 10, 2020, which the Board determined to be $0.06 and equates to 666,667 shares underlying each of the second grants, with one-fourth of such option vesting on each of December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021, respectively, and with an acceleration of any unvested options upon the departure of applicable Board member from the Board for any reason. The following table contains information about the 2019 Plan as of March 31, 2021: Awards Awards Reserved for Available for Issuance Awards Issued Grant 2019 Plan 17,000,000 14,705,949 2,294,051 The following table summarizes the Company’s incentive stock option activity and related information for the period ended December 31, 2020 and for the period ended March 31, 2021: Weighted Average Number of Weighted Average Contractual Options Exercise Price Term in Years Outstanding at January 1, 2020 1,000,000 $ 0.053525 9.6 Granted 12,705,949 $ 0.0291 10.0 Exercised — — — Forfeited — — — Cancelled — — — Expired — — — Outstanding at December 31, 2020 13,705,949 $ 0.027736 9.32 Granted 1,666,667 $ 0.08 10.0 Exercised — — — Forfeited — — — Cancelled — — — Expired — — — Outstanding at March 31, 2021 15,372,616 $ 0.034889 Exercisable at March 31, 2021 9,105,949 $ 0.025441 9.00 As of March 31, 2021, vested outstanding stock options had $988 thousand intrinsic value as the exercise price is greater than the estimated fair value of the underlying common stock. As of March 31, 2021, there was approximately $78 thousand of total unrecognized share-based compensation related to unvested stock options, which the Company expects to recognize over the next 12 months. The Company recognizes compensation expense for stock option awards on a straight-line basis over the applicable service period of the award. The service period is generally the vesting period. The following assumptions were used to calculate share-based compensation expense for three months ended March 31, 2021: Volatility 171.12%- 172.19 % Risk-free interest rate 0.46% - 0.86 % Dividend yield 0.0 % Expected term 5.0 – 5.25 years The Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. Accordingly, the Company has elected to use the “simplified method” to estimate the expected term of its share-based awards. The simplified method computes the expected term as the sum of the award’s vesting term plus the original contractual term divided by two. Based on the lack of historical data of volatility for the Company’s common stock, the Company based its estimate of expected volatility on a weighted-average of the historical volatility of comparable public companies that manufacture similar products and are similar in size, stage of life cycle, and financial leverage. Restrictive stock awards On February 17, 2020, the Company granted a restricted stock award of 5,928,571 shares of the Company’s common stock to the Company’s Chief Executive Officer and Interim Chief Financial Officer, Adam Levy, with the following vesting terms: (i) 3/12 th of such shares vested as of February 17, 2020; (ii) 1/12 th of such shares vested on each of the eight months following February 17, 2020 and (iii) all remaining shares vest on September 10, 2020. On March 8, 2021, the Company granted a restricted stock award of 1,383,333 shares of the Company’s common stock to the Adam Levy for his service as our Chief Executive Officer and Chief Financial Officer from October 1, 2020 through September 30, 2021, all of which shares vested immediately. Number of Weighted Average Units Grant Date Fair Value Granted 7,311,904 $ 0.023 Exercised and converted to common shares (5,928,571) 0.014 Forfeited — — Outstanding at December 31, 2020 1,383,333 $ 0.060 Granted — — Exercised and converted to common shares — — Forfeited — — Outstanding at March 31, 2021 1,383,333 $ 0.060 Exercisable at March 31,2021 691,666 $ 0.060 Under ASC 718, Compensation-Stock Compensation (“ASC 718”), the Company has measured the value of its February 2020 award as if it were vested and issued on the grant date with a value of $83 thousand based on the closing price of the Company's stock at the grant date of the RSU Grant ($0.014 per share). An additional issuance of 1,383,333 shares were granted based on a closing price of the closing price of the Company’s stock at the grant date of the RSU Grant ($0.06 per share). As of March 31, 2021, there was approximately $42 thousand of total unrecognized share-based compensation related to restricted stock awards, which the Company expects to recognize over the next 6 months. Compensation expense will be recognized ratably over the total vesting schedule. The Company will periodically adjust the cumulative compensation expense for forfeited awards. Stock based compensation of $21 thousand and $27 thousand has been recorded for the three months ended March 31, 2021 and 2020, respectively. Warrants The following table shows a summary of common stock warrants through March 31, 2021: Weighted Weighted Average Average Number of Exercise Contractual Warrants Price Term in Years Outstanding at December 31, 2019 5,250,000 $ 0.014000 2.81 Granted 2,117,500 $ 0.050720 5.00 Exercised — — — Forfeited — — — Cancelled — — — Expired — — — Outstanding at December 31, 2020 7,367,500 $ 0.050720 2.54 Granted 12,460,000 $ 0.135188 4.77 Exercised — — — Forfeited — — — Cancelled — — — Expired — — — Outstanding at March 31, 2021 19,827,500 $ 0.094078 3.52 Exercisable at March 31, 2021 19,827,500 $ 0.094078 3.52 As of March 31, 2021, vested outstanding warrants had $408 thousand intrinsic value as the exercise price is greater than the estimated fair value of the underlying common stock. |
Note Payable
Note Payable | 3 Months Ended |
Mar. 31, 2021 | |
Note Payable | |
Note Payable | 13. Note Payable PPP Loan On April 22, 2020, the Company, entered into a promissory note (the “Promissory Note”) with PNC Bank, N.A. (the “Bank”), which provides for a loan in the amount of $147,300 (the “PPP Loan”) pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). On March 4, 2021, the Company received a second PPP Loan in the amount of $127,400 thousand under Phase II of the Paycheck Protection Program which commenced on January 13, 2021 and allowed certain businesses that received an initial PPP Loan to seek a second draw PPP Loan. The PPP Loan has a two-year term and bears interest at a rate of 1.0% per annum. Monthly principal and interest payments are deferred for six months after the date of disbursement. The PPP Loan may be prepaid at any time prior to maturity with no prepayment penalties. The Promissory Note contains events of default and other provisions customary for a loan of this type. The Paycheck Protection Program provides that the PPP Loan may be partially or wholly forgiven if the funds are used for certain qualifying expenses as described in the CARES Act. The Company used the proceeds from the PPP Loan for qualifying expenses and plans to apply for forgiveness of the PPP Loan in accordance with the terms of the CARES Act. However, the Company cannot completely assure at this time that such forgiveness of the PPP Loan will occur. The balance of the PPP loan as of March 31, 2021 and December 31, 2020 amounts to $274,700 and $147,300, respectively. Economic Injury Disaster Loan On May 28, 2020, the Company entered into the standard loan documents required for securing a loan (the “EIDL Loan”) from the SBA under its Economic Injury Disaster Loan (“EIDL”) assistance program in light of the impact of the COVID-19 pandemic on the Company’s business. Pursuant to that certain Loan Authorization and Agreement (the “SBA Loan Agreement”), the principal amount of the EIDL Loan is up to $260,500, with proceeds to be used for working capital purposes. Interest accrues at the rate of 3.75% per annum. Installment payments, including principal and interest, are due monthly beginning May 28, 2021 (twelve months from the date of the SBA Note in the amount of $1,270. The balance of principal and interest is payable thirty years from the date of the SBA Note. In connection therewith, the Company received an $8,000 advance, which does not have to be repaid. The balance of the EIDL Loan as of March 31, 2021 and December 31, 2020 amounts to $268,721 and $266,279, respectively. |
Convertible Notes Payable
Convertible Notes Payable | 3 Months Ended |
Mar. 31, 2021 | |
Convertible Notes Payable | |
Convertible Notes Payable | 14. Convertible Notes Payable On December 24, 2020, the Company entered into two Securities Purchase Agreement, dated December 24, 2020 (the “Purchase Agreement”) pursuant to which the Company issued the following (i) $100,000 6% Secured Convertible Promissory Note which was convertible into shares of the Company’s common stock at a price per share of $0.08 and (ii) Common Stock purchase warrants to purchase up to 312,500 shares of common stock with an exercise price of $0.08. The notes are secured by all of the assets and equipment owned by the Company. The notes were due on or before June 24, 2021 and fully-repaid (including all accrued but unpaid interest) on March 14, 2021. On January 19, 2021, the Company entered into a Securities Purchase Agreement, (the “2021 Purchase Agreement”) pursuant to which the Company issued the following (i) $15,000 Secured Convertible Promissory Note which was convertible into shares of the Company’s common stock at a price per share of $0.03. The notes were due on or before March 19, 2021 and fully-repaid (including all accrued but unpaid interest) on March 14, 2021. Auctus Fund Financing On March 11, 2021 (the “Issuance Date”), the Company entered into a securities purchase agreement (the “Auctus Purchase Agreement”) with Auctus Fund, LLC, a Delaware limited liability company (“Auctus”), pursuant to which the Company issued to Auctus a senior secured convertible promissory note in the principal amount of $1,500,000 (the “Auctus Note”). The net proceeds received by the Company were $1,337,000 (after deducting fees and expenses related to the transaction, including a payment to Alere (as defined and discussed below). The Company intends to use the net proceeds for working capital and general corporate purposes. The Auctus Note has a maturity date of one year from the Issuance Date. The Auctus Note bears interest at a rate of 12% per annum, which is also payable on maturity, with the understanding that the first 12 months of interest (equal to $180,000) is guaranteed and deemed to be earned in full as of the Issuance Date. In the event the Company fails to pay any amount when due under the Auctus Note, the interest rate will increase to the greater of 16% or the maximum amount permitted by law. The Auctus Note may be prepaid during the first 180 calendar days from the Issuance Date subject to a 110% prepayment penalty on all principal and accrued but unpaid interest then outstanding. The Auctus Note may not be paid in whole or in part after 180 calendar days from the Issuance Date. Auctus may convert any amount due under the Auctus Note at any time, and from time to time, into shares of the Company’s common stock at a conversion price of $0.10 per share; provided, however, that Auctus may not convert any portion of the Auctus Note that would cause it to beneficially own in excess of 4.99% of the Company’s common stock. The conversion price and number of shares of the Company’s common stock issuable upon conversion of the Auctus Note will be subject to adjustment from time to time for any subdivision or consolidation of shares and other standard dilutive events. The Auctus Note contains a number of events of default, including but not limited to the following: (i) the Company’s failure to be quoted or listed (as applicable) on the OTCQB, OTCQX, any tier of the NASDAQ Stock Market, the New York Stock Exchange, or the NYSE American within 120 days of the Issuance Date (the “Trading Date”) and (ii) the Company’s failure to file a registration statement covering the Auctus’ resale at prevailing market prices (and not fixed prices) of all of the common stock underlying the Auctus Note and the Auctus Warrants (as defined below) within 30 calendar days following the Issuance Date, (ii) cause the registration statement to become effective within 150 calendar days following the Issuance Date. An event of default is subject to a confession of judgement against the Company in the favor of Auctus. Additionally, the Auctus Note is secured by all of the assets of the Company pursuant to a security agreement that was entered into in connection with the issuance of the Auctus Note (the “Security Agreement”); provided, however, the Security Agreement will be automatically terminated as of the Trading Date assuming no event of default then exists. In connection with the issuance of the Auctus Note, Auctus was also issued two five-year warrants as follows: the first warrant was to purchase up to an aggregate of 6,000,000 shares of the Company’s common stock at an exercise price of $0.125 per share (the “First Auctus Warrant”) and the second warrant was to purchase up to an aggregate of 5,000,000 shares of the Company’s common stock at an exercise price of $0.15 per share (the “Second Auctus Warrant”). The First Auctus Warrant and the Second Auctus Warrant are referred to herein as the “Auctus Warrants” and the shares of the Company’s common stock underlying the Auctus Warrants are referred to as the “Auctus Warrant Shares”. Auctus may not exercise the Auctus Warrants with respect to any number of Auctus Warrant Shares that would cause it to beneficially own in excess of 4.99% of the Company’s common stock. The Auctus Warrants may be exercised for cash, or, if the “market price” of the Company’s common stock is greater than the Auctus Warrant’s exercise price, and there is not an effective registration statement covering the Auctus Warrant Shares, the Auctus Warrants may be exercised on a cashless basis. The number of shares of common stock to be deliverable upon exercise of the Auctus Warrants is subject to adjustment for subdivision or consolidation of shares and other standard dilutive events, or in the event the Company effects a reorganization, reclassification, merger, consolidation, disposition of assets, or other fundamental transaction. Pursuant to the Auctus Purchase Agreement, the Company granted Auctus piggyback registration rights with respect to the shares underlying the Auctus Note and the Auctus Warrant. In addition, the Company agreed that, while any amount remains unpaid under the Auctus Note, it would not sell securities on more favorable terms than those provided to Auctus, without adjusting Auctus’ terms accordingly. Further, among other things, the Company agreed that, while any amount remains unpaid under the Auctus Note, it would not enter into any variable rate transactions. Further and in connection with the issuance of the Auctus Note, the Company entered into a registration rights agreement with Auctus (the “Registration Rights Agreement”) whereby it the Company agreed to (i) file with the Securities and Exchange Commission a registration statement covering resale by Auctus at prevailing market prices (and not fixed prices) of all of the common stock underlying the Auctus Note and the Auctus Warrants within 30 calendar days following the Issuance Date, (ii) cause the registration statement to become effective within 150 calendar days following the Issuance Date. Alere Financial, A Division of Cova Capital Partners, LLC (“Alere”), served as the placement agent for the Auctus Note and received a total cash fee equal to $120,000 (or 8% of the principal amount of the Auctus Note). Additionally, Alere received warrants to purchase 654,545 and 545,455 shares of common stock at an exercise price equal to $0.125 and $0.15, respectively, for such services rendered. Alere’s warrants are in a customary form reasonably acceptable to Alere and exercisable for 3 years. Mr. Levy, the Company’s Chief Executive Officer and Chief Financial Officer, is affiliated with Alere but has waived any portion of such fee received by Alere to which he is entitled as an affiliate of Alere. As of March 31, 2021, the note outstanding was $92,055, which consisted of unamortized balance of $1,159,889 of a beneficial conversion and warrant features, unamortized original issue discount of $172,824, unamortized debt issuance costs of $255,232 and interest of $6,803 included in accrued expenses on the accompanying consolidated balance sheet. |
Warrant Liability
Warrant Liability | 3 Months Ended |
Mar. 31, 2021 | |
Warrant Liability | |
Warrant Liability | 15. Warrant Liability On March 11, 2021, February 3, 2021, December 24, 2020, March 18, 2020, September 10, 2019 and November 6, 2019, the Company issued 1,200,000, 260,000, 255,000, 1,550,000, 1,250,000 and 4,000,000 warrants, respectively, as equity issuance consideration, in connection with a private placement of the Company’s common stock. The warrants entitle the holder to purchase one share of our common stock at an exercise price equal to $0.014 to $0.15 per share at any time on or after their issuance date and on or prior to the close of business 3 years after the issuance date (the “Termination Date”). The Company determined that these warrants are free standing financial instruments that are legally detachable and separately exercisable from the common stock included in the public share offering. Management also determined that the warrants required classification as a liability pursuant to ASC 815. In accordance with the accounting guidance, the outstanding warrants are recognized as a warrant liability on the balance sheet and are measured at their inception date fair value and subsequently re-measured at each reporting period with changes being recorded as a component of other income in the statement of operations. The fair value of the warrant liabilities was measured using a Black-Scholes model. Significant inputs into the model at the inception are as follows: Issuance date (1) Issuance date (2) Issuance date (3) Issuance date (4) Issuance date (5) Issuance date (6) Black -Scholes Assumptions March 11, 2021 February 3, 2021 December 24, 2020 March 18, 2020 September 10, 2019 November 6, 2019 Exercise Price (1)(2) $ 0.125 – 0.15 $ 0.08 $ 0.08 $ 0.04 $ 0.014 $ 0.014 Warrant Expiration Date (1)(2) March 11, 2026 February 3, 2024 December 24, 2020 March 18, 2023 September 10, 2022 November 6, 2022 Stock Price (3) $ 0.10 $ 0.08 $ 0.08 $ 0.04 $ 0.014 $ 0.014 Interest Rate (annual) (4) 0.17 % 0.18 % 0.17 % 0.66 % 1.61 % 1.60 % Volatility (annual) (5) 172.54 % 171.71 % 172.54 % 137.41 % 139.84 % 138.48 % Time to Maturity (Years) 5.0 3.0 3.0 3.0 3.0 3.0 Calculated fair value per share 0.93 -0.0094 0.690703 0.0692188 $ 0.0307299 $ 0.01091 $ 0.1095 Future Estimated Quarterly Dividend per share (6) $ — $ — $ — Significant inputs into the model at the reporting period measurement dates are as follows: Black-Scholes Assumptions March 31, 2021 March 31, 2021 March 31, 2021 March 31, 2021 March 31, 2021 Exercise Price $ 0.08 – 0.15 $ 0.08 $ 0.04 $ 0.014 $ 0.014 Warrant Expiration Date February 3, 20201 and March 11, 2021 December 24, 2020 March 18, 2023 September 10, 2022 November 6, 2022 Stock Price (7) $ 0.10 $ 0.08 $ 0.04 $ 0.014 $ 0.014 Interest Rate (annual) (8) 0.17 % 0.17 % 0.17 % 0.17 % 1.17 % Volatility (annual) (9) 170.53 % 170.53 % 170.53 % 170.53 % 170.53 % Time to Maturity (Years) 2.85-4.95 2.73 1.96 1.60 1.45 Calculated fair value per share 0.0936578 – 0.0930702 0.0692188 $ 0.0307299 $ 0.01091 $ 0.1095 Future Estimated Quarterly Dividend per share (10) — — $ — $ — December 31, December 31, December 31, December 31, Black-Scholes Assumptions 2020 2020 2020 2020 Exercise Price $ 0.08 $ 0.04 $ 0.014 $ 0.014 Warrant Expiration Date December 24, 2020 March 18, 2023 September 10, 2022 November 6, 2022 Stock Price $ 0.08 $ 0.04 $ 0.014 $ 0.014 Interest Rate (annual) (7) 0.17 % 0.13 % 0.13 % 1.13 % Volatility (annual) (8) 172.38 % 172.38 % 172.38 % 172.38 % Time to Maturity (Years) 2.98 2.21 1.85 1.69 Calculated fair value per share 0.0692188 $ 0.0307299 $ 0.01091 $ 0.1095 Future Estimated Quarterly Dividend per share (9) $ — $ — $ — (1) Based on the terms provided in the warrant agreement related to the issuance of common stock of on March 11th, 2021 (2) Based on the terms provided in the warrant agreement related to the issuance of common stock of on February 3rd, 2021 (3) Based on the terms provided in the warrant agreement related to the issuance of common stock of on December 24th, 2020 (4) Based on the terms provided in the warrant agreement related to the issuance of common stock of on March 18th, 2020 (5) Based on the terms provided in the warrant agreement related to the issuance of common stock of on September 10 th , 2019 (6) Based on the terms provided in the warrant agreement related to the issuance of common stock of on November 6 th , 2019 (7) Based on the observable transaction value of common stock of per the most recent stock issuance financing agreements. (8) Interest rate for U.S. Treasury Bonds, as of the issuance dates and each presented period ending date, as published by the U.S. Federal Reserve. (9) Based on the historical daily volatility of Guideline Public Companies and each presented period ending date. (10) Current estimated dividend payments beyond initial four quarters. At a future date, the company will review the working capital needs and make a final determination of any future dividend payments. The warrants outstanding and fair values at each of the respective valuation dates are summarized below: Warrants Fair Value Warrant Liability Outstanding per Share Fair Value Fair Value as of period ending 12/31/19 5,250,000 $ 0.01086 $ 56 Fair Value at initial measurement date 1,805,000 $ $ 65 Change in fair value of warrant liability 2 Fair Value as of period ending 12/31/20 7,055,000 $ 123 Fair Value at initial measurement dates 1,460,000 $ 0.08273 $ 130 Change in fair value of warrant liability (6) Fair Value as of period ending 3/31/2021 8,515,000 $ 247 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions | |
Related Party Transactions | 16. Related Party Transactions Convertible Promissory Note On December 24, 2020, the Company issued a Secured Convertible Promissory Notes in the amount of $100,000 to Mr. Stein, a member of the board of directors and an entity affiliated to Mr. Stein, N&F Trust 774 (See Note 13). The notes were repaid in March 2021. Advances Dr. Jerome Zeldis, a member of the Company Board, has an outstanding balance due of $30,000 for services as of December 31, 2020. The fees were paid in February 2021. Sports Defense Acquisition On May 29, 2020, the Company entered into a Membership Interest Purchase Agreement whereby the Company purchased all of the outstanding equity securities of Sport Defense LLC. , Adam Levy, the Company’s Chief Executive Officer and Chief Financial Officer, and Nachum Stein, a member of the Company’s Board of Directors (the “Board”), were each members of Sport Defense and part of the Sellers. Mr. Levy received 1,546,875 of the shares and Mr. Stein received 3,187,500 of the shares (See Note 3). |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events | |
Subsequent Events | 17. Subsequent Events The Company has evaluated subsequent events for the potential recognition or disclosure through May 17, 2021, the date the financial statements were available to be issued, and has determined that the following matter should be disclosed in the accompanying condensed financial statements. Effective as of May 3, 2021, the Board approved an increase of the number of authorized shares of common stock reserved under our 2019 Long-Term Incentive Plan from 17,000,000 shares of common stock to 20,000,000 shares of common stock. |
Description of Business, the _2
Description of Business, the Spin-off and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Description of Business, the Spin-off and Basis of Presentation | |
Accounts receivable, net | Accounts receivable, net Trade accounts receivable are stated at the amount the Company expects to collect and do not bear interest. The Company evaluates the collectability of accounts receivable and records a provision to the allowance for doubtful accounts based on factors including the length of time the receivables are past due, the current business environment and the Company’s historical experience. Provisions to the allowances for doubtful accounts are recorded in selling, general and administrative expenses. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. The allowance for doubtful accounts was $3 thousand as of March 31, 2021 and $1 thousand as of December 31, 2020. |
Inventory | Inventory Inventory is stated at the lower of cost, the value determined by the first-in, first-out method, or net realizable value. The Company evaluates inventories for excess quantities, obsolescence or shelf-life expiration. This evaluation includes an analysis of historical sales levels by product, projections of future demand, the risk of technological or competitive obsolescence for products, general market conditions, and a review of the shelf-life expiration dates for products. These factors determine when, and if, the Company adjusts the carrying value of inventory to estimated net realizable value. The balance is made up of raw materials of $197 thousand and $190 thousand, work-in-progress of $34 thousand and $22 thousand, and finished goods of $21 thousand and $21 thousand on March 31, 2021 and December 31, 2020, respectively. |
Property and equipment, net | Property and equipment, net Property and equipment is recorded at historical cost, net of accumulated depreciation and amortization. Depreciation is provided over the assets’ useful lives on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or lease terms. Repairs and maintenance costs are expensed as incurred. Management periodically assesses the estimated useful life over which assets are depreciated or amortized. If the analysis warrants a change in the estimated useful life of property and equipment, management will reduce the estimated useful life and depreciate or amortize the carrying value prospectively over the shorter remaining useful life. The carrying amounts of assets sold or retired and the related accumulated depreciation are eliminated in the period of disposal and the resulting gains and losses are included in the results of operations during the same period. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets In applying the acquisition method of accounting, amounts assigned to identifiable assets and liabilities acquired were based on estimated fair values as of the date of acquisition, with the remainder recorded as goodwill. Identifiable intangible assets are initially valued at fair value using generally accepted valuation methods appropriate for the type of intangible asset. Identifiable intangible assets with definite lives are amortized over their estimated useful lives and are reviewed for impairment if indicators of impairment arise. Intangible assets with indefinite lives are tested for impairment within one year of acquisitions or annually as of December 1, and whenever indicators of impairment exist. The fair value of intangible assets is compared with their carrying values, and an impairment loss would be recognized for the amount by which a carrying amount exceeds its fair value. Acquired identifiable intangible assets are amortized over the following periods: Expected Life Acquired intangible Asset Amortization Basis (years) Technology-Related Straight-line basis 3 Marketing-Related Straight-line basis 4 |
Impairment of Long-lived assets | Impairment of Long-Lived Assets We review the recoverability of our long-lived assets, including equipment and right-of-use assets, when events or changes in circumstances occur that indicate that the carrying value of the asset, or asset group, may not be recoverable. Events or circumstances that might cause management to perform impairment testing include, but are not limited to, significant underperformance relative to historical or projected future operating results of the asset or asset group, significant changes in the manner or use of assets or the strategy for our overall business; and significant negative industry or economic trends. If indicators of potential impairment are present, management performs a recoverability test and, if necessary, records an impairment loss. If the total estimated future undiscounted cash flows to be generated from the use and ultimate disposition of an asset or asset group is less than its carrying value, an impairment loss is recorded in the Company’s results of operations, measured as the amount required to reduce the carrying value to fair value. Fair value is determined in accordance with the best available information per the hierarchy described under Fair Value Measurements below. For example, the Company would first seek to identify quoted prices or other observable market data. If observable data is not available, Management would apply the best available information under the circumstances to a technique such as a discounted cash flow model to estimate fair value. Impairment analysis involves estimates and the use of assumptions due to the inherently judgmental nature of forecasting long-term estimated inflows and outflows resulting from the use and ultimate disposition of an asset, and determining the ultimate useful lives of assets. Actual results may differ from these estimates using different assumptions, which could materially impact the results of an impairment assessment. |
Prepaid expenses and other current assets | Prepaid expenses and other current assets Prepaid expenses and other current assets is recorded at historical cost and is primarily made up of $18 thousand and $16 thousand of prepaid insurance, and $14 thousand and $9 thousand general prepaid expenses and other current assets in the period ended March 31, 2021 and December 31, 2020, respectively. |
Other Assets | Other Assets Other Assets is recorded at historical costs, and as of March 31, 2021 and December 31, 2020, the balance is entirely made up of spare parts for manufacturing equipment. Other assets are stated at cost and are not subject to depreciation, until such time that they are placed into service and the part that is being replaced is disposed. |
Fair value measurements | Fair value measurements The Company utilizes the fair value hierarchy to apply fair value measurements. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair values that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The basis for fair value measurements for each level within the hierarchy is described below: Level 1 — Quoted prices for identical assets or liabilities in active markets. Level 2 — Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 — Valuations derived from valuation techniques in which one or more significant inputs to the valuation model are unobservable. The Company considers the carrying amounts of its financial instruments (cash, accounts receivable and accounts payable) in the balance sheet to approximate fair value because of the short-term or highly liquid nature of these financial instruments. |
Warrant Liability | Warrant Liability Warrants to purchase common stock were issued in connection with equity financing raises, which occurred on March 11, 2021, February 3, 2021, December 24, 2020, March 18, 2020, September 10, 2019 and November 6, 2019. The fair values of the warrants are estimated as of the date of issuance and again at each period end using a Black-Scholes option valuation model. At issuance, the fair value of the warrant is recognized as an equity issuance cost within additional paid-in-capital. Fair value adjustments to the warrant liability are recognized in other income (expense) in the statements of operations. |
Revenue recognition | Revenue recognition On January 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing accounting principles generally accepted in the United States of America (“U.S. GAAP”) including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The Company adopted ASC 606 for all applicable contracts using the modified retrospective method, which would have required a cumulative-effect adjustment, if any, as of the date of adoption. The adoption of ASC 606 did not have a material impact on the Company’s financial statements as of the date of adoption. As a result, a cumulative-effect adjustment was not required. The Company recognizes revenue predominately from one type of revenue, contract manufacturing. Revenue from contract manufacturing is recognized at the point where the customer obtains control of the goods and the Company satisfies its performance obligation, which generally is at the time it ships the product to the customer. The Company’s customers consist of other life sciences companies and revenues are concentrated in the United States. Payment terms vary by the type and location of customer and may differ by jurisdiction and customer but payment is generally required in a term ranging from 30 to 60 days from date of shipment. Estimates for product returns, allowances and discounts are recorded as a reduction of revenue and are established at the time of sale. Returns are estimated through a comparison of historical return data and are determined for each product and adjusted for known or expected changes in the marketplace specific to each product, when appropriate. Historically, sales return provisions have not been material. Amounts accrued for sales allowances and discounts are based on estimates of amounts that are expected to be claimed on the related sales and are based on historical data. Payments for allowances and discounts have historically been immaterial. As of March 31, 2021, the Company did not have any contract assets or contract liabilities from contracts with customers. As of March 31, 2021, there were no remaining performance obligations that the Company had not satisfied. |
Share-based compensation | Share-based compensation On August 28, 2019, the Company adopted the 2019 Long-Term Incentive Plan (the “2019 Plan”). The 2019 Plan provides for the granting of incentive stock options, nonqualified stock options, restricted stock, stock appreciation rights (“SARs”), restricted stock units, performance awards, dividend equivalent rights and other awards, which may be granted singly, in combination, or in tandem, and which may be paid in cash, shares of common stock of the Company or a combination of cash and shares of common stock of the Company. The Company initial reserved a total of 2,000,000 shares of the Company’s common stock for awards under the 2019 Plan. Effective as of May 26, 2020 and May 3, 2021, respectively, the Board approved an increase of the number of authorized shares of common stock reserved under the 2019 Plan from 2,000,000 shares of common stock to 17,000,000 shares of common stock and from 17,000,000 shares of common stock to 20,000,000 shares of common stock, all of which may be delivered pursuant to incentive stock options. Subject to adjustments pursuant to the 2019 Plan, the maximum number of shares of common stock with respect to which stock options or SARs may be granted to an executive officer during any calendar year is 500,000 shares of common stock. The Company’s 2019 Long-Term Incentive Plan provides certain employees, contractors and outside directors with share-based compensation in the form of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalent rights and other awards. The fair values of incentive stock option award grants are estimated as of the date of grant using a Black-Scholes option valuation model. Compensation expense is recognized in the statements of operations on a straight-line basis over the requisite service period, which is generally the vesting period required to obtain full vesting. Forfeitures are accounted for when they occur. In June 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-07, Compensation - Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting . These amendments expand the scope of Topic 718, Compensation - Stock Compensation , to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This new standard is effective for the Company on January 1, 2020. The Company early adopted this new standard in the third quarter of 2019 and it did not have material impact to its condensed financial statements. |
Income taxes | Income taxes Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities at the applicable tax rates. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates. Tax benefits are recognized from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by a tax authority and based upon the technical merits of the tax position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement. An unrecognized tax benefit, or a portion thereof, is presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. |
Segment reporting | Segment reporting The Company operates in one business segment as a contract manufacturer of aqueous polymer hydrogels. As a result, the Company’s operations are a single reportable segment, which is consistent with the Company’s internal management reporting. |
Comprehensive loss | Comprehensive loss Comprehensive loss consists of net loss and changes in equity during a period from transactions and other equity and circumstances generated from non-owner sources. The Company’s net loss equals comprehensive loss for all periods presented. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) which simplifies the accounting for convertible instruments. The guidance removes certain accounting models which separate the embedded conversion features from the host contract for convertible instruments. Either a modified retrospective method of transition or a fully retrospective method of transition is permissible for the adoption of this standard. Update No. 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted no earlier than the fiscal year beginning after December 15, 2020. The Company does not expect this ASU to have a material impact on its consolidated results of operations, cash flows and financial position. In February 2016, the Financial Accounting Standards Board (the “FASB”) established ASC Topic 842, Leases , by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize operating leases on the balance sheet and disclose key information about leasing arrangements. ASC Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements . The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases. Leases will be classified as either finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Lessor accounting under the new standard is substantially unchanged. Additional qualitative and quantitative disclosures are also required. The Company adopted the new standard on leases on January 1, 2019. The Company currently recognizes an operating lease right-of-use asset and a corresponding lease liability on its condensed balance sheet. The Company also applies the following accounting policies related to this standard: · The Company does not recognize ROU assets and liabilities for leases with a term of 12 months or less; and · The Company does not separate lease and non-lease components in the Company’s lease contracts. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption. Financial Instruments— Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a model based on expected losses to estimate credit losses for most financial assets and certain other instruments. In November 2019, the FASB issued ASU No. 2019-10 Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). The update allows the extension of the initial effective date for entities which have not yet adopted ASU No. 2016-02. The standard is effective for annual reporting periods beginning after December 15, 2022, with early adoption permitted for annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions by recording a cumulative effect adjustment to retained earnings. The Company has not yet adopted ASU 2016-13 and currently assessing the impact of this new standard on its financial statements. Collaborative Arrangements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808). This update clarifies the interaction between ASC 808, Collaborative Arrangements and ASC 606, Revenue from Contracts with Customers (“ASU 2018-18”) . The update clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, the update precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue if the counterparty is not a customer for that transaction. This update will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. ASU 2018-18 should be applied retrospectively to the date of initial application of ASC 606 and early adoption is permitted. The adoption of this standard will not have a material impact on the Company’s financial statements as the Company does not have any collaborative agreements. However, there is a potential for the Company to enter into collaborative agreements in the future, as it expands into consumer markets. Fair Value Measurement—Disclosure Framework In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which amends ASC Topic 820, Fair Value Measurements. ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The effective date is the first quarter of fiscal year 2021, with early adoption permitted for the removed disclosures and delayed adoption permitted until fiscal year 2021 for the new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company has not yet adopted ASU 2018-13 and currently assessing the impact of this new standard on its financial statements. |
Description of Business, the _3
Description of Business, the Spin-off and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Description of Business, the Spin-off and Basis of Presentation | |
Schedule of net liabilities assumed pursuant to Spin-Off and in exchange | Pursuant to the Spin-Off and in exchange for the 5,005,211 shares of common stock,NexGel assumed the following net assets and liabilities from Parent as of June 21, 2019 ($ in thousands): Assets: Cash $ 186 Accounts receivable, net 72 Inventory, net 140 Prepaid expenses and other current assets 101 Property and equipment, net 155 Operating lease - right of use asset 976 Other assets 178 Total assets 1,808 Liabilities: Accounts payable (496) Accrued expenses and other current liabilities (395) Operating lease liability - current (207) Long-term operating lease liability (769) Total liabilities (1,867) Net liabilities assumed in Spin-Off on June 21, 2019 $ (59) |
Acquired identifiable intangible assets amortized period | Expected Life Acquired intangible Asset Amortization Basis (years) Technology-Related Straight-line basis 3 Marketing-Related Straight-line basis 4 |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Acquisition | |
Schedule of preliminary analysis for the Sports Defense acquisition | Provisional Purchase Consideration at preliminary fair value: Purchase price $ 375 Amount of consideration $ 375 Assets acquired and liabilities assumed at preliminary fair value Inventories 21 Product/Technology related intangibles 31 Marketing related intangibles 8 Customer related intangibles 17 Accounts payable and accrued expenses (13) Other liabilities — Net tangible assets acquired $ 64 Total net assets acquired $ 64 Consideration paid 375 Preliminary goodwill $ 311 |
Schedule of unaudited pro-forma results of operations | For the Year Ended December 31, 2021 2020 Revenues, net $ 267 $ 254 Net loss allocable to common shareholders $ (655) $ (500) Net loss per share $ (0.01) $ (0.01) Weighted average number of shares outstanding 101,555,284 66,836,296 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases | |
Schedule of future minimum lease payments, excluding expense reimbursements, under noncancelable operating leases | The following table presents information about the amount and timing of the liability arising from the Company’s operating lease as of March 31, 2021 ($ in thousands): Operating Lease Maturity of Lease Liability Liability 2021 (remainder of year) $ 155 2022 207 2023 207 2024 207 2025 207 Thereafter 18 Total undiscounted operating lease payments $ 1,001 Less: Imputed interest (226) Present value of operating lease liability $ 775 Weighted average remaining lease term 4.7 years Weighted average discount rate % |
Schedule of Summary of supplemental cash flows information related to leases | Supplemental cash flows information related to leases was as follows ($ in thousands): March 31, 2021 Cash paid for amounts included in the measurement of lease liability: Operating cash flows from operating lease $ 52 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory | |
Schedule of inventories | Inventory consists of the following ($ in thousands): March 31, December 31, 2021 2020 Raw materials $ 197 $ 190 Work-in-progress 34 22 Finished goods 21 21 252 233 Less: Inventory reserve for excess and slow moving inventory — — Total $ 252 $ 233 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property and Equipment, Net | |
Schedule of property and equipment, net | Useful Life March 31, December 31, (Years) 2021 2020 Machinery and equipment 3 - 10 $ 940 $ 2,894 Office furniture and equipment 3 - 10 49 49 Leasehold improvements 228 228 Construction in progress N/A — 461 1,217 3,632 Less: accumulated depreciation and amortization (421) (3,079) Property and equipment, net $ 796 $ 553 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Intangible Assets | |
Schedule of identifiable intangible assets | March 31, December 31, 2021 2020 Product/Technology Related Identifiable intangible assets, gross $ 31 $ 31 Accumulated amortization (8) (6) Product/Technology Related identifiable intangible assets, net 23 25 Marketing Related Customer related intangible asset, gross 17 17 Tradename related intangible asset, gross 7 7 Accumulated amortization (3) (2) Marketing related identifiable intangible assets, net 21 22 Total Identifiable intangible assets, net $ 44 $ 47 |
Schedule of estimated annual amortization expense | As of March 31, 2021, the estimated annual amortization expense for each of the next five fiscal years is as follows: 2021 (remainder of year) $ 11 2022 14 2023 8 2024 3 2025 2 Thereafter 6 Total $ 44 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consist of the following ($ in thousands): March 31, December 31, 2021 2020 Salaries, benefits and incentive compensation $ 57 $ 43 Other 32 47 Total accrued expenses and other current liabilities $ 89 $ 90 |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Common Stock | |
Summary of reserved of common stock for issuance | As of March 31, 2021, the Company has reserved common stock for issuance in relation to the following: Share-based compensation plan 17,000,000 Warrants to purchase common stock 19,827,500 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Compensation | |
Schedule of information about 2019 plan | The following table contains information about the 2019 Plan as of March 31, 2021: Awards Awards Reserved for Available for Issuance Awards Issued Grant 2019 Plan 17,000,000 14,705,949 2,294,051 |
Schedule of incentive stock option activity | Weighted Average Number of Weighted Average Contractual Options Exercise Price Term in Years Outstanding at January 1, 2020 1,000,000 $ 0.053525 9.6 Granted 12,705,949 $ 0.0291 10.0 Exercised — — — Forfeited — — — Cancelled — — — Expired — — — Outstanding at December 31, 2020 13,705,949 $ 0.027736 9.32 Granted 1,666,667 $ 0.08 10.0 Exercised — — — Forfeited — — — Cancelled — — — Expired — — — Outstanding at March 31, 2021 15,372,616 $ 0.034889 Exercisable at March 31, 2021 9,105,949 $ 0.025441 9.00 |
Schedule of assumptions used in share-based compensation | The following assumptions were used to calculate share-based compensation expense for three months ended March 31, 2021: Volatility 171.12%- 172.19 % Risk-free interest rate 0.46% - 0.86 % Dividend yield 0.0 % Expected term 5.0 – 5.25 years |
Schedule of restricted stock awards activity | Number of Weighted Average Units Grant Date Fair Value Granted 7,311,904 $ 0.023 Exercised and converted to common shares (5,928,571) 0.014 Forfeited — — Outstanding at December 31, 2020 1,383,333 $ 0.060 Granted — — Exercised and converted to common shares — — Forfeited — — Outstanding at March 31, 2021 1,383,333 $ 0.060 Exercisable at March 31,2021 691,666 $ 0.060 |
Summary of common stock warrants | Weighted Weighted Average Average Number of Exercise Contractual Warrants Price Term in Years Outstanding at December 31, 2019 5,250,000 $ 0.014000 2.81 Granted 2,117,500 $ 0.050720 5.00 Exercised — — — Forfeited — — — Cancelled — — — Expired — — — Outstanding at December 31, 2020 7,367,500 $ 0.050720 2.54 Granted 12,460,000 $ 0.135188 4.77 Exercised — — — Forfeited — — — Cancelled — — — Expired — — — Outstanding at March 31, 2021 19,827,500 $ 0.094078 3.52 Exercisable at March 31, 2021 19,827,500 $ 0.094078 3.52 |
Warrant Liability (Tables)
Warrant Liability (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Warrant Liability | |
Schedule of warrant liability | Issuance date (1) Issuance date (2) Issuance date (3) Issuance date (4) Issuance date (5) Issuance date (6) Black -Scholes Assumptions March 11, 2021 February 3, 2021 December 24, 2020 March 18, 2020 September 10, 2019 November 6, 2019 Exercise Price (1)(2) $ 0.125 – 0.15 $ 0.08 $ 0.08 $ 0.04 $ 0.014 $ 0.014 Warrant Expiration Date (1)(2) March 11, 2026 February 3, 2024 December 24, 2020 March 18, 2023 September 10, 2022 November 6, 2022 Stock Price (3) $ 0.10 $ 0.08 $ 0.08 $ 0.04 $ 0.014 $ 0.014 Interest Rate (annual) (4) 0.17 % 0.18 % 0.17 % 0.66 % 1.61 % 1.60 % Volatility (annual) (5) 172.54 % 171.71 % 172.54 % 137.41 % 139.84 % 138.48 % Time to Maturity (Years) 5.0 3.0 3.0 3.0 3.0 3.0 Calculated fair value per share 0.93 -0.0094 0.690703 0.0692188 $ 0.0307299 $ 0.01091 $ 0.1095 Future Estimated Quarterly Dividend per share (6) $ — $ — $ — Significant inputs into the model at the reporting period measurement dates are as follows: Black-Scholes Assumptions March 31, 2021 March 31, 2021 March 31, 2021 March 31, 2021 March 31, 2021 Exercise Price $ 0.08 – 0.15 $ 0.08 $ 0.04 $ 0.014 $ 0.014 Warrant Expiration Date February 3, 20201 and March 11, 2021 December 24, 2020 March 18, 2023 September 10, 2022 November 6, 2022 Stock Price (7) $ 0.10 $ 0.08 $ 0.04 $ 0.014 $ 0.014 Interest Rate (annual) (8) 0.17 % 0.17 % 0.17 % 0.17 % 1.17 % Volatility (annual) (9) 170.53 % 170.53 % 170.53 % 170.53 % 170.53 % Time to Maturity (Years) 2.85-4.95 2.73 1.96 1.60 1.45 Calculated fair value per share 0.0936578 – 0.0930702 0.0692188 $ 0.0307299 $ 0.01091 $ 0.1095 Future Estimated Quarterly Dividend per share (10) — — $ — $ — December 31, December 31, December 31, December 31, Black-Scholes Assumptions 2020 2020 2020 2020 Exercise Price $ 0.08 $ 0.04 $ 0.014 $ 0.014 Warrant Expiration Date December 24, 2020 March 18, 2023 September 10, 2022 November 6, 2022 Stock Price $ 0.08 $ 0.04 $ 0.014 $ 0.014 Interest Rate (annual) (7) 0.17 % 0.13 % 0.13 % 1.13 % Volatility (annual) (8) 172.38 % 172.38 % 172.38 % 172.38 % Time to Maturity (Years) 2.98 2.21 1.85 1.69 Calculated fair value per share 0.0692188 $ 0.0307299 $ 0.01091 $ 0.1095 Future Estimated Quarterly Dividend per share (9) $ — $ — $ — (1) Based on the terms provided in the warrant agreement related to the issuance of common stock of on March 11th, 2021 (2) Based on the terms provided in the warrant agreement related to the issuance of common stock of on February 3rd, 2021 (3) Based on the terms provided in the warrant agreement related to the issuance of common stock of on December 24th, 2020 (4) Based on the terms provided in the warrant agreement related to the issuance of common stock of on March 18th, 2020 (5) Based on the terms provided in the warrant agreement related to the issuance of common stock of on September 10 th , 2019 (6) Based on the terms provided in the warrant agreement related to the issuance of common stock of on November 6 th , 2019 (7) Based on the observable transaction value of common stock of per the most recent stock issuance financing agreements. (8) Interest rate for U.S. Treasury Bonds, as of the issuance dates and each presented period ending date, as published by the U.S. Federal Reserve. (9) Based on the historical daily volatility of Guideline Public Companies and each presented period ending date. (10) Current estimated dividend payments beyond initial four quarters. At a future date, the company will review the working capital needs and make a final determination of any future dividend payments. The warrants outstanding and fair values at each of the respective valuation dates are summarized below: Warrants Fair Value Warrant Liability Outstanding per Share Fair Value Fair Value as of period ending 12/31/19 5,250,000 $ 0.01086 $ 56 Fair Value at initial measurement date 1,805,000 $ $ 65 Change in fair value of warrant liability 2 Fair Value as of period ending 12/31/20 7,055,000 $ 123 Fair Value at initial measurement dates 1,460,000 $ 0.08273 $ 130 Change in fair value of warrant liability (6) Fair Value as of period ending 3/31/2021 8,515,000 $ 247 |
Description of Business, the _4
Description of Business, the Spin-off and Basis of Presentation (Details) | Apr. 22, 2019shares | Jan. 31, 2021segment | May 03, 2021shares | May 02, 2021shares | Mar. 31, 2021USD ($)shares | Dec. 31, 2020USD ($) | May 26, 2020shares | May 25, 2020shares | Aug. 28, 2019shares | Jun. 21, 2019USD ($) |
Description of Business, the Spin-off and Basis of Presentation | ||||||||||
Number of operating segments | segment | 1 | |||||||||
Allowance for doubtful accounts | $ 3,000 | $ 1,000 | ||||||||
Raw materials | 197,000 | 190,000 | ||||||||
Work-in-progress | 34,000 | 22,000 | ||||||||
Finished goods | 21,000 | 21,000 | ||||||||
prepaid insurance | 18,000 | 16,000 | ||||||||
General prepaid expenses | 14,000 | 9,000 | ||||||||
Remaining performance obligations | 0 | |||||||||
Assets: | ||||||||||
Cash | 1,070,000 | 32,000 | ||||||||
Accounts receivable, net | 96,000 | 73,000 | ||||||||
Inventory, net | 252,000 | 233,000 | ||||||||
Prepaid expenses and other current assets | 32,000 | 25,000 | ||||||||
Property and equipment, net | 796,000 | 553,000 | ||||||||
Operating lease - right of use asset | 775,000 | 805,000 | ||||||||
Other assets | 50,000 | 178,000 | ||||||||
Total assets | 3,426,000 | 2,257,000 | ||||||||
Liabilities: | ||||||||||
Accounts payable | (644,000) | (658,000) | ||||||||
Accrued expenses and other current liabilities | (89,000) | (90,000) | ||||||||
Operating lease liability - current | (207,000) | (207,000) | ||||||||
Long-term operating lease liability | (568,000) | (598,000) | ||||||||
Total liabilities | $ (2,426,000) | $ (2,186,000) | ||||||||
Subsequent Events | ||||||||||
Description of Business, the Spin-off and Basis of Presentation | ||||||||||
Common stock reserved for issuance | shares | 17,000,000 | |||||||||
2019 Plan | ||||||||||
Description of Business, the Spin-off and Basis of Presentation | ||||||||||
Common stock reserved for issuance | shares | 17,000,000 | 17,000,000 | 2,000,000 | 2,000,000 | ||||||
Number of shares available for grant | shares | 14,705,949 | |||||||||
2019 Plan | Subsequent Events | ||||||||||
Description of Business, the Spin-off and Basis of Presentation | ||||||||||
Common stock reserved for issuance | shares | 20,000,000 | 17,000,000 | ||||||||
2019 Plan | Executive officer | ||||||||||
Description of Business, the Spin-off and Basis of Presentation | ||||||||||
Number of shares available for grant | shares | 500,000 | 500,000 | ||||||||
2019 Plan | Executive officer | Subsequent Events | ||||||||||
Description of Business, the Spin-off and Basis of Presentation | ||||||||||
Number of shares available for grant | shares | 500,000 | |||||||||
The Spin-Off | ||||||||||
Description of Business, the Spin-off and Basis of Presentation | ||||||||||
Number of shares received by holder of each common stock | shares | 1 | |||||||||
Shares distributed | shares | 5,005,211 | |||||||||
Assets: | ||||||||||
Cash | $ 186,000 | |||||||||
Accounts receivable, net | 72,000 | |||||||||
Inventory, net | 140,000 | |||||||||
Prepaid expenses and other current assets | 101,000 | |||||||||
Property and equipment, net | 155,000 | |||||||||
Operating lease - right of use asset | 976,000 | |||||||||
Other assets | 178,000 | |||||||||
Total assets | 1,808,000 | |||||||||
Liabilities: | ||||||||||
Accounts payable | (496,000) | |||||||||
Accrued expenses and other current liabilities | (395,000) | |||||||||
Operating lease liability - current | (207,000) | |||||||||
Long-term operating lease liability | (769,000) | |||||||||
Total liabilities | (1,867,000) | |||||||||
Net liabilities assumed in Spin-Off on June 21, 2019 | $ (59,000) |
Description of Business, the _5
Description of Business, the Spin-off and Basis of Presentation - Acquired intangible asset and amortization basis (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Product/Technology Related | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Expected life | 3 years |
Marketing-Related | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Expected life | 4 years |
Going Concern (Details)
Going Concern (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Going Concern | |||
Cash | $ 1,070,000 | ||
Net loss | (704,000) | $ (508,000) | |
Net cash used in operating activities | $ (345,000) | (345,000) | $ (660,000) |
Working capital deficit | $ 152,000 |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - $ / shares | Apr. 22, 2019 | Mar. 31, 2021 | Dec. 31, 2020 |
Net Loss Per Common Share | |||
Common stock, par value | $ 0.001 | $ 0.001 | |
The Spin-Off | |||
Net Loss Per Common Share | |||
Shares distributed | 5,005,211 |
Acquisition (Details)
Acquisition (Details) - USD ($) | May 29, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Provisional Purchase Consideration at preliminary fair value: | |||
Purchase price | $ 375 | ||
Common stock, par value | $ 0.001 | $ 0.001 | |
Sports Defense LLC | |||
Provisional Purchase Consideration at preliminary fair value: | |||
Purchase price | $ 375 | ||
Issuance of common stock for acquisition (in shares) | 9,375,000 | ||
Common stock, par value | $ 0.001 | ||
Share purchase price | $ 0.04 | ||
Net assets acquired | $ 375,000 | ||
Mr. Levy | Sports Defense LLC | |||
Provisional Purchase Consideration at preliminary fair value: | |||
Issuance of common stock for acquisition (in shares) | 1,546,875 | ||
Board of Director | |||
Provisional Purchase Consideration at preliminary fair value: | |||
Issuance of common stock for acquisition (in shares) | 3,187,500 |
Acquisition - Preliminary Analy
Acquisition - Preliminary Analysis (Details) - USD ($) | May 29, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Provisional Purchase Consideration at preliminary fair value: | |||
Purchase price | $ 375 | ||
Consideration paid | 375 | ||
Assets acquired and liabilities assumed at preliminary fair value | |||
Inventories | 21 | ||
Accounts payable and accrued expenses | (13) | ||
Net tangible assets acquired | 64 | ||
Total net assets acquired | 64 | ||
Consideration paid | 375 | ||
Preliminary goodwill | 311 | $ 311,000 | $ 311,000 |
Product/Technology Related | |||
Assets acquired and liabilities assumed at preliminary fair value | |||
Intangibles | 31 | ||
Marketing-Related | |||
Assets acquired and liabilities assumed at preliminary fair value | |||
Intangibles | 8 | ||
Customer Related | |||
Assets acquired and liabilities assumed at preliminary fair value | |||
Intangibles | 17 | ||
Sports Defense LLC | |||
Provisional Purchase Consideration at preliminary fair value: | |||
Purchase price | 375 | ||
Consideration paid | 375 | ||
Assets acquired and liabilities assumed at preliminary fair value | |||
Consideration paid | $ 375 |
Acquisition - Pro-forma Results
Acquisition - Pro-forma Results (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Acquisition | ||
Revenues, net | $ 267 | $ 254 |
Net loss allocable to common shareholders | $ (655) | $ (500) |
Net loss per share | $ (0.01) | $ (0.01) |
Weighted average number of shares outstanding | 101,555,284 | 66,836,296 |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Future minimum lease payments, excluding expense reimbursements, under noncancelable operating leases | |
2021 (remainder of year) | $ 155 |
2022 | 207 |
2023 | 207 |
2024 | 207 |
2025 | 207 |
Thereafter | 18 |
Total undiscounted operating lease payments | 1,001 |
Less: Imputed interest | (226) |
Present value of operating lease liability | $ 775 |
Weighted average remaining lease term | 4 years 8 months 12 days |
Weighted average discount rate | 11.00% |
Leases - Supplemental cash flow
Leases - Supplemental cash flows information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Leases | |
Operating cash flows from operating lease | $ 52 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases | ||
Operating Lease, Cost | $ 52 | $ 52 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory, net | ||
Raw materials | $ 197 | $ 190 |
Work-in-progress | 34 | 22 |
Finished goods | 21 | 21 |
Inventory, Gross | 252 | 233 |
Less: Inventory reserve for excess and slow moving inventory | 0 | 0 |
Total | $ 252 | $ 233 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,217 | $ 3,632 |
Less: accumulated depreciation and amortization | (421) | (3,079) |
Property and equipment, net | 796 | 553 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 940 | 2,894 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 10 years | |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 49 | 49 |
Office furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Office furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 10 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 6 years | |
Property and equipment | $ 228 | 228 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 0 | $ 461 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property and Equipment, Net | ||
Depreciation expense | $ 24 | |
Depreciation and amortization expense | $ 27 | $ 10 |
Intangible Assets - Breakdown o
Intangible Assets - Breakdown of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 44 | $ 47 |
Product/Technology Related | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets, gross | 31 | 31 |
Accumulated amortization | (8) | (6) |
Total | 23 | 25 |
Marketing-Related | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | (3) | (2) |
Total | 21 | 22 |
Customer Related | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets, gross | 17 | 17 |
Marketing Related - Tradename related intangible asset | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets, gross | $ 7 | $ 7 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - Technology related and Customer related intangibles - Sports Defense LLC $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangibles | $ 55 |
Expected life | 3 years 1 month 7 days |
Amortization expense | $ 3 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Intangible Assets | ||
2021 (remainder of year) | $ 11 | |
2022 | 14 | |
2023 | 8 | |
2024 | 3 | |
2025 | 2 | |
Thereafter | 6 | |
Total | $ 44 | $ 47 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Expenses and Other Current Liabilities | ||
Salaries, benefits and incentive compensation | $ 57 | $ 43 |
Other | 32 | 47 |
Total accrued expenses and other current liabilities | $ 89 | $ 90 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) | Mar. 31, 2021USD ($)$ / sharesshares | Feb. 10, 2020shares | Nov. 06, 2019USD ($)$ / sharesshares | Sep. 10, 2019USD ($)shareholder$ / sharesshares | Mar. 20, 2020USD ($)$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($) | Dec. 31, 2020$ / sharesshares | May 26, 2020shares | May 25, 2020shares | Feb. 09, 2020shares | Aug. 27, 2019$ / shares |
Class of Stock [Line Items] | ||||||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Aggregate purchase price | $ 285,000 | $ 620,000 | ||||||||||
Authorized shares of common stock | shares | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | 100,000,000 | 100,000,000 | |||||
Private placement | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||||||||||
Issue price per share | $ / shares | $ 0.08 | $ 0.014 | $ 0.053525 | $ 0.04 | $ 0.08 | $ 0.014 | ||||||
Issuance of common stock (in shares) | shares | 3,563,000 | 3,269,500 | 15,500,000 | |||||||||
Cash proceeds | $ 560,000 | $ 175,000 | ||||||||||
Number of shareholders | shareholder | 2 | |||||||||||
Additional shares issued on common stock | shares | 39,999,998 | 9,230,500 | ||||||||||
Issuance costs | $ 56,000 | $ 5,000 | ||||||||||
Aggregate purchase price | $ 285,000 | $ 620,000 | ||||||||||
Percentage of fee equal to gross proceeds and warrants | 6.00% | |||||||||||
Percentage of shares issuable to warrant holders based on the number of shares issued to investors | 10.00% | |||||||||||
Warrants exercisable term | 3 years | |||||||||||
Exercise price of warrants | $ / shares | $ 0.04 | |||||||||||
Minimum | Private placement | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Reverse stock split ratio | 0.03 | |||||||||||
Maximum | Private placement | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Value of common stock offered on initial closing date | 175,000 | |||||||||||
Value of common stock offered on subsequent closing date | $ 575,000 | |||||||||||
Reverse stock split ratio | 0.01 |
Common Stock - Common stock res
Common Stock - Common stock reserved for issuance (Details) | 3 Months Ended |
Mar. 31, 2021shares | |
Common Stock | |
Share-based compensation plan | 17,000,000 |
Warrants to purchase common Stock | 19,827,500 |
Concentration of Risk (Details)
Concentration of Risk (Details) - customer | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Total Revenue | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable and total revenue | 10.00% | 10.00% | |
Number of major customers | 3 | 2 | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Number of major customers | 3 | 3 | |
Customer One | Total Revenue | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable and total revenue | 28.00% | 53.00% | |
Customer One | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable and total revenue | 13.00% | 57.00% | |
Customer Two | Total Revenue | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable and total revenue | 24.00% | 32.00% | |
Customer Two | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable and total revenue | 0.00% | 0.00% | |
Customer Three | Total Revenue | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable and total revenue | 16.00% | ||
Customer Three | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable and total revenue | 44.00% | 0.00% | |
Customer Four | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Percentage of accounts receivable and total revenue | 25.00% | 12.00% |
Share-based Compensation - 2019
Share-based Compensation - 2019 Plan (Details) - 2019 Plan - shares | 3 Months Ended | |||
Mar. 31, 2021 | May 26, 2020 | May 25, 2020 | Aug. 28, 2019 | |
Share-based Compensation | ||||
Common stock reserved for issuance | 17,000,000 | 17,000,000 | 2,000,000 | 2,000,000 |
Awards Issued | 14,705,949 | |||
Awards Available for Grant | 2,294,051 |
Share-based Compensation - Opti
Share-based Compensation - Option activity (Details) - Incentive stock options - 2019 Plan - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Options | |||
Outstanding Beginning Balance | 13,705,949 | 1,000,000 | |
Granted | 1,666,667 | 12,705,949 | |
Outstanding Ending Balance | 15,372,616 | 13,705,949 | 1,000,000 |
Exercisable at March 31, 2021 | 9,105,949 | ||
Weighted Average Exercise Price | |||
Outstanding Beginning Balance | $ 0.027736 | $ 0.053525 | |
Granted | 0.08 | 0.0291 | |
Outstanding Ending Balance | 0.034889 | $ 0.027736 | $ 0.053525 |
Exercisable at March 31, 2021 | $ 0.025441 | ||
Weighted Average Contractual Term in Years | |||
Granted | 10 years | 10 years | |
Outstanding Balance | 9 years 1 month 28 days | 9 years 3 months 26 days | 9 years 7 months 6 days |
Exercisable at March 31, 2021 | 9 years |
Share-based Compensation - Assu
Share-based Compensation - Assumptions (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate - Minimum | 0.46% |
Risk-free interest rate - Maximum | 0.86% |
Dividend yield | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 171.12% |
Expected term | 5 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 172.19% |
Expected term | 5 years 3 months |
Share-based Compensation - Rest
Share-based Compensation - Restrictive stock awards (Details) - USD ($) | Mar. 08, 2021 | Feb. 17, 2020 | Feb. 29, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Number of Units | ||||||
Granted | 7,311,904 | |||||
Exercised and converted to common shares | (5,928,571) | |||||
Outstanding | 1,383,333 | 1,383,333 | ||||
Exercisable | 691,666 | |||||
Weighted Average Grant Date Fair Value | ||||||
Granted | $ 0.023 | |||||
Exercised and converted to common shares | 0.014 | |||||
Outstanding | $ 0.060 | $ 0.060 | ||||
Exercisable | $ 0.060 | |||||
Restricted stock award | ||||||
Weighted Average Grant Date Fair Value | ||||||
Value of awards | $ 5,928,571 | $ 83,000 | ||||
Closing stock price | $ 0.014 | |||||
Stock-based compensation expense | $ 21,000 | $ 27,000 | ||||
Mr. Levy | Restricted stock award | ||||||
Weighted Average Grant Date Fair Value | ||||||
Value of awards | $ 1,383,333 |
Share-based Compensation - Warr
Share-based Compensation - Warrants (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Options | |||
Outstanding at beginning of period | 7,367,500 | 5,250,000 | |
Granted | 12,460,000 | 2,117,500 | |
Outstanding at end of period | 19,827,500 | 7,367,500 | 5,250,000 |
Exercisable at end of period | 19,827,500 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of period | $ 0.050720 | $ 0.014000 | |
Granted | 0.135188 | 0.050720 | |
Outstanding at end of period | $ 0.094078 | $ 0.050720 | $ 0.014000 |
Exercisable at end of period | $ 0.094078 | ||
Weighted Average Contractual Term in Years | |||
Granted | 4 years 9 months 7 days | 5 years | |
Outstanding at December 31, | 3 years 6 months 7 days | 2 years 6 months 15 days | 2 years 9 months 22 days |
Exercisable at end of period | 3 years 6 months 7 days | ||
Intrinsic value of vested outstanding warrants | $ 408,000 |
Share-based Compensation - Addi
Share-based Compensation - Additional information (Details) | Mar. 08, 2021$ / sharesshares | Jan. 15, 2021$ / sharesshares | Oct. 10, 2020$ / sharesshares | Feb. 17, 2020USD ($)$ / sharesshares | Jul. 31, 2020employeeindividualshares | Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($) | Dec. 31, 2020$ / sharesshares | May 26, 2020shares | May 25, 2020shares | Aug. 28, 2019shares |
Share-based Compensation | |||||||||||
Aggregate purchase price | $ | $ 285,000 | $ 620,000 | |||||||||
Options | |||||||||||
Share-based Compensation | |||||||||||
Shares awarded | 325,000 | ||||||||||
Vesting percentage | 10.00% | ||||||||||
2019 Plan | |||||||||||
Share-based Compensation | |||||||||||
Number of shares reserved for future issuance | 17,000,000 | 17,000,000 | 2,000,000 | 2,000,000 | |||||||
Number of shares available for grant | 14,705,949 | ||||||||||
Shares awarded | 2,294,051 | ||||||||||
2019 Plan | Options | |||||||||||
Share-based Compensation | |||||||||||
Shares awarded | 5,000,000 | ||||||||||
2019 Plan | Executive officer | |||||||||||
Share-based Compensation | |||||||||||
Number of shares available for grant | 500,000 | 500,000 | |||||||||
2019 Long-Term Incentive Plan | Board of Director | |||||||||||
Share-based Compensation | |||||||||||
Vesting percentage | 25.00% | ||||||||||
Aggregate purchase price | $ | $ 40,000 | ||||||||||
2019 Long-Term Incentive Plan | Board of Director | First grant | |||||||||||
Share-based Compensation | |||||||||||
Vesting percentage | 50.00% | ||||||||||
Number of options granted | 2,857,141 | ||||||||||
Exercise price per share | $ / shares | $ 0.014 | ||||||||||
2019 Long-Term Incentive Plan | Board of Director | Vesting in equal installments on June 2020 and September 2020 | |||||||||||
Share-based Compensation | |||||||||||
Vesting percentage | 50.00% | ||||||||||
Incentive stock options | 2019 Plan | |||||||||||
Share-based Compensation | |||||||||||
Shares awarded | 5,325,000 | ||||||||||
Number of employees to whom options granted | employee | 2 | ||||||||||
Number of contractors to whom options granted | individual | 1 | ||||||||||
Term of options | 10 years | ||||||||||
Number of options granted | 1,666,667 | 12,705,949 | |||||||||
Exercise price per share | $ / shares | $ 0.08 | $ 0.0291 | |||||||||
Intrinsic value | $ | $ 0 | ||||||||||
Un-recognized share-based compensation expense | $ | 78,000 | ||||||||||
Incentive stock options | 2019 Plan | Dr. Jerome Zeldis, a member of the board of directors | |||||||||||
Share-based Compensation | |||||||||||
Exercise price per share | $ / shares | $ 0.06 | ||||||||||
Incentive stock options | 2019 Plan | Dr. Jerome Zeldis, a member of the board of directors | Maximum | |||||||||||
Share-based Compensation | |||||||||||
Number of options granted | 666,667 | ||||||||||
Incentive stock options | 2019 Plan | Mr. Steven Glassman, a member of the board of directors | |||||||||||
Share-based Compensation | |||||||||||
Exercise price per share | $ / shares | $ 0.08 | ||||||||||
Incentive stock options | 2019 Plan | Mr. Steven Glassman, a member of the board of directors | Maximum | |||||||||||
Share-based Compensation | |||||||||||
Number of options granted | 500,000 | ||||||||||
Incentive stock options | 2019 Plan | Contractor | |||||||||||
Share-based Compensation | |||||||||||
Number of options granted | 500,000 | ||||||||||
Exercise price per share | $ / shares | $ 0.06 | ||||||||||
Incentive stock options | 2019 Plan | First grant | Contractor | |||||||||||
Share-based Compensation | |||||||||||
Vesting percentage | 20.00% | ||||||||||
Incentive stock options | 2019 Plan | Vesting in November 2022 | Contractor | |||||||||||
Share-based Compensation | |||||||||||
Vesting percentage | 80.00% | ||||||||||
Restricted stock award | |||||||||||
Share-based Compensation | |||||||||||
Shares awarded | 666,667 | ||||||||||
Exercise price per share | $ / shares | $ 0.06 | ||||||||||
Un-recognized share-based compensation expense | $ | $ 42,000 | ||||||||||
Period of recognition of stock based compensation expense | 6 months |
Note Payable (Details)
Note Payable (Details) - USD ($) | May 28, 2020 | Apr. 22, 2020 | Mar. 31, 2021 | Mar. 04, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||
Loan amount | $ 127,400,000 | ||||
PPP loan | |||||
Debt Instrument [Line Items] | |||||
Loan amount | $ 147,300 | $ 274,700 | $ 147,300 | ||
Term of the loan | 2 years | ||||
Interest rate | 1.00% | ||||
Deferred period | 6 months | ||||
Prepayment penalties | $ 0 | ||||
EIDL loan | |||||
Debt Instrument [Line Items] | |||||
Loan amount | $ 268,721 | $ 266,279 | |||
Term of the loan | 30 years | ||||
Interest rate | 3.75% | ||||
Borrowing capacity | $ 260,500 | ||||
Monthly payment | 1,270 | ||||
Loan advance | $ 8,000 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) | Mar. 11, 2021USD ($)$ / sharesshares | Dec. 24, 2020USD ($)security$ / sharesshares | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Jan. 19, 2021USD ($)$ / shares |
Short-term Debt [Line Items] | |||||
Number of securities purchase agreement entered into by company | security | 2 | ||||
Proceeds received from convertible notes | $ 1,337,000 | $ 0 | |||
Notes outstanding | 92,055 | ||||
Unamortized balance of beneficial conversion and warrant features | 1,159,889 | ||||
Unamortized original issue discount | 172,824 | ||||
Unamortized debt issuance costs | 255,232 | ||||
Interest payable | 6,803 | ||||
Issuance of common stock | $ 285,000 | $ 620,000 | |||
Common stock warrants | |||||
Short-term Debt [Line Items] | |||||
Number of shares called by warrants | shares | 312,500 | ||||
Exercise price of warrants | $ / shares | $ 0.08 | ||||
Auctus Note | |||||
Short-term Debt [Line Items] | |||||
Percentage of principal amount paid as placement agent fees (as a percent) | 8.00% | ||||
Total cash fee paid to placement agent | $ 120,000 | ||||
Auctus Warrants | |||||
Short-term Debt [Line Items] | |||||
Threshold beneficial ownership (as a percent) | 4.99% | ||||
Alere Financial | |||||
Short-term Debt [Line Items] | |||||
Warrants exercisable term | 3 years | ||||
Alere Financial | First Auctus Warrant | |||||
Short-term Debt [Line Items] | |||||
Number of shares called by warrants | shares | 654,545 | ||||
Exercise price of warrants | $ / shares | $ 0.125 | ||||
Alere Financial | Second Auctus Warrant | |||||
Short-term Debt [Line Items] | |||||
Number of shares called by warrants | shares | 545,455 | ||||
Exercise price of warrants | $ / shares | $ 0.150 | ||||
6% Secured Convertible Promissory Note | |||||
Short-term Debt [Line Items] | |||||
Principal amount of debt | $ 100,000 | ||||
Interest rate | 6.00% | ||||
Conversion price (in dollars per share) | $ / shares | $ 0.08 | ||||
Auctus Note | |||||
Short-term Debt [Line Items] | |||||
Warrants exercisable term | 5 years | ||||
Number of warrants issued | shares | 2 | ||||
Proceeds received from convertible notes | $ 1,337,000 | ||||
Principal amount of debt | $ 1,500,000 | ||||
Interest rate | 12.00% | ||||
Number of months interest guaranteed and deemed to be earned in full as of the Issuance Date | 12 months | ||||
Increase in interest rate if the Company fails to pay any amount when due (as a percent) | $ 180,000 | ||||
Increase in interest rate if the Company fails to pay any amount when due (as a percent) | 16.00% | ||||
Prepayment penalty (as a percent) | 110.00% | ||||
Number of calendar days after which the note may not be paid in whole or in part | 180 days | ||||
Prepayment period, number of calendar days | 180 days | ||||
Threshold calendar days to be quoted or listed in stock exchanges | 120 days | ||||
Threshold calendar days to file registration statement | 30 days | ||||
Threshold calendar days to cause the registration statement to become effective | 150 days | ||||
Threshold beneficial ownership (as a percent) | 4.99% | ||||
Conversion price (in dollars per share) | $ / shares | $ 0.10 | ||||
Term of the loan | 1 year | ||||
Auctus Note | First Auctus Warrant | |||||
Short-term Debt [Line Items] | |||||
Number of shares called by warrants | shares | 6,000,000 | ||||
Exercise price of warrants | $ / shares | $ 0.125 | ||||
Auctus Note | Second Auctus Warrant | |||||
Short-term Debt [Line Items] | |||||
Exercise price of warrants | $ / shares | $ 0.150 | ||||
Number of warrants issued | shares | 5,000,000 | ||||
Auctus Note | Auctus Warrants | |||||
Short-term Debt [Line Items] | |||||
Threshold calendar days to file registration statement | 30 days | ||||
Threshold calendar days to cause the registration statement to become effective | 150 days | ||||
2021 Purchase Agreement [Member] | Secured Convertible Promissory Note | |||||
Short-term Debt [Line Items] | |||||
Principal amount of debt | $ 15,000 | ||||
Conversion price (in dollars per share) | $ / shares | $ 0.03 |
Warrant Liability (Details)
Warrant Liability (Details) | Mar. 11, 2021shares | Feb. 03, 2021shares | Jan. 01, 2021USD ($)$ / sharesshares | Dec. 24, 2020shares | Nov. 08, 2020USD ($)$ / sharesshares | Mar. 18, 2020shares | Nov. 06, 2019shares | Sep. 10, 2019USD ($)$ / sharesshares | Mar. 31, 2021USD ($)Y$ / sharesshares | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)Yshares | Mar. 20, 2020$ / shares | Dec. 31, 2019shares |
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants issued | shares | 1,250,000 | ||||||||||||
Warrants Outstanding | shares | 19,827,500 | 7,367,500 | 5,250,000 | ||||||||||
Changes in fair value of warrant liability | $ 6,000 | $ 2,000 | |||||||||||
Warrant Liability | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants issued | shares | 1,460,000 | 1,805,000 | |||||||||||
Warrants Outstanding | shares | 5,250,000 | 8,515,000 | 7,055,000 | ||||||||||
Warrants Fair value per share | $ / shares | $ 0.08273 | $ 0.03616 | $ 0.01086 | ||||||||||
Warrants Fair value | 130,000 | 65,000 | 56,000 | 247,000 | 123,000 | ||||||||
Changes in fair value of warrant liability | $ (6,000) | $ 2,000 | |||||||||||
Exercise Price | Warrants Issuance On March 11 2021, Expiring on March 11, 2026 | Minimum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | $ / shares | 0.125 | ||||||||||||
Exercise Price | Warrants Issuance On March 11 2021, Expiring on March 11, 2026 | Maximum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.15 | ||||||||||||
Exercise Price | Warrants Issuance On February 03, 2021, Expiring on February 3, 2024 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.08 | ||||||||||||
Exercise Price | Warrants Issuance on December 24, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.08 | ||||||||||||
Exercise Price | Warrants Issuance on March 18, 2020, Expiring on March 18, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.04 | ||||||||||||
Exercise Price | Warrants Issuance on September 10, 2019, Expiring on September 10, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Exercise Price | Warrants Issuance on November 6, 2019, Expiring on November 6, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Exercise Price | Warrants Issuance on December 31, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.080 | ||||||||||||
Exercise Price | Warrants Issuance on December 31, 2020, Expiring on March 18, 2023 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.040 | ||||||||||||
Exercise Price | Warrants Issuance on December 31, 2020, Expiring on September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Exercise Price | Warrants Issuance on December 31, 2020, Expiring on November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Exercise Price | Warrants Issuance On September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Exercise Price | Warrants Issuance On February 3, 2021 And March 11 [Member] | Minimum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.08 | ||||||||||||
Exercise Price | Warrants Issuance On February 3, 2021 And March 11 [Member] | Maximum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.15 | ||||||||||||
Exercise Price | Warrants Issuances On December 24, 2020 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.08 | ||||||||||||
Exercise Price | Warrants Issuance On March 18, 2023 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.04 | ||||||||||||
Exercise Price | Warrants Issuance On November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Stock Price | Warrants Issuance On March 11 2021, Expiring on March 11, 2026 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.10 | ||||||||||||
Stock Price | Warrants Issuance On February 03, 2021, Expiring on February 3, 2024 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.08 | ||||||||||||
Stock Price | Warrants Issuance on December 24, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.08 | ||||||||||||
Stock Price | Warrants Issuance on March 18, 2020, Expiring on March 18, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.04 | ||||||||||||
Stock Price | Warrants Issuance on September 10, 2019, Expiring on September 10, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Stock Price | Warrants Issuance on November 6, 2019, Expiring on November 6, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Stock Price | Warrants Issuance on December 31, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.080 | ||||||||||||
Stock Price | Warrants Issuance on December 31, 2020, Expiring on March 18, 2023 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.040 | ||||||||||||
Stock Price | Warrants Issuance on December 31, 2020, Expiring on September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Stock Price | Warrants Issuance on December 31, 2020, Expiring on November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Stock Price | Warrants Issuance On September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Stock Price | Warrants Issuance On February 3, 2021 And March 11 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.100 | ||||||||||||
Stock Price | Warrants Issuances On December 24, 2020 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.080 | ||||||||||||
Stock Price | Warrants Issuance On March 18, 2023 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.040 | ||||||||||||
Stock Price | Warrants Issuance On November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.014 | ||||||||||||
Interest Rate (annual) | Warrants Issuance On March 11 2021, Expiring on March 11, 2026 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.17 | ||||||||||||
Interest Rate (annual) | Warrants Issuance On February 03, 2021, Expiring on February 3, 2024 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.18 | ||||||||||||
Interest Rate (annual) | Warrants Issuance on December 24, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.17 | ||||||||||||
Interest Rate (annual) | Warrants Issuance on March 18, 2020, Expiring on March 18, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.66 | ||||||||||||
Interest Rate (annual) | Warrants Issuance on September 10, 2019, Expiring on September 10, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 1.61 | ||||||||||||
Interest Rate (annual) | Warrants Issuance on November 6, 2019, Expiring on November 6, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 1.60 | ||||||||||||
Interest Rate (annual) | Warrants Issuance on December 31, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.17 | ||||||||||||
Interest Rate (annual) | Warrants Issuance on December 31, 2020, Expiring on March 18, 2023 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.13 | ||||||||||||
Interest Rate (annual) | Warrants Issuance on December 31, 2020, Expiring on September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.13 | ||||||||||||
Interest Rate (annual) | Warrants Issuance on December 31, 2020, Expiring on November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 1.13 | ||||||||||||
Interest Rate (annual) | Warrants Issuance On September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.17 | ||||||||||||
Interest Rate (annual) | Warrants Issuance On February 3, 2021 And March 11 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.170 | ||||||||||||
Interest Rate (annual) | Warrants Issuances On December 24, 2020 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.170 | ||||||||||||
Interest Rate (annual) | Warrants Issuance On March 18, 2023 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.170 | ||||||||||||
Interest Rate (annual) | Warrants Issuance On November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 1.17 | ||||||||||||
Volatility (annual) | Warrants Issuance On March 11 2021, Expiring on March 11, 2026 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 172.54 | ||||||||||||
Volatility (annual) | Warrants Issuance On February 03, 2021, Expiring on February 3, 2024 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 171.71 | ||||||||||||
Volatility (annual) | Warrants Issuance on December 24, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 172.54 | ||||||||||||
Volatility (annual) | Warrants Issuance on March 18, 2020, Expiring on March 18, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 137.41 | ||||||||||||
Volatility (annual) | Warrants Issuance on September 10, 2019, Expiring on September 10, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 139.84 | ||||||||||||
Volatility (annual) | Warrants Issuance on November 6, 2019, Expiring on November 6, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 138.48 | ||||||||||||
Volatility (annual) | Warrants Issuance on December 31, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 172.38 | ||||||||||||
Volatility (annual) | Warrants Issuance on December 31, 2020, Expiring on March 18, 2023 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 172.38 | ||||||||||||
Volatility (annual) | Warrants Issuance on December 31, 2020, Expiring on September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 172.38 | ||||||||||||
Volatility (annual) | Warrants Issuance on December 31, 2020, Expiring on November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 172.38 | ||||||||||||
Volatility (annual) | Warrants Issuance On September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 170.53 | ||||||||||||
Volatility (annual) | Warrants Issuance On February 3, 2021 And March 11 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 170.530 | ||||||||||||
Volatility (annual) | Warrants Issuances On December 24, 2020 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 170.530 | ||||||||||||
Volatility (annual) | Warrants Issuance On March 18, 2023 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 170.530 | ||||||||||||
Volatility (annual) | Warrants Issuance On November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 170.53 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance On March 11 2021, Expiring on March 11, 2026 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 5 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance On February 03, 2021, Expiring on February 3, 2024 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 3 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance on December 24, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 3 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance on March 18, 2020, Expiring on March 18, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 3 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance on September 10, 2019, Expiring on September 10, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 3 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance on November 6, 2019, Expiring on November 6, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 3 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance on December 31, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | Y | 2.980 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance on December 31, 2020, Expiring on March 18, 2023 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | Y | 2.210 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance on December 31, 2020, Expiring on September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | Y | 1.850 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance on December 31, 2020, Expiring on November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | Y | 1.690 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance On September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | Y | 1.60 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance On February 3, 2021 And March 11 [Member] | Minimum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | Y | 2.85 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance On February 3, 2021 And March 11 [Member] | Maximum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | Y | 4.95 | ||||||||||||
Time to Maturity (Years) | Warrants Issuances On December 24, 2020 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | Y | 2.730 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance On March 18, 2023 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | Y | 1.960 | ||||||||||||
Time to Maturity (Years) | Warrants Issuance On November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | Y | 1.45 | ||||||||||||
Calculated fair value per share | Warrants Issuance On March 11 2021, Expiring on March 11, 2026 | Minimum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.93 | ||||||||||||
Calculated fair value per share | Warrants Issuance On March 11 2021, Expiring on March 11, 2026 | Maximum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.0094 | ||||||||||||
Calculated fair value per share | Warrants Issuance On February 03, 2021, Expiring on February 3, 2024 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.690703 | ||||||||||||
Calculated fair value per share | Warrants Issuance on December 24, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.0692188 | ||||||||||||
Calculated fair value per share | Warrants Issuance on March 18, 2020, Expiring on March 18, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.0307299 | ||||||||||||
Calculated fair value per share | Warrants Issuance on September 10, 2019, Expiring on September 10, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.01091 | ||||||||||||
Calculated fair value per share | Warrants Issuance on November 6, 2019, Expiring on November 6, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.10950 | ||||||||||||
Calculated fair value per share | Warrants Issuance on December 31, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.0692188 | ||||||||||||
Calculated fair value per share | Warrants Issuance on December 31, 2020, Expiring on March 18, 2023 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.0307299 | ||||||||||||
Calculated fair value per share | Warrants Issuance on December 31, 2020, Expiring on September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.01091 | ||||||||||||
Calculated fair value per share | Warrants Issuance on December 31, 2020, Expiring on November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.1095 | ||||||||||||
Calculated fair value per share | Warrants Issuance On September 10, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.01091 | ||||||||||||
Calculated fair value per share | Warrants Issuance On February 3, 2021 And March 11 [Member] | Minimum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.0936578 | ||||||||||||
Calculated fair value per share | Warrants Issuance On February 3, 2021 And March 11 [Member] | Maximum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.0930702 | ||||||||||||
Calculated fair value per share | Warrants Issuances On December 24, 2020 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.0692188 | ||||||||||||
Calculated fair value per share | Warrants Issuance On March 18, 2023 [Member] | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.0307299 | ||||||||||||
Calculated fair value per share | Warrants Issuance On November 6, 2022 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | 0.10950 | ||||||||||||
Future Estimated Quarterly Dividend per share( | Warrants Issuance On February 03, 2021, Expiring on February 3, 2024 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | $ / shares | 0 | ||||||||||||
Future Estimated Quarterly Dividend per share( | Warrants Issuance on December 24, 2020, Expiring on December 24, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | $ / shares | 0 | ||||||||||||
Future Estimated Quarterly Dividend per share( | Warrants Issuance on March 18, 2020, Expiring on March 18, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | $ / shares | 0 | ||||||||||||
Future Estimated Quarterly Dividend per share( | Warrants Issuance on September 10, 2019, Expiring on September 10, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | $ / shares | 0 | ||||||||||||
Future Estimated Quarterly Dividend per share( | Warrants Issuance on November 6, 2019, Expiring on November 6, 2020 | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | $ / shares | 0 | ||||||||||||
Private placement | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants issued | shares | 1,200,000 | 260,000 | 255,000 | 1,550,000 | 4,000,000 | ||||||||
Warrants to purchase shares of common stock | shares | 1 | ||||||||||||
Warrants Fair value per share | $ / shares | $ 0.04 | ||||||||||||
Private placement | Exercise Price | Minimum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | $ / shares | 0.014 | ||||||||||||
Private placement | Exercise Price | Maximum | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | $ / shares | 0.150 | ||||||||||||
Private placement | Time to Maturity (Years) | |||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||
Warrants Fair value | Y | 3 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | May 29, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 24, 2020 |
Sports Defense LLC | ||||
Related Party Transaction [Line Items] | ||||
Issuance of common stock for acquisition (in shares) | 9,375,000 | |||
Mr. Stein, a member of the board of directors | ||||
Related Party Transaction [Line Items] | ||||
Face amount of debt | $ 100,000 | |||
Mr. Stein, a member of the board of directors | Sports Defense LLC | ||||
Related Party Transaction [Line Items] | ||||
Issuance of common stock for acquisition (in shares) | 3,187,500 | |||
Dr. Jerome Zeldis, a member of the board of directors | ||||
Related Party Transaction [Line Items] | ||||
Outstanding amount | $ 30,000 | |||
Adynxx | Mr. Levy | Sports Defense LLC | ||||
Related Party Transaction [Line Items] | ||||
Issuance of common stock for acquisition (in shares) | 1,546,875 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 11, 2021 | May 03, 2021 | May 02, 2021 | Mar. 31, 2021 | Mar. 04, 2021 | May 26, 2020 | May 25, 2020 | Aug. 28, 2019 |
Subsequent Events | ||||||||
Loan amount | $ 127,400,000 | |||||||
2019 Plan | ||||||||
Subsequent Events | ||||||||
Common stock reserved for issuance | 17,000,000 | 17,000,000 | 2,000,000 | 2,000,000 | ||||
Auctus Note | ||||||||
Subsequent Events | ||||||||
Principal amount of debt | $ 1,500,000 | |||||||
Interest rate | 12.00% | |||||||
Term of the loan | 1 year | |||||||
Number of months interest guaranteed and deemed to be earned in full as of the Issuance Date | 12 months | |||||||
Increase in interest rate if the Company fails to pay any amount when due (as a percent) | $ 180,000 | |||||||
Increase in interest rate if the Company fails to pay any amount when due (as a percent) | 16.00% | |||||||
Prepayment period, number of calendar days | 180 days | |||||||
Prepayment penalty (as a percent) | 110.00% | |||||||
Number of calendar days after which the note may not be paid in whole or in part | 180 days | |||||||
Conversion price (in dollars per share) | $ 0.10 | |||||||
Threshold beneficial ownership (as a percent) | 4.99% | |||||||
Threshold calendar days to be quoted or listed in stock exchanges | 120 days | |||||||
Threshold calendar days to file registration statement | 30 days | |||||||
Threshold calendar days to cause the registration statement to become effective | 150 days | |||||||
Number of warrants issued | 2 | |||||||
Auctus Note | Second Auctus Warrant | ||||||||
Subsequent Events | ||||||||
Number of warrants issued | 5,000,000 | |||||||
Subsequent Events | ||||||||
Subsequent Events | ||||||||
Common stock reserved for issuance | 17,000,000 | |||||||
Subsequent Events | 2019 Plan | ||||||||
Subsequent Events | ||||||||
Common stock reserved for issuance | 20,000,000 | 17,000,000 |