Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Sensus Healthcare, Inc. | |
Entity Central Index Key | 1,494,891 | |
Document Type | 10-Q | |
Trading Symbol | SRTS | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 13,488,714 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
CONDENSED BALANCE SHEETS (unaud
CONDENSED BALANCE SHEETS (unaudited) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 6,838,527 | $ 5,042,477 |
Accounts receivable, net | 5,069,882 | 3,098,635 |
Inventories | 1,728,598 | 1,254,915 |
Investment in debt securities | 3,014,507 | 6,462,369 |
Prepaid and other current assets | 476,222 | 900,722 |
Total Current Assets | 17,127,736 | 16,759,118 |
Property and Equipment, Net | 416,133 | 433,408 |
Patent Rights, Net | 554,219 | 626,509 |
Investment in Debt Securities | 1,103,773 | |
Deposits | 24,272 | 24,272 |
Total Assets | 18,122,360 | 18,947,080 |
Current Liabilities | ||
Accounts payable and accrued expenses | 3,727,207 | 2,762,371 |
Product warranties | 110,480 | 40,481 |
Revolving credit facility | 1,625,970 | |
Deferred revenue, current portion | 658,442 | 853,798 |
Total Current Liabilities | 6,122,099 | 3,656,650 |
Deferred Revenue, Net of Current Portion | 13,833 | 16,251 |
Total Liabilities | 6,135,932 | 3,672,901 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock, 5,000,000 shares authorized and none issued and outstanding | ||
Common stock, $0.01 par value - 50,000,000 authorized; 13,522,168 issued and 13,488,714 outstanding at September 30, 2017; 13,546,171 issued and outstanding at December 31, 2016 | 135,221 | 135,461 |
Additional paid-in capital | 23,079,210 | 22,930,975 |
Treasury stock, 33,454 and 0 shares at cost, at September 30, 2017 and December 31, 2016, respectively | (133,816) | |
Accumulated deficit | (11,094,187) | (7,792,257) |
Total Stockholders' Equity | 11,986,428 | 15,274,179 |
Total Liabilities and Stockholders' Equity | $ 18,122,360 | $ 18,947,080 |
CONDENSED BALANCE SHEETS (unau3
CONDENSED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | ||
Preferred stock, outstanding | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 13,522,168 | 13,546,171 |
Common Stock, outstanding | 13,488,714 | 13,546,171 |
Treasury stock, shares | 33,454 | 0 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 4,795,616 | $ 3,327,830 | $ 14,118,130 | $ 9,933,977 |
Cost of Sales | 1,577,715 | 1,076,821 | 4,631,263 | 3,429,967 |
Gross Profit | 3,217,901 | 2,251,009 | 9,486,867 | 6,504,010 |
Operating Expenses | ||||
Selling and marketing | 1,844,199 | 1,115,752 | 6,211,124 | 3,244,364 |
General and administrative | 837,972 | 789,718 | 2,798,198 | 2,546,262 |
Research and development | 1,501,157 | 389,759 | 3,795,477 | 1,096,789 |
Total Operating Expenses | 4,183,328 | 2,295,229 | 12,804,799 | 6,887,415 |
Loss From Operations | (965,427) | (44,220) | (3,317,932) | (383,405) |
Other Income (Expense) | ||||
Interest income | 18,642 | 14,778 | 59,318 | 20,598 |
Interest expense | (18,902) | (972) | (43,316) | (16,825) |
Other Income (Expense), net | (260) | 13,806 | 16,002 | 3,773 |
Net Loss | $ (965,687) | $ (30,414) | $ (3,301,930) | $ (379,632) |
Net Loss per share - basic and diluted (in dollars per share) | $ (0.07) | $ 0 | $ (0.25) | $ (0.03) |
Weighted average number of shares used in computing net loss per share - basic and diluted (in shares) | 13,251,714 | 13,236,724 | 13,231,398 | 11,622,134 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Total |
Balance beginning at Dec. 31, 2016 | $ 135,461 | $ 22,930,975 | $ (7,792,257) | $ 15,274,179 | |
Balance beginning (in shares) at Dec. 31, 2016 | 13,546,171 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock based compensation | $ 50 | 303,415 | 303,465 | ||
Stock based compensation (in shares) | 5,000 | ||||
Surrender of shares for tax withholding on stock compensation | $ (290) | (155,180) | $ (133,816) | (289,286) | |
Surrender of shares for tax withholding on stock compensation (in shares) | (29,003) | (33,454) | |||
Net loss | (3,301,930) | (3,301,930) | |||
Balance end at Sep. 30, 2017 | $ 135,221 | $ 23,079,210 | $ (133,816) | $ (11,094,187) | $ 11,986,428 |
Balance end (in shares) at Sep. 30, 2017 | 13,522,168 | (33,454) |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows From Operating Activities | ||
Net loss | $ (3,301,930) | $ (379,632) |
Adjustments to reconcile net income (loss) to net cash and cash equivalents used in operating activities: | ||
Bad debt expense | 175,695 | 9,000 |
Depreciation and amortization | 294,906 | 253,219 |
Provision for product warranties | 174,723 | 97,990 |
Stock based compensation | 303,465 | 625,424 |
Decrease (increase) in: | ||
Accounts receivable | (2,146,942) | (1,855,143) |
Inventories | (438,290) | (332,488) |
Prepaid and other current assets | 424,500 | (516,691) |
Increase (decrease) in: | ||
Accounts payable and accrued expenses | 964,837 | (266,452) |
Deferred revenue | (197,774) | 64,755 |
Product warranties | (104,725) | (30,652) |
Total Adjustments | (549,605) | (1,960,038) |
Net Cash Used In Operating Activities | (3,851,535) | (2,339,670) |
Cash Flows from Investing Activities | ||
Acquisition of property and equipment | (240,734) | (262,437) |
Investment in debt securities - held to maturity | (264,365) | (6,577,522) |
Investments matured | 4,816,000 | |
Net Cash Provided By (Used In) Investing Activities | 4,310,901 | (6,839,959) |
Cash Flows from Financing Activities | ||
Initial public offering of units | 12,650,000 | |
Exercise of warrants | 1,132,538 | |
Revolving credit facility, net | 1,625,970 | (422,702) |
Withholding taxes on stock compensation | (289,286) | |
Offering costs | (2,126,562) | |
Cash dividends on preferred stock | (2,511,024) | |
Net Cash Provided By Financing Activities | 1,336,684 | 8,722,250 |
Net Increase (Decrease) in Cash and Cash Equivalents | 1,796,050 | (457,379) |
Cash and Cash Equivalents - Beginning | 5,042,477 | 5,065,068 |
Cash and Cash Equivalents - Ending | 6,838,527 | 4,607,689 |
Supplemental Disclosure of Cash Flow Information | ||
Interest Paid | 43,316 | 18,781 |
Non Cash Investing and Financing Activities | ||
Reclassification of prepaid offering costs to APIC | 130,629 | |
Transfer of inventory to property and equipment | $ 35,393 | $ 67,908 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 1 — Organization and Summary of Significant Accounting Policies Description of the Business Sensus Healthcare, Inc. (the “Company”) is a manufacturer of superficial radiation therapy devices and has established a distribution and marketing network to sell the devices to healthcare providers globally. The Company was organized on May 7, 2010 as a limited liability corporation. On January 1, 2016, the Company completed a corporate conversion pursuant to which Sensus Healthcare, Inc. succeeded to the business of Sensus Healthcare, LLC. The Company operates as one segment from its corporate headquarters located in Boca Raton, Florida. Initial Public Offering In June 2016, the Company issued 2,300,000 units in its initial public offering (“IPO”) at a price of $5.50 per unit ($5.25 attributable to the common stock and $0.25 attributable to the warrant), for net proceeds of approximately $10,393,000 after deducting underwriting discounts and commissions of $886,000 and expenses of $1,371,000. Each unit consisted of one share of common stock and a warrant to purchase one share of common stock. Immediately prior to the IPO, all shares of stock then outstanding converted into an aggregate of 10,367,883 shares of common stock following a 241.95-for-one forward stock split approved by the Company’s board of directors. On July 25, 2016, the common stock and warrants included in the units issued in the IPO commenced trading separately under the symbols “SRTS” and “SRTSW,” respectively, and trading of the units under the symbol “SRTSU” was suspended. Basis of Presentation The accompanying unaudited condensed financial statements in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do not include certain footnotes and financial presentations normally required under accounting principles generally accepted in the United States of America for complete financial statements. The interim financial information is unaudited, but reflects all normal adjustments and accruals which are, in the opinion of management, considered necessary to provide a fair presentation for the interim periods presented. The accompanying condensed financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2016 included in the Company’s Form 10-K, filed with the SEC. The results for the nine months ended September 30, 2017 are not necessarily indicative of results to be expected for the year ending December 31, 2017, any other interim periods, or any future year or period. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates to which it is reasonably possible that a change could occur in the near term include, revenue recognition, inventory reserves, receivable allowances, recoverability of long lived assets and estimation of the Company’s product warranties. Actual results could differ from those estimates. Revenue Recognition The Company’s sales primarily relate to sales of the Company’s devices. The Company recognizes product revenue upon shipment provided that there is persuasive evidence of an arrangement, there are no uncertainties regarding customer acceptance, the sales price is fixed and determinable, and collection of the resulting receivable is reasonably assured. The Company does not provide a right of return related to product sales. Revenues for service contracts are recognized over the service contract period on a straight-line basis. Revenue for rentals of equipment is recognized over the lease term on a straight-line basis. The Company sells products and services under multiple-element arrangements with separate units of accounting; in these situations, total consideration is allocated to the identified units of accounting based on their relative selling prices and revenue is then recognized for each unit based on its specific characteristics. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. The principal deliverables in our multiple deliverable arrangements that qualify as separate units of accounting consist of (i) sales of medical devices and accessories and (ii) service contracts. Performance obligations, including installation and customer training, are considered inconsequential and are combined with the product as one unit of accounting. Selling prices are established using vendor-specific objective evidence (VSOE). If VSOE does not exist, the Company uses its best estimate of the selling prices for the deliverables. The Company operates in a highly-regulated environment and is continually entering into new markets in which regulatory approval is sometimes required prior to the customer being able to use the product. In these cases, where regulatory approval is pending, revenue is deferred until such time as regulatory approval is obtained and customer acceptance becomes certain. Deferred revenue consists of payments from customers for long term separately priced service contracts, sales pending regulatory approval and deposits on products. Deferred revenue as of September 30, 2017 and December 31, 2016 was as follows: As of September 30, As of December 31, 2017 2016 (unaudited) Service contracts $ 632,442 $ 613,374 Sales pending regulatory approval — 155,517 Deposits on products 26,000 84,907 Total deferred revenue, current portion $ 658,442 $ 853,798 Service contracts, net of current portion 13,833 16,251 Total deferred revenue $ 672,275 $ 870,049 The Company provides warranties, generally for one year, in conjunction with the sale of its product. These warranties are short term in nature and entitle the customer to repair, replacement, or modification of the defective product subject to the terms of the respective warranty. The Company records an estimate of future warranty claims at the time the Company recognizes revenue from the sale of the product based upon management’s estimate of the future claims rate. Shipping and handling costs are expensed as incurred and are included in cost of sales. Segment and Geographical Information The Company’s revenue is generated primarily from customers in the United States, which represented approximately 99% and 100% for the three months ended September 30, 2017 and 2016, respectively, and approximately 99% and 74% for the nine months ended September 30, 2017 and 2016, respectively. A customer in China accounted for approximately 0% and 15% for the nine months ended September 30, 2017 and 2016, respectively. A customer in the U.S. accounted for approximately 69% and 33% of revenues for the three months ended September 30, 2017 and 2016, respectively, and approximately 58% and 15% for the nine months ended September 30, 2017 and 2016, respectively, and 85% and 39% of the accounts receivable as of September 30, 2017 and December 31, 2016, respectively. Cash and Cash Equivalents The Company maintains its cash and cash equivalents with financial institutions which balances exceed the federally insured limits. Federally insured limits are $250,000 for deposits. As of September 30, 2017, and December 31, 2016, the Company had approximately $6,673,000 and $4,792,000, respectively in excess of federally insured limits. For purposes of the statement of cash flows, the Company considers all highly liquid financial instruments with a maturity of three months or less when purchased to be a cash equivalent. Investments Short term investments consist of investments which the Company expects to convert into cash within one year and long-term investments after one year. The Company classifies its investments in debt securities at the time of purchase as h eld-to-maturity and reevaluates such classification on a quarterly basis. Held-to-maturity investments consist of securities that the Company has the intent and ability to retain until maturity. These securities ar e carried at amortized cost plus accrued interest and consist of the following: Amortized Cost Gross Gross Fair Short Term: Corporate bonds $ 6,462,369 $ 167 $ 7,243 $ 6,455,293 United States Treasury bonds — — — — Total Short Term: 6,462,369 167 7,243 6,455,293 Long Term: United States Treasury bonds 502,063 — 1,174 500,890 Corporate bonds 601,710 2,618 599,091 Total Long Term: 1,103,773 — 3,792 1,099,981 Total Investments December 31, 2016 $ 7,566,142 $ 167 $ 11,035 $ 7,555,274 Short Term Corporate bonds $ 1,511,052 $ — $ 1,043 $ 1,510,010 United States Treasury bonds 1,503,454 — 1,031 1,502,423 Total Short Term: 3,014,507 — 2,074 3,012,433 Long Term: United States Treasury bonds — — — — Corporate bonds — — — Total Long Term: — — — — Total Investments September 30, 2017 (unaudited) $ 3,014,507 $ — $ 2,074 $ 3,012,433 Accounts Receivable The Company does business and extends credit based on an evaluation of each customer’s financial condition, generally without requiring collateral. Exposure to losses on receivables is expected to vary by customer due to the financial condition of each customer. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for doubtful accounts was approximately $0 and $29,000 as of September 30, 2017 and December 31, 2016, respectively. Bad debt expense for the three months ended September 30, 2017 and 2016 was approximately $0 and for the nine months ended September 30, 2017 and 2016 was approximately $176,000 and $9,000, respectively. Inventories Inventories consist of finished product and components and are stated at the lower of cost and net realizable value, determined using the first-in-first-out method. Earnings Per Share Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding for the period using the treasury stock method for options and warrants. The diluted net income per share is computed by giving effect to all potential dilutive common share equivalents outstanding for the period. In periods when the Company has incurred a net loss, options and warrants to purchase common shares are considered common share equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. Shares excluded were computed under the treasury stock method as follows: For the Three Months Ended For the Nine Months Ended 2017 2016 2017 2016 Warrants 5,851 23,644 5,851 23,644 Shares 9,779 71,142 9,779 71,142 Advertising Costs Advertising and promotion expenses are charged to expense as incurred. Advertising and promotion expense included in selling expense in the accompanying statements of operations amounted to approximately $185,000 and $168,000 for the three months ended September 30, 2017 and 2016, respectively, and $1,242,000 and $687,000 for the nine months ended September 30, 2017 and 2016, respectively. Recently issued accounting pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2017. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. In April 2016, the FASB also issued ASU 2016-10, Identifying Performance Obligations and Licensing, implementation guidance on principal versus agent, identifying performance obligations, and licensing. ASU 2016-10 is effective for reporting periods beginning after December 15, 2017. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. For the Company, the ASU is effective January 1, 2018. The Company is continuing to evaluate the standards’ impact on the results of operations and financial condition. The Company has conducted initial analyses and is currently completing detailed contract reviews to determine if any adjustments are necessary to the existing accounting policies and to support the evaluation of the standards’ impact to the results of operations and financial condition. For the majority of the Company’s revenue arrangements, no significant impacts are expected as these transactions are not accounted for under industry-specific guidance that will be superseded by the ASU, and generally consist of obligations to transfer goods and services. The Company currently anticipates utilizing the modified retrospective method of adoption on January 1, 2018. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). Under the new guidance, companies are required to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. In addition, companies will no longer allocate valuation allowances between current and noncurrent deferred tax assets because those allowances will also be classified as noncurrent. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2016. The Company adopted this standard in the first quarter of 2017 and it did not have a material impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases (FAS 13). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for lease s In April 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718), which requires that the income tax effect of share-based awards be recognized in the income statement when the awards vest or are settled. The guidance will also allow an employer to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. The guidance is effective for years beginning after December 15, 2016 and interim periods within those years. The Company adopted this standard in the first quarter of 2017 and it did not have a material impact on its financial statements. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Note 2 — Property and Equipment As of September 30, As of December 31, Estimated 2017 2016 Useful Lives (unaudited) Operations and rental equipment $ 730,095 $ 630,886 3 years Tradeshow and demo equipment 294,474 294,475 3 years Computer equipment 139,549 95,218 3 years 1,164,118 1,020,579 Less accumulated depreciation (747,985 ) (587,171 ) Property and Equipment, Net $ 416,133 $ 433,408 Depreciation expense was approximately $79,000 and $60,000, for the three months ended September 30, 2017 and 2016, respectively, and approximately $223,000 and $181,000, for the nine months ended September 30, 2017 and 2016, respectively. Depreciation on asset disposal was approximately $44,000 for the three months ended September 30, 2017 and $62,000 for the nine months ended September 30, 2017. |
PATENT RIGHTS
PATENT RIGHTS | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
PATENT RIGHTS | Note 3 — Patent Rights As of September 30, As of December 31, 2017 2016 (unaudited) Gross carrying amount $ 1,253,018 $ 1,253,018 Less accumulated amortization (698,799 ) (626,509 ) Patent Rights, Net $ 554,219 $ 626,509 Amortization expense was approximately $24,000 for the three months ended September 30, 2017 and 2016, and approximately $72,000 for the nine months ended September 30, 2017 and 2016. As of September 30, 2017, future remaining amortization expense is as follows: For the Year Ending December 31, 2017 (October 1 — December 31, 2017) $ 24,097 2018 96,386 2019 96,386 2020 96,386 2021 96,386 Thereafter 144,578 Total $ 554,219 |
REVOLVING CREDIT FACILITY
REVOLVING CREDIT FACILITY | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY | Note 4 — Revolving Credit Facility On March 12, 2013, the Company entered into a two-year $3 million revolving credit facility. The credit facility was amended and extended effective March 12, 2015 through May 12, 2017. The maximum borrowing was reduced to $1,500,000 and was limited by the Company’s eligible borrowing base of 80% of eligible accounts receivable. On September 21, 2016, a second amendment to the credit facility extended the facility through September 21, 2017, increased the maximum borrowing to $2,000,000 and expanded the eligible accounts receivables to include certain international receivables. The Company was not in compliance in April and May 2017 with one of its financial covenants. On June 27, 2017, the covenant defaults were waived and the agreement was amended to modify the financial covenants effective June 2017. An amendment signed on September 15, 2017 extended the maturity date of the credit line through November 19, 2017. Interest, at Prime plus 0.75% (5.00% at September 30, 2017), is payable monthly, and the outstanding principal and interest are due on the maturity date. The facility is secured by all of the Company’s assets and limits the amount of additional indebtedness, restricts the sale, disposition or transfer of assets of the Company and requires the maintenance of a certain monthly adjusted quick ratio restrictive covenant, as defined in the agreement. Approximately $1,626,000 was outstanding under the revolving credit facility at September 30, 2017 and $0 at December 31, 2016. The Company pays commitment fees of 0.25% per annum on the average unused portion of the line of credit. |
PRODUCT WARRANTIES
PRODUCT WARRANTIES | 9 Months Ended |
Sep. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
PRODUCT WARRANTIES | Note 5 — Product Warranties Changes in product warranty liability were as follows for the nine months ended September 30, 2017 (unaudited).: Balance, beginning of period $ 40,481 Warranties accrued during the period 174,723 Payments on warranty claims (104,724 ) Balance, end of period $ 110,480 |
COMMITMENT AND CONTINGENCIES
COMMITMENT AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENT AND CONTINGENCIES | Note 6 — Commitment and Contingencies Operating Lease Agreements In July 2016, the Company renewed its lease with an unrelated third party for its headquarters office. The renewal was effective September 1, 2016 and expanded the office space being occupied. The lease expires in September 2022 and lease payments increase by 3% annually. Future minimum lease payments as of September 30, 2017 are as follows: Year 2017 (October 1 — December 31, 2017) $ 47,000 2018 190,000 2019 196,000 2020 202,000 2021 208,000 Thereafter 160,000 Total $ 1,003,000 Rental expense for the three months ended September 30, 2017 and 2016 was approximately $46,000 and $25,000, respectively, and for the nine months ended September 30, 2017 and 2016 was approximately $131,000 and $74,000, respectively. Manufacturing Agreement In July 2010, the Company entered into a three-year contract manufacturing agreement with an unrelated third party for the production and manufacture of the Company’s main product in accordance with the Company’s product specifications. The agreement renews for successive years unless either party notifies the other party in writing, at least 60 days prior to the anniversary date of this agreement that it will not renew the agreement. The Company or the manufacturer has the option to terminate the agreement with 90 days written notice. Any change in the relationship with the manufacturer could have an adverse effect on the Company’s business. Purchases from this manufacturer totaled approximately $1,582,000 and $713,000 for the three months ended September 30, 2017 and 2016, respectively, and approximately $3,074,000 and $2,298,000 for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, and December 31, 2016 approximately $658,000 and $566,000, respectively, was due to this manufacturer, which is presented in accounts payable and accrued expenses in the accompanying balance sheets. Legal contingencies The Company is party to certain legal proceedings in the ordinary course of business. The Company assesses, in conjunction with its legal counsel, the need to record a liability for litigation and related contingencies. The Company does not believe that any legal proceedings are likely to have a material effect on the business, financial condition, or results of operations. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | Note 7 — Stockholders’ Equity The Company has authorized 50,000,000 shares of common stock, of which 13,522,168 were issued and 13,488,714 outstanding at September 30, 2017; 13,546,171 shares were issued and outstanding as of December 31, 2016, respectively. Stock Issuances On January 1, 2016, Sensus Healthcare, LLC converted into a Delaware corporation pursuant to a statutory conversion and changed its name to Sensus Healthcare, Inc. As a result of the corporate conversion, the holders of the different classes of units of Sensus Healthcare, LLC became holders of common stock of Sensus Healthcare, Inc. Holders of warrants and options, respectively, to purchase membership interests of Sensus Healthcare, LLC became holders of warrants and options to purchase common stock of Sensus Healthcare, Inc., respectively. Each membership interest converted to one share of common stock. During 2011, the Company offered to a limited number of investors (the “investor members”) preferred membership interests (the “interests”) consisting of (i) cumulative, non-compounded, 8% per annum preferential return, payable annually, if and when such distributions are made by the Company’s board of directors and (ii) participation in the Company’s net profits, net losses and distributions of the Company’s assets pursuant to the operating agreement. The offering raised approximately $6.4 million in gross proceeds ($6.0 million net of offering costs), utilizing a private placement memorandum. As of December 31, 2015, accumulated unpaid preferential distributions were approximately $2,674,000 ($0.87 per share). Preferential distributions no longer accrued after December 31, 2015. In June 2016, after the completion of the IPO, the accumulated unpaid distribution as of December 31, 2015 was payable in cash or shares, at the option of each stockholder with a preferential distribution. On July 15, 2016, the Company accrued dividends in the amount of approximately $2,553,000, representing the amount for which former holders of membership units with a preferred return elected to receive dividends in cash. In addition, 23,138 shares valued at approximately $122,000 of common stock were issued to those that elected to receive the dividends in shares. Warrants In April 2013, the closing date of the second common offering, the Company’s placement agent received investor rights to 5 year warrants to purchase 86,376 common shares of the Company at an exercise price of $4.55 per unit, which was equal to 110% of the offering price. In June 2016, from the IPO, the investors received three-year warrants to purchase 2,300,000 shares of common stock at an exercise price of $6.75 per share; the warrants are exercisable through June 2, 2019. Following the first anniversary of the date of issuance, if certain conditions are met, the Company may redeem any and all of the outstanding warrants at a price equal to $0.01 per warrant. In addition, the underwriter’s representatives received four-year warrants to purchase up to 138,000 units, consisting of one share of common stock and one warrant to purchase one share of common stock. The warrants for the units are exercisable between June 2, 2017 and June 2, 2021 at an exercise price of $6.75 per unit. The following table summarizes the Company’s warrant activity: Common Unit Warrants Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Outstanding – December 31, 2016 2,524,376 $ 6.67 2.50 Granted — — — Exercised — — — Forfeited — — — Outstanding – September 30, 2017 2,524,376 $ 6.67 1.76 Exercisable – September 30, 2017 2,524,376 $ 6.67 1.76 The intrinsic value of the common stock warrants was approximately $29,000 as of September 30, 2017, and $114,000 as of December 31, 2016. 2016 and 2017 equity incentive Plans The Company has limited the aggregate number of shares of common stock to be awarded under the 2016 Equity Incentive Plan to 397,473 shares and no more than 397,473 shares of common stock in the aggregate may be granted in connection with incentive stock options. The Company has limited the aggregate number of shares of common stock to be awarded under the 2017 Equity Incentive Plan to 500,000 shares and no more than 500,000 shares of common stock in the aggregate may be granted in connection with incentive stock options. In addition, unless the Compensation Committee specifically determines otherwise, the maximum number of shares available under the 2016 and 2017 Plans and the awards granted under those plans will be subject to appropriate adjustment in the case of any stock dividends, stock splits, recapitalizations, reorganizations, mergers, consolidations, exchanges or other changes in capitalization affecting our common stock. On June 2, 2016, 307,666 shares of restricted stock were issued to employees and were recorded at the fair value of $5.25 as per the initial offering price. In addition, on January 20, 2017, 10,000 shares of restricted stock were issued to one employee and were recorded at the fair value of $4.99 per share. The shares vest 25% per year over a four-year vesting period and are being recognized as expense on a straight-line basis over the vesting period of the awards. Stock compensation expense of approximately $102,000 and $101,000 was recognized for the three months ended September 30, 2017 and 2016, respectively, and approximately $303,000 and $135,000 was recognized for the nine months ended September 30, 2017 and 2016, respectively. Unrecognized stock compensation expense was approximately $1,101,000 as of September 30, 2017, which will be recognized over the remaining vesting period. As of September 30, 2017, 84,807 shares were available to be granted under the 2016 Plan and 500,000 shares were available to be granted under the 2017 Plan. The Company recognizes forfeitures as they occur rather than estimating a forfeiture rate. The reduction of stock compensation expense related to the 5,000 shares forfeited for the three and nine months ended in September 30, 2017 was approximately $0 and $7,000. A summary of the restricted stock activity for the nine months ended September 30, 2017 is presented as follows: Shares Weighted Average Unvested balance at December 31, 2016 412,914 $ 5.04 Granted 10,000 4.99 Vested (180,914 ) 4.24 Forfeited (5,000 ) 5.25 Unvested balance at September 30, 2017 237,000 $ 5.64 Treasury Stock The Company accounts for purchases of treasury stock under the cost method with the cost of such share purchases reflected in treasury stock in the accompanying condensed balance sheet. As of September 30, 2017, the Company had 33,454 treasury shares. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 8 — Income Taxes Book income before taxes was negative for the three and nine months ended September 30, 2017. Tax expense for the three and nine months ended September 30, 2017 was $0. There are no uncertain tax positions that would require recognition in the financial statements. If the Company incurs an income tax liability in the future, interest on any income tax liability would be reported as interest expense and penalties on any income tax liability would be reported as income taxes. The Company’s conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws, regulations and interpretations thereof as well as other factors. The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim period, disclosure and transition. As of September 30, 2017, the Company has US federal and certain state tax returns subject to examination, beginning with those filed for the year 2013. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 9 — Subsequent Events The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements were issued for potential recognition or disclosure. Other than as described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. On October 31, 2017, the Company amended its revolving credit facility to extend the maturity to October 31, 2019. The availability under the amended facility will equal the lesser of the $5 million commitment amount or the borrowing base plus the $2.5 million non-formula sublimit. The borrowing base consists of 80% of eligible accounts receivable, as defined in the agreement. Interest at Prime plus 0.75% (Prime plus 1.50% on non-formula borrowings) is payable monthly, and the outstanding principal and interest are due on the maturity date. The facility is secured by all of the Company’s assets and limits the amount of additional indebtedness, restricts the sale, disposition or transfer of assets of the Company and requires the maintenance of a certain monthly adjusted quick ratio restrictive covenant, as defined in the agreement. The Company will pay commitment fees of 0.25% per annum on the average unused portion of the line of credit.a |
ORGANIZATION AND SUMMARY OF S16
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS | Description of the Business Sensus Healthcare, Inc. (the “Company”) is a manufacturer of superficial radiation therapy devices and has established a distribution and marketing network to sell the devices to healthcare providers globally. The Company was organized on May 7, 2010 as a limited liability corporation. On January 1, 2016, the Company completed a corporate conversion pursuant to which Sensus Healthcare, Inc. succeeded to the business of Sensus Healthcare, LLC. The Company operates as one segment from its corporate headquarters located in Boca Raton, Florida. |
INITIAL PUBLIC OFFERING | Initial Public Offering In June 2016, the Company issued 2,300,000 units in its initial public offering (“IPO”) at a price of $5.50 per unit ($5.25 attributable to the common stock and $0.25 attributable to the warrant), for net proceeds of approximately $10,393,000 after deducting underwriting discounts and commissions of $886,000 and expenses of $1,371,000. Each unit consisted of one share of common stock and a warrant to purchase one share of common stock. Immediately prior to the IPO, all shares of stock then outstanding converted into an aggregate of 10,367,883 shares of common stock following a 241.95-for-one forward stock split approved by the Company’s board of directors. On July 25, 2016, the common stock and warrants included in the units issued in the IPO commenced trading separately under the symbols “SRTS” and “SRTSW,” respectively, and trading of the units under the symbol “SRTSU” was suspended. |
BASIS OF PRESENTATION | Basis of Presentation The accompanying unaudited condensed financial statements in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do not include certain footnotes and financial presentations normally required under accounting principles generally accepted in the United States of America for complete financial statements. The interim financial information is unaudited, but reflects all normal adjustments and accruals which are, in the opinion of management, considered necessary to provide a fair presentation for the interim periods presented. The accompanying condensed financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2016 included in the Company’s Form 10-K, filed with the SEC. The results for the nine months ended September 30, 2017 are not necessarily indicative of results to be expected for the year ending December 31, 2017, any other interim periods, or any future year or period. |
USE OF ESTIMATES | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates to which it is reasonably possible that a change could occur in the near term include, revenue recognition, inventory reserves, receivable allowances, recoverability of long lived assets and estimation of the Company’s product warranties. Actual results could differ from those estimates. |
REVENUE RECOGNITION | Revenue Recognition The Company’s sales primarily relate to sales of the Company’s devices. The Company recognizes product revenue upon shipment provided that there is persuasive evidence of an arrangement, there are no uncertainties regarding customer acceptance, the sales price is fixed and determinable, and collection of the resulting receivable is reasonably assured. The Company does not provide a right of return related to product sales. Revenues for service contracts are recognized over the service contract period on a straight-line basis. Revenue for rentals of equipment is recognized over the lease term on a straight-line basis. The Company sells products and services under multiple-element arrangements with separate units of accounting; in these situations, total consideration is allocated to the identified units of accounting based on their relative selling prices and revenue is then recognized for each unit based on its specific characteristics. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. The principal deliverables in our multiple deliverable arrangements that qualify as separate units of accounting consist of (i) sales of medical devices and accessories and (ii) service contracts. Performance obligations, including installation and customer training, are considered inconsequential and are combined with the product as one unit of accounting. Selling prices are established using vendor-specific objective evidence (VSOE). If VSOE does not exist, the Company uses its best estimate of the selling prices for the deliverables. The Company operates in a highly-regulated environment and is continually entering into new markets in which regulatory approval is sometimes required prior to the customer being able to use the product. In these cases, where regulatory approval is pending, revenue is deferred until such time as regulatory approval is obtained and customer acceptance becomes certain. Deferred revenue consists of payments from customers for long term separately priced service contracts, sales pending regulatory approval and deposits on products. Deferred revenue as of September 30, 2017 and December 31, 2016 was as follows: As of September 30, As of December 31, 2017 2016 (unaudited) Service contracts $ 632,442 $ 613,374 Sales pending regulatory approval — 155,517 Deposits on products 26,000 84,907 Total deferred revenue, current portion $ 658,442 $ 853,798 Service contracts, net of current portion 13,833 16,251 Total deferred revenue $ 672,275 $ 870,049 The Company provides warranties, generally for one year, in conjunction with the sale of its product. These warranties are short term in nature and entitle the customer to repair, replacement, or modification of the defective product subject to the terms of the respective warranty. The Company records an estimate of future warranty claims at the time the Company recognizes revenue from the sale of the product based upon management’s estimate of the future claims rate. Shipping and handling costs are expensed as incurred and are included in cost of sales. |
SEGMENT AND GEOGRAPHICAL INFORMATION | Segment and Geographical Information The Company’s revenue is generated primarily from customers in the United States, which represented approximately 99% and 100% for the three months ended September 30, 2017 and 2016, respectively, and approximately 99% and 74% for the nine months ended September 30, 2017 and 2016, respectively. A customer in China accounted for approximately 0% and 15% for the nine months ended September 30, 2017 and 2016, respectively. A customer in the U.S. accounted for approximately 69% and 33% of revenues for the three months ended September 30, 2017 and 2016, respectively, and approximately 58% and 15% for the nine months ended September 30, 2017 and 2016, respectively, and 85% and 39% of the accounts receivable as of September 30, 2017 and December 31, 2016, respectively. |
CASH AND CASH EQUIVALENTS | Cash and Cash Equivalents The Company maintains its cash and cash equivalents with financial institutions which balances exceed the federally insured limits. Federally insured limits are $250,000 for deposits. As of September 30, 2017, and December 31, 2016, the Company had approximately $6,673,000 and $4,792,000, respectively in excess of federally insured limits. For purposes of the statement of cash flows, the Company considers all highly liquid financial instruments with a maturity of three months or less when purchased to be a cash equivalent. |
INVESTMENTS | Investments Short term investments consist of investments which the Company expects to convert into cash within one year and long-term investments after one year. The Company classifies its investments in debt securities at the time of purchase as h eld-to-maturity and reevaluates such classification on a quarterly basis. Held-to-maturity investments consist of securities that the Company has the intent and ability to retain until maturity. These securities ar e carried at amortized cost plus accrued interest and consist of the following: Amortized Cost Gross Gross Fair Short Term: Corporate bonds $ 6,462,369 $ 167 $ 7,243 $ 6,455,293 United States Treasury bonds — — — — Total Short Term: 6,462,369 167 7,243 6,455,293 Long Term: United States Treasury bonds 502,063 — 1,174 500,890 Corporate bonds 601,710 2,618 599,091 Total Long Term: 1,103,773 — 3,792 1,099,981 Total Investments December 31, 2016 $ 7,566,142 $ 167 $ 11,035 $ 7,555,274 Short Term Corporate bonds $ 1,511,052 $ — $ 1,043 $ 1,510,010 United States Treasury bonds 1,503,454 — 1,031 1,502,423 Total Short Term: 3,014,507 — 2,074 3,012,433 Long Term: United States Treasury bonds — — — — Corporate bonds — — — Total Long Term: — — — — Total Investments September 30, 2017 (unaudited) $ 3,014,507 $ — $ 2,074 $ 3,012,433 |
ACCOUNTS RECEIVABLE | Accounts Receivable The Company does business and extends credit based on an evaluation of each customer’s financial condition, generally without requiring collateral. Exposure to losses on receivables is expected to vary by customer due to the financial condition of each customer. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for doubtful accounts was approximately $0 and $29,000 as of September 30, 2017 and December 31, 2016, respectively. Bad debt expense for the three months ended September 30, 2017 and 2016 was approximately $0 and for the nine months ended September 30, 2017 and 2016 was approximately $176,000 and $9,000, respectively. |
INVENTORIES | Inventories Inventories consist of finished product and components and are stated at the lower of cost and net realizable value, determined using the first-in-first-out method. |
EARNINGS PER SHARE | Earnings Per Share Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding for the period using the treasury stock method for options and warrants. The diluted net income per share is computed by giving effect to all potential dilutive common share equivalents outstanding for the period. In periods when the Company has incurred a net loss, options and warrants to purchase common shares are considered common share equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. Shares excluded were computed under the treasury stock method as follows: For the Three Months Ended For the Nine Months Ended 2017 2016 2017 2016 Warrants 5,851 23,644 5,851 23,644 Shares 9,779 71,142 9,779 71,142 |
ADVERTISING COSTS | Advertising Costs Advertising and promotion expenses are charged to expense as incurred. Advertising and promotion expense included in selling expense in the accompanying statements of operations amounted to approximately $185,000 and $168,000 for the three months ended September 30, 2017 and 2016, respectively, and $1,242,000 and $687,000 for the nine months ended September 30, 2017 and 2016, respectively. |
RECENTLY ISUED ACCOUNTING PRONOUNCEMENT | Recently issued accounting pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2017. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. In April 2016, the FASB also issued ASU 2016-10, Identifying Performance Obligations and Licensing, implementation guidance on principal versus agent, identifying performance obligations, and licensing. ASU 2016-10 is effective for reporting periods beginning after December 15, 2017. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. For the Company, the ASU is effective January 1, 2018. The Company is continuing to evaluate the standards’ impact on the results of operations and financial condition. The Company has conducted initial analyses and is currently completing detailed contract reviews to determine if any adjustments are necessary to the existing accounting policies and to support the evaluation of the standards’ impact to the results of operations and financial condition. For the majority of the Company’s revenue arrangements, no significant impacts are expected as these transactions are not accounted for under industry-specific guidance that will be superseded by the ASU, and generally consist of obligations to transfer goods and services. The Company currently anticipates utilizing the modified retrospective method of adoption on January 1, 2018. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). Under the new guidance, companies are required to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. In addition, companies will no longer allocate valuation allowances between current and noncurrent deferred tax assets because those allowances will also be classified as noncurrent. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2016. The Company adopted this standard in the first quarter of 2017 and it did not have a material impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases (FAS 13). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for lease s In April 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718), which requires that the income tax effect of share-based awards be recognized in the income statement when the awards vest or are settled. The guidance will also allow an employer to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. The guidance is effective for years beginning after December 15, 2016 and interim periods within those years. The Company adopted this standard in the first quarter of 2017 and it did not have a material impact on its financial statements. |
ORGANIZATION AND SUMMARY OF S17
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of deferred revenue | Deferred revenue as of September 30, 2017 and December 31, 2016 was as follows: As of September 30, As of December 31, 2017 2016 (unaudited) Service contracts $ 632,442 $ 613,374 Sales pending regulatory approval — 155,517 Deposits on products 26,000 84,907 Total deferred revenue, current portion $ 658,442 $ 853,798 Service contracts, net of current portion 13,833 16,251 Total deferred revenue $ 672,275 $ 870,049 |
Schedule of investment | The Company classifies its investments in debt securities at the time of purchase as h eld-to-maturity and reevaluates such classification on a quarterly basis. Held-to-maturity investments consist of securities that the Company has the intent and ability to retain until maturity. These securities ar e carried at amortized cost plus accrued interest and consist of the following: Amortized Cost Gross Gross Fair Short Term: Corporate bonds $ 6,462,369 $ 167 $ 7,243 $ 6,455,293 United States Treasury bonds — — — — Total Short Term: 6,462,369 167 7,243 6,455,293 Long Term: United States Treasury bonds 502,063 — 1,174 500,890 Corporate bonds 601,710 2,618 599,091 Total Long Term: 1,103,773 — 3,792 1,099,981 Total Investments December 31, 2016 $ 7,566,142 $ 167 $ 11,035 $ 7,555,274 Short Term Corporate bonds $ 1,511,052 $ — $ 1,043 $ 1,510,010 United States Treasury bonds 1,503,454 — 1,031 1,502,423 Total Short Term: 3,014,507 — 2,074 3,012,433 Long Term: United States Treasury bonds — — — — Corporate bonds — — — Total Long Term: — — — — Total Investments September 30, 2017 (unaudited) $ 3,014,507 $ — $ 2,074 $ 3,012,433 |
Schedule of antidilutive | In periods when the Company has incurred a net loss, options and warrants to purchase common shares are considered common share equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. Shares excluded were computed under the treasury stock method as follows: For the Three Months Ended For the Nine Months Ended 2017 2016 2017 2016 Warrants 5,851 23,644 5,851 23,644 Shares 9,779 71,142 9,779 71,142 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | As of September 30, As of December 31, Estimated 2017 2016 Useful Lives (unaudited) Operations and rental equipment $ 730,095 $ 630,886 3 years Tradeshow and demo equipment 294,474 294,475 3 years Computer equipment 139,549 95,218 3 years 1,164,118 1,020,579 Less accumulated depreciation (747,985 ) (587,171 ) Property and Equipment, Net $ 416,133 $ 433,408 |
PATENT RIGHTS (Tables)
PATENT RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | As of September 30, As of December 31, 2017 2016 (unaudited) Gross carrying amount $ 1,253,018 $ 1,253,018 Less accumulated amortization (698,799 ) (626,509 ) Patent Rights, Net $ 554,219 $ 626,509 |
Schedule of amortization expense | As of September 30, 2017, future remaining amortization expense is as follows: For the Year Ending December 31, 2017 (October 1 — December 31, 2017) $ 24,097 2018 96,386 2019 96,386 2020 96,386 2021 96,386 Thereafter 144,578 Total $ 554,219 |
PRODUCT WARRANTIES (Tables)
PRODUCT WARRANTIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Schedule of changes in product warranty liability | Changes in product warranty liability were as follows for the nine months ended September 30, 2017 (unaudited).: Balance, beginning of period $ 40,481 Warranties accrued during the period 174,723 Payments on warranty claims (104,724 ) Balance, end of period $ 110,480 |
COMMITMENT AND CONTINGENCIES (T
COMMITMENT AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments for operating leases | Future minimum lease payments as of September 30, 2017 are as follows: Year 2017 (October 1 — December 31, 2017) $ 47,000 2018 190,000 2019 196,000 2020 202,000 2021 208,000 Thereafter 160,000 Total $ 1,003,000 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of warrant activity | The following table summarizes the Company’s warrant activity: Common Unit Warrants Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Outstanding – December 31, 2016 2,524,376 $ 6.67 2.50 Granted — — — Exercised — — — Forfeited — — — Outstanding – September 30, 2017 2,524,376 $ 6.67 1.76 Exercisable – September 30, 2017 2,524,376 $ 6.67 1.76 |
Schedule of option activity | A summary of the restricted stock activity for the nine months ended September 30, 2017 is presented as follows: Shares Weighted Average Unvested balance at December 31, 2016 412,914 $ 5.04 Granted 10,000 4.99 Vested (180,914 ) 4.24 Forfeited (5,000 ) 5.25 Unvested balance at September 30, 2017 237,000 $ 5.64 |
ORGANIZATION AND SUMMARY OF S23
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current portion | $ 658,442 | $ 853,798 |
Service contracts, net of current portion | 13,833 | 16,251 |
Total deferred revenue | 672,275 | 870,049 |
Service Contracts [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current portion | 632,442 | 613,374 |
Sales Pending Regulatory Approval [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current portion | 155,517 | |
Deposits on Products [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current portion | $ 26,000 | $ 84,907 |
ORGANIZATION AND SUMMARY OF S24
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Amortized Cost | $ 3,014,507 | $ 7,566,142 |
Gross Unrealized Gain | 167 | |
Gross Unrealized Loss | 2,074 | 11,035 |
Fair Value | 3,012,433 | 7,555,274 |
Short Term [Member] | ||
Amortized Cost | 3,014,507 | 6,462,369 |
Gross Unrealized Gain | 167 | |
Gross Unrealized Loss | 2,074 | 7,243 |
Fair Value | 3,012,433 | 6,455,293 |
Short Term [Member] | Corporate Bonds [Member] | ||
Amortized Cost | 1,511,052 | 6,462,369 |
Gross Unrealized Gain | 167 | |
Gross Unrealized Loss | 1,043 | 7,243 |
Fair Value | 1,510,010 | 6,455,293 |
Short Term [Member] | United States Treasury Bonds [Member] | ||
Amortized Cost | 1,503,454 | |
Gross Unrealized Gain | ||
Gross Unrealized Loss | 1,031 | |
Fair Value | 1,502,423 | |
Long Term [Member] | ||
Amortized Cost | 1,103,773 | |
Gross Unrealized Gain | ||
Gross Unrealized Loss | 3,792 | |
Fair Value | 1,099,981 | |
Long Term [Member] | Corporate Bonds [Member] | ||
Amortized Cost | 601,710 | |
Gross Unrealized Gain | ||
Gross Unrealized Loss | 2,618 | |
Fair Value | 599,091 | |
Long Term [Member] | United States Treasury Bonds [Member] | ||
Amortized Cost | 502,063 | |
Gross Unrealized Gain | ||
Gross Unrealized Loss | 1,174 | |
Fair Value | $ 500,890 |
ORGANIZATION AND SUMMARY OF S25
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 5,851 | 23,644 | 5,851 | 23,644 |
Unvested Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 9,779 | 71,142 | 9,779 | 71,142 |
ORGANIZATION AND SUMMARY OF S26
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2017USD ($)shares | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Segmentshares | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of operating segments | Segment | 1 | |||||
Stockholders' equity note, stock split, conversion ratio | 241.95 | |||||
Cash, FDIC insured amount | $ 250,000 | $ 250,000 | ||||
Cash uninsured amount | 6,673,000 | 6,673,000 | $ 4,792,000 | |||
Allowance for doubtful accounts receivable, current | 0 | 0 | $ 29,000 | |||
Advertising and promotion expense | 185,000 | $ 168,000 | $ 1,242,000 | $ 687,000 | ||
Product warranty term | 1 year | |||||
Bad debt expense | $ 0 | $ 0 | $ 175,695 | $ 9,000 | ||
UNITED STATES | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Reveune percent | 99.00% | 100.00% | 99.00% | 74.00% | ||
UNITED STATES | Customer [Member] | Accounts Receivable [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Reveune percent | 85.00% | 39.00% | ||||
UNITED STATES | Customer [Member] | Revenue [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Reveune percent | 69.00% | 33.00% | 15.00% | 58.00% | ||
CHINA | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Reveune percent | 0.00% | 15.00% | ||||
Common Stock [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of units issued upon transaction | shares | 1 | |||||
Unit price (in dollars per unit) | $ / shares | $ 5.25 | |||||
Shares outstanding | shares | 10,367,883 | 13,522,168 | 13,522,168 | 13,546,171 | ||
Warrant [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of units issued upon transaction | shares | 1 | |||||
Unit price (in dollars per unit) | $ / shares | $ 0.25 | |||||
IPO [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of units issued upon transaction | shares | 2,300,000 | |||||
Unit price (in dollars per unit) | $ / shares | $ 5.50 | |||||
Number of units issued upon transaction, value | $ 10,393,000 | |||||
Underwriting discounts and commissions | 886,000 | |||||
Stock issued expenses | $ 1,371,000 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,164,118 | $ 1,020,579 |
Less accumulated depreciation | (747,985) | (587,171) |
Property and Equipment, Net | 416,133 | 433,408 |
Operations and Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 730,095 | 630,886 |
Property, plant and equipment, useful Life | 3 years | |
Tradeshow and Demo Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 294,474 | 294,475 |
Property, plant and equipment, useful Life | 3 years | |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 139,549 | $ 95,218 |
Property, plant and equipment, useful Life | 3 years |
PROPERTY AND EQUIPMENT (Detai28
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 79,000 | $ 60,000 | $ 223,000 | $ 181,000 |
Depreciation on asset disposal | $ 44,000 | $ 62,000 |
PATENT RIGHTS (Details)
PATENT RIGHTS (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 1,253,018 | $ 1,253,018 |
Less accumulated amortization | (698,799) | (626,509) |
Patent Rights, Net | $ 554,219 | $ 626,509 |
PATENT RIGHTS (Details 1)
PATENT RIGHTS (Details 1) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
2017 (October 1 - December 31, 2017) | $ 24,097 | |
2,018 | 96,386 | |
2,019 | 96,386 | |
2,020 | 96,386 | |
2,021 | 96,386 | |
Thereafter | 144,578 | |
Patent Rights, Net | $ 554,219 | $ 626,509 |
PATENT RIGHTS (Details Narrativ
PATENT RIGHTS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 24,000 | $ 24,000 | $ 72,000 | $ 72,000 |
REVOLVING CREDIT FACILITY (Deta
REVOLVING CREDIT FACILITY (Details Narrative) - USD ($) | Mar. 12, 2013 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 21, 2016 | Mar. 12, 2015 |
Debt Disclosure [Abstract] | |||||
Debt instrument, term | 2 years | ||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000 | $ 2,000,000 | $ 1,500,000 | ||
Line of credit percentage of borrowing base to accounts receivables | 80.00% | ||||
Debt instrument, basis spread on variable rate | 0.75% | ||||
Debt instrument, interest rate, effective percentage | 5.00% | ||||
Line of credit, current | $ 1,625,970 | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% |
PRODUCT WARRANTIES (Details)
PRODUCT WARRANTIES (Details) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |
Balance, beginning of period | $ 40,481 |
Warranties accrued during the period | 174,723 |
Payments on warranty claims | (104,724) |
Balance, end of period | $ 110,480 |
COMMITMENT AND CONTINGENCIES (D
COMMITMENT AND CONTINGENCIES (Details) | Sep. 30, 2017USD ($) |
Operating Leases, Future Minimum Payments Due [Abstract] | |
2017 (October 1 - December 31, 2017) | $ 47,000 |
2,018 | 190,000 |
2,019 | 196,000 |
2,020 | 202,000 |
2,021 | 208,000 |
Thereafter | 160,000 |
Total | $ 1,003,000 |
COMMITMENT AND CONTINGENCIES 35
COMMITMENT AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2010 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Payments to suppliers | $ 1,582,000 | $ 713,000 | $ 3,074,000 | $ 2,298,000 | ||
Accounts payable and accrued expenses | 658,000 | $ 658,000 | $ 566,000 | |||
Lease expiration date | Sep. 30, 2022 | |||||
Percentage of increase in lease payments | 3.00% | |||||
Rental expense | $ 46,000 | $ 25,000 | $ 131,000 | $ 74,000 | ||
Manufacturing agreement contract term | 3 years |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - Common Unit Warrants [Member] | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Class of Warrant or Right, Outstanding [Roll Forward] | |
Outstanding at beginning | shares | 2,524,376 |
Granted | shares | |
Exercised | shares | |
Forfeited | shares | |
Outstanding at ending | shares | 2,524,376 |
Exercisable at end | shares | 2,524,376 |
Class of Warrant or Right, Exercise Price of Warrants or Rights [Roll Forward] | |
Outstanding at beginning | $ / shares | $ 6.67 |
Granted | $ / shares | |
Exercised | $ / shares | |
Forfeited | $ / shares | |
Outstanding at ending | $ / shares | 6.67 |
Exercisable at ending | $ / shares | $ 6.67 |
Class Of Warrant Or Right Weighted Average Remaining Contract Term Of Warrants Or Rights [Roll Forward] | |
Outstanding at beginning | 2 years 6 months |
Outstanding at ending | 2 years 9 months 4 days |
Exercisable at ending | 2 years 9 months 4 days |
STOCKHOLDERS' EQUITY (Details 1
STOCKHOLDERS' EQUITY (Details 1) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested balance at beginning | shares | 412,914 |
Granted | shares | 10,000 |
Vested | shares | (180,914) |
Forfeited | shares | (5,000) |
Unvested balance at end | shares | 237,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Rollforward] | |
Unvested balance at beginning | $ / shares | $ 5.04 |
Granted | $ / shares | 4.99 |
Vested | $ / shares | 4.24 |
Forfeited | $ / shares | 5.25 |
Unvested balance at end | $ / shares | $ 5.64 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | Jan. 20, 2017 | Jul. 15, 2016 | Jun. 30, 2016 | Jun. 02, 2016 | Apr. 30, 2013 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2011 | Dec. 31, 2016 | Dec. 31, 2015 |
Common stock, authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Common stock, issued | 13,522,168 | 13,522,168 | 13,546,171 | |||||||||
Common stock,outstanding | 13,488,714 | 13,488,714 | 13,546,171 | |||||||||
Description of membership interest | Each membership interest converted to one share of common stock. | |||||||||||
Accrued dividend paid | $ 2,511,024 | |||||||||||
Stock compensation expense | $ 102,000 | $ 101,000 | $ 303,465 | $ 625,424 | ||||||||
Weighted average grant date fair value (in dollars per share) | $ 4.99 | |||||||||||
Number of restricted stock granted | 10,000 | |||||||||||
Unrecognized stock compensation expense | $ 1,101,000 | $ 1,101,000 | ||||||||||
Reduction of stock compensation expense shares forfeited | 5,000 | |||||||||||
Reduction of stock compensation expense value forfeited | $ 0 | $ 7,000 | ||||||||||
Treasury stock | 33,454 | 33,454 | 0 | |||||||||
2016 Equity Incentive Plan [Member] | ||||||||||||
Number of authorized shares under the plan | 397,473 | 397,473 | ||||||||||
Number of restricted stock granted | 84,807 | |||||||||||
2016 Equity Incentive Plan [Member] | Unvested Restricted Stock [Member] | ||||||||||||
Weighted average grant date fair value (in dollars per share) | $ 4.99 | |||||||||||
Vesting period | 4 years | |||||||||||
Number of restricted stock granted | 10,000 | 307,666 | ||||||||||
Initial offering price (in dollars per share) | $ 5.25 | |||||||||||
Vesting percentage | 25.00% | |||||||||||
Description of vesting rights | The shares vest 25% per year over a four-year vesting period and are being recognized as expense on a straight-line basis over the vesting period of the awards. | |||||||||||
2017 Equity Incentive Plan [Member] | ||||||||||||
Number of authorized shares under the plan | 500,000 | 500,000 | ||||||||||
Number of restricted stock granted | 500,000 | |||||||||||
Common Unit Warrants [Member] | ||||||||||||
Number of warrant outstanding | 2,524,376 | 2,524,376 | 2,524,376 | |||||||||
Warrant exercise price (in dollars per share) | $ 6.67 | $ 6.67 | $ 6.67 | |||||||||
Number of warrant granted | ||||||||||||
Warrant granted exercise price (in dollars per share) | ||||||||||||
Intrinsic value of common stock warrants | $ 29,000 | $ 29,000 | $ 114,000 | |||||||||
Investor [Member] | ||||||||||||
Percentage cumulative, non-compounded annual preferential return | 8.00% | |||||||||||
Proceeds from issuance preference stock, gross | $ 6,400,000 | |||||||||||
Proceeds from issuance preference stock, net | $ 6,000,000 | |||||||||||
Accumulated unpaid preferential distributions | $ 2,674,000 | |||||||||||
Accumulated unpaid preferential distributions (in dollars per share) | $ 0.87 | |||||||||||
Accrued dividend paid | $ 2,553,000 | |||||||||||
Value of shares issued upon dividend | $ 122,000 | |||||||||||
Number of shares issued upon dividend | 23,138 | |||||||||||
Investor [Member] | Common Unit Warrants [Member] | IPO [Member] | ||||||||||||
Warrant term | 3 years | |||||||||||
Number of warrant granted | 2,300,000 | |||||||||||
Warrant granted exercise price (in dollars per share) | $ 6.75 | |||||||||||
Date of warrants exercisable | Jun. 2, 2019 | |||||||||||
Warrant redemption price (in dollars per warrant) | $ 0.01 | |||||||||||
Investor [Member] | Placement Agent [Member] | Common Unit Warrants [Member] | ||||||||||||
Warrant term | 5 years | |||||||||||
Number of warrant outstanding | 86,376 | |||||||||||
Warrant exercise price (in dollars per share) | $ 4.55 | |||||||||||
Percentage of offering price | 110.00% | |||||||||||
Underwriter's Representatives [Member] | Common Unit Warrants [Member] | IPO [Member] | ||||||||||||
Warrant term | 4 years | |||||||||||
Number of warrant granted | 138,000 | |||||||||||
Warrant granted exercise price (in dollars per share) | $ 6.75 | |||||||||||
Underwriter's Representatives [Member] | Common Unit Warrants [Member] | IPO [Member] | Minimum [Member] | ||||||||||||
Date of warrants exercisable | Jun. 2, 2017 | |||||||||||
Underwriter's Representatives [Member] | Common Unit Warrants [Member] | IPO [Member] | Maximum [Member] | ||||||||||||
Date of warrants exercisable | Jun. 2, 2021 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Tax expense | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Oct. 31, 2017 | Mar. 12, 2013 | Sep. 30, 2017 | Sep. 21, 2016 | Mar. 12, 2015 |
Subsequent Event [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 3,000,000 | $ 2,000,000 | $ 1,500,000 | ||
Line of credit percentage of borrowing base to accounts receivables | 80.00% | ||||
Debt instrument, basis spread on variable rate | 0.75% | ||||
Debt instrument, interest rate, effective percentage | 5.00% | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 5,000,000 | ||||
Line of credit, borrowing capacity description | Borrowing base plus the $2.5 million non-formula sublimit. | ||||
Line of credit percentage of borrowing base to accounts receivables | 80.00% | ||||
Debt instrument, basis spread on variable rate | 0.75% | ||||
Debt instrument, interest rate, effective percentage | 1.50% | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% |