Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 11, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Entity Registrant Name | Ideal Power Inc. | |
Title of 12(g) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,975,388 | |
Entity Central Index Key | 0001507957 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Trading Symbol | IPWR |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 3,769,225 | $ 3,057,682 |
Accounts receivable, net | 28,623 | |
Prepayments and other current assets | 138,436 | 248,148 |
Total current assets | 3,936,284 | 3,305,830 |
Property and equipment, net | 41,797 | 47,302 |
Intangible assets, net | 1,583,523 | 1,634,378 |
Right of use asset | 126,257 | 260,310 |
Other assets | 0 | 17,920 |
Total assets | 5,687,861 | 5,265,740 |
Current liabilities: | ||
Accounts payable | 66,710 | 182,956 |
Accrued expenses | 383,374 | 319,135 |
Current portion of lease liability | 129,995 | 183,119 |
Total current liabilities | 580,079 | 685,210 |
Long-term debt | 91,407 | |
Long-term lease liability | 0 | 82,055 |
Other long-term liabilities | 607,974 | 609,242 |
Total liabilities | 1,279,460 | 1,376,507 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 50,000,000 shares authorized; 2,976,709 shares issued and 2,975,388 shares outstanding at September 30, 2020, and 2,101,272 shares issued and 2,099,951 shares outstanding at December 31, 2019, respectively | 2,977 | 2,101 |
Additional paid-in capital | 78,419,046 | 71,242,256 |
Treasury stock, at cost, 1,321 shares at September 30, 2020 and December 31, 2019 | (13,210) | (13,210) |
Accumulated deficit | (74,000,412) | (67,341,914) |
Total stockholders' equity | 4,408,401 | 3,889,233 |
Total liabilities and stockholders' equity | $ 5,687,861 | $ 5,265,740 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares, issued | 2,976,709 | 2,101,272 |
Common stock, shares, outstanding | 2,975,388 | 2,099,951 |
Treasury stock, shares | 1,321 | 1,321 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statements of Operations | ||||
Revenue, Product and Service [Extensible List] | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember |
Grant revenue | $ 147,787 | $ 0 | $ 154,302 | $ 0 |
Cost, Product and Service [Extensible List] | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember |
Cost of grant revenue | $ 147,787 | $ 154,302 | ||
Gross profit | 0 | $ 0 | 0 | $ 0 |
Operating expenses: | ||||
Research and development | 494,548 | 250,773 | 1,161,537 | 804,741 |
General and administrative | 677,967 | 471,272 | 1,773,615 | 1,520,325 |
Total operating expenses | 1,172,515 | 722,045 | 2,935,152 | 2,325,066 |
Loss from continuing operations before interest | (1,172,515) | (722,045) | (2,935,152) | (2,325,066) |
Other expenses: | ||||
Interest expense, net | 1,358 | 2,763 | 2,480 | 3,072 |
Warrant inducement expense | 3,720,866 | 0 | 3,720,866 | 0 |
Total other expenses | 3,722,224 | 2,763 | 3,723,346 | 3,072 |
Loss from continuing operations | (4,894,739) | (724,808) | (6,658,498) | (2,328,138) |
Loss from discontinued operations | 0 | (78,796) | 0 | (768,047) |
Loss on sale of discontinued operations | 0 | (9,107) | 0 | (9,107) |
Net loss | $ (4,894,739) | $ (812,711) | $ (6,658,498) | $ (3,105,292) |
Loss from continuing operations per share - basic and fully diluted (in dollars per share) | $ (1.28) | $ (0.49) | $ (2.04) | $ (1.60) |
Loss from discontinued operations per share - basic and fully diluted (in dollars per share) | 0 | (0.06) | 0 | (0.53) |
Net loss per share - basic and fully diluted | $ (1.28) | $ (0.55) | $ (2.04) | $ (2.13) |
Weighted average number of shares outstanding - basic and fully diluted (in shares) | 3,821,717 | 1,474,001 | 3,264,860 | 1,460,507 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Loss from continuing operations | $ (6,658,498) | $ (2,328,138) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 86,368 | 82,913 |
Write-off of capitalized patents | 18,235 | 0 |
Stock-based compensation | 434,782 | 156,882 |
Stock issued for services | 50,000 | 0 |
Warrant inducement expense | 3,720,866 | 0 |
Decrease in operating assets: | ||
Accounts receivable | (28,623) | 0 |
Prepayments and other current assets | 127,632 | 204,530 |
Increase (decrease) in operating liabilities: | ||
Accounts payable | (116,246) | 1,337 |
Accrued expenses | 61,845 | 6,336 |
Net cash used in operating activities | (2,303,639) | (1,876,140) |
Net cash used in operating activities - discontinued operations | 0 | (557,096) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (12,407) | (4,253) |
Acquisition of intangible assets | (35,836) | (74,342) |
Net cash used in investing activities | (48,243) | (78,595) |
Net cash provided by investing activities - discontinued operations | 0 | 23,587 |
Cash flows from financing activities: | ||
Proceeds from loans | 91,407 | 0 |
Proceeds from the exercise of warrants | 2,972,018 | 0 |
Net cash provided by financing activities | 3,063,425 | 0 |
Net increase (decrease) in cash and cash equivalents - continuing operations | 711,543 | (1,954,735) |
Net decrease in cash and cash equivalents - discontinued operations | 0 | (533,509) |
Cash and cash equivalents at beginning of period | 3,057,682 | 3,258,077 |
Cash and cash equivalents at end of period | $ 3,769,225 | $ 769,833 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Total |
Beginning balance at Dec. 31, 2018 | $ 1,404 | $ 1,518 | $ 68,022,484 | $ (13,210) | $ (63,414,252) | $ 4,597,944 |
Beginning balance (in shares) at Dec. 31, 2018 | 1,404,479 | 1,518,430 | 1,321 | |||
Conversion of preferred stock to common stock | $ 71 | $ (708) | 637 | |||
Conversion of preferred stock to common stock (in shares) | 70,843 | (708,430) | ||||
Stock-based compensation | (25,814) | (25,814) | ||||
Net loss for the period | (1,040,899) | (1,040,899) | ||||
Ending balance at Mar. 31, 2019 | $ 1,475 | $ 810 | 67,997,307 | $ (13,210) | (64,455,151) | 3,531,231 |
Ending balance (in shares) at Mar. 31, 2019 | 1,475,322 | 810,000 | 1,321 | |||
Beginning balance at Dec. 31, 2018 | $ 1,404 | $ 1,518 | 68,022,484 | $ (13,210) | (63,414,252) | 4,597,944 |
Beginning balance (in shares) at Dec. 31, 2018 | 1,404,479 | 1,518,430 | 1,321 | |||
Net loss for the period | (3,105,292) | |||||
Ending balance at Sep. 30, 2019 | $ 1,475 | $ 810 | 68,115,842 | $ (13,210) | (66,519,544) | 1,585,373 |
Ending balance (in shares) at Sep. 30, 2019 | 1,475,322 | 810,000 | 1,321 | |||
Beginning balance at Mar. 31, 2019 | $ 1,475 | $ 810 | 67,997,307 | $ (13,210) | (64,455,151) | 3,531,231 |
Beginning balance (in shares) at Mar. 31, 2019 | 1,475,322 | 810,000 | 1,321 | |||
Stock-based compensation | 101,843 | 101,843 | ||||
Net loss for the period | (1,251,682) | (1,251,682) | ||||
Ending balance at Jun. 30, 2019 | $ 1,475 | $ 810 | 68,099,150 | $ (13,210) | (65,706,833) | 2,381,392 |
Ending balance (in shares) at Jun. 30, 2019 | 1,475,322 | 810,000 | 1,321 | |||
Stock-based compensation | 16,692 | 16,692 | ||||
Net loss for the period | (812,711) | (812,711) | ||||
Ending balance at Sep. 30, 2019 | $ 1,475 | $ 810 | 68,115,842 | $ (13,210) | (66,519,544) | 1,585,373 |
Ending balance (in shares) at Sep. 30, 2019 | 1,475,322 | 810,000 | 1,321 | |||
Beginning balance at Dec. 31, 2019 | $ 2,101 | 71,242,256 | $ (13,210) | (67,341,914) | 3,889,233 | |
Beginning balance (in shares) at Dec. 31, 2019 | 2,101,272 | 1,321 | ||||
Stock-based compensation | 116,497 | 116,497 | ||||
Net loss for the period | (930,501) | (930,501) | ||||
Ending balance at Mar. 31, 2020 | $ 2,101 | 71,358,753 | $ (13,210) | (68,272,415) | 3,075,229 | |
Ending balance (in shares) at Mar. 31, 2020 | 2,101,272 | 1,321 | ||||
Beginning balance at Dec. 31, 2019 | $ 2,101 | 71,242,256 | $ (13,210) | (67,341,914) | 3,889,233 | |
Beginning balance (in shares) at Dec. 31, 2019 | 2,101,272 | 1,321 | ||||
Net loss for the period | (6,658,498) | |||||
Ending balance at Sep. 30, 2020 | $ 2,977 | $ 0 | 78,419,046 | $ (13,210) | (74,000,412) | 4,408,401 |
Ending balance (in shares) at Sep. 30, 2020 | 2,976,709 | 0 | 1,321 | |||
Beginning balance at Mar. 31, 2020 | $ 2,101 | 71,358,753 | $ (13,210) | (68,272,415) | 3,075,229 | |
Beginning balance (in shares) at Mar. 31, 2020 | 2,101,272 | 1,321 | ||||
Stock-based compensation | 109,671 | 109,671 | ||||
Shares issued for services, value | $ 26 | 49,974 | 50,000 | |||
Shares issued for services (in shares) | 26,316 | |||||
Exercise of warrants | $ 226 | 175,590 | 175,816 | |||
Exercise of warrants (in shares) | 225,718 | |||||
Net loss for the period | (833,258) | (833,258) | ||||
Ending balance at Jun. 30, 2020 | $ 2,353 | 71,693,988 | $ (13,210) | (69,105,673) | 2,577,458 | |
Ending balance (in shares) at Jun. 30, 2020 | 2,353,306 | 1,321 | ||||
Stock-based compensation | 208,614 | 208,614 | ||||
Exercise of warrants | $ 251 | 248,365 | 248,616 | |||
Exercise of warrants (in shares) | 250,566 | |||||
Early warrant exercise transaction | $ 373 | 2,547,213 | 2,547,586 | |||
Early warrant exercise transaction (in shares) | 372,837 | |||||
Warrant inducement expense | 3,720,866 | 3,720,866 | ||||
Net loss for the period | (4,894,739) | (4,894,739) | ||||
Ending balance at Sep. 30, 2020 | $ 2,977 | $ 0 | $ 78,419,046 | $ (13,210) | $ (74,000,412) | $ 4,408,401 |
Ending balance (in shares) at Sep. 30, 2020 | 2,976,709 | 0 | 1,321 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2020 | |
Organization and Description of Business | |
Organization and Description of Business | Note 1 – Organization and Description of Business Ideal Power Inc. (the “Company”) was incorporated in Texas on May 17, 2007 under the name Ideal Power Converters, Inc. The Company changed its name to Ideal Power Inc. on July 8, 2013 and re-incorporated in Delaware on July 15, 2013. With headquarters in Austin, Texas, it developed power conversion solutions with a focus on solar + storage, microgrid and stand-alone energy storage applications. The principal products of the Company were 30-kilowatt power conversion systems, including 2-port and multi-port products. In April 2018, the Company realigned into two operating divisions: Power Conversion Systems, to continue the commercialization of its PPSA™ technology, and B-TRAN, to develop its Bi-directional bi-polar junction TRANsistor (B-TRAN™) solid state switch technology. In January 2019, the Board of Directors of the Company (the “Board”) approved a strategic shift to focus on the commercialization of its B-TRAN™ technology and a plan to suspend further power converter system development and sales while the Company located a buyer for its power conversion systems division and PPSA™ technology. In September 2019, the Company closed on the sale of the power conversion systems division and the Company is now solely focused on the further development and commercialization of its B-TRAN™ technology. Prior to the sale of the Company’s PPSA™ business and technology in September 2019, the Company classified the power conversion system division as held for sale. The Company shows this division as a discontinued operation in these financial statements. Since its inception, the Company has generated limited revenues from the sale of products and has financed its research and development efforts and operations primarily through the sale of common stock and warrants. The Company’s continued operations are dependent upon, among other things, its ability to obtain adequate sources of funding through future revenues, follow-on stock offerings, issuances of warrants, debt financing, co-development agreements, government grants, sale or licensing of developed intellectual property or other alternatives. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The Balance Sheet at December 31, 2019 has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 31, 2020. In the opinion of management, these financial statements reflect all normal recurring, and other adjustments, necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. Reverse Stock Split On August 15, 2019, the Company effected a reverse stock split of the outstanding shares of its common stock by a ratio of one-for-ten, and its common stock began trading on the Nasdaq Capital Market on a split-adjusted basis on August 20, 2019. The par value of the Company’s common stock remained unchanged at $0.001 per share after the reverse stock split. All share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying financial statements have, where applicable, been adjusted retroactively to reflect the reverse stock split. Liquidity and Going Concern As reflected in the accompanying condensed financial statements, the Company had a net loss of $6.7 million and used $2.3 million of cash in operating activities for the nine months ended September 30, 2020. At September 30, 2020, the Company had net working capital of $3.4 million and the Company’s principal source of liquidity consisted of $3.8 million of cash and cash equivalents. The Company’s independent registered public accounting firm, in its report on the Company’s 2019 financial statements, raised substantial doubt about the Company’s ability to continue as a going concern. On August 5, 2020 the Company completed an Early Warrant Exercise Transaction (as defined below). See Note 9. The Early Warrant Exercise Transaction raised net proceeds of $2.5 million, thereby alleviating the substantial doubt about the Company’s ability to continue as a going concern for at least the next twelve months from the date of issuance of these financial statements. The accompanying condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The ability of the Company to continue as a going concern is dependent on its ability to raise additional capital and to develop profitable operations through implementation of its current business initiatives, however, there can be no assurances that the Company will be able to do so. Additionally, the outbreak of the novel coronavirus (COVID-19) has caused significant disruptions to the global financial markets which could further impact the Company’s ability to raise additional capital. If external financing sources are not available or are inadequate to fund operations, or the technology under development is not capable of generating sustainable revenues in the future, the Company will be required to reduce operating costs, which could jeopardize future strategic initiatives and business plans, or cease operations. Revenue Recognition The Company recognizes revenue and related cost of revenue in accordance with FASB ASC 606, Revenue from Contracts with Customers (ASC 606) and, as applicable, with the guidance issued by the FASB in June 2018 for the recipients of grants. Currently, the Company recognizes grant revenue and cost of grant revenue only. Government contracts, including grants, are agreements that generally provide the Company with cost reimbursement for certain types of development activities over a contractually defined period. Grant revenue is recognized in the period during which the Company incurs the related costs, provided that the Company has incurred the cost in accordance with the specifications and work plans determined between the Company and the government entity. For the nine months ended September 30, 2020, the Company recognized $154,302 of grant revenue and cost of grant revenue. The grant revenue relates to a $1.2 million subcontract with Diversified Technologies, Inc. (DTI), signed in June 2020, to supply B-TRAN™ devices as part of a two-year contract awarded to DTI by the United States Naval Sea Systems Command (NAVSEA) for the development and demonstration of a B-TRAN™ enabled high efficiency direct current circuit breaker. The Company accounts for this subcontract as an exchange transaction under applicable guidance. No grant revenue was recognized in the nine months ended September 30, 2019. Unbilled grant receivables were $28,623 at September 30, 2020 and were included in accounts receivable, net. Earnings Per Share In accordance with ASC 260, shares issuable for little or no cash consideration are considered outstanding common shares and included in the computation of basic earnings per share. As such, the Company includes pre-funded warrants to purchase shares of common stock and warrant shares held in abeyance in its computation of earnings per share. The pre-funded warrants were issued in November 2019 with an exercise price of $0.001. See Note 7. The warrant shares held in abeyance were a result of the Early Warrant Exercise Transaction (as defined below). See Note 9. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standard, if adopted, would have a material impact on the Company’s financial statements. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations | |
Discontinued Operations | Note 3 – Discontinued Operations In January 2019, the Board approved a strategic shift to focus on the commercialization of the Company’s B-TRAN™ technology and a plan to suspend further power converter system development and sales while the Company located a buyer for its power conversion systems division. In addition, in January 2019, the Company implemented a reduction-in-force in connection with this exit activity and recognized an expense of $92,600 in involuntary termination benefits. The Company’s power conversion system division, a component supplier to energy storage system integrators, had not achieved the necessary scale to generate positive cash flows. As the division was dependent on the ability of its customers to scale in the small commercial and industrial segment of the storage market and based on the sales forecasts and commitments provided by these customers, the Company did not expect its power conversion systems division to scale sufficiently in the short term, requiring an inflow of additional capital for the business. As such, the decision was made to exit the power conversion systems business and sell the division and the Company’s PPSA™ technology and focus on the Company’s B-TRAN™ technology. As a result, the assets held for sale and discontinued operations criteria were met and the Company’s financial statements are presented in accordance with ASC 205. Under ASC 205‑20‑45‑10, during the period in which a component meets the assets held for sale and discontinued operations criteria, an entity must present the assets and liabilities of the discontinued operation separately in the asset and liability sections of the balance sheet for the comparative reporting periods. The prior period balance sheet should be reclassified for the held for sale items. For income statements, the current and prior periods should report the results of operations of the component in discontinued operations when comparative income statements are presented. On September 19, 2019, the Company closed on the sale of its power conversion systems division to CE+T Energy Solutions, Inc. (“CE+T Energy”). The consideration consisted of $200,000 in cash and 50 shares of CE+T Energy’s common stock, issued on December 11, 2019, which represented a 5% ownership interest in CE+T Energy as of the closing date. The Company did not record any value of the equity consideration obtained in the sale as there is not currently a market for such shares and the Company does not have access to current financial information and future financial projections of CE+T Energy. CE+T Energy also assumed certain liabilities of the power conversion systems division in connection with the sale. The net cash proceeds from the sale were $23,587. As a result of the sale, the Balance Sheets at September 30, 2020 and December 31, 2019 do not include assets held for sale. The following is a reconciliation of the major classes of line items constituting loss on discontinued operations to loss on discontinued operations shown in the Statement of Operations: Three Months Ended Nine Months Ended September 30, 2019 (unaudited) Revenue $ — $ 115,000 Cost of revenue 1,337 141,647 Research and development 12,613 197,663 General and administrative 40,332 79,306 Sales and marketing 24,514 59,431 Impairment (1) — 405,000 Loss from discontinued operations $ (78,796) $ (768,047) (1) Impairment charge was calculated as the net book value of assets held for sale prior to the impairment less the expected net proceeds from the planned sale. The expected net proceeds were based on the estimated fair value of the net assets held for sale less the estimated cost to sell the net assets held for sale. For the three and nine months ended September 30, 2019, the Company recorded a loss on the sale of discontinued operations of $9,107. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Intangible Assets | |
Intangible Assets | Note 4 – Intangible Assets Intangible assets, net consisted of the following: September 30, December 31, 2020 2019 (unaudited) Patents $ 926,743 $ 909,142 Other intangible assets 964,542 964,542 1,891,285 1,873,684 Accumulated amortization (307,762) (239,306) $ 1,583,523 $ 1,634,378 Amortization expense amounted to $23,110 and $68,456 for the three and nine months ended September 30, 2020, respectively, and $21,554 and $57,563 for the three and nine months ended September 30, 2019, respectively. Amortization expense for the succeeding five years and thereafter is $23,179 (2020), $92,714 (2021-2024) and $934,447 (thereafter). At September 30, 2020 and December 31, 2019, the Company had capitalized $255,041 and $335,224, respectively, for costs related to patents that have not been awarded. |
Lease
Lease | 9 Months Ended |
Sep. 30, 2020 | |
Lease | |
Lease | Note 5 – Lease The Company leases 14,782 square feet of office and laboratory space located in Austin, Texas. In April 2018, the Company entered into an amendment to its existing operating lease which extended the lease term from May 31, 2018 to May 31, 2021. The annual base rent in the first year of the lease extension was $184,775 and increases by $7,391 in each succeeding year of the lease extension. In addition, the Company is required to pay its proportionate share of operating costs for the building under this triple net lease. The lease does not contain renewal or termination options. On January 1, 2019, the Company adopted ASC 842 utilizing a modified retrospective approach with a date of initial application at the beginning of the period of adoption. At adoption, the Company recognized a right of use asset of $422,819 and lease liability of $427,131. As the discount rate implicit in the lease was not readily determinable and the Company did not have any outstanding indebtedness, the Company utilized market data, giving consideration to remaining term of the lease, to estimate its incremental borrowing rate at 8% per annum for purposes of calculating the right of use asset and lease liability. In September 2019, the Company entered into a sublease with CE+T Energy pursuant to which the Company subleases approximately seventy-five (75%) percent of its Austin, Texas facility to CE+T Energy. Under the sublease, CE+T Energy is obligated to make monthly payments equal to 75% of all sums due under the master lease and 100% of any maintenance and repair costs related to the subleased premises. The sublease replaced a temporary agreement between the Company and CE+T Energy, effective July 22, 2019, that contained similar payment obligations by CE+T Energy for utilization of the subleased premises. Consistent with the master lease, the sublease terminates on May 31, 2021. During the three and nine months ended September 30, 2020, CE+T Energy made payments of $51,459 and $154,383, respectively, to the Company related to the subleased premises. The payments included CE+T Energy’s share of rent as well as its proportionate share of operating costs for the building under the master lease. The Company recognized these payments as a reduction in general and administrative expenses. Future minimum payments under the lease, as amended, are as follows: For the Year Ended December 31, Master Lease Sublease Income Net 2020 49,889 (37,417) 12,472 2021 83,149 (62,362) 20,787 Total future undiscounted minimum lease payments $ 133,038 $ (99,779) $ 33,259 Less: imputed interest (3,043) Total lease liability $ 129,995 For the three and nine months ended September 30, 2020, operating cash flows for lease payments totaled $49,889 and $146,588, respectively. For the three and nine months ended September 30, 2019, operating cash flows for lease payments totaled $48,042 and $141,045, respectively. For both the three and nine months ended September 30, 2020 and 2019, operating lease cost, recognized on a straight-line basis, totaled $48,488 and $145,463, respectively. At September 30, 2020, the remaining lease term was 8 months. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 6 – Commitments and Contingencies License Agreement In 2015, the Company entered into licensing agreements which expire in February 2033. Per the agreements, the Company has an exclusive royalty-free license associated with semiconductor power switches which enhances its intellectual property portfolio. The agreements include both fixed payments, all of which were paid prior to 2017, and ongoing variable payments. The variable payments are a function of the number of associated patent filings pending and patents issued under the agreements. The Company will pay $10,000 for each patent filing pending and $20,000 for each patent issued within 20 days of December 21 st of each year of the agreements, up to a maximum of $100,000 per year (i.e. five issued patents). In April 2019, a patent associated with these agreements was issued and the Company recorded, as a non-cash activity, an intangible asset and a corresponding other long-term liability of $232,367, representing the estimated present value of future payments under the licensing agreements for this issued patent. Through September 30, 2020, three patents associated with the agreements were issued. At September 30, 2020 and December 31, 2019, the other long-term liability for the estimated present value of future payments under the licensing agreements was $607,974 and $595,802, respectively. The Company is accruing interest for future payments related to the issued patents associated with these agreements. Legal Proceedings The Company may be subject to litigation from time to time in the ordinary course of business. The Company is not currently party to any legal proceedings that it believes would reasonably have a material adverse impact on its business, financial results and cash flows. COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the United States and the rest of the world. The ultimate extent of the impact of COVID-19 on the financial performance of the Company will depend on future developments, including, among other things, the duration and spread of COVID-19, governmental restrictions in response to the COVID-19 pandemic, and the overall economy, all of which are highly uncertain and cannot be predicted. The outbreak of COVID-19 has already caused significant disruptions to the global financial markets which may impact the Company’s ability to raise additional capital, on acceptable terms or at all. If the financial markets and/or the overall economy are impacted for an extended period, the Company's operating results may be materially and adversely affected. |
Common and Preferred Stock
Common and Preferred Stock | 9 Months Ended |
Sep. 30, 2020 | |
Common and Preferred Stock | |
Common and Preferred Stock | Note 7 — Common and Preferred Stock Private Placement In November 2019, the Company entered into a securities purchase agreement with certain institutional and accredited investors, including Dr. Lon E. Bell, former Chairman of the Board and Chief Executive Officer, for a private placement of the Company’s common stock and warrants to purchase common stock for aggregate gross proceeds of $3.5 million and net proceeds of $3.1 million (the “2019 Offering”). The 2019 Offering closed on November 13, 2019. In the 2019 Offering, the Company issued an aggregate of (i) 544,950 shares of common stock at $2.4763 per share and (ii) pre-funded Series B warrants to purchase 868,443 shares of common stock that are immediately exercisable and have no expiration date, at a price of $2.4763 less a nominal exercise price of $0.001 per pre-funded warrant. The Company also issued to the investors Series A warrants to purchase up to an aggregate of 1,766,751 shares of common stock at an exercise price of $2.32 per share that are immediately exercisable and will expire five years from the issuance date. As compensation to the placement agent in the 2019 Offering, in addition to a cash fee for its services, the Company also issued to the placement agent a warrant to purchase up to 70,670 shares of common stock, with an exercise price of $2.9716 per share. The other terms of the placement agent warrant are substantially the same as the investor warrants. Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock. In February 2019, a shareholder converted 708,430 shares of preferred stock to 70,843 shares of common stock. On December 12, 2019, a shareholder converted 810,000 shares of preferred stock to 81,000 shares of common stock. At September 30, 2020 and December 31, 2019, there was no preferred stock outstanding. Stock Issuance In April 2020, the Company issued 26,316 unregistered shares of common stock, valued at $50,000 at the time of issuance, to a third-party vendor as compensation for services performed. |
Equity Incentive Plan
Equity Incentive Plan | 9 Months Ended |
Sep. 30, 2020 | |
Equity Incentive Plan | |
Equity Incentive Plan | Note 8 — Equity Incentive Plan In May 2013, the Company adopted the 2013 Equity Incentive Plan (as amended and restated, the “Plan”) and reserved shares of common stock for issuance under the Plan, which was amended effective June 16, 2020. As a result of the amendment, the number of shares authorized for issuance under the Plan increased by 350,000 shares and the Plan will now terminate on June 16, 2030, unless sooner terminated or extended by the Board. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. At September 30, 2020, 226,461 shares of common stock were available for issuance under the Plan. A summary of the Company’s stock option activity and related information is as follows: Weighted Weighted Average Average Remaining Stock Exercise Life Options Price (in years) Outstanding at December 31, 2019 169,980 $ 8.13 Granted 149,191 $ 3.40 Expired (5,021) $ 49.39 Outstanding at September 30, 2020 314,150 $ 5.23 Exercisable at September 30, 2020 262,203 $ 5.73 During the nine months ended September 30, 2020, the Company granted 52,791 stock options to Board members, 93,400 stock options to executives and 3,000 stock options to employees under the Plan. The estimated fair value of these stock options, calculated using the Black-Scholes option valuation model, was $353,072, of which $326,421 was recognized during the nine months ended September 30, 2020. In April 2020, the Board approved a modification of a stock option grant to Dr. Lon E. Bell in connection with his retirement as Chief Executive Officer and President. The modification accelerated the vesting of Dr. Bell's October 2019 stock option grant with full vesting effective immediately prior to the end of Dr. Bell's term on the Board in June 2020. During the nine months ended September 30, 2020, the Company recognized $79,444 of expense related to this grant subsequent to the modification. At September 30, 2020, there was $76,097 of unrecognized compensation cost related to non-vested equity awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 0.9 years. |
Warrants
Warrants | 9 Months Ended |
Sep. 30, 2020 | |
Warrants | |
Warrants | Note 9 — Warrants Early Warrant Exercise Transaction On July 31, 2020, the Company entered into letter agreements with certain of the Company’s Series A warrant holders (the “Series A Warrant Holders”), who were previously issued warrants (the “Original Warrants”) to purchase shares of common stock of the Company pursuant to a securities purchase agreement with certain institutional and accredited investors dated as of November 7, 2019. The Series A Warrant Holders agreed to the early exercise of Series A warrants pursuant to the letter agreements (the “Early Warrant Exercise Transaction”). The transaction closed on August 5, 2020. The Company raised net proceeds of $2.5 million in the Early Warrant Exercise Transaction. Pursuant to the letter agreements and in consideration of the Series A Warrant Holders exercising Series A warrants to purchase an aggregate of 1,176,137 shares of common stock, the Company issued to the Series A Warrant Holders new Series C warrants to purchase up to an aggregate of 705,688 shares of common stock with an exercise price of $8.90 per share and an expiration date of August 4, 2025. The estimated fair value of the Series C warrants was $3.7 million on the date of issuance and was recognized as a non-cash warrant inducement expense within other expenses in the statement of operations. To the extent that a Series A Warrant Holder’s exercise of Original Warrants would result in such holder exceeding beneficial ownership of 9.99% of the outstanding common stock of the Company, such excess warrant shares will be held in abeyance for the benefit of such Series A Warrant Holder until such time as its right thereto would not result in the holder exceeding this limitation. The term of the abeyance shall extend no later than May 12, 2025. At September 30, 2020, 803,300 excess warrant shares were held in abeyance. A summary of the Company’s warrant activity and related information is as follows: Warrants (1) Pre-Funded Warrants Weighted Weighted Average Average Exercise Exercise Activity Price Activity Price Outstanding at December 31, 2019 1,659,763 $ 10.68 868,443 $ 0.001 Granted 705,688 $ 8.90 — — Exercised (548,771) $ 2.35 (300,350) $ 0.001 Expired (625,642) $ 24.44 — $ — Outstanding at September 30, 2020 1,191,038 $ 6.24 568,093 $ 0.001 (1) Excludes 803,300 Series A warrants that are held in abeyance. Excluding the Early Warrant Exercise Transaction and during the nine months ended September 30, 2020, warrant holders exercised 175,934 warrants and 300,350 pre-funded warrants for proceeds to the Company of $424,431. At September 30, 2020, all warrants are exercisable, although the warrants held by each of the Company’s four largest beneficial owners may be exercised only to the extent that the total number of shares of common stock then beneficially owned by such shareholder does not exceed 9.99% of the outstanding shares of the Company’s common stock. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2020 | |
Loans | |
Loans | Note 10 — Loans In May 2020, the Company entered into a Loan Agreement and Promissory Note (collectively the “PPP Loan”) with BBVA USA pursuant to the Paycheck Protection Program (the “PPP”) under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration. The Company received total proceeds of $91,407 from the unsecured PPP Loan. The PPP Loan is scheduled to mature on May 4, 2022 and has an interest rate of 1.00% per annum and is subject to the terms and conditions applicable to loans administered by the U.S. Small Business Administration under the CARES Act. The PPP Loan may be prepaid by the Company at any time prior to its maturity with no prepayment penalties. The PPP Loan contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. Subject to certain conditions, the PPP Loan may be forgiven in whole or in part by applying for forgiveness pursuant to the CARES Act and the PPP. The amount of loan proceeds eligible for forgiveness is based on a formula based on a number of factors, including the amount of loan proceeds used by the Company during the 24-week period after the loan origination for certain purposes, including payroll costs, rent payments on certain leases and certain qualified utility payments, provided that, among other things, at least 60% of the loan amount is used for eligible payroll costs, the employer maintaining or rehiring employees and maintaining salaries at certain level. In accordance with the requirements of the CARES Act and the PPP, the Company used the proceeds from the PPP Loan primarily for payroll costs. The Company intends to apply for forgiveness of the PPP Loan during the fourth quarter of 2020. There can be no assurance that the Company will be granted forgiveness of the PPP Loan in whole or in part. In April 2020, the Company also received a $5,000 advance related to a U.S. Small Business Administration Economic Injury Disaster Loan. The Company expects to repay this advance and has included it within accrued expenses. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The Balance Sheet at December 31, 2019 has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 31, 2020. In the opinion of management, these financial statements reflect all normal recurring, and other adjustments, necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. |
Reverse Stock Split | Reverse Stock Split On August 15, 2019, the Company effected a reverse stock split of the outstanding shares of its common stock by a ratio of one-for-ten, and its common stock began trading on the Nasdaq Capital Market on a split-adjusted basis on August 20, 2019. The par value of the Company’s common stock remained unchanged at $0.001 per share after the reverse stock split. All share amounts, per share data, share prices, exercise prices and conversion rates set forth in these notes and the accompanying financial statements have, where applicable, been adjusted retroactively to reflect the reverse stock split. |
Liquidity and Going Concern | Liquidity and Going Concern As reflected in the accompanying condensed financial statements, the Company had a net loss of $6.7 million and used $2.3 million of cash in operating activities for the nine months ended September 30, 2020. At September 30, 2020, the Company had net working capital of $3.4 million and the Company’s principal source of liquidity consisted of $3.8 million of cash and cash equivalents. The Company’s independent registered public accounting firm, in its report on the Company’s 2019 financial statements, raised substantial doubt about the Company’s ability to continue as a going concern. On August 5, 2020 the Company completed an Early Warrant Exercise Transaction (as defined below). See Note 9. The Early Warrant Exercise Transaction raised net proceeds of $2.5 million, thereby alleviating the substantial doubt about the Company’s ability to continue as a going concern for at least the next twelve months from the date of issuance of these financial statements. The accompanying condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The ability of the Company to continue as a going concern is dependent on its ability to raise additional capital and to develop profitable operations through implementation of its current business initiatives, however, there can be no assurances that the Company will be able to do so. Additionally, the outbreak of the novel coronavirus (COVID-19) has caused significant disruptions to the global financial markets which could further impact the Company’s ability to raise additional capital. If external financing sources are not available or are inadequate to fund operations, or the technology under development is not capable of generating sustainable revenues in the future, the Company will be required to reduce operating costs, which could jeopardize future strategic initiatives and business plans, or cease operations. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue and related cost of revenue in accordance with FASB ASC 606, Revenue from Contracts with Customers (ASC 606) and, as applicable, with the guidance issued by the FASB in June 2018 for the recipients of grants. Currently, the Company recognizes grant revenue and cost of grant revenue only. Government contracts, including grants, are agreements that generally provide the Company with cost reimbursement for certain types of development activities over a contractually defined period. Grant revenue is recognized in the period during which the Company incurs the related costs, provided that the Company has incurred the cost in accordance with the specifications and work plans determined between the Company and the government entity. For the nine months ended September 30, 2020, the Company recognized $154,302 of grant revenue and cost of grant revenue. The grant revenue relates to a $1.2 million subcontract with Diversified Technologies, Inc. (DTI), signed in June 2020, to supply B-TRAN™ devices as part of a two-year contract awarded to DTI by the United States Naval Sea Systems Command (NAVSEA) for the development and demonstration of a B-TRAN™ enabled high efficiency direct current circuit breaker. The Company accounts for this subcontract as an exchange transaction under applicable guidance. No grant revenue was recognized in the nine months ended September 30, 2019. Unbilled grant receivables were $28,623 at September 30, 2020 and were included in accounts receivable, net. |
Earnings Per Share | Earnings Per Share In accordance with ASC 260, shares issuable for little or no cash consideration are considered outstanding common shares and included in the computation of basic earnings per share. As such, the Company includes pre-funded warrants to purchase shares of common stock and warrant shares held in abeyance in its computation of earnings per share. The pre-funded warrants were issued in November 2019 with an exercise price of $0.001. See Note 7. The warrant shares held in abeyance were a result of the Early Warrant Exercise Transaction (as defined below). See Note 9. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standard, if adopted, would have a material impact on the Company’s financial statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations | |
Schedule of Discontinued Operations and Assets Held for Sale | The following is a reconciliation of the major classes of line items constituting loss on discontinued operations to loss on discontinued operations shown in the Statement of Operations: Three Months Ended Nine Months Ended September 30, 2019 (unaudited) Revenue $ — $ 115,000 Cost of revenue 1,337 141,647 Research and development 12,613 197,663 General and administrative 40,332 79,306 Sales and marketing 24,514 59,431 Impairment (1) — 405,000 Loss from discontinued operations $ (78,796) $ (768,047) (1) Impairment charge was calculated as the net book value of assets held for sale prior to the impairment less the expected net proceeds from the planned sale. The expected net proceeds were based on the estimated fair value of the net assets held for sale less the estimated cost to sell the net assets held for sale. For the three and nine months ended September 30, 2019, the Company recorded a loss on the sale of discontinued operations of $9,107. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Intangible Assets | |
Schedule of intangible assets, net | September 30, December 31, 2020 2019 (unaudited) Patents $ 926,743 $ 909,142 Other intangible assets 964,542 964,542 1,891,285 1,873,684 Accumulated amortization (307,762) (239,306) $ 1,583,523 $ 1,634,378 |
Lease (Tables)
Lease (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Lease | |
Schedule of future minimum rental payments for operating leases | Future minimum payments under the lease, as amended, are as follows: For the Year Ended December 31, Master Lease Sublease Income Net 2020 49,889 (37,417) 12,472 2021 83,149 (62,362) 20,787 Total future undiscounted minimum lease payments $ 133,038 $ (99,779) $ 33,259 Less: imputed interest (3,043) Total lease liability $ 129,995 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Incentive Plan | |
Summary of company's stock options activity and related information | Weighted Weighted Average Average Remaining Stock Exercise Life Options Price (in years) Outstanding at December 31, 2019 169,980 $ 8.13 Granted 149,191 $ 3.40 Expired (5,021) $ 49.39 Outstanding at September 30, 2020 314,150 $ 5.23 Exercisable at September 30, 2020 262,203 $ 5.73 |
Warrants (Tables)
Warrants (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Warrants | |
Summary of warrant activity | Warrants (1) Pre-Funded Warrants Weighted Weighted Average Average Exercise Exercise Activity Price Activity Price Outstanding at December 31, 2019 1,659,763 $ 10.68 868,443 $ 0.001 Granted 705,688 $ 8.90 — — Exercised (548,771) $ 2.35 (300,350) $ 0.001 Expired (625,642) $ 24.44 — $ — Outstanding at September 30, 2020 1,191,038 $ 6.24 568,093 $ 0.001 (1) Excludes 803,300 Series A warrants that are held in abeyance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | Aug. 05, 2020USD ($) | Aug. 15, 2019$ / shares | Sep. 30, 2020USD ($)$ / shares | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) |
Reverse stock split, Ratio | 0.10 | |||||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Net loss | $ (4,894,739) | $ (833,258) | $ (930,501) | $ (812,711) | $ (1,251,682) | $ (1,040,899) | $ (6,658,498) | $ (3,105,292) | ||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | (2,303,639) | (1,876,140) | ||||||||||
Working Capital | 3,400,000 | 3,400,000 | ||||||||||
Cash and cash equivalents | $ 3,769,225 | $ 769,833 | 3,769,225 | 769,833 | $ 3,057,682 | $ 3,258,077 | ||||||
Proceeds from the exercise of warrants | $ 2,500,000 | $ 2,972,018 | $ 0 | |||||||||
Revenue, Product and Service [Extensible List] | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember | ||||||||
Grant revenue | $ 147,787 | $ 0 | $ 154,302 | $ 0 | ||||||||
Cost, Product and Service [Extensible List] | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember | ||||||||
Cost of product revenue | $ 147,787 | $ 154,302 | ||||||||||
Accounts Receivable | ||||||||||||
Revenue, Product and Service [Extensible List] | us-gaap:GrantMember | |||||||||||
Unbilled receivables | $ 28,623 | $ 28,623 | ||||||||||
Pre Funded Warrants | ||||||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||||||||||
B TRAN Devices | Diversified Technologies Inc | ||||||||||||
Grant revenue | $ 1,200,000 | |||||||||||
Supplier contract term | 2 years |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) | Sep. 19, 2019 | Jan. 31, 2019 |
Employee Involuntary Termination [Member] | ||
Discontinued Operations | ||
Restructuring costs | $ 92,600 | |
Power Conversion Systems Division [Member] | Discontinued Operations, Disposed of by Sale [Member] | C E Plus T Energy Solutions, Inc [Member] | ||
Discontinued Operations | ||
Cash consideration | $ 200,000 | |
Consideration in shares, number | 50 | |
Consideration in shares, ownership percentage | 5.00% | |
Net cash proceeds from sale of discontinued operations | $ 23,587 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of disposal group including discontinued operations to loss (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Discontinued Operations | ||||
Product revenue | $ 0 | $ 115,000 | ||
Cost of product revenue | 1,337 | 141,647 | ||
Research and development | 12,613 | 197,663 | ||
General and administrative | 40,332 | 79,306 | ||
Sales and marketing | 24,514 | 59,431 | ||
Impairment | 0 | 405,000 | ||
Loss on discontinued operations | $ 0 | (78,796) | $ 0 | (768,047) |
Loss on sale of discontinued operations | $ 0 | $ (9,107) | $ 0 | $ (9,107) |
Intangible Assets - Intangible
Intangible Assets - Intangible assets, net (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Intangible Assets | ||
Gross intangible assets | $ 1,891,285 | $ 1,873,684 |
Accumulated amortization | (307,762) | (239,306) |
Intangible assets, net | 1,583,523 | 1,634,378 |
Patents | ||
Intangible Assets | ||
Gross intangible assets | 926,743 | 909,142 |
Other intangible assets | ||
Intangible Assets | ||
Gross intangible assets | $ 964,542 | $ 964,542 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Intangible Assets | |||||
Amortization expense | $ 23,110 | $ 21,554 | $ 68,456 | $ 57,563 | |
Amortization expense for 2020 | 23,179 | 23,179 | |||
Amortization expense for 2021 | 92,714 | 92,714 | |||
Amortization expense for 2022 | 92,714 | 92,714 | |||
Amortization expense for 2023 | 92,714 | 92,714 | |||
Amortization expense for 2024 | 92,714 | 92,714 | |||
Amortization expense for thereafter | $ 934,447 | 934,447 | |||
Capitalized costs for costs related to patents that have not been awarded | $ 255,041 | $ 335,224 |
Lease - Additional Information
Lease - Additional Information (Details) | Sep. 19, 2019 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Apr. 20, 2018USD ($)ft² |
Operating Lease, Right-of-Use Asset | $ 126,257 | $ 126,257 | $ 260,310 | |||||
Operating Lease, Liability | 129,995 | 129,995 | ||||||
Operating Lease, Payments | 49,889 | $ 48,042 | 146,588 | $ 141,045 | ||||
Operating Lease, Cost | $ 48,488 | $ 145,463 | $ 48,488 | $ 145,463 | ||||
Remaining lease term | 8 months | 8 months | ||||||
Percentage of Texas facility subleased | 75.00% | |||||||
Sublease income receivable per month, as a percentage of aggregate master lease payments due | 75.00% | |||||||
Maintenance and repair costs receivable, percentage | 100.00% | |||||||
Sublease Income | $ 51,459 | $ 154,383 | ||||||
Office And Laboratory Space [Member] | ||||||||
Square feet of office and laboratory space leased (in sq ft) | ft² | 14,782 | |||||||
Annual base rent in first year | $ 184,775 | |||||||
Increase in base rent each succeeding year | $ 7,391 | |||||||
Accounting Standards Update 2016-02 [Member] | ||||||||
Operating Lease, Right-of-Use Asset | $ 422,819 | |||||||
Operating Lease, Liability | $ 427,131 | |||||||
Lessee, Operating Lease, Discount Rate | 8.00% |
Lease - Future minimum payments
Lease - Future minimum payments (Details) | Sep. 30, 2020USD ($) |
Master Lease | |
2020 | $ 49,889 |
2021 | 83,149 |
Total future undiscounted minimum lease payments | 133,038 |
Less: imputed interest | (3,043) |
Total lease liability | 129,995 |
Sublease Income | |
2020 | (37,417) |
2021 | (62,362) |
Total future undiscounted minimum lease payments, sublease income | (99,779) |
Net | |
2020 | 12,472 |
2021 | 20,787 |
Total future undiscounted minimum lease payments, net of sublease income | $ 33,259 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2015 | Dec. 31, 2019 | Apr. 30, 2019 | |
Other Commitments [Line Items] | |||||
Payment for each patent issued | $ 35,836 | $ 74,342 | |||
Licensing agreements | |||||
Other Commitments [Line Items] | |||||
Payable for each patent filing pending | $ 10,000 | ||||
Payment for each patent issued | $ 20,000 | ||||
Payment for each patent issue days | 20 days | ||||
Contractual Obligation | $ 232,367 | ||||
Long-term liability for estimated present value of future payments under licensing agreement | 607,974 | $ 595,802 | |||
Licensing agreements | Maximum | |||||
Other Commitments [Line Items] | |||||
Contractual Obligation | $ 100,000 |
Common and Preferred Stock - Pr
Common and Preferred Stock - Private Placement (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 13, 2019 | Nov. 07, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Aug. 15, 2019 |
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
Pre Funded Warrants | |||||
Common stock, par value | $ 0.001 | ||||
Offering | |||||
Common stock, par value | $ 2.4763 | ||||
Gross proceeds | $ 3.5 | ||||
Estimated net proceeds | $ 3.1 | ||||
Number of common stock, shares issued | 544,950 | ||||
Offering | Pre Funded Warrants | |||||
Pre-funded Warrant Price | $ 2.4763 | ||||
Number of warrants issued | 868,443 | ||||
Warrants, exercise price | $ 0.001 | ||||
Offering | Other Warrants [Member] | |||||
Number of warrants issued | 1,766,751 | ||||
Warrants, exercise price | $ 2.32 | ||||
Warrants, term | 5 years | ||||
Offering | Placement Agent Warrant [Member] | |||||
Number of warrants issued | 70,670 | ||||
Warrants, exercise price | $ 2.9716 |
Common and Preferred Stock - _2
Common and Preferred Stock - Preferred Stock (Details) - shares | Dec. 12, 2019 | Feb. 21, 2019 | Sep. 30, 2020 | Dec. 31, 2019 |
Common and Preferred Stock | ||||
Preferred Stock, Shares Authorized | 10,000,000 | |||
Convertible Preferred Stock, Shares Issuable upon Conversion | 810,000 | 708,430 | ||
Conversion of Stock, Shares Converted | 81,000 | 70,843 | ||
Preferred Stock, Shares Outstanding | 0 | 0 |
Common and Preferred Stock - St
Common and Preferred Stock - Stock Issuance (Details) - USD ($) | Apr. 29, 2020 | Jun. 30, 2020 |
Common and Preferred Stock | ||
Shares issued for services, value | $ 50,000 | $ 50,000 |
Shares issued for services (in shares) | 26,316 |
Equity Incentive Plan - Additio
Equity Incentive Plan - Additional Information (Details) - 2013 Equity Incentive Plan [Member] - USD ($) | Jun. 16, 2020 | Sep. 30, 2020 |
Equity Incentive Plan | ||
Shares of common stock available for issuance under the Plan (in shares) | 226,461 | |
Allocated Share-based Compensation Expense, Total | $ 79,444 | |
Unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 76,097 | |
Weighted average period for recognition | 10 months 24 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 149,191 | |
Estimated fair value of stock options | $ 353,072 | |
Estimated Fair Value of Stock Options Recognized | 326,421 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 350,000 | |
Allocated Share-based Compensation Expense | $ 79,444 | |
Employees | ||
Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,000 | |
Board members | ||
Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 52,791 | |
Executives | ||
Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 93,400 |
Equity Incentive Plan - Summary
Equity Incentive Plan - Summary of Stock Option Activity and Related Information (Details) - 2013 Equity Incentive Plan [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Stock Options | ||
Outstanding at December 31, 2019 (in shares) | 169,980 | |
Granted (in shares) | 149,191 | |
Expired (In shares) | (5,021) | |
Outstanding at September 30, 2020 (in shares) | 314,150 | 169,980 |
Exercisable at September 30, 2020 (in shares) | 262,203 | |
Weighted Average Exercise Price | ||
Outstanding at December 31, 2019 (in dollars per share) | $ 8.13 | |
Granted (In dollars per share) | 3.40 | |
Expired (In dollars per share) | 49.39 | |
Outstanding at September 30, 2020 (in dollars per share) | 5.23 | $ 8.13 |
Exercisable at September 30, 2020 (in dollars per share) | $ 5.73 | |
Weighted Average Remaining Life (in years) | ||
Outstanding (in years) | 8 years 8 months 12 days | 9 years 1 month 6 days |
Exercisable at September 30, 2020 | 8 years 7 months 6 days |
Warrants - Warrant Activity (De
Warrants - Warrant Activity (Details) | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Warrants | |
Class of Warrant or Right [Line Items] | |
Outstanding at December 31, 2019 (in shares) | 1,659,763 |
Granted (in shares) | 705,688 |
Exercised (in shares) | (548,771) |
Expired (in shares) | (625,642) |
Outstanding at September 30, 2020 | 1,191,038 |
Outstanding at December 31, 2019 (in per share) | $ / shares | $ 10.68 |
Granted (in per shares) | $ / shares | 8.90 |
Exercised (in per share) | $ / shares | $ 2.35 |
Expired (in per share) | $ | $ 24.44 |
Outstanding at September 30, 2020 | $ / shares | $ 6.24 |
Pre Funded Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Outstanding at December 31, 2019 (in shares) | 868,443 |
Granted (in shares) | 0 |
Exercised (in shares) | (300,350) |
Expired (in shares) | 0 |
Outstanding at September 30, 2020 | 568,093 |
Outstanding at December 31, 2019 (in per share) | $ / shares | $ 0.001 |
Granted (in per shares) | $ / shares | 0 |
Exercised (in per share) | $ / shares | $ 0.001 |
Expired (in per share) | $ | $ 0 |
Outstanding at September 30, 2020 | $ / shares | $ 0.001 |
Warrants - Additional Informati
Warrants - Additional Information (Details) - USD ($) | Aug. 05, 2020 | Jul. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Nov. 13, 2019 |
Class of Warrant or Right [Line Items] | ||||||
Convertible Preferred Stock Maximum Beneficial Ownership Percentage | 9.99% | |||||
Proceeds from Warrant Exercises | $ 2,500,000 | $ 2,972,018 | $ 0 | |||
Early Warrant Exercise Transaction | ||||||
Class of Warrant or Right [Line Items] | ||||||
Beneficial ownership percentage | 9.99% | |||||
Warrant shares in abeyance | 803,300 | |||||
Series A Warrants [Member] | Early Warrant Exercise Transaction | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants to purchase common stock | 1,176,137 | |||||
Proceeds from Warrant Exercises | $ 2,500,000 | |||||
Series C warrants | Early Warrant Exercise Transaction | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants to purchase common stock | 705,688 | |||||
Warrants, exercise price | $ 8.90 | |||||
Estimated fair value of warrants | $ 3,700,000 | |||||
warrants and Pre Funded Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Proceeds from Warrant Exercises | $ 424,431 | |||||
Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants, exercise price | $ 6.24 | $ 10.68 | ||||
Class of Warrant or Right, Exercised | 548,771 | |||||
Warrant holder exercised (in shares) | 175,934 | |||||
Pre Funded Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Class of Warrant or Right, Exercised | 300,350 | |||||
Pre Funded Warrants | Offering | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants, exercise price | $ 0.001 |
Loans (Details)
Loans (Details) - USD ($) | May 04, 2020 | Apr. 27, 2020 |
PPP Loan | ||
Debt Instrument [Line Items] | ||
Proceeds from loan | $ 91,407 | |
Interest rate (as a percent) | 1.00% | |
Prepayment penalties | $ 0 | |
U.S. Small Business Administration Economic Injury Disaster Loan | ||
Debt Instrument [Line Items] | ||
Proceeds from loan | $ 5,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Aug. 05, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Subsequent Event [Line Items] | |||
Proceeds from the exercise of warrants | $ 2,500,000 | $ 2,972,018 | $ 0 |