Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 03, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | HSDT | |
Entity Registrant Name | HELIUS MEDICAL TECHNOLOGIES, INC. | |
Entity Central Index Key | 0001610853 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 28,298,446 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38445 | |
Entity Tax Identification Number | 36-4787690 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 642 Newtown Yardley Road, Suite 100 | |
Entity Address, City or Town | Newtown | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 18940 | |
City Area Code | (215) | |
Local Phone Number | 944-6100 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 8,599 | $ 14,549 |
Accounts receivable, net | 144 | 71 |
Other receivables | 41 | 272 |
Inventory, net | 563 | 589 |
Prepaid expenses and other current assets | 918 | 1,216 |
Total current assets | 10,265 | 16,697 |
Property and equipment, net | 345 | 347 |
Intangible assets, net | 65 | 140 |
Operating lease right-of-use asset, net | 78 | 103 |
Total assets | 10,753 | 17,287 |
Current liabilities | ||
Accounts payable | 576 | 627 |
Accrued and other current liabilities | 856 | 1,280 |
Current portion of operating lease liabilities | 49 | 54 |
Current portion of deferred revenue | 43 | 27 |
Total current liabilities | 1,524 | 1,988 |
Operating lease liabilities, net of current portion | 35 | 56 |
Deferred revenue, net of current portion | 149 | 175 |
Derivative liability | 4,473 | 6,917 |
Total liabilities | 6,181 | 9,136 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity | ||
Class A common stock, $0.001 par value; 150,000,000 shares authorized; 28,270,762 and 28,207,330 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 28 | 28 |
Additional paid-in capital | 160,443 | 159,618 |
Accumulated deficit | (155,249) | (151,107) |
Accumulated other comprehensive loss | (650) | (388) |
Total stockholders' equity | 4,572 | 8,151 |
Total liabilities and stockholders' equity | $ 10,753 | $ 17,287 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Condensed Consolidated Balance Sheets | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares, issued | 28,270,762 | 28,207,330 |
Common stock, shares, outstanding | 28,270,762 | 28,207,330 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | ||||
Product sales, net | $ 244 | $ 119 | $ 350 | $ 302 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Other revenue | $ 12 | $ 17 | $ 7 | |
Total revenue | 256 | $ 119 | 367 | 309 |
Cost of revenue | ||||
Cost of revenue | $ 184 | $ 88 | $ 306 | $ 212 |
Cost, Product and Service [Extensible Enumeration] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Gross profit (loss) | $ 72 | $ 31 | $ 61 | $ 97 |
Operating expenses | ||||
Selling, general and administrative expenses | 2,569 | 2,461 | 5,443 | 5,280 |
Research and development expenses | 684 | 953 | 1,570 | 2,717 |
Amortization expense | 38 | 47 | 77 | 94 |
Total operating expenses | 3,291 | 3,461 | 7,090 | 8,091 |
Loss from operations | (3,219) | (3,430) | (7,029) | (7,994) |
Nonoperating income (expense) | ||||
Interest income (expense), net | 89 | 189 | ||
Change in fair value of derivative liability | 1,223 | 2,444 | ||
Foreign exchange (loss) gain | 259 | (380) | 254 | (163) |
Other income (expense), net | 1 | |||
Nonoperating income (expense), net | 1,571 | (380) | 2,887 | (162) |
Loss before provision for income taxes | (1,648) | (3,810) | (4,142) | (8,156) |
Provision for income taxes | ||||
Net loss | (1,648) | (3,810) | (4,142) | (8,156) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | (267) | 351 | (262) | 149 |
Comprehensive loss | $ (1,915) | $ (3,459) | $ (4,404) | $ (8,007) |
Loss per share | ||||
Basic | $ (0.06) | $ (0.97) | $ (0.15) | $ (2.11) |
Diluted | $ (0.06) | $ (0.97) | $ (0.15) | $ (2.11) |
Weighted average number of common shares outstanding | ||||
Basic | 28,219,824 | 3,928,704 | 28,216,641 | 3,858,676 |
Diluted | 28,219,824 | 3,928,704 | 28,216,641 | 3,858,676 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock. | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total |
Beginning Balance at Dec. 31, 2021 | $ 4 | $ 149,412 | $ (137,035) | $ (1,125) | $ 11,256 |
Beginning Balance, Shares at Dec. 31, 2021 | 3,780,674 | ||||
Common stock issued under equity line of credit | 638 | 638 | |||
Common stock issued under equity line of credit, Shares | 391,363 | ||||
Settlement of restricted stock units, Shares | 6,274 | ||||
Common stock issued for services | 34 | 34 | |||
Common stock issued for services, Shares | 8,791 | ||||
Stock-based compensation | 581 | 581 | |||
Stock-based compensation, Shares | 8,011 | ||||
Other comprehensive income (loss) | 149 | 149 | |||
Net loss | (8,156) | (8,156) | |||
Ending Balance at Jun. 30, 2022 | $ 4 | 150,665 | (145,191) | (976) | 4,502 |
Ending Balance, Shares at Jun. 30, 2022 | 4,195,113 | ||||
Beginning Balance at Mar. 31, 2022 | $ 4 | 149,834 | (141,381) | (1,327) | 7,130 |
Beginning Balance, Shares at Mar. 31, 2022 | 3,794,797 | ||||
Common stock issued under equity line of credit | 638 | 638 | |||
Common stock issued under equity line of credit, Shares | 391,363 | ||||
Settlement of restricted stock units, Shares | 4,690 | ||||
Common stock issued for services | 14 | 14 | |||
Common stock issued for services, Shares | 4,263 | ||||
Stock-based compensation | 179 | 179 | |||
Other comprehensive income (loss) | 351 | 351 | |||
Net loss | (3,810) | (3,810) | |||
Ending Balance at Jun. 30, 2022 | $ 4 | 150,665 | (145,191) | (976) | 4,502 |
Ending Balance, Shares at Jun. 30, 2022 | 4,195,113 | ||||
Beginning Balance at Dec. 31, 2022 | $ 28 | 159,618 | (151,107) | (388) | 8,151 |
Beginning Balance, Shares at Dec. 31, 2022 | 28,207,330 | ||||
Settlement of restricted stock units, Shares | 63,432 | ||||
Stock-based compensation | 825 | 825 | |||
Other comprehensive income (loss) | (262) | (262) | |||
Net loss | (4,142) | (4,142) | |||
Ending Balance at Jun. 30, 2023 | $ 28 | 160,443 | (155,249) | (650) | 4,572 |
Ending Balance, Shares at Jun. 30, 2023 | 28,270,762 | ||||
Beginning Balance at Mar. 31, 2023 | $ 28 | 160,023 | (153,601) | (383) | 6,067 |
Beginning Balance, Shares at Mar. 31, 2023 | 28,213,378 | ||||
Settlement of restricted stock units, Shares | 57,384 | ||||
Stock-based compensation | 420 | 420 | |||
Other comprehensive income (loss) | (267) | (267) | |||
Net loss | (1,648) | (1,648) | |||
Ending Balance at Jun. 30, 2023 | $ 28 | $ 160,443 | $ (155,249) | $ (650) | $ 4,572 |
Ending Balance, Shares at Jun. 30, 2023 | 28,270,762 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (4,142) | $ (8,156) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Change in fair value of derivative liability | (2,444) | |
Stock-based compensation expense | 825 | 581 |
Common stock issued for services | 34 | |
Foreign exchange loss (gain) | (254) | 161 |
Depreciation expense | 22 | 50 |
Amortization expense | 77 | 94 |
Provision for (reversal of) inventory reserve | 8 | (37) |
Non-cash operating lease expense | 25 | 26 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (74) | 57 |
Other receivables | 230 | (4) |
Inventory, net | 18 | (64) |
Prepaid expense and other current assets | 298 | (156) |
Operating lease liability | (26) | (19) |
Accounts payable | (53) | (7) |
Accrued and other current liabilities | (426) | (779) |
Deferred revenue | (14) | (127) |
Net cash used in operating activities | (5,930) | (8,346) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (20) | (12) |
Proceeds from sale of property and equipment | 6 | |
Net cash used in investing activities | (20) | (6) |
Cash flows from financing activities: | ||
Proceeds from issuances of common stock | 644 | |
Share issuance costs | (24) | |
Net cash provided by financing activities | 620 | |
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash | ||
Net increase in cash and cash equivalents | (5,950) | (7,732) |
Cash and cash equivalents at beginning of period | 14,549 | 11,005 |
Cash and cash equivalents at end of period | $ 8,599 | 3,273 |
Non-cash investing and financing transactions: | ||
Right-of-use assets obtained in exchange for new lease liabilities | $ 151 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2023 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The accompanying interim Unaudited Condensed Consolidated Financial Statements of Helius Medical Technologies, Inc. (together with its wholly owned subsidiaries the “Company”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 that was filed with the Securities and Exchange Commission on March 9, 2023 (“2022 10-K”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") have been condensed or omitted. There have been no material changes to the Company's significant accounting policies from those described in the 2022 10-K. Certain prior period amounts have been reclassified to conform to the current period presentation. On April 21, 2023, the Company filed a definitive proxy statement seeking stockholder approval for a reverse stock split of our outstanding Class A common stock at a ratio in the range of 1-for- 10 80 The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Going Concern Uncertainty As of June 30, 2023, the Company had cash and cash equivalents of $8.6 million. For the six months ended June 30, 2023, the Company had an operating loss of $7.0 million, and as of June 30, 2023, its accumulated deficit was $155.2 million. For the six months ended June 30, 2023, the Company had $0.4 million of net revenue from the commercial sale of products. The Company expects to continue to incur operating losses and net cash outflows until such time as it generates a level of revenue to support its cost structure. There is no assurance that the Company will achieve profitable operations, and, if achieved, whether it will be sustained on a continued basis. These factors indicate substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are filed. The Company’s Unaudited Condensed Consolidated Financial Statements have been prepared on the basis of continuity of operations, realization of assets and satisfaction of liabilities in the ordinary course of business; no adjustments have been made relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company not continue as a going concern. The Company intends to fund ongoing activities by utilizing its current cash and cash equivalents on hand, cash received from the sale of its PoNS device in the U.S. and Canada and by raising additional capital through equity or debt financings. There can be no assurance that the Company will be successful in raising additional capital or that such capital, if available, will be on terms that are acceptable to the Company. If the Company is unable to raise sufficient additional capital, the Company may be compelled to reduce the scope of its operations. Global Economic Conditions Generally, worldwide economic conditions remain uncertain, particularly due to the conflict between Russia and Ukraine, disruptions in the banking system and financial markets, lingering effects of the COVID-19 pandemic and increased inflation. The general economic and capital market conditions both in the United States and worldwide, have been volatile in the past and at times have adversely affected the Company’s access to capital and increased the cost of capital. The capital and credit markets may not be available to support future capital raising activity on favorable terms. If economic conditions decline, the Company’s future cost of equity or debt capital and access to the capital markets could be adversely affected. The COVID-19 pandemic that began in late 2019 introduced significant volatility to the global economy, disrupted supply chains and had a widespread adverse effect on the financial markets. Additionally, the Company’s operating results could be materially impacted by changes in the overall macroeconomic environment and other economic factors. Changes in economic conditions, supply chain constraints, logistics challenges, labor shortages, the conflict in Ukraine, disruptions in the banking system and financial markets, and steps taken by governments and central banks, particularly in response to the COVID-19 pandemic as well as other stimulus and spending programs, have led to high inflation, which has increased costs and has caused changes in fiscal and monetary policy, including an increase in interest rates. Although the Company may take measures to mitigate these impacts, if these measures are not effective, the Company’s business, financial condition, results of operations, and liquidity could be materially adversely affected. In the opinion of management, the Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary for a fair statement of the results for the interim periods presented. All such adjustments, unless otherwise noted herein, are of a normal, recurring nature. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016 - Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , . |
SUPPLEMENTAL BALANCE SHEET DISC
SUPPLEMENTAL BALANCE SHEET DISCLOSURES | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Balance Sheet Disclosures | |
SUPPLEMENTAL BALANCE SHEET DISCLOSURES | 3. SUPPLEMENTAL BALANCE SHEET DISCLOSURES Components of selected captions in the unaudited condensed consolidated balance sheets consisted of the following: Accounts receivable, net Accounts receivable from product sales are net of allowance for credit losses of less than $1 thousand as of both June 30, 2023 and December 31, 2022. Inventory, net (in thousands) June 30, December 31, 2023 2022 Raw materials $ 331 $ 344 Work-in-process 199 284 Finished goods 105 39 Inventory, gross 635 667 Inventory reserve (72) (78) Inventory, net $ 563 $ 589 During the six months ended June 30, 2023, $14 thousand of inventory was written off to the inventory reserve. Prepaid expenses and other current assets (in thousands) June 30, December 31, 2023 2022 Prepaid expenses $ 588 $ 817 Inventory related 330 399 Total prepaid expenses and other current assets $ 918 $ 1,216 Accrued and other current liabilities (in thousands) June 30, December 31, 2023 2022 Insurance payable $ 151 $ 592 Employees benefits 439 509 Professional services 130 119 Other 136 60 Total accrued and other current liabilities $ 856 $ 1,280 Deferred revenue Exclusive Distribution Agreement Pursuant to an Exclusive Distribution Agreement with Health Tech Connex Inc. (“HTC”) (“Exclusivity Agreement”) entered into on March 3, 2023, subject to certain terms and conditions, the Company granted to HTC the exclusive right to provide PoNS Therapy in the Fraser Valley and Vancouver metro regions of British Columbia. HTC will purchase the PoNS devices for use in these regions exclusively from the Company and on terms no less favorable than the then-current standard terms and conditions. This Exclusivity Agreement replaced the previous Clinical Research and Co-Promotion Agreement (“Co-Promotion Agreement”) between the parties entered into in October 2019 that included a similar exclusive right provision. The exclusive right under the Exclusivity Agreement was granted for a value of CAD$273 thousand, which is represented by the unamortized up-front payment under the former Co-Promotion Agreement. The initial term of the Exclusivity Agreement expires on December 31, 2027, and is renewable by HTC for one additional five-year term upon sixty days’ written notice to the Company. Deferred revenue as of both June 30, 2023 and December 31, 2022 is comprised of the remaining unamortized amount under these agreements. Revenue recognized is included in other revenue in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
LEASES | |
LEASES | 4. LEASES The Company has two operating leases for office space with lease terms expiring in January 2024 and March 2025. The leases do not contain any options to extend Maturities of operating lease liabilities as of June 30, 2023 were as follows (in thousands): 2023 (remaining) $ 29 2024 48 2025 12 Total lease payments 89 Less: imputed interest (5) Total lease liabilities $ 84 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | 5. FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including consideration of non-performance risk. The inputs used to determine fair values are categorized in one of the following three levels of the fair value hierarchy: Level 1 – Quoted market prices in active markets for identical assets or liabilities. Level 2 – Inputs, other than quoted prices in active markets, that are observable, either directly or indirectly. Level 3 – Unobservable inputs that are not corroborated by market data. The Unaudited Condensed Consolidated Financial Statements include financial instruments for which the fair market value of such instruments may differ from amounts reflected on a historical cost basis. Financial instruments of the Company consist of cash equivalents, which were comprised of deposits of excess cash in an unrestricted money market savings account and a certificate of deposit as of both June 30, 2023 and December 31, 2022. The carrying value of cash equivalents generally approximates fair value due to their short-term nature. The Company’s derivative liability as of June 30, 2023 and December 31, 2022 is comprised of warrants issued in connection with the registered public offering completed in August 2022 (“August 2022 Public Offering”) discussed in Note 6. The derivative liability is classified as Level 3 within the fair value hierarchy and is required to be recorded at fair value on a recurring basis. See Note 6 for further information on the fair value of the derivative liability. |
COMMON STOCK, PREFERRED STOCK A
COMMON STOCK, PREFERRED STOCK AND WARRANTS | 6 Months Ended |
Jun. 30, 2023 | |
COMMON STOCK, PREFERRED STOCK AND WARRANTS | |
COMMON STOCK, PREFERRED STOCK AND WARRANTS | 6. COMMON STOCK, PREFERRED STOCK AND WARRANTS At-The-Market Offering On June 23, 2023, the Company entered into a Sales Agreement (the “Sales Agreement”) with Roth Capital Partners, LLC (“Roth”) to create an at-the-market offering program (“ATM”) under which the Company may offer and sell shares having an aggregate offering price of up to $2.0 million. Roth is entitled to a commission at a fixed commission rate equal to up to 3% of the gross proceeds pursuant to the Sales Agreement. As of June 30, 2023, no issuances of securities have occurred in connection with the ATM. Series B Preferred Stock On March 23, 2023, the Board of Directors declared a dividend of one one The outstanding shares of Series B Preferred Stock will vote together with the outstanding shares of the Company’s Class A common stock, as a single class, exclusively with respect to a proposal giving the Board of Directors the authority, as it determines appropriate, to implement a reverse stock split within twelve months following the approval of such proposal by the Company’s stockholders (the “Reverse Stock Split Proposal”), as well as any proposal to adjourn any meeting of stockholders called for the purpose of voting on the foregoing matters (the “Adjournment Proposal”). No shares of Series B Preferred Stock may be transferred by the holder except in connection with a transfer by such holder of any shares of Class A common stock held by such holder. Each share of Series B Preferred Stock will entitle the holder to 1,000,000 votes per share and each fraction of a share of Series B Preferred Stock will have a ratable number of votes. The holder of Series B Preferred Stock, as such, will not be entitled to receive dividends. All shares of Series B Preferred Stock that are not present in person or by proxy at any meeting of stockholders held to vote on the Reverse Stock Split Proposal and the Adjournment Proposal as of immediately prior to the opening of the polls at such meeting (the “Initial Redemption Time”) will automatically be redeemed in whole, but not in part, by the Company at the Initial Redemption Time without further action on the part of the Company or the holder of shares of Series B Preferred Stock. The Series B Preferred Stock is not convertible into, or exchangeable for, shares of any other class or series of stock or other securities of the Company. The Series B Preferred Stock has no stated maturity and is not subject to any sinking fund. The Series B Preferred Stock is not subject to any restriction on the redemption or repurchase of shares by the Company while there is any arrearage in the payment of dividends or sinking fund installments. The Certificate of Designation was filed with the Delaware Secretary of State and became effective on March 24, 2023. At the annual meeting of stockholders of the Company held on May 24, 2023, the Company’s stockholders approved an amendment to the Company’s Certificate of Incorporation to effect a reverse stock split of its outstanding Class A common stock. All shares of Series B Preferred Stock that did not vote in person or by proxy were redeemed in whole by the Company. Shares of Series B Preferred Stock that did vote in person or by proxy will need to request redemption from the Company at a rate of $0.001 per share in cash. As of June 30, 2023, no shareholders of Series B Preferred Stock have requested such redemption. As of the filing date, the Company’s Board of Directors has not declared a reverse stock split. Warrants The Company issued warrants to purchase an aggregate of 36,000,000 shares of Class A common stock (“Public Warrants”) in connection with the August 2022 Public Offering, as more fully described in the 2022 10-K. The Public Warrants did not meet the guidance for being classified as an equity instrument due to a potential price reset prompted by a change in an unrelated instrument’s conversion rate or, in the event of a fundamental transaction, settlement rights that differ from those of the underlying common stockholders. Accordingly, the Public Warrants are being accounted for as a derivative liability instrument. The fair value of the derivative liability as of June 30, 2023 and December 31, 2022 was $4.5 The fair value of the Public Warrants as of June 30, 2023 and December 31, 2022 was determined using both a Monte Carlo simulation model, which uses multiple input variables to determine the probability of the occurrence of a price reset or a fundamental transaction and the Black-Scholes option pricing model. The following table includes the share price and the inputs used to estimate the fair value of the warrants: June 30, December 31, 2023 2022 Stock price $ 0.19 $ 0.31 Warrant term (in years) 4.11 4.61 Expected volatility 86.02 % 80.90 % Risk-free interest rate 4.29 % 4.04 % Dividend rate 0.00 % 0.00 % The 36,000,000 outstanding liability classified Public Warrants have an exercise price of $0.75 per share, are exercisable upon issuance and will expire five years following the date of issuance. No Public Warrants were exercised or cancelled The Company has outstanding equity-classified warrants to purchase 593,924 shares of Class A common stock at a weighted average exercise price of $16.32, with expiration dates ranging from October 2023 to February 2026. During the six months ended June 30, 2023, no warrants were exercised |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 7. STOCK-BASED COMPENSATION The Company may issue stock-based compensation awards under the Helius Medical Technologies, Inc. 2022 Equity Incentive Plan (“2022 Plan”) or the Helius Medical Technologies, Inc. 2021 Inducement Plan (as amended, the “Inducement Plan”), as described more fully in the 2022 10-K. On January 1, 2023, pursuant to the automatic increase provision of the 2022 Plan, the number of shares authorized for issuance increased from the initial 1,121,272 to 13,215,973 . As of June 30, 2023, the remaining shares available for grant were 734,223 under the 2022 Plan and 455,000 under the Inducement Plan. During the six months ended June 30, 2023, the Company granted 11,088,460 stock options out of the 2022 Plan and 25,000 stock options out of the Inducement Plan at a weighted average exercise price of $0.29 one The following table includes the weighted-average assumptions used in the Black-Scholes option pricing model and the related weighted-average grant-date fair values of stock options granted during the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Risk-free interest rate 3.75 % 2.89 % 3.93 % 2.63 % Expected volatility 79.29 % 75.09 % 79.45 % 74.66 % Expected term (years) 5.26 5.57 5.70 5.62 Expected dividend yield 0.00 % 0.00 % 0.00 % 0.00 % Fair value, per share $ 0.11 $ 0.70 $ 0.20 $ 1.34 During the six months ended June 30, 2023, the Company's non-employee directors received a grant of 332,216 restricted stock units at weighted average grant date fair value of $0.16 per share. As of June 30, 2023, there were an aggregate of 12,270,338 stock options outstanding with a weighted average exercise price of $1.56 per share and 276,848 unvested restricted stock units outstanding with a weighted average grant date fair value of $0.16 per share. Total stock-based compensation expense was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Cost of sales $ 5 $ 4 $ 9 $ 7 Selling, general and administrative 339 224 659 470 Research and development 76 (49) 157 104 Total stock-based compensation expense $ 420 $ 179 $ 825 $ 581 As of June 30, 2023, the total remaining unrecognized compensation expense related to nonvested stock options and restricted stock units was $3.4 million which will be amortized over the weighted-average remaining requisite service period of 1.2 years. |
BASIC AND DILUTED LOSS PER SHAR
BASIC AND DILUTED LOSS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
BASIC AND DILUTED LOSS PER SHARE | |
BASIC AND DILUTED LOSS PER SHARE | 8. BASIC AND DILUTED LOSS PER SHARE The table below presents the computation of basic and diluted loss per share (in thousands, except share and per share information): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Basic: Net loss available to common stockholders - basic $ (1,648) $ (3,810) $ (4,142) $ (8,156) Weighted average common shares outstanding - basic 28,219,824 3,928,704 28,216,641 3,858,676 Loss per share - basic $ (0.06) $ (0.97) $ (0.15) $ (2.11) Diluted: Net loss available to common stockholders - diluted (1) $ (1,648) $ (3,810) $ (4,142) $ (8,156) Weighted average common shares outstanding - diluted (1) 28,219,824 3,928,704 28,216,641 3,858,676 Loss per share - diluted $ (0.06) $ (0.97) $ (0.15) $ (2.11) (1) For the three and six months ended June 30, 2023, no adjustment was made to the numerator and no incremental shares were added to the denominator for the Public Warrants being accounted for as a derivative liability, as the Public Warrants were out-of-the-money during the periods. Refer to Note 6 for additional information about the Public Warrants. The following outstanding securities, presented based on amounts outstanding as of the end of each period, were not included in the computation of diluted net loss per share for the periods indicated, as they would have been anti-dilutive due to the net loss in each period. Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Stock options 12,270,338 1,070,404 12,270,338 1,070,404 Restricted stock units 276,848 20,281 276,848 20,281 Warrants 36,593,924 593,924 36,593,924 593,924 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES. | |
Commitments and Contingencies | 9. COMMITMENTS AND CONTINGENCIES The Company is obligated under a license agreement with Advanced NeuroRehabilitation, LLC to pay a 4% royalty on net revenue collected from the sale of devices covered by the patent-pending technology. During the three and six months ended June 30, 2023 and 2022, the Company recorded royalty expense from the sale of devices of approximately $10 thousand, $14 thousand, $5 thousand and $12 thousand, respectively, in its Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss. |
ENTERPRISE-WIDE DISCLOSURES
ENTERPRISE-WIDE DISCLOSURES | 6 Months Ended |
Jun. 30, 2023 | |
ENTERPRISE-WIDE DISCLOSURES | |
ENTERPRISE-WIDE DISCLOSURES | 10. ENTERPRISE-WIDE DISCLOSURES Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Our CODM is the Chief Executive Officer. The Company operates and manages its business within one operating and reportable The following table presents the Company’s revenue disaggregated by geographic area (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Product sales, net: United States $ 175 $ 63 $ 250 $ 63 Canada 69 56 100 239 Total product sales, net 244 119 350 302 Other revenue 12 — 17 7 Total revenue $ 256 $ 119 $ 367 $ 309 Two customers accounted for 64% and one customer accounted for 35% of net product sales for the three and six months ended June 30, 2023 and two customers accounted for 91% of accounts receivable, net as of June 30, 2023. A single customer accounted for 13% and 41% of net product sales for the three and six months ended June 30, 2022 and 89% of accounts receivable, net as of December 31, 2022. |
SUPPLEMENTAL BALANCE SHEET DI_2
SUPPLEMENTAL BALANCE SHEET DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Balance Sheet Disclosures | |
Schedule of Inventory, net | June 30, December 31, 2023 2022 Raw materials $ 331 $ 344 Work-in-process 199 284 Finished goods 105 39 Inventory, gross 635 667 Inventory reserve (72) (78) Inventory, net $ 563 $ 589 |
Schedule of prepaid expenses and other current assets | June 30, December 31, 2023 2022 Prepaid expenses $ 588 $ 817 Inventory related 330 399 Total prepaid expenses and other current assets $ 918 $ 1,216 |
Schedule of accrued and other current liabilities | June 30, December 31, 2023 2022 Insurance payable $ 151 $ 592 Employees benefits 439 509 Professional services 130 119 Other 136 60 Total accrued and other current liabilities $ 856 $ 1,280 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
LEASES | |
Schedule of maturities of operating lease liabilities and related weighted average lease term and discount rate | 2023 (remaining) $ 29 2024 48 2025 12 Total lease payments 89 Less: imputed interest (5) Total lease liabilities $ 84 |
COMMON STOCK, PREFERRED STOCK_2
COMMON STOCK, PREFERRED STOCK AND WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
COMMON STOCK, PREFERRED STOCK AND WARRANTS | |
Schedule of assumptions used in estimating fair value | June 30, December 31, 2023 2022 Stock price $ 0.19 $ 0.31 Warrant term (in years) 4.11 4.61 Expected volatility 86.02 % 80.90 % Risk-free interest rate 4.29 % 4.04 % Dividend rate 0.00 % 0.00 % |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
STOCK-BASED COMPENSATION | |
Schedule of weighted-average assumptions used in Black-Scholes option pricing model | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Risk-free interest rate 3.75 % 2.89 % 3.93 % 2.63 % Expected volatility 79.29 % 75.09 % 79.45 % 74.66 % Expected term (years) 5.26 5.57 5.70 5.62 Expected dividend yield 0.00 % 0.00 % 0.00 % 0.00 % Fair value, per share $ 0.11 $ 0.70 $ 0.20 $ 1.34 |
Schedule of stock-based compensation expense | Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Cost of sales $ 5 $ 4 $ 9 $ 7 Selling, general and administrative 339 224 659 470 Research and development 76 (49) 157 104 Total stock-based compensation expense $ 420 $ 179 $ 825 $ 581 |
BASIC AND DILUTED LOSS PER SH_2
BASIC AND DILUTED LOSS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
BASIC AND DILUTED LOSS PER SHARE | |
Schedule of computation of basic and diluted loss per share | Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Basic: Net loss available to common stockholders - basic $ (1,648) $ (3,810) $ (4,142) $ (8,156) Weighted average common shares outstanding - basic 28,219,824 3,928,704 28,216,641 3,858,676 Loss per share - basic $ (0.06) $ (0.97) $ (0.15) $ (2.11) Diluted: Net loss available to common stockholders - diluted (1) $ (1,648) $ (3,810) $ (4,142) $ (8,156) Weighted average common shares outstanding - diluted (1) 28,219,824 3,928,704 28,216,641 3,858,676 Loss per share - diluted $ (0.06) $ (0.97) $ (0.15) $ (2.11) (1) For the three and six months ended June 30, 2023, no adjustment was made to the numerator and no incremental shares were added to the denominator for the Public Warrants being accounted for as a derivative liability, as the Public Warrants were out-of-the-money during the periods. Refer to Note 6 for additional information about the Public Warrants. |
Schedule of anti-dilutive securities | Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Stock options 12,270,338 1,070,404 12,270,338 1,070,404 Restricted stock units 276,848 20,281 276,848 20,281 Warrants 36,593,924 593,924 36,593,924 593,924 |
ENTERPRISE-WIDE DISCLOSURES (Ta
ENTERPRISE-WIDE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
ENTERPRISE-WIDE DISCLOSURES | |
Schedule of revenue disaggregated by geographic area | Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Product sales, net: United States $ 175 $ 63 $ 250 $ 63 Canada 69 56 100 239 Total product sales, net 244 119 350 302 Other revenue 12 — 17 7 Total revenue $ 256 $ 119 $ 367 $ 309 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Apr. 21, 2023 | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Cash and cash equivalents | $ 8,599 | $ 8,599 | $ 14,549 | |||
Operating loss | 3,219 | $ 3,430 | 7,029 | $ 7,994 | ||
Accumulated deficit | 155,249 | 155,249 | $ 151,107 | |||
Product sales, net | $ 244 | $ 119 | $ 350 | $ 302 | ||
Class A Common Stock | Minimum | ||||||
Reverse stock split | 0.10 | |||||
Class A Common Stock | Maximum | ||||||
Reverse stock split | 0.0125 |
SUPPLEMENTAL BALANCE SHEET DI_3
SUPPLEMENTAL BALANCE SHEET DISCLOSURES - Accounts receivable, net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Maximum | ||
Accounts receivable, net | ||
Allowance for credit losses | $ 1 | $ 1 |
SUPPLEMENTAL BALANCE SHEET DI_4
SUPPLEMENTAL BALANCE SHEET DISCLOSURES - Inventory (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Inventory | ||
Raw materials | $ 331 | $ 344 |
Work-in-process | 199 | 284 |
Finished goods | 105 | 39 |
Inventory | 635 | 667 |
Inventory reserve | (72) | (78) |
Total inventory, net of reserve | 563 | $ 589 |
Work-in-process inventory written off to inventory reserve | $ 14 |
SUPPLEMENTAL BALANCE SHEET DI_5
SUPPLEMENTAL BALANCE SHEET DISCLOSURES - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Supplemental Balance Sheet Disclosures | ||
Prepaid expenses | $ 588 | $ 817 |
Inventory related | 330 | 399 |
Total prepaid expenses and other current assets | $ 918 | $ 1,216 |
SUPPLEMENTAL BALANCE SHEET DI_6
SUPPLEMENTAL BALANCE SHEET DISCLOSURES - Accrued and other current liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accrued and other current liabilities | ||
Insurance payable | $ 151 | $ 592 |
Employees benefits | 439 | 509 |
Professional services | 130 | 119 |
Other | 136 | 60 |
Total accrued and other current liabilities | $ 856 | $ 1,280 |
SUPPLEMENTAL BALANCE SHEET DI_7
SUPPLEMENTAL BALANCE SHEET DISCLOSURES - Deferred Revenue (Details) - HTC - Exclusivity Agreement $ in Thousands | Mar. 03, 2023 CAD ($) item |
Deferred Revenue | |
Value of exclusivity right granted | $ | $ 273 |
Number of additional terms | item | 1 |
Additional term | 5 years |
Period for written notice for renewal | 60 days |
LEASES (Details)
LEASES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) lease | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) lease | Jun. 30, 2022 USD ($) | |
LEASES | ||||
Number of operating leases | lease | 2 | 2 | ||
Lessee options to extend lease | false | |||
Operating lease costs | $ 13 | $ 14 | $ 27 | $ 29 |
Maturities of operating lease liabilities | ||||
2023 (remaining) | 29 | 29 | ||
2024 | 48 | 48 | ||
2025 | 12 | 12 | ||
Total lease payments | 89 | 89 | ||
Less: imputed interest | (5) | (5) | ||
Total lease liabilities | $ 84 | $ 84 |
COMMON STOCK, PREFERRED STOCK_3
COMMON STOCK, PREFERRED STOCK AND WARRANTS - Series B Preferred Stock and Public Warrants (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 USD ($) shares | Jun. 23, 2023 USD ($) | Mar. 23, 2023 USD ($) Vote | Jun. 30, 2022 shares | Jun. 30, 2022 shares | May 24, 2023 $ / shares | Dec. 31, 2022 USD ($) | Aug. 09, 2022 shares | |
Common stock, preferred stock and warrants | ||||||||
Dividend declared in shares of Series B Preferred Stock for each outstanding share of Class A common stock | $ | 0.001 | |||||||
Fair value of derivative liability | $ | $ 4,473,000 | $ 6,917,000 | ||||||
Public Warrants | ||||||||
Common stock, preferred stock and warrants | ||||||||
Shares of common stock purchasable with warrants | shares | 36,000,000 | |||||||
Roth | ||||||||
Common stock, preferred stock and warrants | ||||||||
Maximum commission rate, percentage of gross proceeds pursuant to the Sales Agreement | 3% | |||||||
Common Stock | ||||||||
Common stock, preferred stock and warrants | ||||||||
Common stock issued under purchase agreement, Shares | shares | 391,363 | 391,363 | ||||||
At-The-Market Offering | ||||||||
Common stock, preferred stock and warrants | ||||||||
Aggregate offering amount | $ | $ 2,000,000 | |||||||
Shares issued | shares | 0 | |||||||
Series B Preferred Stock | ||||||||
Common stock, preferred stock and warrants | ||||||||
Number of voting rights per share of preferred stock each holder is entitled to | Vote | 1,000,000 | |||||||
Preferred stock redemption rate (in dollars per share) | $ / shares | $ 0.001 |
COMMON STOCK, PREFERRED STOCK_4
COMMON STOCK, PREFERRED STOCK AND WARRANTS - Warrant Fair Value Inputs (Details) | Jun. 30, 2023 | Dec. 31, 2022 |
Stock price | ||
Fari value inputs | ||
Derivative Liability, Measurement Input | 0.19 | 0.31 |
Warrant Term | ||
Fari value inputs | ||
Derivative Liability, Measurement Input | 0 | 4.61 |
Expected Volatility | ||
Fari value inputs | ||
Derivative Liability, Measurement Input | 0.8602 | 0.8090 |
Risk-Free Interest Rate | ||
Fari value inputs | ||
Derivative Liability, Measurement Input | 0.0429 | 0.0404 |
Dividend Rate | ||
Fari value inputs | ||
Derivative Liability, Measurement Input | 0 | 0 |
COMMON STOCK, PREFERRED STOCK_5
COMMON STOCK, PREFERRED STOCK AND WARRANTS - Warrant Activity (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Public Warrants | |
Warrant activity | |
Number of warrants outstanding | 36,000,000 |
Exercise price | $ / shares | $ 0.75 |
Warrant expiration period | 5 years |
Number of warrants exercised | 0 |
Number of warrants cancelled | 0 |
Equity-classified Warrants | |
Warrant activity | |
Number of warrants outstanding | 593,924 |
Number of warrants exercised | 0 |
Number of warrants cancelled | 0 |
Equity-classified Warrants | Weighted Average | |
Warrant activity | |
Exercise price | $ / shares | $ 16.32 |
STOCK-BASED COMPENSATION - Plan
STOCK-BASED COMPENSATION - Plan Information- (Details) - shares | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
2022 Plan | |||
Stock-Based Compensation | |||
Shares authorized for issuance | 13,215,973 | 13,215,973 | 1,121,272 |
Shares of common stock available for issuance | 734,223 | ||
Inducement Plan | |||
Stock-Based Compensation | |||
Shares of common stock available for issuance | 455,000 |
STOCK-BASED COMPENSATION - Awar
STOCK-BASED COMPENSATION - Awards Granted and Outstanding (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Stock options | |
Stock-Based Compensation | |
Granted (in dollars per share) | $ / shares | $ 0.29 |
Expiration period | 10 years |
Outstanding stock options (in shares) | 12,270,338 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 1.56 |
Stock options | Minimum | |
Stock-Based Compensation | |
Vesting period | 1 year |
Stock options | Maximum | |
Stock-Based Compensation | |
Vesting period | 4 years |
Restricted Stock Units | |
Stock-Based Compensation | |
Outstanding unvested RSU (in shares) | 276,848 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 0.16 |
Restricted Stock Units | Share-Based Payment Arrangement, Nonemployee | |
Stock-Based Compensation | |
Granted (in shares) | 332,216 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 0.16 |
2022 Plan | Stock options | |
Stock-Based Compensation | |
Granted (in shares) | 11,088,460 |
Inducement Plan | Stock options | |
Stock-Based Compensation | |
Granted (in shares) | 25,000 |
STOCK-BASED COMPENSATION - Fair
STOCK-BASED COMPENSATION - Fair Value Assumptions (Details) - Stock options - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-Based Compensation | ||||
Risk-free interest rate | 3.75% | 2.89% | 3.93% | 2.63% |
Expected volatility | 79.29% | 75.09% | 79.45% | 74.66% |
Expected term | 5 years 3 months 3 days | 5 years 6 months 25 days | 5 years 8 months 12 days | 5 years 7 months 13 days |
Expected dividend yield | 0% | 0% | 0% | 0% |
Fair value, per share | $ 0.11 | $ 0.70 | $ 0.20 | $ 1.34 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | |
Stock-Based Compensation | |||
Stock based compensation expense | $ 420 | $ 179 | |
Remaining unrecognized compensation expense related to nonvested awards | 3,400 | $ 3,400 | |
Weighted-average remaining requisite service period | 1 year 2 months 12 days | ||
Cost of sales | |||
Stock-Based Compensation | |||
Stock based compensation expense | 5 | 4 | |
Selling, general and administrative | |||
Stock-Based Compensation | |||
Stock based compensation expense | 339 | 224 | |
Research and development | |||
Stock-Based Compensation | |||
Stock based compensation expense | $ 76 | $ (49) |
BASIC AND DILUTED LOSS PER SH_3
BASIC AND DILUTED LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic: | ||||
Net loss available to common stockholders - basic | $ (1,648) | $ (3,810) | $ (4,142) | $ (8,156) |
Weighted average basic shares outstanding - basic | 28,219,824 | 3,928,704 | 28,216,641 | 3,858,676 |
Loss per share - basic | $ (0.06) | $ (0.97) | $ (0.15) | $ (2.11) |
Diluted: | ||||
Net loss available to common stockholders - diluted | $ (1,648) | $ (3,810) | $ (4,142) | $ (8,156) |
Weighted average common shares outstanding - diluted | 28,219,824 | 3,928,704 | 28,216,641 | 3,858,676 |
Loss per share - diluted | $ (0.06) | $ (0.97) | $ (0.15) | $ (2.11) |
BASIC AND DILUTED LOSS PER SH_4
BASIC AND DILUTED LOSS PER SHARE - Antidilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement, Option [Member] | ||||
Anti-dilutive securities | ||||
Anti-dilutive outstanding securities not included in computation of diluted loss per share | 12,270,338 | 1,070,404 | 12,270,338 | 1,070,404 |
Restricted Stock Units | ||||
Anti-dilutive securities | ||||
Anti-dilutive outstanding securities not included in computation of diluted loss per share | 276,848 | 20,281 | 276,848 | 20,281 |
Warrant [Member] | ||||
Anti-dilutive securities | ||||
Anti-dilutive outstanding securities not included in computation of diluted loss per share | 36,593,924 | 593,924 | 36,593,924 | 593,924 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - License Agreement (Details) - Advanced NeuroRehabilitation, LLC - License Agreement for Exclusive Right on Patent Pending Technology - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Commitments and Contingencies | ||||
Percentage of royalty on net revenue | 4% | |||
Royalty expense | $ 10 | $ 5 | $ 14 | $ 12 |
ENTERPRISE-WIDE DISCLOSURES (De
ENTERPRISE-WIDE DISCLOSURES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) customer segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 | |
Revenue disaggregated by geographic area | |||||
Number of operating segments | segment | 1 | ||||
Number of reportable segments | segment | 1 | ||||
Product sales, net | $ 244 | $ 119 | $ 350 | $ 302 | |
Other revenue | 12 | 17 | 7 | ||
Total revenue | $ 256 | $ 119 | $ 367 | $ 309 | |
Net product sales | Customer | Two customers | |||||
Revenue disaggregated by geographic area | |||||
Concentration of risk (percent) | 64% | ||||
Net product sales | Customer | Single customer | |||||
Revenue disaggregated by geographic area | |||||
Number of customers | customer | 1 | ||||
Concentration of risk (percent) | 13% | 35% | 41% | ||
Accounts receivable, net | Credit | Two customers | |||||
Revenue disaggregated by geographic area | |||||
Number of customers | customer | 2 | ||||
Concentration of risk (percent) | 91% | ||||
Accounts receivable, net | Credit | Single customer | |||||
Revenue disaggregated by geographic area | |||||
Concentration of risk (percent) | 89% | ||||
U.S. | |||||
Revenue disaggregated by geographic area | |||||
Product sales, net | $ 175 | $ 63 | $ 250 | $ 63 | |
Canada | |||||
Revenue disaggregated by geographic area | |||||
Product sales, net | $ 69 | $ 56 | $ 100 | $ 239 |