Helius Medical (HSDT) 10-K 10 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 05, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Trading Symbol	HSDT
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share
Security Exchange Name	NASDAQ
Entity Registrant Name	HELIUS MEDICAL TECHNOLOGIES, INC.
Entity Central Index Key	0001610853
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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
Document Annual Report	true
Document Transition Report	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
Entity Common Stock, Shares Outstanding		2,311,099
Entity Public Float			$ 17,405,309
Documents Incorporated by Reference	Portions of the registrant’s Definitive Proxy Statement to be filed with the Commission pursuant to Regulation 14A in connection with the registrant’s 2021 Annual Meeting of Stockholders, to be filed subsequent to the date hereof, are incorporated by reference into Part III of this report. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the conclusion of the registrant’s fiscal year ended December 31, 2020.

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets
Cash	$ 3,331	$ 5,459
Accounts receivable, net	74	210
Other receivables	156	364
Inventory, net	389	598
Prepaid expenses	735	610
Total current assets	4,685	7,241
Property and equipment, net	486	712
Other assets
Goodwill	759	1,242
Intangible assets, net	527	582
Operating lease right-of-use asset, net	90	552
Other assets		18
Total other assets	1,376	2,394
TOTAL ASSETS	6,547	10,347
Current liabilities
Accounts payable	747	1,676
Accrued liabilities	1,337	1,519
Operating lease liability	59	172
Derivative financial instruments		5
Deferred revenue	281	430
Total current liabilities	2,424	3,802
Non-current liabilities
Operating lease liability	32	465
Deferred revenue	220	245
TOTAL LIABILITIES	2,676	4,512
Commitments and contingencies (Note 7)
STOCKHOLDERS’ EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2020 and December 31, 2019
Class A Common stock, $0.001 par value; 150,000,000 shares authorized; 1,484,362 and 877,672 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively	1	1
Additional paid-in capital	123,872	111,509
Accumulated other comprehensive loss	(1,099)	(902)
Accumulated deficit	(118,903)	(104,773)
TOTAL STOCKHOLDERS’ EQUITY	3,871	5,835
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 6,547	$ 10,347

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Preferred stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	150,000,000	150,000,000
Common Stock, Shares, Issued	1,484,362	877,672
Common Stock, Shares, Outstanding	1,484,362	877,672

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenue:
Total operating revenue	$ 661	$ 1,496
Cost of sales:
Cost of product sales	$ 388	$ 846
Type of Cost, Good or Service [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember
Gross profit	$ 273	$ 650
Operating expenses:
Research and development	4,582	8,061
Selling, general and administrative	9,714	16,521
Amortization expense	363	64
Total operating expenses	14,659	24,646
Operating loss	(14,386)	(23,996)
Other income:
Other income	63	95
Change in fair value of derivative financial instruments	4	14,113
Foreign exchange gain	189	7
Total other income	256	14,215
Net loss	(14,130)	(9,781)
Other comprehensive loss:
Foreign currency translation adjustments	(197)	(311)
Comprehensive loss	$ (14,327)	$ (10,092)
Net loss per share
Basic	$ (11.80)	$ (12.99)
Diluted	$ (11.80)	$ (12.99)
Weighted average shares outstanding
Basic	1,197,774	752,932
Diluted	1,197,774	752,932
Product Sales
Revenue:
Total operating revenue	$ 625	$ 1,454
Fee Revenue
Revenue:
Total operating revenue	9	37
License Revenue
Revenue:
Total operating revenue	$ 27	$ 5

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	November 2019 Offering	At-the-Market Program	March 2020 Offering	October 2020 Private Placement	Common Stock $0.001 par value	Common Stock $0.001 par valueNovember 2019 Offering	Common Stock $0.001 par valueAt-the-Market Program	Common Stock $0.001 par valueMarch 2020 Offering	Common Stock $0.001 par valueOctober 2020 Private Placement	Additional Paid-In Capital	Additional Paid-In CapitalNovember 2019 Offering	Additional Paid-In CapitalAt-the-Market Program	Additional Paid-In CapitalMarch 2020 Offering	Additional Paid-In CapitalOctober 2020 Private Placement	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2018	$ 9,854					$ 1					$ 105,436					$ (94,992)	$ (591)
Beginning Balance, Shares at Dec. 31, 2018						737,938
Proceeds from the issuance of common stock		$ 1,685										$ 1,685
Proceeds from the issuance of common stock, Shares							137,571
Share issuance costs		$ (553)										$ (553)
Proceeds from exercise of stock options and warrants	215										215
Proceeds from exercise of stock options and warrants, Shares						2,136
Settlement of vested restricted stock units, net of taxes, Shares						27
Reclassification of derivative financial instruments from exercise of warrants	35										35
Stock-based compensation	4,691										4,691
Foreign currency translation adjustments	(311)																(311)
Net loss	(9,781)															(9,781)
Ending Balance at Dec. 31, 2019	5,835					$ 1					111,509					(104,773)	(902)
Ending Balance, Shares at Dec. 31, 2019						877,672
Proceeds from the issuance of common stock			$ 5,043	$ 1,348	$ 2,791								$ 5,043	$ 1,348	$ 2,791
Proceeds from the issuance of common stock, Shares								232,526	178,776	187,646
Warrant issued				$ 842	$ 629									$ 842	$ 629
Share issuance costs	(819)										(819)
Settlement of vested restricted stock units, net of taxes, Shares						7,792
Reverse stock split rounddown						(50)
Stock-based compensation	2,529										2,529
Foreign currency translation adjustments	(197)																(197)
Net loss	(14,130)															(14,130)
Ending Balance at Dec. 31, 2020	$ 3,871					$ 1					$ 123,872					$ (118,903)	$ (1,099)
Ending Balance, Shares at Dec. 31, 2020						1,484,362

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities
Net loss	$ (14,130)	$ (9,781)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of derivative financial instruments	(4)	(14,113)
Stock-based compensation expense	2,529	4,691
Unrealized foreign exchange (gain) loss	(182)	70
Depreciation expense	119	127
Amortization expense	363	64
Provision for doubtful accounts	140	220
Provision for inventory reserve	205	50
Intangible asset impairment	184
Loss from disposal of property and equipment	110
Gain on lease modification	(56)
Changes in operating assets and liabilities:
Accounts receivable	(4)	(438)
Other receivables	226	(278)
Inventory	4	(256)
Prepaid expenses	(125)	(163)
Other current assets		264
Operating lease liability	(28)	(13)
Account payable	(635)	(1,116)
Accrued liabilities	(280)	(327)
Deferred revenue	(174)
Net cash used in operating activities	(11,738)	(20,999)
Cash flows from investing activities
Purchase of property and equipment	(63)	(278)
Proceeds from sale of property and equipment	61
Business acquisitions, net of cash acquired		(416)
Internally developed software	(7)	(75)
Net cash used in investing activities	(9)	(769)
Cash flows from financing activities
Proceeds from the issuances of common stock and warrants	10,653	1,685
Share issuance costs	(1,015)	(247)
Proceeds from the exercise of stock options and warrants		215
Proceeds from Paycheck Protection Program Loan	323
Repayment of Paycheck Protection Program Loan	(323)
Net cash provided by financing activities	9,638	1,653
Effect of foreign exchange rate changes on cash	(19)	(9)
Net decrease in cash	(2,128)	(20,124)
Cash at beginning of year	5,459	25,583
Cash at end of year	3,331	5,459
Supplemental schedule of non-cash investing and financing activities
Share issuance costs included in accounts payable and accrued liabilities	$ 162	358
Reclassification of derivative instruments from warrant exercise		35
Noncash items related to Heuro acquisition		$ 1,227

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business	1. Helius Medical Technologies, Inc. (the “Company”), is neurotech company focused on neurological wellness. The Company’s purpose is to develop, license or acquire unique and non-invasive technologies targeted at reducing symptoms of neurological disease or trauma. The Company’s first product, known as the Portable Neuromodulation Stimulator (“PoNS TM ”) is authorized for sale in Canada as a class II, non-implantable medical device intended for use as a short term treatment (14 weeks) of gait deficit due to symptoms from multiple sclerosis (“MS”,) and balance deficit due to mild-to-moderate traumatic brain injury (“mmTBI”) and is to be used in conjunction with supervised therapeutic exercise (“PoNS Treatment TM The Company was incorporated in British Columbia, Canada, on March 13, 2014. On May 28, 2014, the Company completed a continuation via a plan of arrangement whereby the Company moved from being a corporation governed by the British Columbia Corporations Act to a corporation governed by the Wyoming Business Corporations Act. On July 20, 2018, the Company completed its reincorporation from Wyoming to the state of Delaware. The Company is headquartered in Newtown, Pennsylvania. On December 21, 2018, the Company’s wholly owned subsidiary, NeuroHabilitation Corporation, changed its name to Helius Medical, Inc (“HMI”). On January 31, 2019, the Company formed another wholly owned subsidiary, Helius NeuroRehab, Inc., (“HNR”), a Delaware corporation. On October 10, 2019, the Company formed Helius Canada Acquisition Ltd. (“HCA”), a company incorporated under the federal laws of Canada and a wholly owned subsidiary of Helius Medical Technologies (Canada), Inc. (“HMC”), a company incorporated under the federal laws of Canada, which acquired Heuro Canada, Inc. (“Heuro”) from Health Tech Connex Inc. (“HTC”) on October 30, 2019. The Company’s wholly owned subsidiaries are comprised of HMI, HMC, HCA and HNR. The Company’s Class A common stock, par value $0.001 per share (“common stock”) is listed on the Nasdaq Capital Market (“Nasdaq”) and the Toronto Stock Exchange (the “TSX”). The common stock began trading on the Canadian Securities Exchange on June 23, 2014, under the ticker symbol “HSM” and the trading was subsequently transferred to the TSX on April 18, 2016. On April 11, 2018, the common stock began trading on Nasdaq under the ticker symbol “HSDT” after having traded on the OTCQB in the United States under the ticker symbol “HSDT” since February 10, 2015. Reverse Stock Split Effective after the close of business on December 31, 2020, the Company completed a 1-for-35 reverse stock split of its common stock. All share and per share amounts in this Annual Report have been reflected on a post-split basis. Going Concern Uncertainty As of December 31, 2020, the Company had cash of $3.3 million. For the year ended December 31, 2020, the Company incurred a net loss of $14.1 million and, as of December 31, 2020, its accumulated deficit was $118.9 million. For the year ended December 31, 2020, the Company had $0.7 million of revenue from the commercial sale of products or services. The Company expects to continue to incur operating losses and net cash outflows until 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 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 on hand, cash received from the sale of its PoNS device in Canada and by raising additional capital through equity or debt financings. As discussed further in Note 10, in January 2021, the Company received $1.3 million in net proceeds from the exercise of warrants issued in the March 2020 registered direct offering and on February 1, 2021, closed a public offering and received net proceeds of approximately $9.6 million. There can be no assurance that the Company will be successful in raising that 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 and planned capital expenditures. Risks and Uncertainties COVID-19 On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a global pandemic, which continues to spread throughout the United States and around the world. The Company’s business, results of operations and financial condition have been and may continue to be adversely impacted by the COVID-19 pandemic and global economic conditions. The outbreak and spread of COVID-19 has significantly increased economic uncertainty. Authorities implemented numerous measures to try to contain COVID-19, such as travel bans and restrictions, quarantines, shelter in place orders, and business shutdowns. The COVID-19 pandemic initially led to the closure of PoNS Authorized clinic locations across Canada. While all clinics have re-opened, they are all currently operating at reduced capacity, and patients have been and may continue to be less willing to return to these clinics, impacting our commercial activities and our customer engagement efforts. Moreover, the Company’s ability to conduct its ongoing clinical experience programs in Canada has been and may continue to be impaired due to trial participants’ attendance being adversely affected by COVID-19, leading to further delays in the development and approval of the Company’s product candidate. In addition, the COVID-19 pandemic has and may continue to cause delays in the Company’s suppliers’ ability to ship materials that the Company relies upon, and disruptions in business or governmental operations due to COVID-19 may delay the timing for the submission and approval of the Company’s marketing applications with regulatory agencies. Further, the economic impact of the COVID-19 pandemic could affect the Company’s ability to access the public markets and obtain necessary capital in order to properly capitalize and continue its operations. The extent to which the COVID-19 pandemic will continue to impact the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted. The Company does not know yet the full extent of the impact of COVID-19 on its future business, operations or the global economy as a whole. Nasdaq Delisting On March 23, 2020, the Company received notice from the Staff of Nasdaq that the bid price for the Company’s common stock had closed below $1.00 per share for the prior 30 consecutive business day period and that the Company had been granted a 180-day grace period, through September 21, 2020, to regain compliance with Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). Thereafter, on April 17, 2020, the Company received an additional notice from the Staff indicating that Nasdaq had temporarily stayed enforcement of the Minimum Bid Price Rule through June 30, 2020, and accordingly, the 180-day grace period applicable to the Company would not expire until December 3, 2020. On December 4, 2020, the Company received notice from the Staff indicating that the Company was not eligible for an additional 180-day extension to meet the Minimum Bid Price Rule. As a result, the Staff determined that the Company’s securities would be subject to delisting unless the Company timely requested a hearing before the Panel. The Company timely submitted a request for a hearing before the Panel, which request stayed any suspension or delisting action by Nasdaq at least until the hearing process concluded and any extension granted by the Panel expired. On January 15, 2021, the Company received notice from the Staff that the bid price deficiency of the Company had been cured, and that the Company was in compliance with all applicable listing standards, and so the scheduled hearing before the Panel was cancelled.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Significant Accounting Policies	2. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s reporting currency is the U.S. Dollar (“USD$”). Use of Estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and disclosure of contingent assets and liabilities. Significant estimates include the assumptions used in the valuation of the fair value-pricing model for stock-based compensation, derivative financial instruments and deferred income tax asset valuation allowance. Financial statements include estimates, which, by their nature, are uncertain. Actual results could differ from those estimates. Principles of Consolidation The accompanying consolidated financial statements reflect the operations of Helius Medical Technologies, Inc. and its wholly owned subsidiaries. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist through arrangements that do not involve controlling voting interests. As such, the Company applies the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 Consolidation , Concentrations of Credit Risk The Company is subject to credit risk with respect to its cash. Amounts invested in such instruments are limited by credit rating, maturity, industry group, investment type and issuer. The Company is not currently exposed to any significant concentrations of credit risk from these financial instruments. The Company seeks to maintain safety and preservation of principal and diversification of risk, liquidity of investments sufficient to meet cash flow requirements and a competitive after-tax rate of return. Receivables Accounts receivables are stated at their net realizable value. In determining the appropriate allowance for doubtful accounts, the Company considers a combination of factors, such as the aging of trade receivables, its customers’ financial strength, and payment history. Changes in these factors, among others, may lead to adjustments in the Company’s allowance for doubtful accounts. The calculation of the allowance requires judgment by Company management. As of December 31, 2020, the Company’s accounts receivable of $0.1 million, is net of an allowance for doubtful accounts of $0.4 million and is the result of revenue from product sales. As of December 31, 2019, the Company’s accounts receivable of $0.2 million, is net of an allowance for doubtful accounts of $0.2 million and is the result of revenue from product sales. Other receivables included Goods and Services Tax (“GST”), Quebec Sales Tax (“QST”) refunds related to the Company’s Canadian expenditures of $0.1 million, and receivable from rent deposits of $18 thousand and refunds from research and development (“R&D”) tax credits of $1 thousand as of December 31, 2020. Other receivables included refunds from R&D tax credits of $0.2 million and GST and QST refunds related to the Company’s Canadian expenditures of $0.1 million as of December 31, 2019. Inventory The Company’s inventory consists of raw materials, work in progress and finished goods of the PoNS device. Inventory is stated at the lower of cost (average cost method) or net realizable value. Adjustments to reduce the cost of inventory to its net realizable value are made if required. The Company calculates provisions for excess inventory based on inventory on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be no assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the calculation of the reserves. Inventory markdowns to net realizable value of $205 thousand were recorded during the year ended December 31, 2020. Inventory markdowns to net realizable value of $50 thousand were recorded during the year ended December 31, 2019. As of December 31, 2020 and 2019, inventory consisted of the following (amounts in thousands): As of As of December 31, 2020 December 31, 2019 Raw materials $ 160 $ 144 Work-in-process 440 375 Finished goods 44 129 Inventory $ 644 $ 648 Inventory reserve (255 ) (50 ) Total inventory, net of reserve $ 389 $ 598 Property and Equipment Property and equipment are carried at cost, less accumulated depreciation. Depreciation is recognized using the straight-line method over the useful lives of the related asset or the term of the related lease. Expenditures for maintenance and repairs, which do not improve or extend the expected useful life of the assets, are expensed to operations while major repairs are capitalized. The estimated useful life of its leasehold improvements is over the shorter of its lease term or useful life of 5 years, the estimated useful life of furniture and fixtures is 7 years; equipment has an estimated useful life of 15 years and computer software and hardware has an estimated useful life of 3 to 5 years. The following tables summarizes the Company’s property and equipment as of December 31, 2020 and 2019 (amounts in thousands): As of December 31, 2020 2019 Leasehold improvement $ 64 $ 182 Furniture and fixtures 93 247 Equipment 335 286 Computer hardware and software 197 182 Property and equipment 689 897 Less accumulated depreciation (203 ) (185 ) Property and equipment, net $ 486 $ 712 Depreciation expense was $119 thousand and $127 thousand for the years ended December 31, 2020 and 2019, respectively. During 2019, the Company wrote-off $17 thousand of fully depreciated software. During the second quarter of 2020, the Company sold furniture and fixtures with a net book value of $118 thousand for $61 thousand. Additionally, the Company abandoned leasehold improvements with a net book value of $53 thousand. The loss on the disposal of the furniture and fixtures and leasehold improvements of $110 thousand was recorded as selling, general and administrative expense in the consolidated statements of operations and comprehensive loss. Business Combinations Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in FASB ASC 805 – Business Combinations. The assets acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and until paid re-measured on a recurring basis. It is classified as a liability based on appropriate GAAP. On October 30, 2019, the Company and HTC entered into a Share Purchase Agreement (the “SPA”) whereby the Company, through its wholly owned subsidiary, acquired Heuro from HTC. Under the terms of the SPA, total consideration of approximately CAD$2.1 million (USD$1.6 million) was transferred to HTC, which included (1) cash of CAD$0.5 million (USD$0.4 million), (2) delivery of 55 PoNS devices for which the fair value was determined to be CAD$0.5 million (USD$0.4 million), (3) the forgiveness of the CAD$750 thousand (USD$0.5 million) receivable from the September 2018 strategic alliance agreement and (4) the exclusivity rights granted to HTC in the Co-Promotion Agreement (as defined below) to provide PoNS Treatment in the Fraser Valley and Vancouver metro regions of British Columbia with a determined fair value of CAD$0.4 million (USD$0.3 million). The transaction has been accounted for as a business combination. The operating results of Heuro have been included in the consolidated statement of operations and comprehensive loss since the date of the acquisition. The acquisition related costs were $0.1 million and were accounted for as selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2019. Supplemental proforma financial information has not been presented here because the proforma effects of this acquisition are not material to the Company’s reported results for any period presented. The following table summarizes the recognized fair values of identifiable assets acquired and liabilities assumed as of October 30, 2019: October 30, 2019 Assets: Fair Value Cash and cash equivalents $ 1 Other receivables 19 Fixed assets 7 Intangibles 1,053 Goodwill 737 Total assets $ 1,817 Liabilities: Accounts payable 186 Other current liabilities 9 Total liabilities $ 195 Net assets acquired $ 1,622 The fair values assigned to identifiable intangible assets assumed were based on management’s estimates and assumptions as of such date and are considered finalized. The Company recorded measurement adjustments of $0.4 million during the year ended December 31, 2020, all of which was recorded during the first quarter of 2020. The recorded adjustments related to the recognition of reacquired exclusivity rights. Acquired intangibles consisted of customer relationships, proprietary technology and reacquired rights. The useful life at acquisition was 1.25 years, 5 years and 3.87 years, respectively, and the acquired intangibles are amortized using the straight-line method. Factors considered by the Company in determination of goodwill include synergies, strategic fit and other benefits that do not meet the recognition criteria of acquired identifiable intangible assets. The recognized goodwill of $0.7 million is not expected to be deductible for tax purposes. The fair value of 55 PoNS devices which the Company agreed to transfer to HTC pursuant to the SPA in the amount of CAD$0.5 million will be recognized as revenue within the consolidated statements of operations and comprehensive loss once control has been transferred in accordance with ASC 606. As of December 31, 2019, the control had not been transferred resulting in the fair value being recorded as deferred revenue on the consolidated balance sheet. As of December 31, 2020, the control of 21 devices had been transferred resulting in recognition of revenue for these devices. The fair value of the remaining 34 devices is still recorded as deferred revenue on the consolidated balance sheet. In connection with the SPA, on October 30, 2019, the Company entered into a Clinical Research and Co-Promotion Agreement with HTC (the “Co-Promotion Agreement”), whereby each company will promote the sales of the PoNS Treatment and the NeuroCatch TM Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over the fair values underlying net assets acquired in an acquisition. All of the Company’s goodwill as of December 31, 2020 is the result of the Heuro acquisition discussed above. Goodwill is not amortized, but rather will be tested annually for impairment or more frequently if events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company will test goodwill for impairment annually in the fourth quarter of each year using data as of October 1 of that year. Goodwill is allocated to, and evaluated for impairment at the Company’s one identified reporting unit. Goodwill is tested for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. The Company may elect not to perform the qualitative assessment for its reporting unit and perform the quantitative impairment test. The quantitative goodwill impairment test requires the Company to compare the carrying value of the reporting unit’s net assets to the estimated fair value of the reporting unit. If the estimated fair value exceeds the carrying value, no further evaluation is required, and no impairment loss is recognized. If the carrying amount of a reporting unit, including goodwill, exceeds the estimated fair value, the excess of the carrying value over the estimated fair value is recorded as an impairment loss, the amount of which is not to exceed the total amount of goodwill allocated to the reporting unit. The Company’s methodology for estimating the fair value of our reporting unit utilizes the income approach. The income approach is based on the Discounted Cash Flow (“DCF”) method, which is based on the present value of future cash flows. The principal assumptions utilized in the DCF methodology include long-term growth rates, operating margins, discount rates and future economic and market conditions. There can be no assurance that the Company’s estimates and assumptions regarding forecasted cash flow, long-term growth rates and operating margins made for purposes of the annual goodwill impairment test will prove to be accurate predictions of the future. The COVID-19 pandemic and its continuing impact was considered a triggering event for testing whether goodwill is impaired. The Company performed quantitative assessments at March 31, 2020, June 30, 2020 and September 30, 2020. As a result of these assessments, the Company determined that the estimated fair value of the reporting unit exceeded the carrying value of the reporting unit. Therefore, the Company concluded that goodwill was not impaired as of any of the aforementioned periods. The Company will continue to monitor the impacts of the COVID-19 pandemic in future periods. Based on the Company’s most recent annual impairment analysis as of October 1, 2020, the fair value of the Company’s reporting unit exceeded the carrying value, and therefore no indicators of impairment existed for the reporting unit. The following is a summary of the activity for the years ended December 31, 2020 and December 31, 2019 for goodwill: Carrying amount at December 31, 2018 $ — Business acquisition 1,226 Foreign currency translation 16 Carrying amount at December 31, 2019 $ 1,242 Business acquisition fair value allocation adjustment (503 ) Foreign currency translation 20 Carrying amount at December 31, 2020 $ 759 Definite-lived intangibles consist principally of acquired customer relationships, proprietary software and reacquired rights as well as internally developed software. All are amortized straight-line over their estimated useful lives. Amortization expense related to intangible assets was $0.4 million and $0.1 million during the year ended December 31, 2020 and the year ended December 31, 2019, respectively. During the year ended December 31, 2020, the Company incurred an intangible asset impairment loss of $0.2 million related to the customer relationships, all of which was incurred during the first quarter of 2020, which is included in selling, general and administrative expenses in the accompanying consolidated statement of operations and comprehensive loss. Intangible assets as of December 31, 2020 and December 31, 2019 consist of the following: As of December 31, 2020 As of December 31, 2019 Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 1.25 years $ 237 $ (228 ) $ 423 $ (55 ) Acquired proprietary software 5 years 150 (35 ) 148 (5 ) Reacquired rights 3.87 years 503 (152 ) — — Internally developed software 3 years 82 (30 ) 75 (4 ) Total intangible assets $ 972 $ (445 ) $ 646 $ (64 ) Amortization expense is anticipated to be as follows in future years: For the Year Ending December 31, 2021 $ 197 2022 183 2023 122 2024 25 $ 527 Internally Developed Software Costs The Company follows ASC 350-40, Accounting for the Costs of Computer Software Developed or Obtained for Internal Use, in accounting for its internally developed software costs. Costs incurred during the preliminary project work stage or conceptual stage, such as determining the performance requirements, system requirements and data conversion, are expensed as incurred. Costs incurred in the application development phase, such as coding, testing for new software and upgrades that result in additional functionality, are capitalized and are amortized using the straight-line method over the useful life of the software, which was determined to be three years. Amortization of these capitalized costs commences when the software becomes ready for its intended use. Costs incurred during the post-implementation stage, such as maintenance and application training, are expensed as incurred. Leases On January 1, 2019, the Company adopted ASU No. 2016-02, Leases The Company does not record an operating lease ROU asset and corresponding lease liability for leases with an expected term of twelve months or less and recognizes lease expense for these leases as incurred over the lease term. The Company had only one operating lease, which was for its headquarters office in Newtown, Pennsylvania upon the adoption date. As of December 31, 2020, the Company has not entered into any additional lease arrangements, but did modify the existing lease arrangement. Foreign Currency The Company’s functional currency is the U.S. dollar. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates in effect at the balance sheet date. Opening balances related to non-monetary assets and liabilities are based on prior period translated amounts, and non-monetary assets acquired, and non-monetary liabilities incurred after April 1, 2018 are translated at the approximate exchange rate prevailing at the date of the transaction. Revenue and expense transactions are translated at the approximate exchange rate in effect at the time of the transaction. Foreign exchange gains and losses are included in the consolidated statement of operations and comprehensive loss as foreign exchange gain (loss). The functional currency of HMC and HCA, the Company’s Canadian subsidiaries, is the CAD$ and the functional currency of HMI and HNR is the USD$. Transactions in foreign currencies are recorded into the functional currency of the relevant subsidiary at the exchange rate in effect at the date of the transaction. Any monetary assets and liabilities arising from these transactions are translated into the functional currency at exchange rates in effect at the balance sheet date or on settlement. Revenues, expenses and cash flows are translated at the weighted-average rates of exchanges for the reporting period. The resulting currency translation adjustments are not included in the Company’s consolidated statements of operations and comprehensive loss for the reporting period, but rather are accumulated and gains and losses are recorded in foreign exchange gain (loss), as a component of comprehensive loss, within the consolidated statements of operations and comprehensive loss. Stock-Based Compensation The Company accounts for all stock-based payments and awards under the fair value-based method. The Company recognizes its stock-based compensation expense using the straight-line method. Compensation cost is not adjusted for estimated forfeitures, but instead is adjusted upon an actual forfeiture of a stock option. The Company accounts for the granting of stock options to employees and non-employees using the fair value method whereby all awards are measured at fair value on the date of the grant. The fair value of all employee stock options is expensed over the requisite service period with a corresponding increase to additional paid-in capital. Upon exercise of stock options, the consideration paid by the option holder is recorded in additional paid-in capital, while the par value of the shares received is reclassified from additional paid in capital to common stock. Stock options granted to employees are accounted for as liabilities when they contain conditions or other features that are indexed to other than a market, performance or service condition. In accordance with ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting The Company uses the Black-Scholes option-pricing model to calculate the fair value of stock options. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected term of the option, risk-free interest rates, the value of the common stock and expected dividend yield of the common stock. Changes in these assumptions can materially affect the fair value estimate. Awards of options that provide for an exercise price that is not denominated in: (a) the currency of a market in which a substantial portion of the Company's equity securities trades in, (b) the currency in which the employee's pay is denominated, or (c) the Company's functional currency, are required to be classified as liabilities. Revenue Recognition In accordance with FASB’s ASC 606, Revenue from Contracts with Customers (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company applies the five-step model to contracts when it determines that it is probable it will collect substantially all of the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price, after consideration of variability and constraints, if any, that is allocated to the respective performance obligation when the performance obligation is satisfied. Product Sales, net During the first half of 2019, product sales were derived from the sale of the PoNS device and certain support services including services from the use of the NeuroCatch TM Fee Revenue During the first half of 2019, the Company’s agreement with HTC and Heuro also entitled the Company to 50% of the franchise fees collected by Heuro from each franchise agreement Heuro executed with neuroplasticity clinics engaged in providing the PoNS Treatment. There were 3 franchise agreements entered into for the year ended December 31, 2019, all of which occurred in the first half of the year. For the year ended December 31, 2019, the Company recognized $37 thousand as its 50% portion of the franchise fees. This arrangement ended upon the acquisition of Heuro in October 2019. During the first half of 2020, the Company earned fee revenue of $9 thousand for engaging new neuroplasticity clinics to provide the PoNS Treatment, before terminating these agreements in the second quarter of 2020. License Revenue As described above, the Company modified its arrangement with HTC on October 30, 2019. License revenue is recognized ratably over the ten-year term as the performance obligation is met in connection with the Co-Promotion Agreement. During the fourth quarter of 2019, the Company recognized revenues of $5 thousand in license fees associated with the Co-Promotion Agreement. For the year ended December 31, 2020, the Company recognized revenues of $27 thousand in license fees associated with the Co-Promotion Agreement. Revenue not yet recognized of $0.2 million is recorded as deferred revenue on the consolidated balance sheet. As of December 31, 2020, the Company had recorded $0.1 million in current receivables, net and had no contract assets or liabilities on its consolidated balance sheets related to the supply agreements with each clinic. As of December 31, 2019, the Company has recorded $0.2 million in current receivables, net and had no contract assets or liabilities on its consolidated balance sheets related to the supply agreements with each clinic. Cost of Sales Cost of product sales includes the cost to manufacture the PoNS device, royalty expenses, freight charges, customs duties, wages and salaries of employees involved in the management of the supply chain and logistics of fulfilling the Company’s sales orders. During 2019, until the acquisition of Heuro on October 30, 2019, cost of sales also included certain support services provided by Heuro on the Company’s behalf. Income Taxes The Company accounts for income taxes using the asset and liability method. The asset and liability method provide that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. The Company has adopted the provisions of ASC 740 Income Taxes On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. The Company continues to examine the impact that the CARES Act may have on its business. Currently, the Company does not believe the CARES Act will have a material impact on its accounting for income taxes. Research and Development Expenses Research and development (“R&D”) expenses consist primarily of personnel costs, including salaries, benefits and stock-based compensation, clinical studies performed by contract research organizations, development and manufacturing of clinical trial devices and devices for manufacturing testing and materials and supplies as well as regulatory costs related to post market surveillance, quality assurance complaint handling and adverse event reporting. R&D costs are charged to operations when they are incurred. Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company operates and manages its business within one operating and reportable segment. Accordingly, the Company reports the accompanying consolidated financial statements in the aggregate in one reportable segment. Derivative Financial Instruments The Company evaluates its financial instruments and other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815, Derivatives and Hedging The classification of derivative financial instruments, including whether such instruments should be recorded as liabilities/assets or as equity, is reassessed at the end of each reporting period. Derivative financial instruments that become subject to reclassification are reclassified at the fair value of the instrument on the reclassification date. Derivative financial instruments will be classified in the consolidated balance sheet as current if the right to exercise or settle the derivative financial instrument lies with the holder. Fair Value Measurements The Company accounts for financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 – Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The Company’s financial instruments recorded in its consolidated balance sheets consist primarily of cash, accounts receivable, other current receivables, operating lease ROU asset, accounts payable, accrued liabilities, operating lease liability and derivative financial instruments. The book values of these instruments, with the exception of derivative financial instruments, non-current lease liability, operating lease ROU asset and non-current receivables, approximate their fair values due to the immediate or short-term nature of these instruments. The Company’s derivative financial instruments are classified as Level 3 within the fair value hierarchy and required to be recorded at fair value on a recurring basis. Unobservable inputs used in the valuation of these financial instruments include volatility of the underlying share price and the expected term. See Note 3 for the inputs used in the Black-Scholes option-pricing model as of December 31, 2020 and 2019 and the roll forward of the derivative financial instruments. The Company’s derivative financial instruments are comprised of warrants which are classified as liabilities. Fair Value Level 1 Level 2 Level 3 December 31, 2020 Liabilities: Derivative financial instruments $ — $ — $ — $ — December 31, 2019 Liabilities: Derivative financial instruments $ 5 $ — $ — $ 5 There were no transfers between any of the levels during the years ended December 31, 2020 and 2019. In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company's assets and liabilities are also subject to nonrecurring fair value measurements. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. Due to the COVID-19 pandemic and the related risks and uncertainties, the Company’s customer relationship intangible asset incurred an impairment loss during the year ended December 31, 2020 of $0.2 million, all of which was recorded during the first quarter of 2020, and has a remaining net book value of $9 thousand as of December 31, 2020. The fair value of this intangible asset was determined based on Level 3 measurements within the fair value hierarchy. Inputs to these fair value measurements included estimates of the amount and timing of the asset’s net future discounted cash flows based on historical data, current trends and market conditions. Basic and Diluted Net Income (Loss) per Share Earnings or loss per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) by the weighted average of all potentially dilutive shares of common stock that were outstanding during the periods presented. The treasury stock method is used in calculating diluted EPS for potentially dilutive stock options and share purchase warrants, which assumes that any proceeds received from the exercise of in-the-money stock options and share purchase warrants, would be used to purchase common shares at the average market price for the period, unless including the effects of these potentially dilutive securities would be anti-dilutive. The basic and diluted loss per share for the periods noted below is as follows (amounts in thousands, except for share and per share amounts): For the Year Ended December 31, 2020 2019 Basic and Diluted Numerator Net loss $ (14,130 ) $ (9,781 ) Denominator Weighted-average common shares outstanding - basic and diluted 1,197,774 752,932 Basic and diluted net loss per share $ (11.80 ) $ (12.99 ) No incremental common stock equivalents, consisting of outstanding stock options, warrants and restricted stock units, were included in calculating diluted loss per share because such inclusion would be anti-dilutive given the net loss reported for the years ended December 31, 2020 and 2019. Dilutive common stock equivalents excluded from the co

Common Stock and Warrants

Common Stock and Warrants	12 Months Ended
	Dec. 31, 2020
Equity [Abstract]
Common Stock and Warrants	3. COMMON STOCK AND WARRANTS The Company’s authorized capital stock pursuant to its Delaware charter consists of 150,000,000 authorized shares of common stock, at a par value per share of $0.001 and 10,000,000 authorized shares of preferred stock at a par value per share of $0.001. Holders of common stock are entitled to vote at any meeting of the Company’s stockholders on the basis of one vote per share of common stock owned as of the record date of such meeting. Each share of common stock entitles the holder to receive dividends, if any, as declared by the Company’s Board of Directors. No dividends have been declared since inception of the Company through December 31, 2020. In the event of a liquidation, dissolution or winding-up of the Company, other distribution of assets of the Company among its stockholders for the purposes of winding-up its affairs or upon a reduction of capital, the stockholders shall, share equally, share for share, in the remaining assets and property of the Company. On April 13, 2018, the Company issued 61,197 shares of its common stock and warrants to purchase 61,197 shares of the Company’s common stock in an underwritten public offering at a price of $261.45 per share and accompanying warrant. On April 24, 2018, the Company closed on the sale of an additional 9,179 shares of its common stock and warrants pursuant to the exercise of the over-allotment option (collectively the “April 2018 Offering”) granted to the underwriters in connection with the offering at a price of $261.45 per share and accompanying warrants. The Company received net proceeds of $16.3 million from the April 2018 Offering. The fair value of these warrants at issuance was approximately $7.4 million. Each warrant issued in connection with the April 2018 Offering entitles the holder to acquire one additional share of common stock at an exercise price of CAD$428.75 per share on or before April 10, 2021. Pursuant to the guidance of ASC 815 Derivatives and Hedging The following table summarizes the weighted average assumptions used in estimating the fair value of the warrants granted in the April 2018 Offering using the Black-Scholes option pricing model as of the date of the initial closing of the offering and the date of the closing of the over-allotment option, as well as of December 31, 2020. December 31, 2020 April 24, 2018 April 13, 2018 Stock price CAD $17.15 CAD $376.60 CAD $344.75 Exercise price CAD $428.75 CAD $428.75 CAD $428.75 Warrant term 0.27 years 3.00 years 3.00 years Expected volatility 64.48 % 64.49 % 64.20 % Risk-free interest rate 0.06 % 2.02 % 1.99 % Dividend rate 0.00 % 0.00 % 0.00 % On November 22, 2019, the Company issued 137,571 shares of its common stock in an underwritten public offering at a price of $12.25 per share. The Company received net proceeds of $1.1 million, in connection with the November 2019 Offering. On January 27, 2020, the Company filed a Form S-3 shelf registration under the Securities Act which was declared effective by the SEC on February 6, 2020 (the “2020 Shelf”). In conjunction with the 2020 Shelf, on January 27, 2020, the Company entered into an At The Market Offering Agreement (the “2020 ATM”) with H.C. Wainwright & Co., LLC (“Wainwright”) under which the Company may offer and sell, from time to time at its sole discretion, to or through Wainwright, acting as agent and/or principal, shares of its common stock having an aggregate offering price of up to $11.34 million, which, in March 2020, was subsequently reduced to $9.15 million, including the shares previously sold under the 2020 ATM . The Company terminated the 2020 ATM effective November 25, 2020. For the year ended December 31, 2020, under the 2020 ATM, the Company sold and issued shares of its common stock with an aggregated market value of $ million at an average price of $ per share and paid Wainwright a sales commission of approximately $ thousand related to those shares. On March 20, 2020, the Company, in a registered direct offering, issued an aggregate of 178,776 shares of its common stock at a price of $12.25 per share. Additionally, the Company issued unregistered warrants in a concurrent private placement to purchase up to 178,776 shares of its common stock at an exercise price of $16.10 per share. Gross proceeds from the offering (the “March 2020 Offering”) were approximately $2.2 million. The underwriting discounts and commissions and offering expenses of $0.3 million were recorded to share issuance costs. Each warrant issued in connection with the March 2020 Offering entitles the holder to acquire one additional share of common stock at an exercise price of $16.10 per share, which became exercisable on September 20, 2020 and will expire on March 20, 2025. Pursuant to the guidance of ASC 480 Distinguishing Liabilities from Equity Derivatives and Hedging The relative fair value of these warrants at issuance was approximately $0.8 million and was included in additional paid-in capital. The following table summarizes the weighted average assumptions used in estimating the fair value of the warrants granted in the March 2020 Offering using the Black-Scholes option pricing model as of the date of the closing of the offering on March 20, 2020. March 20, 2020 Stock price $ 12.25 Exercise price $ 16.10 Warrant term 5.50 years Expected volatility 82.41 % Risk-free interest rate 0.52 % Dividend rate 0.00 % On October 26, 2020, the Company issued units consisting of one share and a warrant to purchase 0.50 shares of common stock, with an aggregate issuance of 187,646 shares of common stock and warrants to purchase an aggregate of 93,817 shares of common stock at a purchase price of $18.20 per unit, resulting in gross proceeds of approximately $3.4 million, excluding the proceeds, if any, that the Company may receive in the future from the exercise of the warrants (the “October 2020 Offering”). The Company incurred $0.3 million in share issuance costs, including placement agent fees. The warrants have an initial exercise price of $15.82 per share and are exercisable for a period of three years from the date of issuance. The Company also issued warrants to the placement agent to purchase 961 shares of common stock, with an exercise price of $19.775 per share. An officer of the Company and affiliates of an officer and director of the Company participated in the October 2020 Offering on the same terms and conditions as all other purchasers, except that they paid $18.354 per unit and their warrants have an exercise price of $16.1665 per share. Pursuant to the securities purchase agreement for the October 2020 Offering, if the Company issues any shares of common stock or common stock equivalents for cash consideration, indebtedness or a combination thereof, with certain exceptions, within twelve months of the closing of the October 2020 Offering, each purchaser who subscribed for at least $250,000 has the right to participate in up to such purchaser’s pro rata portion of 30% of the such subsequent financing on the same terms, conditions and price provided for in the subsequent financing. Pursuant to the guidance of ASC 480 Distinguishing Liabilities from Equity Derivatives and Hedging The relative fair value of these warrants at issuance was approximately $0.6 million and was included in additional paid-in capital. The following table summarizes the weighted average assumptions used in estimating the fair value of the warrants granted in the October 2020 Offering using the Black-Scholes option pricing model as of the date of the closing of the offering on October 26, 2020. October 26, 2020 Stock price $ 15.92 Exercise price 15.92 Warrant term 3.00 years Expected volatility 80.91 % Risk-free interest rate 0.18 % Dividend rate 0.00 % The following table summarizes the activities of warrants that the Company accounts for as liabilities and records as derivative financial instruments for the years ended December 31, 2020 and 2019 (amounts in thousands): Year Ended December 2020 2019 Fair value of warrants at beginning of year $ 5 $ 13,769 Exercise of warrants — (35 ) Foreign exchange (gains) losses (1 ) 384 Change in fair value of warrants during the year (4 ) (14,113 ) Fair value of warrants at end of year $ — $ 5 These warrants, which are classified as derivative financial instruments in the Company’s consolidated balance sheets are required to be re-measured at each reporting period, with the change in fair value recorded as a gain or loss in the change of fair value of derivative financial instruments, included in other income in the Company’s consolidated statements of operations and comprehensive loss. The fair value of the warrants will continue to be classified as a liability until such time as they are exercised, expire or there is an amendment to the respective agreements that renders these financial instruments to be no longer classified as such. As of December 31, 2020 2019 Stock price CAD $17.15 CAD $43.05 Exercise price CAD $428.75 CAD $428.75 Warrant term 0.27 years 1.28 years Expected volatility 64.48 % 72.43 % Risk-free interest rate 0.06 % 1.72 % Dividend rate 0.00 % 0.00 % The following is a summary of warrant activity during the years ended December 31, 2020 and 2019: Number of Warrants (by currency denomination of exercise price) Weighted-Average Exercise Price CAD$ USD$ CAD$ USD$ Outstanding as of December 31, 2018 95,799 18,607 $ 381.15 $ 428.32 Granted — — — — Cancelled/Expired (26,352 ) — 262.50 — Exercised (1,096 ) — 262.50 — Outstanding as of December 31, 2019 68,351 18,607 $ 428.75 $ 428.32 Granted — 273,554 — 16.04 Cancelled/Expired — (18,607 ) — 428.32 Exercised — — — — Outstanding and exercisable as of December 31, 2020 68,351 273,554 $ 428.75 $ 16.04 The following table summarizes the Company’s warrants outstanding and exercisable as of December 31, 2020: Number of Warrants Outstanding Exercise Price Expiration Date 68,351 CAD$428.75 April 21, 2021 178,776 US$16.10 March 20, 2025 17,431 US$16.1665 October 26, 2023 76,386 US$15.82 October 26, 2023 961 US$19.775 October 26, 2023 341,905

Share Based Payments

Share Based Payments	12 Months Ended
	Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share Based Payments	4. SHARE BASED PAYMENTS On May 15, 2018, the Company’s Board of Directors authorized and approved the adoption of the 2018 Omnibus Incentive Plan (as amended, the “2018 Plan”), which was effective upon approval by the stockholders of the Company on June 28, 2018 and under which an aggregate of 153,031 shares may be issued. This share reserve is the sum of 85,714 new shares, plus the remaining 67,317 shares that remained available for issuance under the Company’s 2016 Omnibus Incentive Plan, the predecessor incentive plan (the “2016 Plan”) at the time of the adoption of the 2018 Plan. Pursuant to the terms of the 2018 Plan, the Company is authorized to grant stock options, as well as awards of stock appreciation rights, restricted stock, unrestricted shares, restricted stock units (“RSUs”), stock equivalent units and performance-based cash awards. These awards may be granted to directors, officers, employees and eligible consultants. Vesting and the term of an option is determined at the discretion of the Company’s Board of Directors. Subsequent to the adoption of the 2018 Plan, the Company ceased granting awards under the 2016 Plan, the predecessor incentive plan. However, outstanding stock options granted prior to the effective date of the 2018 Plan are still governed by the 2016 Plan or the Company’s 2014 Stock Incentive Plan, which preceded the 2016 Plan. As of December 31, 2020, there were an aggregate of 94,485 shares of common stock remaining available for issuance under the 2018 Plan. For the year ended December 31, 2020, the Company issued 42,417 stock options to employees and directors of which 3,425 were forfeited. The Company issued 571 stock options to consultants during the same period. The following is a summary of stock option activity for the year ended December 31, 2020 and 2019: Weighted Average Remaining Weighted Average Aggregate Contractual Exercise Price Intrinsic Value Number of Options Life (in years) in USD$ in USD$ Outstanding as of December 31, 2018 94,475 5.16 $ 249.87 $ 8,308 Granted 33,337 162.74 Forfeited (13,939 ) 298.55 Exercised (1) (14,855 ) 96.95 Outstanding as of December 31, 2019 99,018 7.78 $ 236.63 $ — Granted 42,988 $ 15.20 Forfeited/Cancelled (28,448 ) 210.57 Exercised — — Outstanding as of December 31, 2020 113,558 7.75 $ 159.33 $ — Exercisable as of December 31, 2020 57,725 6.56 $ 117.90 $ — (1) For the year ended December 31, 2019, 14,855 stock options were exercised on a cashless basis resulting in 13,818 shares being withheld in satisfaction of the exercise price. Employee and Director Stock Options As of December 31, 2020, the unrecognized compensation cost related to non-vested stock options outstanding for employees and directors was $2.4 million which will be recognized over a weighted-average remaining vesting period of approximately 2.3 years. Compensation cost is not adjusted for estimated forfeitures, but instead is adjusted upon an actual forfeiture of a stock option. For the years ended December 31, 2020 and 2019, the Company granted 42,417 and 33,337 stock options, respectively, to employees and directors at a weighted average exercise price of $15.23 and $162.74, respectively. The fair value of employee and director stock options granted for the years ended December 31, 2020 and 2019 had a weighted average grant date fair value of $9.71 and $105.38 per option, respectively, and they were estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Year Ended December 31, 2020 2019 Stock price $15.23 $162.74 Exercise price $15.23 $162.74 Expected term 5.32 years 5.42 years Expected volatility 75.35 % 76.90 % Risk-free interest rate 0.52 % 1.96 % Dividend rate 0.00 % 0.00 % Consultant Stock Options For the year ended December 31, 2020, the Company granted 571 stock options to consultants at a weighted average exercise price of $13.58. Stock options granted to the Company’s consultants for the year ended December 31, 2020 had a weighted average grant date fair value of $8.18 per share, and they were estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Year Ended December 31, 2020 Stock price $13.58 Exercise price $13.58 Option term 5.27 years Expected volatility 73.15 % Risk-free interest rate 0.33 % Dividend rate 0.00 % For the year ended December 31, 2019 the Company did not grant any stock options to consultants. Restricted Stock Units Beginning in the fourth quarter of 2019, certain members of the Company’s executive management team elected to receive RSUs in lieu of cash compensation under the 2018 Plan that vested upon issuance. The fair value of the RSUs is based on the closing price of the Company’s common stock on the day of the grant. The following is a summary of the Company’s RSU activity for the years ended December 31, 2020 and 2019: Number of Restricted Stock Units Weighted Average Grant Date Fair Value per Unit Outstanding as of December 31, 2018 27 CAD$350.00 Granted 788 USD$21.17 Vested and settled during 2019 (1) (27 ) CAD$350.00 Outstanding as of December 31, 2019 788 USD$21.17 Granted 7,172 USD$15.25 Settled during 2020 (7,792 ) USD$17.81 Outstanding as of December 31, 2020 168 USD$13.20 (1) Includes 7 RSUs withheld to satisfy required withholding taxes. Stock-Based Compensation Expense Stock-based compensation expense is classified in the Company’s consolidated statements of operations and comprehensive loss as follows (amounts in thousands): 2020 2019 Research and development $ 933 $ 898 Cost of sales $ (1 ) — General and administrative 1,597 3,793 Total $ 2,529 $ 4,691

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2020
Payables And Accruals [Abstract]
Accrued Expenses	5. ACCRUED EXPENSES Accrued expenses consisted of the following (amounts in thousands): As of December 31, 2020 2019 Employees benefits $ 496 $ 722 Professional services 292 67 Legal expense 133 81 Royalty fees 12 13 Franchise fees — 28 Severance 347 606 Other 57 2 $ 1,337 $ 1,519 Accrued severance expenses as of December 31, 2020 included $0.3 million in severance costs related to the departure of our former chief executive officer in August 2020.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	6. INCOME TAXES The components of net loss (income) are as follows (amounts in thousands): Year Ended December 31, 2020 2019 U.S. $ 12,362 $ 7,980 Non-U.S. 1,768 1,801 $ 14,130 $ 9,781 A reconciliation of the income tax provision computed at statutory rates to the reported income tax provision is as follows (amounts in thousands): Year Ended December 31, 2020 2019 Statutory tax rate 21.00 % 21.00 % Net loss before income taxes $ 14,130 $ 9,781 Expected income tax recovery $ (2,967 ) $ (2,054 ) Increase (decrease) in income tax recovery resulting from: Derivative liability (1 ) (2,964 ) Share based payments 415 949 Other permanent difference (21 ) (213 ) Foreign income taxed at foreign rate (97 ) (99 ) Increase in valuation allowance 2,671 4,381 Income tax expense $ — $ — The significant components of the Company’s deferred income tax assets and liabilities after applying enacted corporate tax rates are as follows (amounts in thousands): As of December 31, 2020 2019 Deferred income tax assets (liabilities) Operating losses carried forward $ 24,576 $ 21,318 Tax credits 882 679 Stock compensation 1,616 1,496 Other 1,099 1,293 Valuation allowance (28,173 ) (24,786 ) Net deferred income tax asset $ — $ — As of December 31, 2020, the Company has accumulated non-capital losses totaling $5.2 million in Canada and net operating losses of $85.9 million in the United States, which may be available to carry forward and offset future years’ taxable income. The losses expire in various amounts starting in 2033. Under the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), the net operating loss carryforwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. Net operating loss carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50 percent, as defined under Section 382 of the Code, as well as similar state provisions. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. Uncertain Tax Positions The Company has adopted certain provisions of ASC 740, “Income Taxes”, which prescribes a recognition threshold and measurement attribute for the recognition and measurement of tax positions taken or expected to be taken in income tax returns. The provisions also provide guidance on the de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions. The Company files income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. The Company’s tax returns are subject to tax examinations by U.S. federal and state tax authorities, or examinations by foreign tax authorities until the expiration of the respective statutes of limitation. The Company currently has no tax years under examination. As of December 31, 2020, the Company does not have an accrual relating to uncertain tax positions. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. COMMITMENTS AND CONTINGENCIES (a) On January 22, 2013, the Company entered into a license agreement with Advanced NeuroRehabilitation, LLC (“ANR”) for an exclusive right on ANR’s patent pending technology, claims and knowhow. In addition to the issuance of 91,628 shares of common stock to ANR, the Company agreed to pay a 4% royalty on net revenue on the sales of devices covered by the patent-pending technology and services related to the therapy or use of devices covered by the patent-pending technology. For the years ended December 31, 2020 and 2019, the Company recorded approximately $22 thousand and $59 thousand, respectively, in royalty expenses in its consolidated statement of operations. (b) On October 30, 2017, HMI amended the Asset Purchase Agreement with A&B (HK) Company Ltd. (“A&B”) which specified that if the Company fails to obtain FDA marketing authorization for commercialization of or otherwise fails to ensure that the PoNS device is available for purchase by the U.S. Government by December 31, 2021, the Company would be subject to a $2.0 million contract penalty payable to A&B, unless the Company receives an exemption for the requirement of FDA marketing authorization from the U.S. Army Medical Material Agency. In December 2018, the U.S. Army notified the Company that they were amending the Agreement such that the satisfaction of the obligation of the contract was changed from FDA marketing authorization of the PoNS device to submitting of an application for marketing authorization of the PoNS device with the FDA. As the Company submitted its application for marketing authorization of the PoNS device to the FDA on August 31, 2018, and with copies of the submission documents provided to the U.S. Army, the Company has met its obligation under the amended agreement. Based on this amendment the Company has determined that the possibility of a payment under this contractual penalty is remote. ( c ) In March 2017, the Company entered into a lease for office space in Newtown, Pennsylvania. The initial term of the lease was from July 1, 2017 through December 31, 2022, with an option to extend until 2027. In July 2017, the Company amended the contract to commence the lease on July 17, 2017 through January 16, 2023, with an option to extend until January 2028. Lease extension options were not included in the lease term as it was not reasonably certain that the Company would elect to utilize the option to extend. Monthly rent plus utilities were approximately $20 thousand per month beginning in January 2018 with a 3% annual increase. In May 2020, the Company terminated its lease and entered into a new lease (the “Lease Amendment”) for a smaller footprint of the current office space in Newtown, Pennsylvania. Lease payments under the original contract will be made through December 2020. The Lease Amendment was determined to be a partial termination that qualified as a change of accounting of the existing lease and not a separate contract. As such, the ROU assets and operating lease liabilities were remeasured using an incremental borrowing rate at the date of modification. The carrying value of the ROU asset decreased on a basis proportionate to the partial termination by approximately $0.4 million and the related lease liability decreased by approximately $0.4 million. The Company recorded a gain of approximately $0.1 million resulting from the difference between the reduction in the lease liability and the proportionate reduction of the ROU asset. This amount is recorded as a component of other income in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2020. The initial lease term of the Lease Amendment is from The following table summarizes the Company’s operating lease information including future minimum lease payments under a non-cancellable lease (amounts in thousands): For the Year Ending December 31, 2020 2019 Operating lease cost $ 107 $ 224 Operating lease - operating cash flows $ 253 $ 246 Weighted average remaining lease term 1.50 years 3.05 years Weighted average discount rate 7.2 % 15.1 % Future minimum lease payments under non-cancellable lease as of December 31, 2020 were as follows: For the Period Ending December 31, 2021 $ 63 2022 32 Total future minimum lease payments 95 Less imputed interest (4 ) Total liability $ 91 Reported as of December 31, 2020 2019 Current operating lease liability 59 172 Non-current operating lease liability 32 465 Total $ 91 $ 637 ( d ) On December 29, 2017, HMI (formerly known as NeuroHabilitation Corporation) entered into a Manufacturing and Supply Agreement (“MSA”) with Key Tronic Corporation (“Key Tronic”), for the manufacture and supply of the Company’s PoNS device based upon the Company’s product specifications as set forth in the MSA. Per the agreement, the Company shall provide to Key Tronic a rolling forecast for the procurement of parts and material and within normal lead times based on estimated delivery dates for the manufacture of the PoNS device. The term of the agreement is for three years and the agreement will automatically renew for additional consecutive terms of one year, unless cancelled by either party upon 180-day written notice to the other party prior to the end of the then current term. On June 1, 2020, HMI extended the existing manufacturing agreement with Key Tronic for a second three year term from December 29, 2020 until December 31, 2023. As of December 31, 2020, the Company did not have any outstanding commitments to Key Tronic to complete the Company’s forecast for the procurement of materials necessary for the delivery of PoNS devices. ( e ) The Company was granted a $323 thousand loan on April 13, 2020 under the Paycheck Protection Program (the “PPP Loan”) established under the CARES Act. The Company planned to use the proceeds from the PPP Loan for covered payroll costs, rent and utilities in accordance with the relevant terms and conditions of the CARES Act. However, based upon subsequent guidance issued by the Federal Government, including a presumption that publicly traded companies may not be eligible for a PPP loan, the Company returned the PPP Loan proceeds in May 2020 and paid interest for the period of time the loan was outstanding.

Variable Interest Entities

Variable Interest Entities	12 Months Ended
	Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Variable Interest Entities	8. VARIABLE INTEREST ENTITIES ASC 810 • the power to direct the activities that most significantly impact the economic performance of the VIE; and • the right to receive benefits from, or the obligation to absorb losses of the VIE that could be potentially significant to the VIE. The Company regularly assesses its relationships with contractual third party and other entities for potential VIE’s. In making this assessment, the Company considers the potential that its contracts or other arrangements provide subordinated financial support, absorb losses or rights to residual returns of the entity and the ability to directly or indirectly make decisions about the entity’s activities. If the Company determines that it is the primary beneficiary of a VIE, the Company consolidates the statements of operations and financial condition of the VIE into its consolidated financial statements. Prior to the acquisition of Heuro on October 30, 2019 (see Note 2), the Company utilized the consolidation guidance under ASC 810 to determine whether Heuro was a VIE, and if so, whether the Company was the primary beneficiary of Heuro. Prior to the aforementioned acquisition, the Company had concluded that Heuro was a VIE based on the fact that the equity investment at risk in Heuro was not sufficient. The Company’s variable interests in Heuro arose from a profit sharing arrangement with Heuro. In determining whether the Company was the primary beneficiary and whether the Company had the right to receive benefits and the obligation to absorb losses that could potentially be significant to the VIE, the Company evaluated its economic interest in Heuro. This evaluation considered all relevant factors of Heuro’s structure, including its capital structure, contractual rights to earnings (losses) as well as other contractual arrangements that had the potential to be economically significant. Following the guidance in ASC 810, although the Company had the obligation to absorb losses prior to October 30, 2019, the Company concluded that it was not the primary beneficiary, as it did not have the power to direct the activities that most significantly affected the economic performance of Heuro. The significant economic activities identified were financing activities, research and development activities, commercialization activities, supply and distribution activities, business strategy activities and clinic expansion activities. The evaluation of each of these factors in reaching a conclusion about the potential significance of the Company’s economic interests and control was a matter that required the exercise of professional judgement. Accordingly, prior to October 30, 2019, the Company did not consolidate Heuro in its consolidated financial statements nor did the Company have any carrying amounts for assets and liabilities relating to the variable interest in the VIE. Upon completion of the acquisition of Heuro on October 30, 2019, the Company consolidates Heuro’s results in its consolidated financial statements.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	9 . RELATED PARTY TRANSACTIONS For the years ended December 31, 2020 and 2019, the Company paid approximately $5 thousand and $27 thousand, respectively, in consulting fees to a director of the Company. As of December 31, 2020, the Company did not have an accrued liability for consulting fees to a director of the Company. The Company’s Chief Financial Officer/Chief Operating Officer and affiliates of the Company’s Interim Chief Executive Officer subscribed for units in the Company’s October 2020 Offering.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	10 . SUBSEQUENT EVENTS In January 2021, 81,633 warrants issued in conjunction with the March 2020 Offering were exercised at an exercise price of $16.10 per share for gross proceeds of $1.3 million. On February 1, 2021, in an underwritten public offering (the “Public Offering”), the Company issued 744,936 shares of common stock and warrants to purchase up to an aggregate of 372,468 shares of common stock at a purchase price of $14.82 per unit, consisting of one share and a warrant to purchase 0.50 shares of common stock. The warrants have an initial exercise price of $16.302 per share and are exercisable for a period of five years from the date of issuance. The Company also issued warrants to the underwriter to purchase 29,797 shares of common stock, with an exercise price of $18.525 per share. Net proceeds from the Public Offering after underwriter’s discounts and commission and offering expenses paid by us were approximately $9.6 million. Affiliates of the Company’s Interim Chief Executive Officer participated in the Public Offering on the same terms and conditions as all other purchasers.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Reverse Stock Split	Reverse Stock Split Effective after the close of business on December 31, 2020, the Company completed a 1-for-35 reverse stock split of its common stock. All share and per share amounts in this Annual Report have been reflected on a post-split basis.
Going Concern Uncertainty	Going Concern Uncertainty As of December 31, 2020, the Company had cash of $3.3 million. For the year ended December 31, 2020, the Company incurred a net loss of $14.1 million and, as of December 31, 2020, its accumulated deficit was $118.9 million. For the year ended December 31, 2020, the Company had $0.7 million of revenue from the commercial sale of products or services. The Company expects to continue to incur operating losses and net cash outflows until 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 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 on hand, cash received from the sale of its PoNS device in Canada and by raising additional capital through equity or debt financings. As discussed further in Note 10, in January 2021, the Company received $1.3 million in net proceeds from the exercise of warrants issued in the March 2020 registered direct offering and on February 1, 2021, closed a public offering and received net proceeds of approximately $9.6 million. There can be no assurance that the Company will be successful in raising that 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 and planned capital expenditures.
Risks and Uncertainties	Risks and Uncertainties COVID-19 On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a global pandemic, which continues to spread throughout the United States and around the world. The Company’s business, results of operations and financial condition have been and may continue to be adversely impacted by the COVID-19 pandemic and global economic conditions. The outbreak and spread of COVID-19 has significantly increased economic uncertainty. Authorities implemented numerous measures to try to contain COVID-19, such as travel bans and restrictions, quarantines, shelter in place orders, and business shutdowns. The COVID-19 pandemic initially led to the closure of PoNS Authorized clinic locations across Canada. While all clinics have re-opened, they are all currently operating at reduced capacity, and patients have been and may continue to be less willing to return to these clinics, impacting our commercial activities and our customer engagement efforts. Moreover, the Company’s ability to conduct its ongoing clinical experience programs in Canada has been and may continue to be impaired due to trial participants’ attendance being adversely affected by COVID-19, leading to further delays in the development and approval of the Company’s product candidate. In addition, the COVID-19 pandemic has and may continue to cause delays in the Company’s suppliers’ ability to ship materials that the Company relies upon, and disruptions in business or governmental operations due to COVID-19 may delay the timing for the submission and approval of the Company’s marketing applications with regulatory agencies. Further, the economic impact of the COVID-19 pandemic could affect the Company’s ability to access the public markets and obtain necessary capital in order to properly capitalize and continue its operations. The extent to which the COVID-19 pandemic will continue to impact the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted. The Company does not know yet the full extent of the impact of COVID-19 on its future business, operations or the global economy as a whole. Nasdaq Delisting On March 23, 2020, the Company received notice from the Staff of Nasdaq that the bid price for the Company’s common stock had closed below $1.00 per share for the prior 30 consecutive business day period and that the Company had been granted a 180-day grace period, through September 21, 2020, to regain compliance with Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). Thereafter, on April 17, 2020, the Company received an additional notice from the Staff indicating that Nasdaq had temporarily stayed enforcement of the Minimum Bid Price Rule through June 30, 2020, and accordingly, the 180-day grace period applicable to the Company would not expire until December 3, 2020. On December 4, 2020, the Company received notice from the Staff indicating that the Company was not eligible for an additional 180-day extension to meet the Minimum Bid Price Rule. As a result, the Staff determined that the Company’s securities would be subject to delisting unless the Company timely requested a hearing before the Panel. The Company timely submitted a request for a hearing before the Panel, which request stayed any suspension or delisting action by Nasdaq at least until the hearing process concluded and any extension granted by the Panel expired. On January 15, 2021, the Company received notice from the Staff that the bid price deficiency of the Company had been cured, and that the Company was in compliance with all applicable listing standards, and so the scheduled hearing before the Panel was cancelled.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s reporting currency is the U.S. Dollar (“USD$”).
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and disclosure of contingent assets and liabilities. Significant estimates include the assumptions used in the valuation of the fair value-pricing model for stock-based compensation, derivative financial instruments and deferred income tax asset valuation allowance. Financial statements include estimates, which, by their nature, are uncertain. Actual results could differ from those estimates.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements reflect the operations of Helius Medical Technologies, Inc. and its wholly owned subsidiaries. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist through arrangements that do not involve controlling voting interests. As such, the Company applies the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 Consolidation ,
Concentrations of Credit Risk	Concentrations of Credit Risk The Company is subject to credit risk with respect to its cash. Amounts invested in such instruments are limited by credit rating, maturity, industry group, investment type and issuer. The Company is not currently exposed to any significant concentrations of credit risk from these financial instruments. The Company seeks to maintain safety and preservation of principal and diversification of risk, liquidity of investments sufficient to meet cash flow requirements and a competitive after-tax rate of return.
Receivables	Receivables Accounts receivables are stated at their net realizable value. In determining the appropriate allowance for doubtful accounts, the Company considers a combination of factors, such as the aging of trade receivables, its customers’ financial strength, and payment history. Changes in these factors, among others, may lead to adjustments in the Company’s allowance for doubtful accounts. The calculation of the allowance requires judgment by Company management. As of December 31, 2020, the Company’s accounts receivable of $0.1 million, is net of an allowance for doubtful accounts of $0.4 million and is the result of revenue from product sales. As of December 31, 2019, the Company’s accounts receivable of $0.2 million, is net of an allowance for doubtful accounts of $0.2 million and is the result of revenue from product sales. Other receivables included Goods and Services Tax (“GST”), Quebec Sales Tax (“QST”) refunds related to the Company’s Canadian expenditures of $0.1 million, and receivable from rent deposits of $18 thousand and refunds from research and development (“R&D”) tax credits of $1 thousand as of December 31, 2020. Other receivables included refunds from R&D tax credits of $0.2 million and GST and QST refunds related to the Company’s Canadian expenditures of $0.1 million as of December 31, 2019.
Inventory	Inventory The Company’s inventory consists of raw materials, work in progress and finished goods of the PoNS device. Inventory is stated at the lower of cost (average cost method) or net realizable value. Adjustments to reduce the cost of inventory to its net realizable value are made if required. The Company calculates provisions for excess inventory based on inventory on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period. There can be no assurance that the amount ultimately realized for inventories will not be materially different than that assumed in the calculation of the reserves. Inventory markdowns to net realizable value of $205 thousand were recorded during the year ended December 31, 2020. Inventory markdowns to net realizable value of $50 thousand were recorded during the year ended December 31, 2019. As of December 31, 2020 and 2019, inventory consisted of the following (amounts in thousands): As of As of December 31, 2020 December 31, 2019 Raw materials $ 160 $ 144 Work-in-process 440 375 Finished goods 44 129 Inventory $ 644 $ 648 Inventory reserve (255 ) (50 ) Total inventory, net of reserve $ 389 $ 598
Property and Equipment	Property and Equipment Property and equipment are carried at cost, less accumulated depreciation. Depreciation is recognized using the straight-line method over the useful lives of the related asset or the term of the related lease. Expenditures for maintenance and repairs, which do not improve or extend the expected useful life of the assets, are expensed to operations while major repairs are capitalized. The estimated useful life of its leasehold improvements is over the shorter of its lease term or useful life of 5 years, the estimated useful life of furniture and fixtures is 7 years; equipment has an estimated useful life of 15 years and computer software and hardware has an estimated useful life of 3 to 5 years. The following tables summarizes the Company’s property and equipment as of December 31, 2020 and 2019 (amounts in thousands): As of December 31, 2020 2019 Leasehold improvement $ 64 $ 182 Furniture and fixtures 93 247 Equipment 335 286 Computer hardware and software 197 182 Property and equipment 689 897 Less accumulated depreciation (203 ) (185 ) Property and equipment, net $ 486 $ 712 Depreciation expense was $119 thousand and $127 thousand for the years ended December 31, 2020 and 2019, respectively. During 2019, the Company wrote-off $17 thousand of fully depreciated software. During the second quarter of 2020, the Company sold furniture and fixtures with a net book value of $118 thousand for $61 thousand. Additionally, the Company abandoned leasehold improvements with a net book value of $53 thousand. The loss on the disposal of the furniture and fixtures and leasehold improvements of $110 thousand was recorded as selling, general and administrative expense in the consolidated statements of operations and comprehensive loss.
Business Combinations	Business Combinations Transactions in which the Company obtains control of a business are accounted for according to the acquisition method as described in FASB ASC 805 – Business Combinations. The assets acquired and liabilities assumed are recognized and measured at their fair values as of the date control is obtained. Acquisition related costs in connection with a business combination are expensed as incurred. Contingent consideration is recognized and measured at fair value at the acquisition date and until paid re-measured on a recurring basis. It is classified as a liability based on appropriate GAAP. On October 30, 2019, the Company and HTC entered into a Share Purchase Agreement (the “SPA”) whereby the Company, through its wholly owned subsidiary, acquired Heuro from HTC. Under the terms of the SPA, total consideration of approximately CAD$2.1 million (USD$1.6 million) was transferred to HTC, which included (1) cash of CAD$0.5 million (USD$0.4 million), (2) delivery of 55 PoNS devices for which the fair value was determined to be CAD$0.5 million (USD$0.4 million), (3) the forgiveness of the CAD$750 thousand (USD$0.5 million) receivable from the September 2018 strategic alliance agreement and (4) the exclusivity rights granted to HTC in the Co-Promotion Agreement (as defined below) to provide PoNS Treatment in the Fraser Valley and Vancouver metro regions of British Columbia with a determined fair value of CAD$0.4 million (USD$0.3 million). The transaction has been accounted for as a business combination. The operating results of Heuro have been included in the consolidated statement of operations and comprehensive loss since the date of the acquisition. The acquisition related costs were $0.1 million and were accounted for as selling, general and administrative expenses in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2019. Supplemental proforma financial information has not been presented here because the proforma effects of this acquisition are not material to the Company’s reported results for any period presented. The following table summarizes the recognized fair values of identifiable assets acquired and liabilities assumed as of October 30, 2019: October 30, 2019 Assets: Fair Value Cash and cash equivalents $ 1 Other receivables 19 Fixed assets 7 Intangibles 1,053 Goodwill 737 Total assets $ 1,817 Liabilities: Accounts payable 186 Other current liabilities 9 Total liabilities $ 195 Net assets acquired $ 1,622 The fair values assigned to identifiable intangible assets assumed were based on management’s estimates and assumptions as of such date and are considered finalized. The Company recorded measurement adjustments of $0.4 million during the year ended December 31, 2020, all of which was recorded during the first quarter of 2020. The recorded adjustments related to the recognition of reacquired exclusivity rights. Acquired intangibles consisted of customer relationships, proprietary technology and reacquired rights. The useful life at acquisition was 1.25 years, 5 years and 3.87 years, respectively, and the acquired intangibles are amortized using the straight-line method. Factors considered by the Company in determination of goodwill include synergies, strategic fit and other benefits that do not meet the recognition criteria of acquired identifiable intangible assets. The recognized goodwill of $0.7 million is not expected to be deductible for tax purposes. The fair value of 55 PoNS devices which the Company agreed to transfer to HTC pursuant to the SPA in the amount of CAD$0.5 million will be recognized as revenue within the consolidated statements of operations and comprehensive loss once control has been transferred in accordance with ASC 606. As of December 31, 2019, the control had not been transferred resulting in the fair value being recorded as deferred revenue on the consolidated balance sheet. As of December 31, 2020, the control of 21 devices had been transferred resulting in recognition of revenue for these devices. The fair value of the remaining 34 devices is still recorded as deferred revenue on the consolidated balance sheet. In connection with the SPA, on October 30, 2019, the Company entered into a Clinical Research and Co-Promotion Agreement with HTC (the “Co-Promotion Agreement”), whereby each company will promote the sales of the PoNS Treatment and the NeuroCatch TM
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over the fair values underlying net assets acquired in an acquisition. All of the Company’s goodwill as of December 31, 2020 is the result of the Heuro acquisition discussed above. Goodwill is not amortized, but rather will be tested annually for impairment or more frequently if events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company will test goodwill for impairment annually in the fourth quarter of each year using data as of October 1 of that year. Goodwill is allocated to, and evaluated for impairment at the Company’s one identified reporting unit. Goodwill is tested for impairment by either performing a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. The Company may elect not to perform the qualitative assessment for its reporting unit and perform the quantitative impairment test. The quantitative goodwill impairment test requires the Company to compare the carrying value of the reporting unit’s net assets to the estimated fair value of the reporting unit. If the estimated fair value exceeds the carrying value, no further evaluation is required, and no impairment loss is recognized. If the carrying amount of a reporting unit, including goodwill, exceeds the estimated fair value, the excess of the carrying value over the estimated fair value is recorded as an impairment loss, the amount of which is not to exceed the total amount of goodwill allocated to the reporting unit. The Company’s methodology for estimating the fair value of our reporting unit utilizes the income approach. The income approach is based on the Discounted Cash Flow (“DCF”) method, which is based on the present value of future cash flows. The principal assumptions utilized in the DCF methodology include long-term growth rates, operating margins, discount rates and future economic and market conditions. There can be no assurance that the Company’s estimates and assumptions regarding forecasted cash flow, long-term growth rates and operating margins made for purposes of the annual goodwill impairment test will prove to be accurate predictions of the future. The COVID-19 pandemic and its continuing impact was considered a triggering event for testing whether goodwill is impaired. The Company performed quantitative assessments at March 31, 2020, June 30, 2020 and September 30, 2020. As a result of these assessments, the Company determined that the estimated fair value of the reporting unit exceeded the carrying value of the reporting unit. Therefore, the Company concluded that goodwill was not impaired as of any of the aforementioned periods. The Company will continue to monitor the impacts of the COVID-19 pandemic in future periods. Based on the Company’s most recent annual impairment analysis as of October 1, 2020, the fair value of the Company’s reporting unit exceeded the carrying value, and therefore no indicators of impairment existed for the reporting unit. The following is a summary of the activity for the years ended December 31, 2020 and December 31, 2019 for goodwill: Carrying amount at December 31, 2018 $ — Business acquisition 1,226 Foreign currency translation 16 Carrying amount at December 31, 2019 $ 1,242 Business acquisition fair value allocation adjustment (503 ) Foreign currency translation 20 Carrying amount at December 31, 2020 $ 759 Definite-lived intangibles consist principally of acquired customer relationships, proprietary software and reacquired rights as well as internally developed software. All are amortized straight-line over their estimated useful lives. Amortization expense related to intangible assets was $0.4 million and $0.1 million during the year ended December 31, 2020 and the year ended December 31, 2019, respectively. During the year ended December 31, 2020, the Company incurred an intangible asset impairment loss of $0.2 million related to the customer relationships, all of which was incurred during the first quarter of 2020, which is included in selling, general and administrative expenses in the accompanying consolidated statement of operations and comprehensive loss. Intangible assets as of December 31, 2020 and December 31, 2019 consist of the following: As of December 31, 2020 As of December 31, 2019 Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 1.25 years $ 237 $ (228 ) $ 423 $ (55 ) Acquired proprietary software 5 years 150 (35 ) 148 (5 ) Reacquired rights 3.87 years 503 (152 ) — — Internally developed software 3 years 82 (30 ) 75 (4 ) Total intangible assets $ 972 $ (445 ) $ 646 $ (64 ) Amortization expense is anticipated to be as follows in future years: For the Year Ending December 31, 2021 $ 197 2022 183 2023 122 2024 25 $ 527
Internally Developed Software Costs	Internally Developed Software Costs The Company follows ASC 350-40, Accounting for the Costs of Computer Software Developed or Obtained for Internal Use, in accounting for its internally developed software costs. Costs incurred during the preliminary project work stage or conceptual stage, such as determining the performance requirements, system requirements and data conversion, are expensed as incurred. Costs incurred in the application development phase, such as coding, testing for new software and upgrades that result in additional functionality, are capitalized and are amortized using the straight-line method over the useful life of the software, which was determined to be three years. Amortization of these capitalized costs commences when the software becomes ready for its intended use. Costs incurred during the post-implementation stage, such as maintenance and application training, are expensed as incurred.
Leases	Leases On January 1, 2019, the Company adopted ASU No. 2016-02, Leases The Company does not record an operating lease ROU asset and corresponding lease liability for leases with an expected term of twelve months or less and recognizes lease expense for these leases as incurred over the lease term. The Company had only one operating lease, which was for its headquarters office in Newtown, Pennsylvania upon the adoption date. As of December 31, 2020, the Company has not entered into any additional lease arrangements, but did modify the existing lease arrangement.
Foreign Currency	Foreign Currency The Company’s functional currency is the U.S. dollar. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates in effect at the balance sheet date. Opening balances related to non-monetary assets and liabilities are based on prior period translated amounts, and non-monetary assets acquired, and non-monetary liabilities incurred after April 1, 2018 are translated at the approximate exchange rate prevailing at the date of the transaction. Revenue and expense transactions are translated at the approximate exchange rate in effect at the time of the transaction. Foreign exchange gains and losses are included in the consolidated statement of operations and comprehensive loss as foreign exchange gain (loss). The functional currency of HMC and HCA, the Company’s Canadian subsidiaries, is the CAD$ and the functional currency of HMI and HNR is the USD$. Transactions in foreign currencies are recorded into the functional currency of the relevant subsidiary at the exchange rate in effect at the date of the transaction. Any monetary assets and liabilities arising from these transactions are translated into the functional currency at exchange rates in effect at the balance sheet date or on settlement. Revenues, expenses and cash flows are translated at the weighted-average rates of exchanges for the reporting period. The resulting currency translation adjustments are not included in the Company’s consolidated statements of operations and comprehensive loss for the reporting period, but rather are accumulated and gains and losses are recorded in foreign exchange gain (loss), as a component of comprehensive loss, within the consolidated statements of operations and comprehensive loss.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for all stock-based payments and awards under the fair value-based method. The Company recognizes its stock-based compensation expense using the straight-line method. Compensation cost is not adjusted for estimated forfeitures, but instead is adjusted upon an actual forfeiture of a stock option. The Company accounts for the granting of stock options to employees and non-employees using the fair value method whereby all awards are measured at fair value on the date of the grant. The fair value of all employee stock options is expensed over the requisite service period with a corresponding increase to additional paid-in capital. Upon exercise of stock options, the consideration paid by the option holder is recorded in additional paid-in capital, while the par value of the shares received is reclassified from additional paid in capital to common stock. Stock options granted to employees are accounted for as liabilities when they contain conditions or other features that are indexed to other than a market, performance or service condition. In accordance with ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting The Company uses the Black-Scholes option-pricing model to calculate the fair value of stock options. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected term of the option, risk-free interest rates, the value of the common stock and expected dividend yield of the common stock. Changes in these assumptions can materially affect the fair value estimate. Awards of options that provide for an exercise price that is not denominated in: (a) the currency of a market in which a substantial portion of the Company's equity securities trades in, (b) the currency in which the employee's pay is denominated, or (c) the Company's functional currency, are required to be classified as liabilities.
Revenue Recognition	Revenue Recognition In accordance with FASB’s ASC 606, Revenue from Contracts with Customers (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company applies the five-step model to contracts when it determines that it is probable it will collect substantially all of the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price, after consideration of variability and constraints, if any, that is allocated to the respective performance obligation when the performance obligation is satisfied. Product Sales, net During the first half of 2019, product sales were derived from the sale of the PoNS device and certain support services including services from the use of the NeuroCatch TM Fee Revenue During the first half of 2019, the Company’s agreement with HTC and Heuro also entitled the Company to 50% of the franchise fees collected by Heuro from each franchise agreement Heuro executed with neuroplasticity clinics engaged in providing the PoNS Treatment. There were 3 franchise agreements entered into for the year ended December 31, 2019, all of which occurred in the first half of the year. For the year ended December 31, 2019, the Company recognized $37 thousand as its 50% portion of the franchise fees. This arrangement ended upon the acquisition of Heuro in October 2019. During the first half of 2020, the Company earned fee revenue of $9 thousand for engaging new neuroplasticity clinics to provide the PoNS Treatment, before terminating these agreements in the second quarter of 2020. License Revenue As described above, the Company modified its arrangement with HTC on October 30, 2019. License revenue is recognized ratably over the ten-year term as the performance obligation is met in connection with the Co-Promotion Agreement. During the fourth quarter of 2019, the Company recognized revenues of $5 thousand in license fees associated with the Co-Promotion Agreement. For the year ended December 31, 2020, the Company recognized revenues of $27 thousand in license fees associated with the Co-Promotion Agreement. Revenue not yet recognized of $0.2 million is recorded as deferred revenue on the consolidated balance sheet. As of December 31, 2020, the Company had recorded $0.1 million in current receivables, net and had no contract assets or liabilities on its consolidated balance sheets related to the supply agreements with each clinic. As of December 31, 2019, the Company has recorded $0.2 million in current receivables, net and had no contract assets or liabilities on its consolidated balance sheets related to the supply agreements with each clinic.
Cost of Sales	Cost of Sales Cost of product sales includes the cost to manufacture the PoNS device, royalty expenses, freight charges, customs duties, wages and salaries of employees involved in the management of the supply chain and logistics of fulfilling the Company’s sales orders. During 2019, until the acquisition of Heuro on October 30, 2019, cost of sales also included certain support services provided by Heuro on the Company’s behalf.
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method. The asset and liability method provide that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. The Company has adopted the provisions of ASC 740 Income Taxes On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. The Company continues to examine the impact that the CARES Act may have on its business. Currently, the Company does not believe the CARES Act will have a material impact on its accounting for income taxes.
Research and Development Expenses	Research and Development Expenses Research and development (“R&D”) expenses consist primarily of personnel costs, including salaries, benefits and stock-based compensation, clinical studies performed by contract research organizations, development and manufacturing of clinical trial devices and devices for manufacturing testing and materials and supplies as well as regulatory costs related to post market surveillance, quality assurance complaint handling and adverse event reporting. R&D costs are charged to operations when they are incurred.
Segment Information	Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company operates and manages its business within one operating and reportable segment. Accordingly, the Company reports the accompanying consolidated financial statements in the aggregate in one reportable segment.
Derivative Financial Instruments	Derivative Financial Instruments The Company evaluates its financial instruments and other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815, Derivatives and Hedging The classification of derivative financial instruments, including whether such instruments should be recorded as liabilities/assets or as equity, is reassessed at the end of each reporting period. Derivative financial instruments that become subject to reclassification are reclassified at the fair value of the instrument on the reclassification date. Derivative financial instruments will be classified in the consolidated balance sheet as current if the right to exercise or settle the derivative financial instrument lies with the holder.
Fair Value Measurements	Fair Value Measurements The Company accounts for financial instruments in accordance with ASC 820, Fair Value Measurements and Disclosures Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 – Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The Company’s financial instruments recorded in its consolidated balance sheets consist primarily of cash, accounts receivable, other current receivables, operating lease ROU asset, accounts payable, accrued liabilities, operating lease liability and derivative financial instruments. The book values of these instruments, with the exception of derivative financial instruments, non-current lease liability, operating lease ROU asset and non-current receivables, approximate their fair values due to the immediate or short-term nature of these instruments. The Company’s derivative financial instruments are classified as Level 3 within the fair value hierarchy and required to be recorded at fair value on a recurring basis. Unobservable inputs used in the valuation of these financial instruments include volatility of the underlying share price and the expected term. See Note 3 for the inputs used in the Black-Scholes option-pricing model as of December 31, 2020 and 2019 and the roll forward of the derivative financial instruments. The Company’s derivative financial instruments are comprised of warrants which are classified as liabilities. Fair Value Level 1 Level 2 Level 3 December 31, 2020 Liabilities: Derivative financial instruments $ — $ — $ — $ — December 31, 2019 Liabilities: Derivative financial instruments $ 5 $ — $ — $ 5 There were no transfers between any of the levels during the years ended December 31, 2020 and 2019. In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company's assets and liabilities are also subject to nonrecurring fair value measurements. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. Due to the COVID-19 pandemic and the related risks and uncertainties, the Company’s customer relationship intangible asset incurred an impairment loss during the year ended December 31, 2020 of $0.2 million, all of which was recorded during the first quarter of 2020, and has a remaining net book value of $9 thousand as of December 31, 2020. The fair value of this intangible asset was determined based on Level 3 measurements within the fair value hierarchy. Inputs to these fair value measurements included estimates of the amount and timing of the asset’s net future discounted cash flows based on historical data, current trends and market conditions.
Basic and Diluted Net Income (Loss) per Share	Basic and Diluted Net Income (Loss) per Share Earnings or loss per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) by the weighted average of all potentially dilutive shares of common stock that were outstanding during the periods presented. The treasury stock method is used in calculating diluted EPS for potentially dilutive stock options and share purchase warrants, which assumes that any proceeds received from the exercise of in-the-money stock options and share purchase warrants, would be used to purchase common shares at the average market price for the period, unless including the effects of these potentially dilutive securities would be anti-dilutive. The basic and diluted loss per share for the periods noted below is as follows (amounts in thousands, except for share and per share amounts): For the Year Ended December 31, 2020 2019 Basic and Diluted Numerator Net loss $ (14,130 ) $ (9,781 ) Denominator Weighted-average common shares outstanding - basic and diluted 1,197,774 752,932 Basic and diluted net loss per share $ (11.80 ) $ (12.99 ) No incremental common stock equivalents, consisting of outstanding stock options, warrants and restricted stock units, were included in calculating diluted loss per share because such inclusion would be anti-dilutive given the net loss reported for the years ended December 31, 2020 and 2019. Dilutive common stock equivalents excluded from the computation of diluted weighted average shares outstanding were 455,631 and 186,764 for the years ended December 31, 2020 and 2019, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement This ASU is effective for interim and annual reporting periods beginning after In November 2018, FASB issued ASU 2018-18, C ollaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606, the adoption did not have a material impact on the Company’s consolidated financial statements In August 2020, FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Schedule of Inventory	As of December 31, 2020 and 2019, inventory consisted of the following (amounts in thousands): As of As of December 31, 2020 December 31, 2019 Raw materials $ 160 $ 144 Work-in-process 440 375 Finished goods 44 129 Inventory $ 644 $ 648 Inventory reserve (255 ) (50 ) Total inventory, net of reserve $ 389 $ 598
Summary of Property and Equipment	The following tables summarizes the Company’s property and equipment as of December 31, 2020 and 2019 (amounts in thousands): As of December 31, 2020 2019 Leasehold improvement $ 64 $ 182 Furniture and fixtures 93 247 Equipment 335 286 Computer hardware and software 197 182 Property and equipment 689 897 Less accumulated depreciation (203 ) (185 ) Property and equipment, net $ 486 $ 712
Summary of Recognized Fair Values of Identifiable Assets Acquired and Liabilities Assumed	The following table summarizes the recognized fair values of identifiable assets acquired and liabilities assumed as of October 30, 2019: October 30, 2019 Assets: Fair Value Cash and cash equivalents $ 1 Other receivables 19 Fixed assets 7 Intangibles 1,053 Goodwill 737 Total assets $ 1,817 Liabilities: Accounts payable 186 Other current liabilities 9 Total liabilities $ 195 Net assets acquired $ 1,622
Summary of Activity for Goodwill	The following is a summary of the activity for the years ended December 31, 2020 and December 31, 2019 for goodwill: Carrying amount at December 31, 2018 $ — Business acquisition 1,226 Foreign currency translation 16 Carrying amount at December 31, 2019 $ 1,242 Business acquisition fair value allocation adjustment (503 ) Foreign currency translation 20 Carrying amount at December 31, 2020 $ 759
Summary of Intangible Assets	Intangible assets as of December 31, 2020 and December 31, 2019 consist of the following: As of December 31, 2020 As of December 31, 2019 Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 1.25 years $ 237 $ (228 ) $ 423 $ (55 ) Acquired proprietary software 5 years 150 (35 ) 148 (5 ) Reacquired rights 3.87 years 503 (152 ) — — Internally developed software 3 years 82 (30 ) 75 (4 ) Total intangible assets $ 972 $ (445 ) $ 646 $ (64 )
Summary of Anticipated Amortization Expense	Amortization expense is anticipated to be as follows in future years: For the Year Ending December 31, 2021 $ 197 2022 183 2023 122 2024 25 $ 527
Summary of Derivative Financial Instruments and Stock-Based Compensation Liability for Non-employee Stock Options	Fair Value Level 1 Level 2 Level 3 December 31, 2020 Liabilities: Derivative financial instruments $ — $ — $ — $ — December 31, 2019 Liabilities: Derivative financial instruments $ 5 $ — $ — $ 5
Summary of Basic and Diluted Loss per Share	The basic and diluted loss per share for the periods noted below is as follows (amounts in thousands, except for share and per share amounts): For the Year Ended December 31, 2020 2019 Basic and Diluted Numerator Net loss $ (14,130 ) $ (9,781 ) Denominator Weighted-average common shares outstanding - basic and diluted 1,197,774 752,932 Basic and diluted net loss per share $ (11.80 ) $ (12.99 )

Common Stock and Warrants (Tabl

Common Stock and Warrants (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Weighted Average Assumptions Used in Estimating Fair Value of Warrants	As of December 31, 2020 2019 Stock price CAD $17.15 CAD $43.05 Exercise price CAD $428.75 CAD $428.75 Warrant term 0.27 years 1.28 years Expected volatility 64.48 % 72.43 % Risk-free interest rate 0.06 % 1.72 % Dividend rate 0.00 % 0.00 %
Summary of Warrants Accounted for as Liabilities and Recorded as Derivative Financial Instruments	The following table summarizes the activities of warrants that the Company accounts for as liabilities and records as derivative financial instruments for the years ended December 31, 2020 and 2019 (amounts in thousands): Year Ended December 2020 2019 Fair value of warrants at beginning of year $ 5 $ 13,769 Exercise of warrants — (35 ) Foreign exchange (gains) losses (1 ) 384 Change in fair value of warrants during the year (4 ) (14,113 ) Fair value of warrants at end of year $ — $ 5
Summary of Warrant Activity	The following is a summary of warrant activity during the years ended December 31, 2020 and 2019: Number of Warrants (by currency denomination of exercise price) Weighted-Average Exercise Price CAD$ USD$ CAD$ USD$ Outstanding as of December 31, 2018 95,799 18,607 $ 381.15 $ 428.32 Granted — — — — Cancelled/Expired (26,352 ) — 262.50 — Exercised (1,096 ) — 262.50 — Outstanding as of December 31, 2019 68,351 18,607 $ 428.75 $ 428.32 Granted — 273,554 — 16.04 Cancelled/Expired — (18,607 ) — 428.32 Exercised — — — — Outstanding and exercisable as of December 31, 2020 68,351 273,554 $ 428.75 $ 16.04
Warrants Outstanding and Exercisable	The following table summarizes the Company’s warrants outstanding and exercisable as of December 31, 2020: Number of Warrants Outstanding Exercise Price Expiration Date 68,351 CAD$428.75 April 21, 2021 178,776 US$16.10 March 20, 2025 17,431 US$16.1665 October 26, 2023 76,386 US$15.82 October 26, 2023 961 US$19.775 October 26, 2023 341,905
April 2018 Offering
Summary of Weighted Average Assumptions Used in Estimating Fair Value of Warrants	The following table summarizes the weighted average assumptions used in estimating the fair value of the warrants granted in the April 2018 Offering using the Black-Scholes option pricing model as of the date of the initial closing of the offering and the date of the closing of the over-allotment option, as well as of December 31, 2020. December 31, 2020 April 24, 2018 April 13, 2018 Stock price CAD $17.15 CAD $376.60 CAD $344.75 Exercise price CAD $428.75 CAD $428.75 CAD $428.75 Warrant term 0.27 years 3.00 years 3.00 years Expected volatility 64.48 % 64.49 % 64.20 % Risk-free interest rate 0.06 % 2.02 % 1.99 % Dividend rate 0.00 % 0.00 % 0.00 %
March 2020 Offering
Summary of Weighted Average Assumptions Used in Estimating Fair Value of Warrants	The following table summarizes the weighted average assumptions used in estimating the fair value of the warrants granted in the March 2020 Offering using the Black-Scholes option pricing model as of the date of the closing of the offering on March 20, 2020. March 20, 2020 Stock price $ 12.25 Exercise price $ 16.10 Warrant term 5.50 years Expected volatility 82.41 % Risk-free interest rate 0.52 % Dividend rate 0.00 %
October 2020 Private Placement Offering
Summary of Weighted Average Assumptions Used in Estimating Fair Value of Warrants	The following table summarizes the weighted average assumptions used in estimating the fair value of the warrants granted in the October 2020 Offering using the Black-Scholes option pricing model as of the date of the closing of the offering on October 26, 2020. October 26, 2020 Stock price $ 15.92 Exercise price 15.92 Warrant term 3.00 years Expected volatility 80.91 % Risk-free interest rate 0.18 % Dividend rate 0.00 %

Share Based Payments (Tables)

Share Based Payments (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Stock Option Activity	The following is a summary of stock option activity for the year ended December 31, 2020 and 2019: Weighted Average Remaining Weighted Average Aggregate Contractual Exercise Price Intrinsic Value Number of Options Life (in years) in USD$ in USD$ Outstanding as of December 31, 2018 94,475 5.16 $ 249.87 $ 8,308 Granted 33,337 162.74 Forfeited (13,939 ) 298.55 Exercised (1) (14,855 ) 96.95 Outstanding as of December 31, 2019 99,018 7.78 $ 236.63 $ — Granted 42,988 $ 15.20 Forfeited/Cancelled (28,448 ) 210.57 Exercised — — Outstanding as of December 31, 2020 113,558 7.75 $ 159.33 $ — Exercisable as of December 31, 2020 57,725 6.56 $ 117.90 $ — (1) For the year ended December 31, 2019, 14,855 stock options were exercised on a cashless basis resulting in 13,818 shares being withheld in satisfaction of the exercise price.
Summary of Company's Restricted Stock Unit Activity	The following is a summary of the Company’s RSU activity for the years ended December 31, 2020 and 2019: Number of Restricted Stock Units Weighted Average Grant Date Fair Value per Unit Outstanding as of December 31, 2018 27 CAD$350.00 Granted 788 USD$21.17 Vested and settled during 2019 (1) (27 ) CAD$350.00 Outstanding as of December 31, 2019 788 USD$21.17 Granted 7,172 USD$15.25 Settled during 2020 (7,792 ) USD$17.81 Outstanding as of December 31, 2020 168 USD$13.20 (1) Includes 7 RSUs withheld to satisfy required withholding taxes.
Summary of Stock-Based Compensation Expense is Classified in Condensed Consolidated Statements of Operations and Comprehensive Loss	Stock-Based Compensation Expense Stock-based compensation expense is classified in the Company’s consolidated statements of operations and comprehensive loss as follows (amounts in thousands): 2020 2019 Research and development $ 933 $ 898 Cost of sales $ (1 ) — General and administrative 1,597 3,793 Total $ 2,529 $ 4,691
Employee and Director Stock Options
Estimation Using Black-Scholes Option Pricing Model With Following Weighted Average Assumptions	The fair value of employee and director stock options granted for the years ended December 31, 2020 and 2019 had a weighted average grant date fair value of $9.71 and $105.38 per option, respectively, and they were estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Year Ended December 31, 2020 2019 Stock price $15.23 $162.74 Exercise price $15.23 $162.74 Expected term 5.32 years 5.42 years Expected volatility 75.35 % 76.90 % Risk-free interest rate 0.52 % 1.96 % Dividend rate 0.00 % 0.00 %
Consultants Stock Options
Estimation Using Black-Scholes Option Pricing Model With Following Weighted Average Assumptions	Stock options granted to the Company’s consultants for the year ended December 31, 2020 had a weighted average grant date fair value of $8.18 per share, and they were estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Year Ended December 31, 2020 Stock price $13.58 Exercise price $13.58 Option term 5.27 years Expected volatility 73.15 % Risk-free interest rate 0.33 % Dividend rate 0.00 %

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2020
Payables And Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following (amounts in thousands): As of December 31, 2020 2019 Employees benefits $ 496 $ 722 Professional services 292 67 Legal expense 133 81 Royalty fees 12 13 Franchise fees — 28 Severance 347 606 Other 57 2 $ 1,337 $ 1,519

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Components of Net Loss (Income) for Income Tax	The components of net loss (income) are as follows (amounts in thousands): Year Ended December 31, 2020 2019 U.S. $ 12,362 $ 7,980 Non-U.S. 1,768 1,801 $ 14,130 $ 9,781
Reconciliation of Income Tax Provision Computed at Statutory Rates	A reconciliation of the income tax provision computed at statutory rates to the reported income tax provision is as follows (amounts in thousands): Year Ended December 31, 2020 2019 Statutory tax rate 21.00 % 21.00 % Net loss before income taxes $ 14,130 $ 9,781 Expected income tax recovery $ (2,967 ) $ (2,054 ) Increase (decrease) in income tax recovery resulting from: Derivative liability (1 ) (2,964 ) Share based payments 415 949 Other permanent difference (21 ) (213 ) Foreign income taxed at foreign rate (97 ) (99 ) Increase in valuation allowance 2,671 4,381 Income tax expense $ — $ —
Components of Deferred Income Tax Assets and Liabilities	The significant components of the Company’s deferred income tax assets and liabilities after applying enacted corporate tax rates are as follows (amounts in thousands): As of December 31, 2020 2019 Deferred income tax assets (liabilities) Operating losses carried forward $ 24,576 $ 21,318 Tax credits 882 679 Stock compensation 1,616 1,496 Other 1,099 1,293 Valuation allowance (28,173 ) (24,786 ) Net deferred income tax asset $ — $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments Related to Non-cancellable Operating Lease Commitments	The following table summarizes the Company’s operating lease information including future minimum lease payments under a non-cancellable lease (amounts in thousands): For the Year Ending December 31, 2020 2019 Operating lease cost $ 107 $ 224 Operating lease - operating cash flows $ 253 $ 246 Weighted average remaining lease term 1.50 years 3.05 years Weighted average discount rate 7.2 % 15.1 % Future minimum lease payments under non-cancellable lease as of December 31, 2020 were as follows: For the Period Ending December 31, 2021 $ 63 2022 32 Total future minimum lease payments 95 Less imputed interest (4 ) Total liability $ 91 Reported as of December 31, 2020 2019 Current operating lease liability 59 172 Non-current operating lease liability 32 465 Total $ 91 $ 637

Description of Business - Addit

Description of Business - Additional Information (Details) $ / shares in Units, $ in Thousands	Feb. 01, 2021USD ($)	Jan. 31, 2021USD ($)	Dec. 31, 2020USD ($)$ / shares	Dec. 31, 2019USD ($)$ / shares
Description Of Business [Line Items]
Date of incorporation			Mar. 13, 2014
Class A common stock, par value | $ / shares			$ 0.001	$ 0.001
Reverse stock split			1-for-35
Reverse stock split, conversion ratio			35
Cash			$ 3,331	$ 5,459
Net loss			14,130	9,781
Accumulated deficit			118,903	104,773
Revenue from the sale of products or services			$ 661	$ 1,496
Subsequent Event
Description Of Business [Line Items]
Net proceeds from public offering	$ 9,600
Subsequent Event | March 2020 Offering
Description Of Business [Line Items]
Net proceeds from exercise of warrants issued		$ 1,300

Significant Accounting Polici_4

Significant Accounting Policies - Additional Information (Details) $ in Thousands	Oct. 30, 2019USD ($)DevicePatient	Oct. 30, 2019CAD ($)DevicePatient	Jun. 30, 2020USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2020USD ($)DeviceLeaseSegmentshares	Dec. 31, 2020CAD ($)DeviceSegmentshares	Dec. 31, 2019USD ($)Agreementshares	Oct. 30, 2019CAD ($)	Jan. 01, 2019USD ($)	Dec. 31, 2018USD ($)
Schedule Of Significant Accounting Policies [Line Items]
Accounts receivable						$ 74,000		$ 210,000
Allowance for doubtful accounts						400,000		200,000
Rent deposits receivable						18,000
Refunds from research and development tax credits								1,000			$ 200,000
Inventory markdowns to net realizable value						205,000		50,000
Depreciation expense						119,000		127,000
Amortization expense related to intangible assets						363,000		64,000
Proceeds from sale of property and equipment						61,000
Selling, general and administrative						9,714,000		16,521,000
Fair value measurement adjustments						400,000
Business acquisition, goodwill not expected tax deductible amount						700,000
Revenue						661,000		1,496,000
Intangible asset impairment						184,000
Operating lease ROU asset						90,000		552,000		$ 700,000
Operating lease liabilities						$ 91,000		$ 637,000		$ 700,000
Leases, initial term						12 months
Number of operating lease | Lease						1
Number of operating segment | Segment						1	1
Number of reportable segment | Segment						1	1
Intangible asset impairment loss						$ 184,000
Intangible asset, net						$ 527,000
Dilutive common stock equivalents excluded from the computation of diluted weighted average shares outstanding | shares						455,631	455,631	186,764
ASU 2018-13
Schedule Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]						true
Change in accounting principle, accounting standards update, adoption date						Jan. 1, 2020
Change in accounting principle, accounting standards update, immaterial effect [true false]						true
ASU 2018-18
Schedule Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]						true
Change in accounting principle, accounting standards update, adoption date						Jan. 1, 2020
Change in accounting principle, accounting standards update, immaterial effect [true false]						true
ASU 2020-06
Schedule Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]						true
Change in accounting principle, accounting standards update, adoption date						Jan. 1, 2021
Change in accounting principle, accounting standards update, immaterial effect [true false]						true
Change in accounting principle, accounting standards update, early adoption [true false]						true
Outstanding Stock Options
Schedule Of Significant Accounting Policies [Line Items]
Incremental common stock equivalents | shares						0	0	0
Warrants
Schedule Of Significant Accounting Policies [Line Items]
Incremental common stock equivalents | shares						0	0	0
Restricted Stock Units
Schedule Of Significant Accounting Policies [Line Items]
Incremental common stock equivalents | shares						0	0	0
Fee Revenue
Schedule Of Significant Accounting Policies [Line Items]
Revenue						$ 9,000		$ 37,000
License Revenue
Schedule Of Significant Accounting Policies [Line Items]
Revenue						$ 27,000		5,000
Customer Relationships
Schedule Of Significant Accounting Policies [Line Items]
Intangible asset useful life						1 year 3 months	1 year 3 months
Intangible asset amortization method						straight-line	straight-line
Customer Relationships | Fair Value, Inputs, Level 3
Schedule Of Significant Accounting Policies [Line Items]
Intangible asset impairment						$ 200,000
Intangible asset impairment loss						200,000
Intangible asset, net						$ 9,000
Proprietary Technology
Schedule Of Significant Accounting Policies [Line Items]
Intangible asset useful life						5 years	5 years
Intangible asset amortization method						straight-line	straight-line
Reacquired Rights
Schedule Of Significant Accounting Policies [Line Items]
Intangible asset useful life						3 years 10 months 13 days	3 years 10 months 13 days
Intangible asset amortization method						straight-line	straight-line
Heuro Canada Incorporation
Schedule Of Significant Accounting Policies [Line Items]
Goodwill impairment loss recognized						$ 0
Heuro Canada Incorporation | Selling, General and Administrative Expenses
Schedule Of Significant Accounting Policies [Line Items]
Amortization expense related to intangible assets						400,000		100,000
Acquisition related costs								100,000
Heuro Canada Incorporation | Selling, General and Administrative Expenses | Customer Relationships
Schedule Of Significant Accounting Policies [Line Items]
Intangible asset impairment						200,000
Intangible asset impairment loss						200,000
HealthTech Connex, Inc.
Schedule Of Significant Accounting Policies [Line Items]
Deferred revenue						300,000
HealthTech Connex, Inc. | Neurocatch Device
Schedule Of Significant Accounting Policies [Line Items]
Cost of goods sold per device					$ 600,000
HealthTech Connex, Inc. | Fee Revenue | Heuro Canada Incorporation
Schedule Of Significant Accounting Policies [Line Items]
Revenue				$ 9,000				$ 37,000
Percentage of franchise fee revenue					50.00%
Number of franchise agreements | Agreement								3
HealthTech Connex, Inc. | Strategic Alliance Agreement | Heuro Canada Incorporation
Schedule Of Significant Accounting Policies [Line Items]
Current receivables						100,000		$ 200,000
Contract assets						0		0
Contract liabilities						0		0
HealthTech Connex, Inc. | Strategic Alliance Agreement | Neurocatch Device
Schedule Of Significant Accounting Policies [Line Items]
Revenue						630,000		1,500,000
HealthTech Connex, Inc. | Strategic Alliance Agreement | Services Performed Using Neurocatch Device
Schedule Of Significant Accounting Policies [Line Items]
Revenue								11,000
HealthTech Connex, Inc. | Clinical Research and Co-Promotion Agreement
Schedule Of Significant Accounting Policies [Line Items]
Revenue						$ 27,000		5,000
Number of patients to collect data | Patient	200	200
Initial term of exclusive right	10 years	10 years
Additional renewal term of exclusive right	10 years	10 years
Written notice period for additional renewal term	60 days	60 days
Acquisition date fair value		$ 360
License revenue agreement term						10 years	10 years
HealthTech Connex, Inc. | Clinical Research and Co-Promotion Agreement | License Revenue
Schedule Of Significant Accounting Policies [Line Items]
Deferred revenue						$ 200,000
HealthTech Connex, Inc. | Heuro Canada Incorporation | Share Purchase Agreement
Schedule Of Significant Accounting Policies [Line Items]
Total consideration amount	$ 1,600,000	2,100
Cash	400,000	$ 500
HealthTech Connex, Inc. | Heuro Canada Incorporation | Strategic Alliance Agreement
Schedule Of Significant Accounting Policies [Line Items]
Potential amount receivable	$ 500,000								$ 750
Minimum
Schedule Of Significant Accounting Policies [Line Items]
Effective income tax rate						50.00%	50.00%
Leasehold Improvements
Schedule Of Significant Accounting Policies [Line Items]
Estimated useful life						5 years	5 years
Sale of property with a net book value			$ 53,000
Furniture and Fixtures
Schedule Of Significant Accounting Policies [Line Items]
Estimated useful life						7 years	7 years
Sale of property with a net book value			118,000
Proceeds from sale of property and equipment			61,000
Computer Software and Hardware | Minimum
Schedule Of Significant Accounting Policies [Line Items]
Estimated useful life						3 years	3 years
Computer Software and Hardware | Maximum
Schedule Of Significant Accounting Policies [Line Items]
Estimated useful life						5 years	5 years
Equipment
Schedule Of Significant Accounting Policies [Line Items]
Estimated useful life						15 years	15 years
Software
Schedule Of Significant Accounting Policies [Line Items]
Estimated useful life						3 years	3 years
Amortization expense related to intangible assets								17,000
Furniture and Fixtures and Leasehold Improvements
Schedule Of Significant Accounting Policies [Line Items]
Selling, general and administrative			$ 110,000
PoNS
Schedule Of Significant Accounting Policies [Line Items]
Number of devices resulting in recognition of revenue | Device						21	21
Number of devices recorded as deferred revenue | Device						34	34
PoNS | Heuro Canada Incorporation
Schedule Of Significant Accounting Policies [Line Items]
Revenue						$ 100,000
PoNS | HealthTech Connex, Inc.
Schedule Of Significant Accounting Policies [Line Items]
Number of devices recorded as deferred revenue | Device						34	34
PoNS | HealthTech Connex, Inc. | Share Purchase Agreement
Schedule Of Significant Accounting Policies [Line Items]
Number of devices | Device						55	55
Revenue							$ 500
PoNS | HealthTech Connex, Inc. | Heuro Canada Incorporation
Schedule Of Significant Accounting Policies [Line Items]
Number of devices resulting in recognition of revenue | Device						21	21
PoNS | HealthTech Connex, Inc. | Heuro Canada Incorporation | Share Purchase Agreement
Schedule Of Significant Accounting Policies [Line Items]
Number of devices | Device	55	55
Fair value of PoNS	$ 400,000								500
Quebec
Schedule Of Significant Accounting Policies [Line Items]
Other receivables refunds related to goods, services and sales tax.								100,000
British Columbia | PoNS | HealthTech Connex, Inc. | Heuro Canada Incorporation | Co-Promotion Agreement
Schedule Of Significant Accounting Policies [Line Items]
Fair value of PoNS	$ 300,000								$ 400
Revenue from Product Sales
Schedule Of Significant Accounting Policies [Line Items]
Accounts receivable						$ 100,000		$ 200,000
Revenue from Product Sales | Heuro Canada Incorporation
Schedule Of Significant Accounting Policies [Line Items]
Revenue						$ 630,000

Significant Accounting Polici_5

Significant Accounting Policies - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Raw materials	$ 160	$ 144
Work-in-process	440	375
Finished goods	44	129
Inventory	644	648
Inventory reserve	(255)	(50)
Total inventory, net of reserve	$ 389	$ 598

Significant Accounting Polici_6

Significant Accounting Policies - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property Plant And Equipment [Line Items]
Property and equipment	$ 689	$ 897
Less accumulated depreciation	(203)	(185)
Property and equipment, net	486	712
Leasehold Improvement
Property Plant And Equipment [Line Items]
Property and equipment	64	182
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment	93	247
Equipment
Property Plant And Equipment [Line Items]
Property and equipment	335	286
Computer Hardware and Software
Property Plant And Equipment [Line Items]
Property and equipment	$ 197	$ 182

Significant Accounting Polici_7

Significant Accounting Policies - Summary of Recognized Fair Values of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Oct. 30, 2019
Assets:
Goodwill	$ 759	$ 1,242
Heuro Canada Incorporation
Assets:
Cash and cash equivalents			$ 1
Other receivables			19
Fixed assets			7
Intangibles			1,053
Goodwill			737
Total assets			1,817
Liabilities:
Accounts payable			186
Other current liabilities			9
Total liabilities			195
Net assets acquired			$ 1,622

Significant Accounting Polici_8

Significant Accounting Policies - Summary of Activity for Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Carrying amount at beginning of period	$ 1,242
Business acquisition	(503)	$ 1,226
Foreign currency translation	20	16
Carrying amount at end of period	$ 759	$ 1,242

Significant Accounting Polici_9

Significant Accounting Policies - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Finite Lived Intangible Assets [Line Items]
Intangible assets, Gross Carrying Amount	$ 972	$ 646
Intangible assets, Accumulated Amortization	$ (445)	(64)
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Intangible assets, Useful Life	1 year 3 months
Intangible assets, Gross Carrying Amount	$ 237	423
Intangible assets, Accumulated Amortization	$ (228)	(55)
Acquired Proprietary Software
Finite Lived Intangible Assets [Line Items]
Intangible assets, Useful Life	5 years
Intangible assets, Gross Carrying Amount	$ 150	148
Intangible assets, Accumulated Amortization	$ (35)	(5)
Reacquired Rights
Finite Lived Intangible Assets [Line Items]
Intangible assets, Useful Life	3 years 10 months 13 days
Intangible assets, Gross Carrying Amount	$ 503
Intangible assets, Accumulated Amortization	$ (152)
Internally Developed Software
Finite Lived Intangible Assets [Line Items]
Intangible assets, Useful Life	3 years
Intangible assets, Gross Carrying Amount	$ 82	75
Intangible assets, Accumulated Amortization	$ (30)	$ (4)

Significant Accounting Polic_10

Significant Accounting Policies - Summary of Anticipated Amortization Expense (Details) $ in Thousands	Dec. 31, 2020USD ($)
Accounting Policies [Abstract]
2021	$ 197
2022	183
2023	122
2024	25
Total	$ 527

Significant Accounting Polic_11

Significant Accounting Policies - Summary of Derivative Financial Instruments and Stock-Based Compensation Liability (Details) - Fair Value, Measurements, Recurring - Black Scholes Model - Derivative Financial Instruments $ in Thousands	Dec. 31, 2019USD ($)
Liabilities:
Fair value, liabilities	$ 5
Fair Value, Inputs, Level 3
Liabilities:
Fair value, liabilities	$ 5

Significant Accounting Polic_12

Significant Accounting Policies - Summary of Basic and Diluted Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Numerator
Net loss	$ (14,130)	$ (9,781)
Denominator
Weighted-average common shares outstanding - basic and diluted	1,197,774	752,932
Basic and diluted net loss per share	$ (11.80)	$ (12.99)

Common Stock and Warrants - Add

Common Stock and Warrants - Additional Information (Details) $ / shares in Units, $ / shares in Units, $ in Millions

Dec. 31, 2020CAD ($)shares

Oct. 26, 2020USD ($)$ / sharesshares

Mar. 20, 2020USD ($)$ / sharesshares

Jan. 27, 2020USD ($)

Nov. 30, 2019USD ($)

Nov. 22, 2019$ / sharesshares

Apr. 24, 2018USD ($)$ / shares

Apr. 24, 2018$ / sharesshares

Apr. 13, 2018USD ($)$ / sharesshares

Mar. 31, 2020USD ($)

Dec. 31, 2020USD ($)$ / sharesshares

Dec. 31, 2019USD ($)$ / sharesshares

Apr. 13, 2018$ / sharesshares

Schedule Of Stockholders Equity [Line Items]

Common stock, shares authorized

150,000,000

150,000,000

Common stock, par value | $ / shares

$ 0.001

$ 0.001

Preferred stock, shares authorized

10,000,000

10,000,000

Preferred stock, par value | $ / shares

$ 0.001

$ 0.001

Common share, voting rights

one vote per share

Common share, dividends declared | $

$ 0

Class of warrants exercised

2,025

Proceeds received from exercise of outstanding warrants | $

$ 0.9

Gross proceeds from issuance of common stock | $

$ 10,653,000

$ 1,685,000

April 2018 Offering

Schedule Of Stockholders Equity [Line Items]

Warrants to purchase number of common stock, shares

61,197

61,197

Price per share | $ / shares

$ 261.45

Net proceeds from offering | $

$ 16,300,000

Fair value of warrants at issuance | $

$ 7,400,000

Warrant exercisable price per share | $ / shares

$ 428.75

Warrants expiration date

Apr. 10, 2021

Number of common stock converted by each warrant

1

1

April 2018 Offering | Common Stock

Schedule Of Stockholders Equity [Line Items]

Shares issued

61,197

Over-Allotment Option

Schedule Of Stockholders Equity [Line Items]

Price per share | $ / shares

$ 261.45

$ 261.45

Over-Allotment Option | Common Stock

Schedule Of Stockholders Equity [Line Items]

Shares issued

9,179

November 2019 Offering

Schedule Of Stockholders Equity [Line Items]

Price per share | $ / shares

$ 12.25

Net proceeds from offering | $

$ 1,100,000

November 2019 Offering | Common Stock

Schedule Of Stockholders Equity [Line Items]

Shares issued

137,571

2020 ATM

Schedule Of Stockholders Equity [Line Items]

Price per share | $ / shares

$ 21.68

Gross proceeds from issuance of common stock | $

$ 5,000,000

Offering expenses incurred | $

$ 181,000

2020 ATM | Form S3 Shelf Registration

Schedule Of Stockholders Equity [Line Items]

Aggregate offering amount | $

$ 11,340,000

$ 9,150,000

2020 ATM | Common Stock

Schedule Of Stockholders Equity [Line Items]

Shares issued

232,526

March 2020 Offering

Schedule Of Stockholders Equity [Line Items]

Warrants to purchase number of common stock, shares

178,776

Price per share | $ / shares

$ 12.25

Fair value of warrants at issuance | $

$ 800,000

Warrant exercisable price per share | $ / shares

$ 16.10

Number of common stock converted by each warrant

1

Gross proceeds from issuance of common stock | $

$ 2,200,000

Underwriting discounts and commissions paid | $

$ 300,000

Warrants expiration date

Mar. 20, 2025

March 2020 Offering | Common Stock

Schedule Of Stockholders Equity [Line Items]

Shares issued

178,776

October 2020 Offering

Schedule Of Stockholders Equity [Line Items]

Shares issued

187,646

Warrants to purchase number of common stock, shares

93,817

Price per share | $ / shares

$ 18.20

Fair value of warrants at issuance | $

$ 600,000

Warrant exercisable price per share | $ / shares

$ 15.82

Gross proceeds from issuance of common stock | $

$ 3,400,000

Share issuance cost including placement agent fees | $

$ 300,000

Warrants expiration period

3 years

Percentage of right to participate subsequent financing

30.00%

October 2020 Offering | Minimum

Schedule Of Stockholders Equity [Line Items]

Subscription to participate subsequent financing | $

$ 250,000

October 2020 Offering | Officer, Affiliates of an Officer and Director

Schedule Of Stockholders Equity [Line Items]

Price per share | $ / shares

$ 18.354

Warrant exercisable price per share | $ / shares

$ 16.1665

October 2020 Offering | Placement Agent

Schedule Of Stockholders Equity [Line Items]

Shares issued

961

Price per share | $ / shares

$ 19.775

October 2020 Offering | Common Stock

Schedule Of Stockholders Equity [Line Items]

Number of common stock converted by each warrant

0.50

Common unit issued

1

Common Stock and Warrants - Sum

Common Stock and Warrants - Summary of Weighted Average Assumptions Used in Estimating Fair Value of Warrants (Details)	Dec. 31, 2020$ / shares	Oct. 26, 2020$ / shares	Mar. 20, 2020$ / shares	Dec. 31, 2019$ / shares	Apr. 24, 2018$ / shares	Apr. 13, 2018$ / shares
Derivative Financial Instruments, Liabilities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Stock price	$ 17.15
Exercise price	428.75
Outsiders [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Stock price		$ 15.92
Exercise price		$ 15.92
Warrants | Derivative Financial Instruments, Liabilities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Stock price				$ 43.05
Exercise price				$ 428.75
Warrants And Rights Outstanding Type Extensible List				hsdt:BlackScholesOptionPricingModelMember
April 2018 Offering
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Exercise price						$ 428.75
April 2018 Offering | Warrants Granted
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Stock price	17.15				$ 4,376.60	344.75
Exercise price	$ 428.75				$ 428.75	$ 428.75
Warrants And Rights Outstanding Type Extensible List	hsdt:BlackScholesOptionPricingModelMember				hsdt:BlackScholesOptionPricingModelMember	hsdt:BlackScholesOptionPricingModelMember
March 2020 Offering | Warrants Granted
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Stock price			$ 12.25
Exercise price			$ 16.10
Warrants And Rights Outstanding Type Extensible List			hsdt:BlackScholesOptionPricingModelMember
Warrant Term | Derivative Financial Instruments, Liabilities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, term	3 months 7 days
Warrant Term | Outsiders [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, term		3 years
Warrant Term | Warrants | Derivative Financial Instruments, Liabilities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, term				1 year 3 months 10 days
Warrant Term | April 2018 Offering | Warrants Granted
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, term	3 months 7 days				3 years	3 years
Warrant Term | March 2020 Offering | Warrants Granted
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, term			5 years 6 months
Expected Volatility | Derivative Financial Instruments, Liabilities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input	64.48
Expected Volatility | Outsiders [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input		80.91
Expected Volatility | Warrants | Derivative Financial Instruments, Liabilities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input				72.43
Expected Volatility | April 2018 Offering | Warrants Granted
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input	64.48				64.49	64.20
Expected Volatility | March 2020 Offering | Warrants Granted
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input			82.41
Risk-Free Interest Rate | Derivative Financial Instruments, Liabilities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input	0.06
Risk-Free Interest Rate | Outsiders [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input		0.18
Risk-Free Interest Rate | Warrants | Derivative Financial Instruments, Liabilities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input				1.72
Risk-Free Interest Rate | April 2018 Offering | Warrants Granted
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input	0.06				2.02	1.99
Risk-Free Interest Rate | March 2020 Offering | Warrants Granted
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input			0.52
Dividend Rate | Derivative Financial Instruments, Liabilities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input	0
Dividend Rate | Outsiders [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input		0
Dividend Rate | Warrants | Derivative Financial Instruments, Liabilities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input				0
Dividend Rate | April 2018 Offering | Warrants Granted
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input	0				0	0
Dividend Rate | March 2020 Offering | Warrants Granted
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Weighted average assumptions, measurement input			0

Common Stock and Warrants - S_2

Common Stock and Warrants - Summary of Warrants Accounted for as Liabilities and Recorded as Derivative Financial Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Fair value of warrants at beginning of year	$ 5	$ 13,769
Exercise of warrants		(35)
Foreign exchange (gains) losses	(1)	384
Change in fair value of warrants during the year	$ (4)	(14,113)
Fair value of warrants at end of year		$ 5

Common Stock and Warrants - S_3

Common Stock and Warrants - Summary of Warrant Activity (Details)	Dec. 31, 2020$ / sharesshares	Dec. 31, 2020$ / sharesshares	Dec. 31, 2020$ / sharesshares	Dec. 31, 2020$ / sharesshares	Dec. 31, 2019$ / sharesshares	Dec. 31, 2019$ / sharesshares
Class Of Warrant Or Right [Line Items]
Number of Warrants, Exercised	(2,025)	(2,025)
Number of Warrants, Outstanding	341,905	341,905	341,905	341,905
CAD
Class Of Warrant Or Right [Line Items]
Number of Warrants, Outstanding			68,351	68,351	95,799	95,799
Number of Warrants, Cancelled/Expired					(26,352)	(26,352)
Number of Warrants, Exercised					(1,096)	(1,096)
Number of Warrants, Outstanding					68,351	68,351
Number of Warrants, Outstanding and exercisable	68,351	68,351	68,351	68,351
Weighted-Average Exercise Price, Outstanding | $ / shares				$ 428.75		$ 381.15
Weighted Average Exercise Price, Cancelled/Expired | $ / shares						262.50
Weighted-Average Exercise Price, Exercised | $ / shares						262.50
Weighted-Average Exercise Price, Outstanding | $ / shares						$ 428.75
Weighted-Average Exercise Price, Outstanding and exercisable | $ / shares		$ 428.75		$ 428.75
USD
Class Of Warrant Or Right [Line Items]
Number of Warrants, Outstanding			18,607	18,607	18,607	18,607
Number of Warrants, Granted			273,554	273,554
Number of Warrants, Cancelled/Expired			(18,607)	(18,607)
Number of Warrants, Outstanding					18,607	18,607
Number of Warrants, Outstanding and exercisable	273,554	273,554	273,554	273,554
Weighted-Average Exercise Price, Outstanding | $ / shares			$ 428.32		$ 428.32
Weighted-Average Exercise Price, Granted | $ / shares			16.04
Weighted Average Exercise Price, Cancelled/Expired | $ / shares			428.32
Weighted-Average Exercise Price, Outstanding | $ / shares					$ 428.32
Weighted-Average Exercise Price, Outstanding and exercisable | $ / shares	$ 16.04		$ 16.04

Common Stock and Warrants - War

Common Stock and Warrants - Warrants Outstanding and Exercisable (Details)	12 Months Ended
	Dec. 31, 2020$ / sharesshares	Dec. 31, 2020$ / sharesshares
Class Of Warrant Or Right [Line Items]
Number of Warrants Outstanding	341,905	341,905
Warrants Expiration Date, April 21, 2021
Class Of Warrant Or Right [Line Items]
Number of Warrants Outstanding	68,351	68,351
Exercise price | $ / shares		$ 428.75
Expiration Date	Apr. 21, 2021
Warrants Expiration Date, March 20, 2025
Class Of Warrant Or Right [Line Items]
Number of Warrants Outstanding	178,776	178,776
Exercise price | $ / shares	$ 16.10
Expiration Date	Mar. 20, 2025
Warrants Expiration Date, October 26, 2023
Class Of Warrant Or Right [Line Items]
Number of Warrants Outstanding	17,431	17,431
Exercise price | $ / shares		$ 16.1665
Expiration Date	Oct. 26, 2023
Warrants Expiration Date, October 26, 2023
Class Of Warrant Or Right [Line Items]
Number of Warrants Outstanding	76,386	76,386
Exercise price | $ / shares	$ 15.82
Expiration Date	Oct. 26, 2023
Warrants Expiration Date, October 26, 2023
Class Of Warrant Or Right [Line Items]
Number of Warrants Outstanding	961	961
Exercise price | $ / shares	$ 19.775
Expiration Date	Oct. 26, 2023

Share Based Payments - Addition

Share Based Payments - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	May 15, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of stock option issued	42,988	33,337
Stock option forfeited		13,939
Weighted average exercise price	$ 15.20	$ 162.74
2018 Omnibus Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares authorized and approved to issue under plan			153,031
Common stock shares available for issuance			85,714
Common stock remaining available for grant	94,485
2016 Omnibus Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares available for issuance			67,317
Employee and Director Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested stock options outstanding	$ 2,400
Weighted-average remaining vesting period	2 years 3 months 18 days
Number of stock option issued	42,417	33,337
Stock option forfeited	3,425
Weighted average exercise price	$ 15.23	$ 162.74
Weighted average grant date fair value	$ 9.71	$ 105.38
Consultants Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested stock options outstanding	$ 39
Weighted-average remaining vesting period	9 months 18 days
Number of stock option issued	571	0
Weighted average exercise price	$ 13.58
Weighted average grant date fair value	$ 8.18

Share Based Payments - Summary

Share Based Payments - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Stock Options, Beginning balance outstanding	99,018	94,475
Number of Stock Options, Granted	42,988	33,337
Number of Stock Options, Forfeited		(13,939)
Number of Stock Options Forfeited/Cancelled	(28,448)
Number of Stock Options, Exercised		(14,855)
Number of Stock Options, Ending balance outstanding	113,558	99,018	94,475
Number of Stock Options, Exercisable	57,725
Weighted Average Remaining Contractual Life	7 years 9 months	7 years 9 months 10 days	5 years 1 month 28 days
Weighted Average Remaining Contractual Life, Exercisable	6 years 6 months 21 days
Weighted Average Exercise Price, Beginning balance outstanding	$ 236.63	$ 249.87
Weighted Average Exercise Price, Granted	15.20	162.74
Weighted Average Exercise Price, Forfeited		298.55
Weighted Average Exercise Price, Forfeited/Cancelled	210.57
Weighted Average Exercise Price, Exercised		96.95
Weighted Average Exercise Price, Ending balance outstanding	159.33	$ 236.63	$ 249.87
Weighted Average Exercise Price, Exercisable	$ 117.90
Aggregate Intrinsic Value, Beginning balance outstanding		$ 8,308
Aggregate Intrinsic Value, Ending balance outstanding			$ 8,308

Share Based Payments - Summar_2

Share Based Payments - Summary of Stock Option Activity (Parenthetical) (Details)	12 Months Ended
	Dec. 31, 2019shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock options exercised on cashless basis	14,855
Number of shares withheld	13,818

Share Based Payments - Schedule

Share Based Payments - Schedule of Fair Value of Employee and Director Stock Options Granted Estimated Using Black-Scholes Option Pricing Model With Following Weighted Average Assumptions (Details) - Employee and Director Stock Options - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock price	$ 15.23	$ 162.74
Exercise price	$ 15.23	$ 162.74
Expected term	5 years 3 months 25 days	5 years 5 months 1 day
Expected volatility	75.35%	76.90%
Risk-free interest rate	0.52%	1.96%
Dividend rate	0.00%	0.00%

Share Based Payments - Schedu_2

Share Based Payments - Schedule of Fair Value of Consultants Stock Options Granted Estimated Using Black-Scholes Option Pricing Model With Following Weighted Average Assumptions (Details) - Consultants Stock Options	12 Months Ended
	Dec. 31, 2020$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock price	$ 13.58
Exercise price	$ 13.58
Expected term	5 years 3 months 7 days
Expected volatility	73.15%
Risk-free interest rate	0.33%
Dividend rate	0.00%

Share Based Payments - Summar_3

Share Based Payments - Summary of Company's Restricted Stock Unit Activity (Details) - Restricted Stock Units	12 Months Ended
	Dec. 31, 2020$ / sharesshares	Dec. 31, 2019$ / sharesshares	Dec. 31, 2019$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Restricted Stock Units, Beginning balance outstanding	788	27	27
Number of Restricted Stock Units, Granted	7,172	788	788
Number of Restricted Stock Units, Vested and Settled	(7,792)	(27)	(27)
Number of Restricted Stock Units, Ending balance outstanding	168	788	788
Weighted Average Grant Date Fair Value per Unit, Beginning balance outstanding | (per share)	$ 21.17		$ 350
Weighted Average Grant Date Fair Value per Unit, Granted | $ / shares	15.25	$ 21.17
Weighted Average Grant Date Fair Value per Unit, Vested and Settled | (per share)	17.81		$ 350
Weighted Average Grant Date Fair Value per Unit, Ending balance outstanding | $ / shares	$ 13.20	$ 21.17

Share Based Payments - Summar_4

Share Based Payments - Summary of Company's Restricted Stock Unit Activity (Parenthetical) (Details)	12 Months Ended
	Dec. 31, 2019shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of RSUs withheld for taxes	7

Share Based Payments - Summar_5

Share Based Payments - Summary of Stock Based Compensation Expense is Classified in Consolidated Statement of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,529	$ 4,691
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	933	898
Cost of Sales
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	(1)
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,597	$ 3,793

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Payables And Accruals [Abstract]
Employees benefits	$ 496	$ 722
Professional services	292	67
Legal expense	133	81
Royalty fees	12	13
Franchise fees		28
Severance	347	606
Other	57	2
Total accrued expenses	$ 1,337	$ 1,519

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Details) $ in Millions	Dec. 31, 2020USD ($)
Chief Executive Officer
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items]
Accrued Severance Cost	$ 0.3

Income Taxes - Components of Ne

Income Taxes - Components of Net Loss (Income) for Income Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Components Of Income Tax Expense Benefit Continuing Operations [Abstract]
U.S.	$ 12,362	$ 7,980
Non-U.S.	1,768	1,801
Loss before income taxes	$ 14,130	$ 9,781

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Income Tax Provision Computed at Statutory Rates (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Statutory tax rate	21.00%	21.00%
Net loss before income taxes	$ 14,130	$ 9,781
Expected income tax recovery	(2,967)	(2,054)
Increase (decrease) in income tax recovery resulting from:
Derivative liability	(1)	(2,964)
Share based payments	415	949
Other permanent difference	(21)	(213)
Foreign income taxed at foreign rate	(97)	(99)
Increase in valuation allowance	2,671	4,381
Income tax expense	$ 0	$ 0

Income Taxes - Components of De

Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred income tax assets (liabilities)
Operating losses carried forward	$ 24,576	$ 21,318
Tax credits	882	679
Stock compensation	1,616	1,496
Other	1,099	1,293
Valuation allowance	$ (28,173)	$ (24,786)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
Income Taxes [Line Items]
Net operating loss, domestic	$ 85,900,000
Operating loss carry forwards expiration year	2033
Accrual relating to uncertain tax positions	$ 0
Canada
Income Taxes [Line Items]
Accumulated non-capital losses in Canada	$ 5,200,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	Dec. 31, 2020	Jun. 01, 2020	Apr. 13, 2020	Dec. 29, 2017	Jan. 22, 2013	May 31, 2020	Jul. 31, 2017	Mar. 31, 2017	Dec. 31, 2020	Dec. 31, 2019	Oct. 30, 2017
Commitments And Contingencies [Line Items]
Lease commencement date						Jul. 1, 2020	Jul. 17, 2017	Jul. 1, 2017
Lease termination date						Jun. 30, 2021	Jan. 16, 2023	Dec. 31, 2022
Lease option to extend termination year								2027
Lease option to extend termination date							Jan. 31, 2028
Lease monthly rent plus utilities						$ 5,000	$ 20,000
Lease monthly rent plus utilities beginning date						Jan. 31, 2021	Jan. 31, 2018
Lease annual increase in rental percentage						3.00%	3.00%
Lease option to extend lease term						6 months
Decrease in operating lease right of use asset, partial termination						$ 400,000
Decrease in operating lease liability						$ 400,000
PPP Loan
Commitments And Contingencies [Line Items]
Loan proceeds received, amount			$ 323,000
Other Income
Commitments And Contingencies [Line Items]
Gain on termination of lease									$ 100,000
Advanced NeuroRehabilitation, LLC | License Agreement for Exclusive Right on Patent Pending Technology
Commitments And Contingencies [Line Items]
Issuance of common stock for license agreement					91,628
Percentage of royalty on net revenue					4.00%
Royalty expense									$ 22,000	$ 59,000
A&B Company Limited | Asset Purchase Agreement
Commitments And Contingencies [Line Items]
Contract penalty payable on failure to obtain FDA clearance											$ 2,000,000
Key Tronic Corporation | Manufacturing and Supply Agreement
Commitments And Contingencies [Line Items]
Agreement description									On December 29, 2017, HMI (formerly known as NeuroHabilitation Corporation) entered into a Manufacturing and Supply Agreement (“MSA”) with Key Tronic Corporation (“Key Tronic”), for the manufacture and supply of the Company’s PoNS device based upon the Company’s product specifications as set forth in the MSA. Per the agreement, the Company shall provide to Key Tronic a rolling forecast for the procurement of parts and material and within normal lead times based on estimated delivery dates for the manufacture of the PoNS device. The term of the agreement is for three years and the agreement will automatically renew for additional consecutive terms of one year, unless cancelled by either party upon 180-day written notice to the other party prior to the end of the then current term. On June 1, 2020, HMI extended the existing manufacturing agreement with Key Tronic for a second three year term from December 29, 2020 until December 31, 2023. As of December 31, 2020, the Company did not have any outstanding commitments to Key Tronic to complete the Company’s forecast for the procurement of materials necessary for the delivery of PoNS devices.
Agreement term				3 years
Agreement auto renewal period				1 year
Notice period to cancel the renewal of agreement				180 days
Long-term purchase commitment amount	$ 0
Extended manufacturing agreement term		3 years

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Future Minimum Lease Payments Related to Non-cancellable Operating Lease Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
Operating Leases Future Minimum Payments Due [Abstract]
Operating lease cost	$ 107	$ 224
Operating lease - operating cash flows	$ 253	$ 246
Weighted average remaining lease term	1 year 6 months	3 years 18 days
Weighted average discount rate	7.20%	15.10%
2021	$ 63
2022	32
Total future minimum lease payments	95
Less imputed interest	(4)
Total liability	91	$ 637	$ 700
Current operating lease liability	59	172
Non-current operating lease liability	32	465
Total	$ 91	$ 637	$ 700

Variable Interest Entities - Ad

Variable Interest Entities - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Oct. 30, 2019
Variable Interest Entity [Line Items]
Carrying amounts for assets relating to the variable interest	$ 6,547	$ 10,347
Carrying amounts for liabilities relating to the variable interest	$ 2,676	$ 4,512
Heuro Canada Incorporation | Variable Interest Entity
Variable Interest Entity [Line Items]
Carrying amounts for assets relating to the variable interest			$ 0
Carrying amounts for liabilities relating to the variable interest			$ 0

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Accrued liabilities for consulting fees	$ 1,337	$ 1,519
Directors
Related Party Transaction [Line Items]
Consulting fees paid	5	$ 27
Accrued liabilities for consulting fees	$ 0

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 01, 2021	Jan. 31, 2021	Mar. 20, 2020	Apr. 24, 2018
March 2020 Offering
Subsequent Event [Line Items]
Warrant exercisable price per share			$ 16.10
Warrants to purchase number of common stock, shares			178,776
Price per share			$ 12.25
Number of common stock converted by each warrant			1
Over-Allotment Option
Subsequent Event [Line Items]
Price per share				$ 261.45
Subsequent Event
Subsequent Event [Line Items]
Number of stock issuance under offering	744,936
Warrant exercisable price per share	$ 16.302
Warrants to purchase number of common stock, shares	372,468
Price per share	$ 14.82
Number of common stock converted by each warrant	0.50
Net proceeds from public offering	$ 9.6
Warrants expiration period	5 years
Subsequent Event | March 2020 Offering
Subsequent Event [Line Items]
Warrant exercisable price per share		$ 16.10
Gross proceeds from issuance of warrants		$ 1.3
Subsequent Event | Over-Allotment Option
Subsequent Event [Line Items]
Number of stock issuance under offering	29,797
Price per share	$ 18.525
Subsequent Event | Warrants | March 2020 Offering
Subsequent Event [Line Items]
Number of stock issuance under offering		81,633