Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HSDT | |
Entity Registrant Name | HELIUS MEDICAL TECHNOLOGIES, INC. | |
Entity Central Index Key | 0001610853 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 3,797,647 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38445 | |
Entity Tax Identification Number | 36-4787690 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 642 Newtown Yardley Road, Suite 100 | |
Entity Address, City or Town | Newtown | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 18940 | |
City Area Code | (215) | |
Local Phone Number | 944-6100 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 6,310,000 | $ 11,005,000 |
Accounts receivable, net | 60,000 | 66,000 |
Other receivables | 185,000 | 185,000 |
Inventory, net | 520,000 | 476,000 |
Prepaid expenses | 951,000 | 862,000 |
Total current assets | 8,026,000 | 12,594,000 |
Property and equipment, net | 380,000 | 409,000 |
Other assets | ||
Goodwill | 777,000 | 763,000 |
Intangible assets, net | 291,000 | 333,000 |
Operating lease right-of-use asset, net | 140,000 | 3,000 |
Total other assets | 1,212,000 | 1,099,000 |
TOTAL ASSETS | 9,618,000 | 14,102,000 |
Other non-current assets | 4,000 | |
Current liabilities | ||
Accounts payable | 1,111,000 | 1,069,000 |
Accrued liabilities | 1,008,000 | 1,433,000 |
Operating lease liability | 51,000 | 3,000 |
Deferred revenue | 29,000 | 148,000 |
Total current liabilities | 2,199,000 | 2,653,000 |
Non-current liabilities | ||
Operating lease liability | 99,000 | |
Deferred revenue | 190,000 | 193,000 |
TOTAL LIABILITIES | 2,488,000 | 2,846,000 |
Commitments and contingencies (Note 6) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2022 and December 31, 2021 | ||
Class A common stock, $0.001 par value; 150,000,000 shares authorized; 3,794,797 and 3,780,674 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 4,000 | 4,000 |
Additional paid-in capital | 149,834,000 | 149,412,000 |
Accumulated deficit | (141,381,000) | (137,035,000) |
Accumulated other comprehensive loss | (1,327,000) | (1,125,000) |
TOTAL STOCKHOLDERS’ EQUITY | 7,130,000 | 11,256,000 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 9,618,000 | $ 14,102,000 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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 | 3,794,797 | 3,794,797 |
Common Stock, Shares, Outstanding | 3,780,674 | 3,780,674 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue: | ||
Total operating revenue | $ 190 | $ 84 |
Cost of sales: | ||
Cost of product sales | $ 124 | $ 15 |
Type of Cost, Good or Service [Extensible List] | Product Sales | Product Sales |
Gross profit | $ 66 | $ 69 |
Operating expenses: | ||
Research and development | 1,764 | 1,316 |
Selling, general and administrative | 2,819 | 2,197 |
Amortization expense | 47 | 57 |
Total operating expenses | 4,630 | 3,570 |
Operating loss | (4,564) | (3,501) |
Other income: | ||
Other income | 1 | |
Foreign exchange gain | 217 | 139 |
Total other income | 218 | 139 |
Net loss | (4,346) | (3,362) |
Other comprehensive income: | ||
Foreign currency translation adjustments | (202) | (128) |
Comprehensive loss | $ (4,548) | $ (3,490) |
Net loss per share | ||
Basic | $ (1.15) | $ (1.65) |
Diluted | $ (1.15) | $ (1.65) |
Weighted average shares outstanding | ||
Basic | 3,787,871 | 2,040,839 |
Diluted | 3,787,871 | 2,040,839 |
Product Sales | ||
Revenue: | ||
Total operating revenue | $ 183 | $ 77 |
License Revenue | ||
Revenue: | ||
Total operating revenue | $ 7 | $ 7 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock $0.001 par value | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning Balance at Dec. 31, 2020 | $ 3,871 | $ 1 | $ 123,872 | $ (118,903) | $ (1,099) |
Beginning Balance, Shares at Dec. 31, 2020 | 1,484,362 | ||||
Proceeds from the issuance of common stock from the February 2021 Offering | 8,399 | $ 1 | 8,398 | ||
Proceeds from the issuance of common stock from the February 2021 Offering, Shares | 744,936 | ||||
Warrants issuance from the February 2021 Offering | 2,638 | 2,638 | |||
Share issuance costs | (1,361) | (1,361) | |||
Proceeds from the exercise of warrants | 1,314 | 1,314 | |||
Proceeds from the exercise of warrants, Shares | 81,633 | ||||
Settlement of restricted stock units, Shares | 937 | ||||
Stock-based compensation | 527 | 527 | |||
Foreign currency translation adjustments | (128) | (128) | |||
Net loss | (3,362) | (3,362) | |||
Ending Balance at Mar. 31, 2021 | 11,898 | $ 2 | 135,388 | (122,265) | (1,227) |
Ending Balance, Shares at Mar. 31, 2021 | 2,311,868 | ||||
Beginning Balance at Dec. 31, 2021 | 11,256 | $ 4 | 149,412 | (137,035) | (1,125) |
Beginning Balance, Shares at Dec. 31, 2021 | 3,780,674 | ||||
Settlement of restricted stock units, Shares | 1,584 | ||||
Issuance of shares to a consultant for services | 20 | 20 | |||
Issuance of shares to a consultant for services, Shares | 4,528 | ||||
Stock-based compensation | 402 | 402 | |||
Stock-based compensation, Shares | 8,011 | ||||
Foreign currency translation adjustments | (202) | (202) | |||
Net loss | (4,346) | (4,346) | |||
Ending Balance at Mar. 31, 2022 | $ 7,130 | $ 4 | $ 149,834 | $ (141,381) | $ (1,327) |
Ending Balance, Shares at Mar. 31, 2022 | 3,794,797 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (4,346) | $ (3,362) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 402 | 527 |
Common shares issued to a consultant for services | 20 | |
Unrealized foreign exchange gain | (217) | (132) |
Depreciation expense | 25 | 28 |
Amortization expense | 47 | 57 |
Provision for doubtful accounts | (23) | (11) |
Non-cash lease expense | 13 | 15 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 27 | 36 |
Other receivables | 1 | 2 |
Inventory, net | (45) | (95) |
Prepaid expenses | (88) | (44) |
Operating lease liability | (3) | (15) |
Accounts payable | 72 | 234 |
Accrued liabilities | (425) | (160) |
Deferred revenue | (142) | (1) |
Net cash used in operating activities | (4,682) | (2,921) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2) | (19) |
Proceeds from sale of property and equipment | 6 | |
Internally developed software | (2) | |
Net cash provided by (used in) investing activities | 4 | (21) |
Cash flows from financing activities: | ||
Proceeds from the issuances of common stock and warrants | 11,037 | |
Share issuance costs | (17) | (1,331) |
Proceeds from the exercise of warrants and stock options | 1,314 | |
Net cash (used in) provided by financing activities | (17) | 11,020 |
Effect of foreign exchange rate changes on cash | (12) | |
Net (decrease) increase in cash | (4,695) | 8,066 |
Cash at beginning of period | 11,005 | 3,331 |
Cash at end of period | $ 6,310 | 11,397 |
Supplemental schedule of non-cash financing activities | ||
Share issuance costs included in accounts payable and accrued liabilities | $ 192 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | 1. DESCRIPTION OF BUSINESS Helius Medical Technologies, Inc. (the “Company”), is a neurotech company focused on neurological wellness. The Company’s purpose is to develop, license or acquire non-implanted technologies targeted at reducing symptoms of neurological disease or trauma. The Company’s product, known as the Portable Neuromodulation Stimulator (“PoNS®”), is an innovative non-surgical medical device, inclusive of a controller and mouthpiece, which delivers mild electrical stimulation to the surface of the tongue to provide treatment of gait deficit and is indicated for use in the as a short term treatment of gait deficit due to mild-to-moderate symptoms from multiple sclerosis (“MS”), and is to be used as an adjunct to a supervised therapeutic exercise program in patients 22 years of age and over by prescription only. The Company began accept is authorized for sale in Canada for two indications: (i) PoNS is authorized as a short term treatment (14 weeks) of chronic balance deficit due to mild-to-moderate traumatic brain injury (“mmTBI”) and is to be used in conjunction with physical therapy (“PoNS Therapy TM The Company was incorporated in British Columbia, Canada on March 13, 2014. On May 28, 2014, the Company was reincorporated from British Columbia to the State of Wyoming, and on July 20, 2018, it was reincorporated from the State of 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. Going Concern Uncertainty As of March 31, 2022, the Company had cash of $6.3 million. For the three months ended March 31, 2022, the Company had an operating loss of $ 4.3 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 condensed consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and satisfaction of liabilities in the ordinary course of business; no adjustments have been made relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company not continue as a going concern. The Company intends to fund ongoing activities by utilizing its current cash on hand, cash received from the sale of its PoNS device in Canada and the U.S. and by raising additional capital through equity or debt financings as well as by using its equity line facility entered into on September 1, 2021 with Lincoln Park Capital Fund, LLC (“Lincoln Park”), which is subject to certain limitations and conditions. 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 and Worldwide Economic Conditions On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a global pandemic, which has spread throughout the U.S. . Moreover, the Company’s ability to conduct its ongoing clini due to trial participants ’ attendance being adversely affected by COVID-19. 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 as well as manufacturing delays as the result of labor shortages. Two of the Company’s suppliers experienced significant labor shortages as a result of COVID-19 from the end of November 2021 through early January 2022 which reduced the available resources needed to build and test product resulting in production delays of the PoNS devices. During March 2022, an increase in COVID-19 related cases in certain parts of China resulted in the re-imposition of widespread shutdowns and restrictions in China and resulted in additional supply chain disruptions. It is currently unclear how long this latest series of shutdowns will continue and we may experience future manufacturing delays, which could place constraints on our ability to produce or deliver our products and meet customer demand or increase our costs. Generally, worldwide economic conditions remain uncertain, particularly due to the COVID-19 pandemic. Access to capital markets is critical to our ability to operate. Declines and uncertainties in these markets in the past have severely restricted raising new capital and have affected companies’ ability to continue to expand or find existing development, manufacturing, regulatory and commercialization efforts. We require significant capital for our current and expected operations. The general economic and capital market conditions both in the U.S. and worldwide, have been volatile in the past and at times have adversely affected our access to capital and increased the cost of capital. The capital and credit markets may not be available to support future capital raising activity on favorable terms. If economic conditions decline, our future cost of equity or debt capital and access to the capital markets could be adversely affected. 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 The Company does not yet know the full extent of the impact of COVID-19 on its future business, operations or the global economy as a whole. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements have also been prepared on a basis substantially consistent with and should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2021, included in its Annual Report on Form 10-K that was filed with the Securities and Exchange Commission on March 14, 2022. The information furnished in the consolidated condensed financial statements include all adjustments (consisting of only normal, recurring adjustments), considered necessary to present fairly the results of operations, financial position and cash flows of the Company. The Company’s reporting currency is the U.S. Dollar (“USD$”). Use of Estimates The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and disclosure of contingent assets and liabilities. Significant estimates include the assumptions used in 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 outcomes could differ from these estimates. Principles of Consolidation The accompanying unaudited condensed 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 maintains cash in excess of federally insured limits in certain banks. However, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to cash. 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 required judgment by Company management. As of March 31, 2022, 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, 2021, the Company’s accounts receivable of $ Other receivables totaling $0.2 million as of both 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 As of March 31, 2022 and December 31, 2021, inventory consisted of the following (amounts in thousands): As of As of March 31, 2022 December 31, 2021 Raw materials $ 185 $ 171 Work-in-process 410 528 Finished goods 53 32 Inventory $ 648 $ 731 Inventory reserve (128 ) (255 ) Total inventory, net of reserve $ 520 $ 476 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 for the Company’s furniture and fixtures is 7 years. Equipment has an estimated useful life of 15 years, while computer software and hardware has an estimated useful life of 3 to 5 years. As of March 31, 2022 and December 31, 2021, property and equipment consisted of the following (amounts in thousands): As of As of March 31, 2022 December 31, 2021 Furniture and fixtures $ 59 $ 65 Equipment 374 373 Computer software and hardware 213 212 Property and equipment 646 650 Less accumulated depreciation (266) (241 ) Property and equipment, net $ 380 $ 409 Depreciation expense was $25 thousand and $28 thousand for the three months ended March 31, 2022 and 2021, respectively. 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 March 31, 2022 is the result of the Heuro acquisition completed in October 2019. Goodwill is not amortized, but rather is 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 tests 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 following is a summary of the activity for the period ended March 31, 2022 for goodwill: Carrying amount at December 31, 2021 $ 763 Foreign currency translation 14 Carrying amount at March 31, 2022 $ 777 Definite-lived intangibles consist principally of acquired 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 $47 thousand for the three months ended March 31, 2022 and $0.1 million during the three months ended March 31, 2021. Intangible assets as of March 31, 2022 and December 31, 2021 consist of the following: As of March 31, 2022 As of December 31, 2021 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Acquired proprietary software 5 years 154 (75) 79 151 (66 ) 85 Reacquired rights 3.87 years 514 (321) 193 505 (283 ) 222 Internally developed software 3 years 84 (65) 19 84 (58 ) 26 Total intangible assets $ 752 $ (461) $ 291 $ 740 $ (407 ) $ 333 Amortization expense is anticipated to be as follows in future years: For the Year Ending December 31, 2022 (remaining 9 months) 140 2023 125 2024 26 $ 291 Leases The Company accounts for its leases under ASU No. 2016-02, Leases. As of March 31, 2022, the Company had two operating leases, one for its headquarters office in Newtown, Pennsylvania and one for additional office space in Ewing, New Jersey. 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 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 condensed consolidated statement of operations and comprehensive loss as foreign exchang e 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 condensed 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 condensed 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-related 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, together with the amount previously recognized in additional paid-in capital is recorded as an increase to common stock, while the par value of the shares received is reclassified from additional paid in capital. 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, (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 the 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 Product sales are derived from the sale of the PoNS device to clinics. According to the supply agreement with each of these clinics, the Company’s performance obligation was met when it delivered the PoNS device to the clinic’s facility and the clinic assumed title of the PoNS device upon acceptance. As such, revenue is recognized at a point in time. Shipping and handling costs associated with outbound freight before control of a product has been transferred to a customer is accounted for as a fulfillment cost and are included in cos t of sales. The Company’s payment terms are defined within each customers’ supply agreement and are all 30 days or less. For the three months ended March 31, 2021 , the Company recorded $ 77 thousand , in product sales . For the three months ended March 31,2022, the Company recorded $ 183 thousand in product sales. There were 16 PoNS devices, included as consideration in the Heuro acquisition, transferred during the three months ended March 31, 2022 resulting in revenue of $ 0.1 million being recognized which is included in the aforementioned $ 183 thousand in product sales for the three months ended March 31, 2022. There were no PoNS devices , included as consideration in the Heuro acquisition , transferred during the three-month period ended March 31, 2021. As of March 31, 2022 , all devices had been transferred . Any product returns during the three months ended March 31, 2022 were the result of warranty returns for defective products and were insignificant . Any future replacements are expected to be insignificant . License Revenue In connection with the Heuro acquisition, the Company entered into a Clinical Research and Co-Promotion Agreement with HTC (the “Co-Promotion Agreement”). The Co-Promotion Agreement had a fair value of CAD$360 thousand at the time of acquisition and a ten-year ten-year As of March 31, 2022, and December 31, 2021, the Company had no contract assets or liabilities on its condensed 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, inventory markdowns to net realizable value, 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. 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 carryforwards. 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 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 condensed consolidated financial statements in the aggregate in one reportable segment. 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 condensed consolidated balance sheets consist primarily of cash, accounts receivable, other current receivables, operating lease ROU asset, accounts payable, accrued liabilities, and operating lease liability. The book values of these instruments, with the exception of non-current lease liability and operating lease ROU asset approximate their fair values due to the immediate or short-term nature of these instruments. There were no transfers between any levels for any of the periods presented. 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. Basic and Diluted Net Loss per Share Earnings or loss per share (“EPS”) is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net 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 shares and per share data): Three Months Ended March 31, 2022 2021 Basic and Diluted Numerator: Net loss $ (4,346 ) $ (3,362 ) Denominator: Weighted average common shares outstanding 3,787,871 2,040,839 Basic and diluted net loss per share $ (1.15 ) $ (1.65 ) 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 due to the Company’s losses for the three months ended March 31, 2022 and 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 Company meets the definition of an SRC and therefore the standard will not be effective until the beginning of 2023. The Company is evaluating the effect that ASU 2016-13 will have on its condensed consolidated financial statements. |
Common Stock and Warrants
Common Stock and Warrants | 3 Months Ended |
Mar. 31, 2022 | |
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 Class A 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 March 2020 Offering 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 for gross proceeds of approximately $2.2 million. 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. The underwriting discounts and commissions and offering expenses of $0.3 million were recorded to share issuance costs. As of March 31, 2022, 81,633 warrants had been exercised all during the first quarter of 2021, for gross proceeds of $1.3 million. October 2020 Offering 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. February 2021 Offering On February 1, 2021, in an underwritten public offering (the “February 2021 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 February 2021 Offering after underwriter’s discounts and commission and offering expenses paid by us were approximately $9.6 million. Affiliates of an officer and director participated in the February 2021 Offering on the same terms and conditions as all other purchasers. The relative fair value of these warrants at issuance was approximately $2.6 million and was included in additional paid-in capital. As of Lincoln Park Purchase Agreement On September 1, 2021, the Company entered into a purchase agreement (the “LPC Purchase Agreement”) and a registration rights agreement with Lincoln Park. The LPC Purchase Agreement provides that, subject to the terms and conditions therein, the Company has the right, but not the obligation, to sell from time to time, at its sole discretion, to Lincoln Park up to $15.0 million of shares of its common stock over a 36-month period commencing on September 15, 2021. In addition, under the LPC Purchase Agreement, during the third quarter of 2021, the Company issued 31,958 shares of common stock to Lincoln Park as consideration for Lincoln Park’s commitment to purchase shares of the Company’s common stock. The $0.5 million fair value of the commitment fee shares was recorded as share issuance costs as of September 30, 2021. Lincoln Park has no right to require the Company to sell any shares of common stock to Lincoln Park, but Lincoln Park is obligated to make purchases as the Company directs, subject to certain conditions. Actual sales of common stock to Lincoln Park will depend on a variety of factors to be determined by the Company from time to time, including, among others, market conditions, the trading price of the common stock and determinations by the Company as to the appropriate sources of funding for the Company and its operations. The net proceeds under the LPC Purchase Agreement to the Company will depend on the frequency and prices at which the Company sells shares of its common stock to Lincoln Park. No November 2021 Offering On November 12, 2021, in an underwritten public offering (the “November 2021 Offering”), the Company issued 1,385,031 shares of common stock at a purchase price of $8.00 per share. Net proceeds from the November 2021 Offering after underwriter’s discounts and commission and offering expenses paid by us were approximately $9.9 million. Affiliates of an officer and director participated in the November 2021 Offering on the same terms and conditions as all other purchasers. Warrants The following is a summary of the Company’s warrant activity during the three months ended March 31, 2022: Number of Warrants Weighted-Average Exercise Price Outstanding as of December 31, 2021 593,924 $ 16.32 Granted — — Cancelled/Expired — — Exercised — — Outstanding as of March 31, 2022 593,924 $ 16.32 The Company’s warrants outstanding and exercisable as of March 31, 2022 were as follows: Number of Warrants Outstanding Exercise Price Expiration Date 97,143 USD$16.10 March 20, 2025 17,431 USD$16.1665 October 26, 2023 76,386 USD$15.82 October 26, 2023 961 USD$19.775 October 26, 2023 372,206 USD$16.302 February 1, 2026 29,797 USD$18.525 February 1, 2026 593,924 |
Stock-Based Payments
Stock-Based Payments | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Payments | 4. STOCK-BASED PAYMENTS 2018 Omnibus Incentive Plan 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 of common stock could be issued. This share reserve was the sum of 85,714 new shares, plus the 67,317 shares that remained available for issuance at the time of approval under the Company’s 2016 Omnibus Incentive Plan (the “2016 Plan”), the predecessor incentive plan at the time of the adoption of the 2018 Plan. On April 20, 2021, the Company’s Board of Directors authorized and approved an amendment, which was effective upon approval by the stockholders of the Company on May 25, 2021, authorizing an additional 565,000 shares of common stock to be issued under 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 (“RSU s ”), 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 2021 Inducement Plan On July 2, 2021, the Company adopted the Helius Medical Technologies, Inc. 2021 Inducement Plan (the “Inducement Plan”), pursuant to which the Company reserved 100,000 shares of its common stock to be used exclusively for grants of awards to individuals who were not previously employees or directors of the Company, as an inducement material to the individuals’ entry into employment with the Company within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules. The Inducement Plan was approved by the Company’s Board of Directors without stockholder approval pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules. The Inducement Plan permits the grant of non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock and cash awards, and other share‑based awards. As of Stock Options For the three months ended March 31, 2022, the Company issued 123,750 stock options to employees and directors of which none were forfeited. The Company issued no stock options to consultants during the three months ended March 31, 2022. The following is a summary of the Company’s stock option activity during the three months ended March 31, 2022: Weighted Average Aggregate Remaining Weighted Intrinsic Number of Contractual Average Value Stock Options Life (in years) Exercise Price (in thousands) Outstanding as of December 31, 2021 669,117 9.03 $ 37.36 $ — Granted 123,750 4.68 — Forfeited/Cancelled (7,639 ) 82.37 — Exercised — — — Outstanding as of March 31, 2022 785,228 8.96 $ 31.77 $ — Exercisable as of March 31, 2022 301,630 8.34 $ 60.64 $ — Employee and Director Stock Options As of March 31, 2022, the unrecognized compensation cost related to non-vested time-based stock options outstanding for employees and directors, was $2.9 million which will be recognized over a weighted-average remaining vesting period of approximately 3.0 years. As of March 31, 2022, the unrecognized compensation cost related to performance-based stock options for employees was $1.2 million. Recognition of compensation expense for performance-based stock options will commence at the time it is determined to be probable that the performance conditions will be met. Compensation cost is not adjusted for estimated forfeitures, but instead is adjusted upon an actual forfeiture of a stock option. The weighted average grant date fair value of employee and director stock options granted for the three months ended March 31, 2022 was $ Three Months Ended March 31, 2022 Stock price $ 4.68 Exercise price $ 4.68 Expected term 5.75 Expected volatility 73.53% Risk-free interest rate 1.95% Dividend rate 0.00 % Consultant Stock Options As of Restricted Stock Units During the second quarter ended June 30, 2021, the Company granted 6,343 RSUs to the Company’s Board of Directors pursuant to the Non-Employee Director Compensation Policy which will vest in twelve monthly installments on the last day of each month. The fair value of the RSUs is based on the closing price of the Company’s common stock on the Nasdaq Capital Market on the day of the grant. The following is a summary of the Company’s RSU award activity for the three months ended March 31, 2022: Number of RSUs Weighted Average Grant Date Fair Value per Unit Outstanding as of December 31, 2021 2,359 $ 15.76 Granted — — Forfeited — — Settled (1,584 ) 15.89 Outstanding as of March 31, 2022 775 $ 15.53 Unrestricted Stock On February 16, 2022, the Company granted 8,011 shares of unrestricted common stock valued at $34 thousand to an officer of the Company under the 2018 Plan and have been recorded as stock based compensation expense. During the three months ended March 31, 2022, the Company granted 4,258 shares of unrestricted common stock to a consultant of the Company under the 2018 plan. Stock-Based Compensation Expense Stock-based compensation expense is classified in the Company’s condensed consolidated statements of operations and comprehensive loss as follows (amounts in thousands): Three Months Ended March 31, 2022 2021 Research and development $ 153 $ 222 Cost of sales 3 — Selling, general and administrative 212 305 Total $ 368 $ 527 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2022 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 5. ACCRUED EXPENSES Accrued expenses consisted of the following (amounts in thousands): As of March 31, 2022 December 31, 2021 Employees benefits $ 378 $ 712 Professional services 123 174 Legal fees 72 23 Royalty fees 17 10 Franchise fees 50 193 Severance 147 258 Other 221 63 Total $ 1,008 $ 1,433 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. COMMITMENTS AND CONTINGENCIES (a) On January 22, 2013, the Company entered into a license agreement with Advanced NeuroRehabilitation, LLC (“ANR”) for an exclusive right to 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 three months ended March 31, 2022, the Company recorded approximately $7 thousand, in royalty expenses in its condensed consolidated statement of operations and comprehensive loss. For the three months ended March 31, 2021, the Company recorded approximately $3 thousand, in royalty expenses in its condensed consolidated statement of operations and comprehensive loss. ( b ) In November 2021, the Company entered into a new lease (the “Lease Agreement”) for 1,780 square feet of dedicated office space to serve as the Company’s headquarters in Newtown, Pennsylvania. The term for the lease is from January 1, 2022 through March 31, 2025. Monthly rent plus utilities is approximately $4 thousand per month with a 3% annual increase. There is no option to extend. On The following table summarizes the Company’s operating lease information including future minimum lease payments under a non-cancellable lease as of March 31, 2022 (amounts in thousands). For the Three Months Ended March 31, 2022 Operating lease cost $ — Operating lease - operating cash flows $ 3.00 Weighted average remaining lease term 3.0 years Weighted average discount rate 4.4 % Future minimum lease payments under non-cancellable leases as of March 31, 2022 were as follows: For the Period Ending December 31, 2022 (remaining nine months) $ 42.00 2023 58 2024 48 2025 12 Total future minimum lease payments 160 Less imputed interest (10 ) Total liability $ 150 Reported as of March 31, 2022 Current operating lease liability $ 51.00 Non-current operating lease liability 99 Total $ 150 ( c ) On December 29, 2017, HMI (formerly known as NeuroHabilitation Corporation) entered into a Manufacturing and Supply Agreement (“MSA”) with KeyTronic Corporation (“KeyTronic”), 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 KeyTronic 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 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 KeyTronic for a second three year term from December 29, 2020 until December 31, 2023. As of March 31, 2022 , the Company did no t have an y outstanding commitments to KeyTronic to complete the Company’s forecasts for the procurement of materials necessary for the delivery of PoNS devices . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. RELATED PARTY TRANSACTIONS Affiliates of an officer and director participated in the February 2021 Offering and the November 2021 Offering on the same terms and conditions as all other purchasers. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Going Concern Uncertainty | Going Concern Uncertainty As of March 31, 2022, the Company had cash of $6.3 million. For the three months ended March 31, 2022, the Company had an operating loss of $ 4.3 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 condensed consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and satisfaction of liabilities in the ordinary course of business; no adjustments have been made relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company not continue as a going concern. The Company intends to fund ongoing activities by utilizing its current cash on hand, cash received from the sale of its PoNS device in Canada and the U.S. and by raising additional capital through equity or debt financings as well as by using its equity line facility entered into on September 1, 2021 with Lincoln Park Capital Fund, LLC (“Lincoln Park”), which is subject to certain limitations and conditions. 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 and Worldwide Economic Conditions On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a global pandemic, which has spread throughout the U.S. . Moreover, the Company’s ability to conduct its ongoing clini due to trial participants ’ attendance being adversely affected by COVID-19. 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 as well as manufacturing delays as the result of labor shortages. Two of the Company’s suppliers experienced significant labor shortages as a result of COVID-19 from the end of November 2021 through early January 2022 which reduced the available resources needed to build and test product resulting in production delays of the PoNS devices. During March 2022, an increase in COVID-19 related cases in certain parts of China resulted in the re-imposition of widespread shutdowns and restrictions in China and resulted in additional supply chain disruptions. It is currently unclear how long this latest series of shutdowns will continue and we may experience future manufacturing delays, which could place constraints on our ability to produce or deliver our products and meet customer demand or increase our costs. Generally, worldwide economic conditions remain uncertain, particularly due to the COVID-19 pandemic. Access to capital markets is critical to our ability to operate. Declines and uncertainties in these markets in the past have severely restricted raising new capital and have affected companies’ ability to continue to expand or find existing development, manufacturing, regulatory and commercialization efforts. We require significant capital for our current and expected operations. The general economic and capital market conditions both in the U.S. and worldwide, have been volatile in the past and at times have adversely affected our access to capital and increased the cost of capital. The capital and credit markets may not be available to support future capital raising activity on favorable terms. If economic conditions decline, our future cost of equity or debt capital and access to the capital markets could be adversely affected. 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 The Company does not yet know the full extent of the impact of COVID-19 on its future business, operations or the global economy as a whole. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements have also been prepared on a basis substantially consistent with and should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2021, included in its Annual Report on Form 10-K that was filed with the Securities and Exchange Commission on March 14, 2022. The information furnished in the consolidated condensed financial statements include all adjustments (consisting of only normal, recurring adjustments), considered necessary to present fairly the results of operations, financial position and cash flows of the Company. The Company’s reporting currency is the U.S. Dollar (“USD$”). |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and disclosure of contingent assets and liabilities. Significant estimates include the assumptions used in 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 outcomes could differ from these estimates. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed 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 maintains cash in excess of federally insured limits in certain banks. However, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to cash. 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 required judgment by Company management. As of March 31, 2022, 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, 2021, the Company’s accounts receivable of $ Other receivables totaling $0.2 million as of both 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 As of March 31, 2022 and December 31, 2021, inventory consisted of the following (amounts in thousands): As of As of March 31, 2022 December 31, 2021 Raw materials $ 185 $ 171 Work-in-process 410 528 Finished goods 53 32 Inventory $ 648 $ 731 Inventory reserve (128 ) (255 ) Total inventory, net of reserve $ 520 $ 476 |
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 for the Company’s furniture and fixtures is 7 years. Equipment has an estimated useful life of 15 years, while computer software and hardware has an estimated useful life of 3 to 5 years. As of March 31, 2022 and December 31, 2021, property and equipment consisted of the following (amounts in thousands): As of As of March 31, 2022 December 31, 2021 Furniture and fixtures $ 59 $ 65 Equipment 374 373 Computer software and hardware 213 212 Property and equipment 646 650 Less accumulated depreciation (266) (241 ) Property and equipment, net $ 380 $ 409 Depreciation expense was $25 thousand and $28 thousand for the three months ended March 31, 2022 and 2021, respectively. |
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 March 31, 2022 is the result of the Heuro acquisition completed in October 2019. Goodwill is not amortized, but rather is 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 tests 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 following is a summary of the activity for the period ended March 31, 2022 for goodwill: Carrying amount at December 31, 2021 $ 763 Foreign currency translation 14 Carrying amount at March 31, 2022 $ 777 Definite-lived intangibles consist principally of acquired 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 $47 thousand for the three months ended March 31, 2022 and $0.1 million during the three months ended March 31, 2021. Intangible assets as of March 31, 2022 and December 31, 2021 consist of the following: As of March 31, 2022 As of December 31, 2021 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Acquired proprietary software 5 years 154 (75) 79 151 (66 ) 85 Reacquired rights 3.87 years 514 (321) 193 505 (283 ) 222 Internally developed software 3 years 84 (65) 19 84 (58 ) 26 Total intangible assets $ 752 $ (461) $ 291 $ 740 $ (407 ) $ 333 Amortization expense is anticipated to be as follows in future years: For the Year Ending December 31, 2022 (remaining 9 months) 140 2023 125 2024 26 $ 291 |
Leases | Leases The Company accounts for its leases under ASU No. 2016-02, Leases. As of March 31, 2022, the Company had two operating leases, one for its headquarters office in Newtown, Pennsylvania and one for additional office space in Ewing, New Jersey. |
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 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 condensed consolidated statement of operations and comprehensive loss as foreign exchang e 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 condensed 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 condensed 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-related 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, together with the amount previously recognized in additional paid-in capital is recorded as an increase to common stock, while the par value of the shares received is reclassified from additional paid in capital. 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, (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 the 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 Product sales are derived from the sale of the PoNS device to clinics. According to the supply agreement with each of these clinics, the Company’s performance obligation was met when it delivered the PoNS device to the clinic’s facility and the clinic assumed title of the PoNS device upon acceptance. As such, revenue is recognized at a point in time. Shipping and handling costs associated with outbound freight before control of a product has been transferred to a customer is accounted for as a fulfillment cost and are included in cos t of sales. The Company’s payment terms are defined within each customers’ supply agreement and are all 30 days or less. For the three months ended March 31, 2021 , the Company recorded $ 77 thousand , in product sales . For the three months ended March 31,2022, the Company recorded $ 183 thousand in product sales. There were 16 PoNS devices, included as consideration in the Heuro acquisition, transferred during the three months ended March 31, 2022 resulting in revenue of $ 0.1 million being recognized which is included in the aforementioned $ 183 thousand in product sales for the three months ended March 31, 2022. There were no PoNS devices , included as consideration in the Heuro acquisition , transferred during the three-month period ended March 31, 2021. As of March 31, 2022 , all devices had been transferred . Any product returns during the three months ended March 31, 2022 were the result of warranty returns for defective products and were insignificant . Any future replacements are expected to be insignificant . License Revenue In connection with the Heuro acquisition, the Company entered into a Clinical Research and Co-Promotion Agreement with HTC (the “Co-Promotion Agreement”). The Co-Promotion Agreement had a fair value of CAD$360 thousand at the time of acquisition and a ten-year ten-year As of March 31, 2022, and December 31, 2021, the Company had no contract assets or liabilities on its condensed 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, inventory markdowns to net realizable value, 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. |
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 carryforwards. 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 |
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 condensed consolidated financial statements in the aggregate in one reportable segment. |
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 condensed consolidated balance sheets consist primarily of cash, accounts receivable, other current receivables, operating lease ROU asset, accounts payable, accrued liabilities, and operating lease liability. The book values of these instruments, with the exception of non-current lease liability and operating lease ROU asset approximate their fair values due to the immediate or short-term nature of these instruments. There were no transfers between any levels for any of the periods presented. 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. |
Basic and Diluted Net Loss per Share | Basic and Diluted Net Loss per Share Earnings or loss per share (“EPS”) is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net 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 shares and per share data): Three Months Ended March 31, 2022 2021 Basic and Diluted Numerator: Net loss $ (4,346 ) $ (3,362 ) Denominator: Weighted average common shares outstanding 3,787,871 2,040,839 Basic and diluted net loss per share $ (1.15 ) $ (1.65 ) 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 due to the Company’s losses for the three months ended March 31, 2022 and |
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 Company meets the definition of an SRC and therefore the standard will not be effective until the beginning of 2023. The Company is evaluating the effect that ASU 2016-13 will have on its condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Inventory | As of March 31, 2022 and December 31, 2021, inventory consisted of the following (amounts in thousands): As of As of March 31, 2022 December 31, 2021 Raw materials $ 185 $ 171 Work-in-process 410 528 Finished goods 53 32 Inventory $ 648 $ 731 Inventory reserve (128 ) (255 ) Total inventory, net of reserve $ 520 $ 476 |
Summary of Property and Equipment | As of March 31, 2022 and December 31, 2021, property and equipment consisted of the following (amounts in thousands): As of As of March 31, 2022 December 31, 2021 Furniture and fixtures $ 59 $ 65 Equipment 374 373 Computer software and hardware 213 212 Property and equipment 646 650 Less accumulated depreciation (266) (241 ) Property and equipment, net $ 380 $ 409 |
Summary of Activity for Goodwill | The following is a summary of the activity for the period ended March 31, 2022 for goodwill: Carrying amount at December 31, 2021 $ 763 Foreign currency translation 14 Carrying amount at March 31, 2022 $ 777 |
Summary of Intangible Assets | Intangible assets as of March 31, 2022 and December 31, 2021 consist of the following: As of March 31, 2022 As of December 31, 2021 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Acquired proprietary software 5 years 154 (75) 79 151 (66 ) 85 Reacquired rights 3.87 years 514 (321) 193 505 (283 ) 222 Internally developed software 3 years 84 (65) 19 84 (58 ) 26 Total intangible assets $ 752 $ (461) $ 291 $ 740 $ (407 ) $ 333 |
Summary of Anticipated Amortization Expense | Amortization expense is anticipated to be as follows in future years: For the Year Ending December 31, 2022 (remaining 9 months) 140 2023 125 2024 26 $ 291 |
Summary of Basic and Diluted Net Loss per Share | The basic and diluted loss per share for the periods noted below is as follows (amounts in thousands except shares and per share data): Three Months Ended March 31, 2022 2021 Basic and Diluted Numerator: Net loss $ (4,346 ) $ (3,362 ) Denominator: Weighted average common shares outstanding 3,787,871 2,040,839 Basic and diluted net loss per share $ (1.15 ) $ (1.65 ) |
Common Stock and Warrants (Tabl
Common Stock and Warrants (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Warrant Activity | The following is a summary of the Company’s warrant activity during the three months ended March 31, 2022: Number of Warrants Weighted-Average Exercise Price Outstanding as of December 31, 2021 593,924 $ 16.32 Granted — — Cancelled/Expired — — Exercised — — Outstanding as of March 31, 2022 593,924 $ 16.32 |
Warrants Outstanding and Exercisable | The Company’s warrants outstanding and exercisable as of March 31, 2022 were as follows: Number of Warrants Outstanding Exercise Price Expiration Date 97,143 USD$16.10 March 20, 2025 17,431 USD$16.1665 October 26, 2023 76,386 USD$15.82 October 26, 2023 961 USD$19.775 October 26, 2023 372,206 USD$16.302 February 1, 2026 29,797 USD$18.525 February 1, 2026 593,924 |
Stock-Based Payments (Tables)
Stock-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Company's Stock Option Activity | The following is a summary of the Company’s stock option activity during the three months ended March 31, 2022: Weighted Average Aggregate Remaining Weighted Intrinsic Number of Contractual Average Value Stock Options Life (in years) Exercise Price (in thousands) Outstanding as of December 31, 2021 669,117 9.03 $ 37.36 $ — Granted 123,750 4.68 — Forfeited/Cancelled (7,639 ) 82.37 — Exercised — — — Outstanding as of March 31, 2022 785,228 8.96 $ 31.77 $ — Exercisable as of March 31, 2022 301,630 8.34 $ 60.64 $ — |
Summary of Company's Restricted Stock Award Activity | The following is a summary of the Company’s RSU award activity for the three months ended March 31, 2022: Number of RSUs Weighted Average Grant Date Fair Value per Unit Outstanding as of December 31, 2021 2,359 $ 15.76 Granted — — Forfeited — — Settled (1,584 ) 15.89 Outstanding as of March 31, 2022 775 $ 15.53 |
Summary of Stock-Based Compensation Expense is Classified in Condensed Consolidated Statements of Operations and Comprehensive Loss | Stock-based compensation expense is classified in the Company’s condensed consolidated statements of operations and comprehensive loss as follows (amounts in thousands): Three Months Ended March 31, 2022 2021 Research and development $ 153 $ 222 Cost of sales 3 — Selling, general and administrative 212 305 Total $ 368 $ 527 |
Employee and Director Stock Options | |
Estimation Using Black-Scholes Option Pricing Model With Following Weighted Average Assumptions | The weighted average grant date fair value of employee and director stock options granted for the three months ended March 31, 2022 was $ Three Months Ended March 31, 2022 Stock price $ 4.68 Exercise price $ 4.68 Expected term 5.75 Expected volatility 73.53% Risk-free interest rate 1.95% Dividend rate 0.00 % |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (amounts in thousands): As of March 31, 2022 December 31, 2021 Employees benefits $ 378 $ 712 Professional services 123 174 Legal fees 72 23 Royalty fees 17 10 Franchise fees 50 193 Severance 147 258 Other 221 63 Total $ 1,008 $ 1,433 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 as of March 31, 2022 (amounts in thousands). For the Three Months Ended March 31, 2022 Operating lease cost $ — Operating lease - operating cash flows $ 3.00 Weighted average remaining lease term 3.0 years Weighted average discount rate 4.4 % Future minimum lease payments under non-cancellable leases as of March 31, 2022 were as follows: For the Period Ending December 31, 2022 (remaining nine months) $ 42.00 2023 58 2024 48 2025 12 Total future minimum lease payments 160 Less imputed interest (10 ) Total liability $ 150 Reported as of March 31, 2022 Current operating lease liability $ 51.00 Non-current operating lease liability 99 Total $ 150 |
Description of Business - Addit
Description of Business - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Date of incorporation | Mar. 13, 2014 | ||
Cash | $ 6,310 | $ 11,005 | |
Operating loss | 4,564 | $ 3,501 | |
Accumulated deficit | 141,381 | $ 137,035 | |
Revenue from the sale of products or services | $ 190 | $ 84 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | Oct. 30, 2019CAD ($) | Mar. 31, 2022USD ($)LeaseDeviceSegmentshares | Mar. 31, 2021USD ($)Deviceshares | Dec. 31, 2021USD ($) |
Schedule Of Significant Accounting Policies [Line Items] | ||||
Accounts receivable | $ 60,000 | $ 66,000 | ||
Allowance for doubtful accounts | 400,000 | 400,000 | ||
Refunds from research and development tax credits | 200,000 | 200,000 | ||
Inventory markdowns to net realizable value | 0 | $ 0 | ||
Work in process inventory reserve | 127,000 | |||
Inventory existing reserves | 0 | |||
Depreciation expense | 25,000 | 28,000 | ||
Amortization expense related to intangible assets | $ 47,000 | 57,000 | ||
Leases, initial term | 12 months | |||
Number of operating lease | Lease | 2 | |||
Revenue | $ 190,000 | $ 84,000 | ||
Number of operating segment | Segment | 1 | |||
Number of reportable segment | Segment | 1 | |||
Common stock equivalents excluded from the computation of diluted weighted average shares outstanding | shares | 1,379,927 | 812,173 | ||
Outstanding Stock Options | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Incremental common stock equivalents | shares | 0 | 0 | ||
Warrants | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Incremental common stock equivalents | shares | 0 | 0 | ||
Restricted Stock Units | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Incremental common stock equivalents | shares | 0 | 0 | ||
License Revenue | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Revenue | $ 7,000 | $ 7,000 | ||
Heuro Canada Incorporation | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Goodwill impairment loss recognized | $ 0 | |||
Heuro Canada Incorporation | HealthTech Connex, Inc. | Clinical Research and Co-Promotion Agreement | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Acquisition date fair value | $ 360 | |||
Agreement term at acquisition | 10 years | |||
License revenue agreement term | 10 years | |||
Heuro Canada Incorporation | HealthTech Connex, Inc. | Clinical Research and Co-Promotion Agreement | License Revenue | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Revenue | $ 7,000 | 7,000 | ||
Deferred revenue | 200,000 | |||
Heuro Canada Incorporation | HealthTech Connex, Inc. | Strategic Alliance Agreement | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Contract assets | 0 | 0 | ||
Contract liabilities | 0 | 0 | ||
Heuro Canada Incorporation | Selling, General and Administrative Expenses | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Amortization expense related to intangible assets | $ 47,000 | $ 100,000 | ||
Minimum | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Effective income tax rate | 50.00% | |||
Maximum | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Payment period as defined within each customer's supply agreement | 30 days | |||
Furniture and Fixtures | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 7 years | |||
Equipment | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 15 years | |||
Computer Software and Hardware | Minimum | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Computer Software and Hardware | Maximum | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 5 years | |||
PoNS | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Number of devices recorded as deferred revenue | Device | 55 | |||
PoNS | Heuro Canada Incorporation | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Revenue | $ 100,000 | |||
Number of devices resulting in recognition of revenue | Device | 16 | 0 | ||
Revenue from Product Sales | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Accounts receivable | $ 100,000 | $ 100,000 | ||
Revenue | $ 183,000 | $ 77,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Raw materials | $ 185 | $ 171 |
Work-in-process | 410 | 528 |
Finished goods | 53 | 32 |
Inventory | 648 | 731 |
Inventory reserve | (128) | (255) |
Total inventory, net of reserve | $ 520 | $ 476 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 646 | $ 650 |
Less accumulated depreciation | (266) | (241) |
Property and equipment, net | 380 | 409 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 59 | 65 |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 374 | 373 |
Computer Software and Hardware | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 213 | $ 212 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Activity for Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Accounting Policies [Abstract] | |
Carrying amount at December 31, 2021 | $ 763 |
Foreign currency translation | 14 |
Carrying amount at March 31, 2022 | $ 777 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 752 | $ 740 |
Intangible assets, Accumulated Amortization | (461) | (407) |
Intangible assets, Net Carrying Value | $ 291 | 333 |
Acquired Proprietary Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, Useful Life | 5 years | |
Intangible assets, Gross Carrying Amount | $ 154 | 151 |
Intangible assets, Accumulated Amortization | (75) | (66) |
Intangible assets, Net Carrying Value | $ 79 | 85 |
Reacquired Rights | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, Useful Life | 3 years 10 months 13 days | |
Intangible assets, Gross Carrying Amount | $ 514 | 505 |
Intangible assets, Accumulated Amortization | (321) | (283) |
Intangible assets, Net Carrying Value | $ 193 | 222 |
Internally Developed Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, Useful Life | 3 years | |
Intangible assets, Gross Carrying Amount | $ 84 | 84 |
Intangible assets, Accumulated Amortization | (65) | (58) |
Intangible assets, Net Carrying Value | $ 19 | $ 26 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Anticipated Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
2022 (remaining 9 months) | $ 140 | |
2023 | 125 | |
2024 | 26 | |
Intangible assets, Net Carrying Value | $ 291 | $ 333 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Summary of Basic and Diluted Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net loss | $ (4,346) | $ (3,362) |
Weighted average shares outstanding | ||
Weighted average common shares outstanding | 3,787,871 | 2,040,839 |
Basic and diluted net loss per share | $ (1.15) | $ (1.65) |
Common Stock and Warrants - Add
Common Stock and Warrants - Additional Information (Details) - USD ($) | Nov. 12, 2021 | Sep. 01, 2021 | Feb. 01, 2021 | Oct. 26, 2020 | Mar. 20, 2020 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 |
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||||||||
Common share, voting rights | one vote per share | |||||||||
Common share, dividends declared | $ 0 | |||||||||
Warrant exercisable price per share | $ 16.32 | $ 16.32 | ||||||||
Gross proceeds from issuance of common stock | $ 11,037,000 | |||||||||
Proceeds from the issuance of common stock | 8,399,000 | |||||||||
Common Stock | LPC Purchase Agreement | Lincoln Park | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Shares issued | 0 | |||||||||
Agreement term | 36 months | |||||||||
Number of shares issued for commitment fee | 31,958 | |||||||||
Fair value of commitment fee | $ 500,000 | |||||||||
Proceeds from the issuance of common stock | $ 14,400,000 | |||||||||
Common Stock | LPC Purchase Agreement | Lincoln Park | Maximum | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Long-term purchase commitment amount | $ 15,000,000 | |||||||||
March 2020 Offering | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Price per share | $ 12.25 | |||||||||
Warrants to purchase number of common stock, shares | 178,776 | |||||||||
Warrant exercisable price per share | $ 16.10 | |||||||||
Gross proceeds from issuance of common stock | $ 2,200,000 | |||||||||
Underwriting discounts and commissions paid | $ 300,000 | |||||||||
Class of warrants exercised | 81,633 | |||||||||
Proceeds from the exercise of warrants | $ 1,300,000 | |||||||||
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 | |||||||||
Price per share | $ 18.20 | |||||||||
Warrants to purchase number of common stock, shares | 93,817 | |||||||||
Warrant exercisable price per share | $ 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 | |||||||||
October 2020 Offering | Officer, Affiliates of an Officer and Director | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Price per share | $ 18.354 | |||||||||
Warrant exercisable price per share | $ 16.1665 | |||||||||
October 2020 Offering | Placement Agent | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Shares issued | 961 | |||||||||
Price per share | $ 19.775 | |||||||||
October 2020 Offering | Common Stock | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Common unit issued | 1 | |||||||||
Number of warrant to purchase of each stock | 0.50 | |||||||||
February 2021 Offering | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Price per share | $ 14.82 | |||||||||
Warrants to purchase number of common stock, shares | 372,468 | |||||||||
Warrant exercisable price per share | $ 16.302 | |||||||||
Class of warrants exercised | 262 | |||||||||
Proceeds from the exercise of warrants | $ 4,000 | |||||||||
Number of warrant to purchase of each stock | 0.50 | |||||||||
Warrants expiration period | 5 years | |||||||||
Net proceeds from issuance of common stock | $ 9,600,000 | |||||||||
Fair value of warrants at issuance | $ 2,600,000 | |||||||||
February 2021 Offering | Common Stock | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Shares issued | 744,936 | |||||||||
Over-Allotment Option | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Price per share | $ 18.525 | |||||||||
Over-Allotment Option | Common Stock | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Shares issued | 29,797 | |||||||||
November 2021 Offering | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Price per share | $ 8 | |||||||||
Net proceeds from issuance of common stock | $ 9,900,000 | |||||||||
November 2021 Offering | Common Stock | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Shares issued | 1,385,031 | |||||||||
Class A Common Stock | ||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||
Common stock, shares authorized | 150,000,000 | |||||||||
Common stock, par value | $ 0.001 |
Common Stock and Warrants - Sum
Common Stock and Warrants - Summary of Warrant Activity (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Equity [Abstract] | |
Number of Warrants, Outstanding | shares | 593,924 |
Number of Warrants, Outstanding | shares | 593,924 |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 16.32 |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 16.32 |
Common Stock and Warrants - War
Common Stock and Warrants - Warrants Outstanding and Exercisable (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Class Of Warrant Or Right [Line Items] | ||
Number of Warrants Outstanding | 593,924 | 593,924 |
Exercise Price | $ 16.32 | $ 16.32 |
Warrants Expiration Date, March 20, 2025 | ||
Class Of Warrant Or Right [Line Items] | ||
Number of Warrants Outstanding | 97,143 | |
Exercise Price | $ 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 | |
Exercise Price | $ 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 | |
Exercise Price | $ 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 | |
Exercise Price | $ 19.775 | |
Expiration Date | Oct. 26, 2023 | |
Warrants Expiration Date, February 1, 2026 | ||
Class Of Warrant Or Right [Line Items] | ||
Number of Warrants Outstanding | 372,206 | |
Exercise Price | $ 16.302 | |
Expiration Date | Feb. 1, 2026 | |
Warrants Expiration Date, February 1, 2026 | ||
Class Of Warrant Or Right [Line Items] | ||
Number of Warrants Outstanding | 29,797 | |
Exercise Price | $ 18.525 | |
Expiration Date | Feb. 1, 2026 |
Stock-Based Payments - Addition
Stock-Based Payments - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 16, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jul. 02, 2021 | May 25, 2021 | May 15, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of stock option issued | 123,750 | ||||||
Stock based compensation expense | $ 368 | $ 527 | |||||
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 | 565,000 | 153,031 | |||||
Common stock shares available for issuance | 85,714 | ||||||
Common stock remaining available for grant | 8,595 | ||||||
2016 Omnibus Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock shares available for issuance | 67,317 | ||||||
2021 Inducement Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock remaining available for grant | 52,000 | ||||||
2021 Inducement Plan | Common Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock shares available for issuance | 100,000 | ||||||
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 | $ 2,900 | ||||||
Weighted-average remaining vesting period | 3 years | ||||||
Unrecognized compensation cost related to Performance-based stock options | $ 1,200 | ||||||
Number of stock option issued | 123,750 | ||||||
Stock option forfeited | 0 | ||||||
Weighted average grant date fair value | $ 3.01 | ||||||
Consultants Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to non-vested stock options outstanding | $ 7 | ||||||
Weighted-average remaining vesting period | 7 months 6 days | ||||||
Number of stock option issued | 0 | ||||||
Restricted Stock Units | Board of Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares granted | 6,343 | ||||||
Vesting period in installments | 12 months | ||||||
Unrestricted Stock | 2018 Omnibus Incentive Plan | Common Stock | Officer | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares granted | 8,011 | 4,258 | |||||
Stock based compensation expense | $ 34 |
Stock-Based Payments - Summary
Stock-Based Payments - Summary of Company's Stock Option Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Stock Options, Beginning balance outstanding | 669,117 | |
Number of Stock Options, Granted | 123,750 | |
Number of Stock Options Forfeited/Cancelled | (7,639) | |
Number of Stock Options, Ending balance outstanding | 785,228 | 669,117 |
Number of Stock Options, Exercisable | 301,630 | |
Weighted Average Remaining Contractual Life | 8 years 11 months 15 days | 9 years 10 days |
Weighted Average Remaining Contractual Life, Exercisable | 8 years 4 months 2 days | |
Weighted Average Exercise Price, Beginning balance outstanding | $ 37.36 | |
Weighted Average Exercise Price, Granted | 4.68 | |
Weighted Average Exercise Price, Forfeited/Cancelled | 82.37 | |
Weighted Average Exercise Price, Ending balance outstanding | 31.77 | $ 37.36 |
Weighted Average Exercise Price, Exercisable | $ 60.64 |
Stock-Based Payments - Schedule
Stock-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 | 3 Months Ended |
Mar. 31, 2022$ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock price | $ 4.68 |
Exercise price | $ 4.68 |
Expected term | 5 years 9 months |
Expected volatility | 73.53% |
Risk-free interest rate | 1.95% |
Dividend rate | 0.00% |
Stock-Based Payments - Summar_2
Stock-Based Payments - Summary of Company's Restricted Stock Award Activity (Details) - Restricted Stock Units | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of RSU, Beginning balance outstanding | shares | 2,359 |
Number of RSU, Settled | shares | (1,584) |
Number of RSU, Ending balance outstanding | shares | 775 |
Weighted Average Grant Date Fair Value per Unit, Beginning balance outstanding | $ / shares | $ 15.76 |
Weighted Average Grant Date Fair Value per Unit, Settled | $ / shares | 15.89 |
Weighted Average Grant Date Fair Value per Unit, Ending balance outstanding | $ / shares | $ 15.53 |
Stock-Based Payments - Summar_3
Stock-Based Payments - Summary of Stock-Based Compensation Expense is Classified in Condensed Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 368 | $ 527 |
Research and Development Expense | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 153 | 222 |
Cost of Sales | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 3 | |
Selling, General and Administrative Expense | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 212 | $ 305 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Payables And Accruals [Abstract] | ||
Employees benefits | $ 378 | $ 712 |
Professional services | 123 | 174 |
Legal fees | 72 | 23 |
Royalty fees | 17 | 10 |
Franchise fees | 50 | 193 |
Severance | 147 | 258 |
Other | 221 | 63 |
Total | $ 1,008 | $ 1,433 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Mar. 31, 2022USD ($) | Feb. 01, 2022USD ($)ft² | Jun. 01, 2020 | Dec. 29, 2017 | Jan. 22, 2013shares | Nov. 30, 2021USD ($)ft² | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) |
Commitments And Contingencies [Line Items] | ||||||||
Lease commencement date | Feb. 1, 2022 | Jan. 1, 2022 | ||||||
Lease termination date | Jan. 31, 2024 | Mar. 31, 2025 | ||||||
Office space | ft² | 750 | 1,780 | ||||||
Monthly rent | $ 4,000 | |||||||
Percentage of annual increase of rent | 3.00% | |||||||
Option to extend | There is no option to extend | There is no option to extend | ||||||
Lease monthly rent plus utilities | $ 985 | |||||||
Increase in lease monthly rent plus utilities expense | $ 1,015 | |||||||
Advanced NeuroRehabilitation, LLC | License Agreement for Exclusive Right on Patent Pending Technology | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Issuance of shares to a consultant for services, Shares | shares | 91,628 | |||||||
Percentage of royalty on net revenue | 4.00% | |||||||
Royalty expense | $ 7,000 | $ 3,000 | ||||||
KeyTronic 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 KeyTronic Corporation (“KeyTronic”), 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 KeyTronic a rolling forecast for the procurement of parts and material and within normal lead times based on estimated delivery | |||||||
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 ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Operating Leases Future Minimum Payments Due [Abstract] | ||
Operating lease - operating cash flows | $ 3,000 | |
Weighted average remaining lease term | 3 years | |
Weighted average discount rate | 4.40% | |
2022 (remaining nine months) | $ 42,000 | |
2023 | 58,000 | |
2024 | 48,000 | |
2025 | 12,000 | |
Total future minimum lease payments | 160,000 | |
Less imputed interest | (10,000) | |
Total liability | 150,000 | |
Current operating lease liability | 51,000 | $ 3,000 |
Non-current operating lease liability | 99,000 | |
Total | $ 150,000 |