Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 10, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | VIVEVE MEDICAL, INC. | |
Entity Central Index Key | 879,682 | |
Trading Symbol | vivmf | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 10,606,919 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 19,931 | $ 7,360 | [1] |
Accounts receivable | 589 | 593 | [1] |
Inventory | 845 | 1,549 | [1] |
Prepaid expenses and other current assets | 1,204 | 1,228 | [1] |
Total current assets | 22,569 | 10,730 | [1] |
Property and equipment, net | 356 | 239 | [1] |
Other assets | 139 | 138 | [1] |
Total assets | 23,064 | 11,107 | [1] |
Current liabilities: | |||
Accounts payable | 1,854 | 1,432 | [1] |
Accrued liabilities | 2,090 | 1,293 | [1] |
Note payable, current portion | 4,446 | [1] | |
Total current liabilities | 3,944 | 7,171 | [1] |
Note payable, noncurrent portion | 9,560 | [1] | |
Total liabilities | 13,504 | 7,171 | [1] |
Commitments and contingences (Note 6) | [1] | ||
Stockholders’ equity: | |||
Preferred stock, value | |||
Common stock, value | 1 | 52,447 | |
Additional paid-in capital | 67,492 | [1] | |
Accumulated deficit | (57,933) | (48,511) | [1] |
Total stockholders’ equity | 9,560 | 3,936 | [1] |
Total liabilities and stockholders’ equity | $ 23,064 | $ 11,107 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated financial statements as of that date. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 | [1] |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0 | |
Preferred stock, shares authorized (in shares) | 10,000,000 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0 | |
Common stock, shares authorized (in shares) | 75,000,000 | ||
Common stock, shares issued (in shares) | 10,606,919 | 7,490,288 | |
Common stock, shares outstanding (in shares) | 10,606,919 | 7,490,288 | |
[1] | The condensed consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated financial statements as of that date. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue | $ 1,556 | $ 73 | $ 2,840 | $ 111 |
Cost of revenue | 1,022 | 53 | 1,958 | 103 |
Gross profit | 534 | 20 | 882 | 8 |
Operating expenses: | ||||
Research and development | 2,463 | 1,086 | 4,259 | 1,931 |
Selling, general and administrative | 2,615 | 1,821 | 5,163 | 3,398 |
Total operating expenses | 5,078 | 2,907 | 9,422 | 5,329 |
Loss from operations | (4,544) | (2,887) | (8,540) | (5,321) |
Interest expense | (765) | (105) | (873) | (188) |
Other expense, net | (7) | (14) | (9) | (21) |
Comprehensive and net loss | $ (5,316) | $ (3,006) | $ (9,422) | $ (5,530) |
Net loss per share: | ||||
Basic and diluted (in dollars per share) | $ (0.66) | $ (0.67) | $ (1.21) | $ (1.64) |
Weighted average shares used in computing net loss per common share | ||||
Basic and diluted (in shares) | 8,080,737 | 4,454,012 | 7,786,889 | 3,379,504 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Cash flows from operating activities: | |||
Net loss | $ (9,422) | $ (5,530) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 45 | 36 | |
Stock-based compensation | 390 | 90 | |
Fair value of warrants issued | 162 | 380 | |
Non-cash interest expense | 387 | 102 | |
Changes in assets and liabilities: | |||
Accounts receivable | 4 | 6 | |
Inventory | 679 | (226) | |
Prepaid expenses and other current assets | 24 | (898) | |
Other noncurrent assets | (1) | 3 | |
Accounts payable | 422 | 196 | |
Accrued liabilities | 1,009 | 769 | |
Net cash used in operating activities | (6,301) | (5,072) | |
Cash flows from investing activities: | |||
Proceeds from sale of property and equipment | 1 | ||
Purchase of property and equipment | (138) | (1) | |
Net cash used in investing activities | (137) | (1) | |
Cash flows from financing activities: | |||
Proceeds from sale of common stock, net of issuance costs | 13,857 | 11,040 | |
Proceeds from note payable | 9,944 | 1,500 | |
Repayments of note payable | (4,833) | ||
Proceeds from exercise of warrant | 27 | ||
Proceeds from exercise of stock options | 14 | ||
Net cash provided by financing activities | 19,009 | 12,540 | |
Net increase in cash and cash equivalents | 12,571 | 7,467 | |
Cash and cash equivalents - beginning of period | 7,360 | [1] | 895 |
Cash and cash equivalents - end of period | 19,931 | 8,362 | |
Supplemental disclosure: | |||
Cash paid for interest | 487 | 85 | |
Cash paid for income taxes | 1 | 1 | |
Supplemental disclosure of cash flow information as of end of period: | |||
Issuance of warrant in connection with note payable | 350 | 10 | |
Restricted stock awards granted to employees for 2015 accrued bonuses | 246 | ||
Net transfer of equipment between inventory and property and equipment | $ 25 | $ 20 | |
[1] | The condensed consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated financial statements as of that date. |
Note 1 - The Company and Basis
Note 1 - The Company and Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. The Company and Basis of Presentation Viveve Medical, Inc. (“Viveve Medical”, the “Company”, “we”, “our”, or “us”) competes in the women’s health industry by marketing the Viveve System™ as a way to improve the overall sexual well-being and quality of life of women suffering from vaginal laxity. Public Offering On June 17, 2016, in connection with the closing of a public offering (the “June 2016 Offering”), we issued an aggregate of 3,105,000 shares of common stock, including the shares issued in connection with the exercise of the underwriters’ overallotment option, at a public offering price of $5.00 per share for gross proceeds of approximately $15,525,000. The net proceeds to the Company, after the deduction of underwriting discounts, commissions and other offering expenses, were approximately $13,857,000. Change of Corporate Domicile On May 9, 2016 the Company filed the necessary Application for Authorization to Continue into Another Jurisdiction and Statutory Declaration with the Yukon registrar. On May 10, 2016, the Company filed a Certificate of Incorporation with the Secretary of State of the State of Delaware to move its domicile from the Yukon Territory to Delaware. In connection with the incorporation in Delaware, the Company's stock now has a par value of $0.0001 per share. Interim Unaudited Financial Information The accompanying unaudited condensed consolidated financial statements of Viveve Medical have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the condensed consolidated financial statements have been included. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the Securities and Exchange Commission on March 24, 2016. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies Financial Statement Presentation The condensed consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries, Viveve, Inc. and Viveve BV. All significant intercompany accounts and transactions have been eliminated in consolidation. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. Accounting Standards Update (“ASU”) 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for the Company’s fiscal year beginning January 1, 2016. We adopted this guidance in the first quarter of 2016. Accordingly, the Company has revised the classification in the condensed consolidated balance sheet to report debt issuance costs as a contra debt liability as of December 31, 2015. This resulted in a decrease of $387,000 to the December 31, 2015 amounts reported as prepaid expenses and other current assets, total assets, note payable, total liabilities, and total liabilities and stockholders’ equity. Reverse Stock Split On April 15, 2016, the Company effected a 1-for-8 reverse stock split of its common stock. On the effective date of the reverse stock split, (i) each 8 shares of outstanding common stock were reduced to one share of common stock; (ii) the number of shares of common stock into which each outstanding warrant or option to purchase common stock is exercisable were proportionately reduced on an 8-to-1 basis; and (iii) the exercise price of each outstanding warrant or option to purchase common stock were proportionately increased on a 1-to-8 basis. All of the share numbers, share prices, and exercise prices have been adjusted, on a retroactive basis, to reflect this 1-for-8 reverse stock split. Use of Estimates The preparation of condensed consolidated financial statements in conformity with US GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In addition, any change in these estimates or their related assumptions could have an adverse effect on our operating results. Concentration of Credit Risk and Other Risks and Uncertainties To achieve profitable operations, the Company must successfully develop, manufacture, and market its products. There can be no assurance that any such products can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products will be successfully marketed. These factors could have a material adverse effect upon the Company’s financial results, financial position, and future cash flows. The Company’s products may require approval from the U.S. Food and Drug Administration or other international regulatory agencies prior to commencing commercial sales. There can be no assurance that the Company’s products will receive any of these required approvals. If the Company was denied such approvals or such approvals were delayed, it would have a material adverse effect on the Company’s financial results, financial position and future cash flows. The Company is subject to risks common to companies in the medical device industry including, but not limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, uncertainty of market acceptance of products, product liability, and the need to obtain additional financing. The Company’s ultimate success is dependent upon its ability to raise additional capital and to successfully develop and market its products. The Company outsources the manufacture and repair of the Viveve System to a single contract manufacturer. Also, certain other components and materials that comprise the Viveve System are currently manufactured by a single supplier or a limited number of suppliers. A significant supply interruption or disruption in the operations of the contract manufacturer or these third-party suppliers would adversely impact the production of our products for a substantial period of time, which could have a material adverse effect on our business, financial condition, operating results and cash flows. During the three months ended June 30, 2016, two customers accounted for 92% of the Company’s revenue. During the three months ended June 30, 2015, five customers accounted for 97% of the Company’s revenue. During the six months ended June 30, 2016, two customers accounted for 75% of the Company’s revenue. During the six months ended June 30, 2015, four customers accounted for 90% of the Company’s revenue. Revenue Recognition The Company recognizes revenue from the sale of its products, the Viveve System, single-use treatment tips and ancillary consumables. Revenue is recognized upon shipment, provided that persuasive evidence of an arrangement exists, the price is fixed or determinable and collection of the resulting receivable is reasonably assured. Sales of our products are subject to regulatory requirements that vary from country to country. The Company has regulatory clearance outside the U.S. and currently sells the Viveve System in Canada, Hong Kong, Japan, Europe, the Middle East, Southeast Asia and Latin America. The Company does not provide its customers with a contractual right of return. Customer Advance Payments From time to time, customers will pay for a portion of the products ordered in advance. Upon receipt of such payments, the Company records the customer advance payment as a component of accrued liabilities. The Company will remove the customer advance payment from accrued liabilities and revenue is recognized upon shipment of the product assuming all other revenue recognition criteria are met. Product Warranty The Company’s products are generally subject to a one-year warranty, which provides for the repair, rework or replacement of products (at the Company’ option) that fail to perform within stated specification. The Company has assessed the historical claims and, to date, product warranty claims have not been significant. The Company will continue to assess the need to record a warranty accrual at the time of sale going forward. Comprehensive Loss Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the three and six months ended June 30, 2016 and 2015, the Company’s comprehensive loss is the same as its net loss. Net Loss per Share The Company’s basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents outstanding during the period. For purposes of this calculation, stock options and warrants to purchase common stock and restricted common stock awards are considered common stock equivalents. For periods in which the Company has reported net losses, diluted net loss per share is the same as basic net loss per share, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The following securities were excluded from the calculation of net loss per share because the inclusion would be anti-dilutive. June 30, 2016 2015 Stock options to purchase common stock 1,126,287 375,752 Warrants to purchase common stock 506,379 358,119 Restricted common stock awards 39,494 - Recently Issued and Adopted Accounting Standards In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606).” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The ASU provides alternative methods of initial adoption and is effective for annual and interim periods beginning after December 15, 2017. The FASB has issued several updates to the standard which i) defer the original effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017 (ASU 2015-14); ii) clarify the application of the principal versus agent guidance (ASU 2016-08); and iii) clarify the guidance on inconsequential and perfunctory promises and licensing (ASU 2016-10). In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients”, to address certain narrow aspects of the guidance including collectibility criterion, collection of sales taxes from customers, noncash consideration, contract modifications and completed contracts. This issuance does not change the core principle of the guidance in the initial topic issued in May 2014. We are currently evaluating the impact that this standard will have on our condensed consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for the Company’s fiscal year beginning January 1, 2016 and subsequent interim periods, with earlier adoption permitted. We adopted this guidance in the first quarter of 2016 and have reclassified our condensed consolidated balance sheets to comply with the new standard. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires that an entity should measure inventory within the scope of this pronouncement at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The pronouncement does not apply to inventory that is being measured using the last-in, first-out (“LIFO”) method or the retail inventory method. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. ASU 2015-11 will be effective for the Company’s fiscal year beginning January 1, 2017 and subsequent interim periods, with earlier adoption permitted. We are currently evaluating the effect of the adoption of this guidance on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under this guidance, an entity is required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within the reporting period, and requires a modified retrospective adoption, with early adoption permitted. We are currently evaluating the effect of the adoption of this guidance on our condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within the reporting period, with early adoption permitted. We are currently evaluating the effect of the adoption of this guidance on our condensed consolidated financial statements. |
Note 3 - Fair Value Measurement
Note 3 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 3. Fair Value Measurements The Company recognizes and discloses the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). Each level of input has different levels of subjectivity and difficulty involved in determining fair value. Level 1 Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Therefore, determining fair value for Level 1 investments generally does not require significant judgment, and the estimation is not difficult. Level 2 Pricing is provided by third party sources of market information obtained through investment advisors. The Company does not adjust for or apply any additional assumptions or estimates to the pricing information received from its advisors. Level 3 Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The determination of fair value for Level 3 instruments involves the most management judgment and subjectivity. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. There were no financial instruments that were measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015. The carrying amounts of the Company’s financial assets and liabilities, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses as of June 30, 2016 and December 31, 2015 approximate fair value because of the short maturity of these instruments. Based on borrowing rates currently available to the Company for loans with similar terms, the carrying value of the notes payable approximates fair value. |
Note 4 - Accrued Liabilities
Note 4 - Accrued Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 4. Accrued Liabilities Accrued liabilities consisted of the following (in thousands): June 30, 2016 December 31, 2015 Accrued professional fees $ 990 $ 388 Customer advance payments 442 20 Accrued bonuses 319 613 Accrued vacation 132 68 Accrued clinical trial costs 23 112 Other accruals 184 92 Total accrued liabilities $ 2,090 $ 1,293 |
Note 5 - Note Payable
Note 5 - Note Payable | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 5. Note Payable On September 30, 2014, we entered into a Loan and Security Agreement, as amended on February 19, 2015, May 14, 2015, November 30, 2015 and March 18, 2016 (collectively, the “2014 Loan Agreement”), with Pacific Western Bank (as successor in interest by merger to Square 1 Bank) (the “Lender”), pursuant to which we received a term loan in the amount of $5,000,000, funded in three tranches. The first tranche of $2,500,000 was provided to us on October 1, 2014 and proceeds of $500,000 from the second tranche were received on each of February 19, 2015, March 16, 2015 and April 6, 2015 for aggregate proceeds of $1,500,000. The terms of the loan also required that the Company meet certain financial covenants and milestones in connection with the Company’s randomized, blinded and sham-controlled clinical trial in Europe and Canada (the “OUS Clinical Trial”), and on July 15, 2015 we received the final $1,000,000 of the term loan with a drawdown of funds from the third tranche. In connection with the 2014 Loan Agreement, we entered into an Intellectual Property Security Agreement, dated September 30, 2014, pursuant to which a first priority security interest was created in all of our intellectual property, and we issued a 10-year warrant to the Lender for the purchase of 58,962 shares of the Company’s common stock at an exercise price $4.24 per share, and pursuant to the first amendment to the 2014 Loan Agreement in February 2015, such number of shares to automatically increase in the event the Company fails to meet certain covenants. In connection with the second amendment to the 2014 Loan Agreement in May 2015, we issued a second 10-year warrant to the Lender to purchase a total of 3,125 shares of common stock at an exercise price of $2.96 per share. (See Note 7.) On June 20, 2016, we entered into a Loan and Security Agreement (the “2016 Loan Agreement”) with Western Alliance Bank (the “Lender”), pursuant to which the Lender agreed to loan us up to an aggregate of $10,000,000 payable in two tranches of $7,500,000 and $2,500,000. The funding conditions for both tranches were satisfied as of the closing date, and therefore, the aggregate principal amount of $10,000,000 was provided to us on June 20, 2016. The proceeds received were used to repay the outstanding existing indebtedness under the 2014 Loan Agreement and the remaining balance will be used for working capital purposes and to fund general business requirements. The borrowings are repayable in interest only payments until July 1, 2017 and then 30 monthly equal installments of principal and interest. The term loan shall bear interest on the outstanding obligations under the loan at a floating per annum rate equal to the greater of (i) the Index Rate (i.e., the 30 day U.S. LIBOR rate reported in the Wall Street Journal) plus 6.96%, determined as of the last day of each month, and (ii) 7.40%. In connection with the 2016 Loan Agreement, we issued a 10-year warrant to the Lender to purchase a total of 100,402 shares of the Company’s common stock at an exercise price of $4.98 per share. (See Note 7.) All borrowings under the 2016 Loan Agreement are collateralized by substantially all of the Company’s assets, including intellectual property. The Company is also required to meet certain financial and other covenants in connection with the 2016 Loan Agreement. As of June 30, 2016, the Company was in compliance with all covenants. As of June 30, 2016, future minimum payments under the note payable are as follows (in thousands): Year Ending December 31, 2016 (remaining 6 months) $ 315 2017 2,719 2018 4,463 2019 4,512 Total payments 12,009 Less: Amount representing interest (2,009 ) Present value of obligations 10,000 Less: Unamortized debt discount (440 ) 9,560 Less: Note payable, noncurrent portion 9,560 Note payable, current portion $ - |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 6. Commitments and Contingencies Operating Lease In January 2012, the Company entered into a lease agreement for office and laboratory facilities. The lease agreement, as amended in January 2015, commenced in March 2012 and will terminate in March 2017. Rent expense for the six months ended June 30, 2016 and 2015 was $109,000 and $101,000, respectively. As of June 30, 2016, future minimum payments under the lease are as follows (in thousands): Year Ending December 31, 2016 ( remaining 6 months) $ 115 2017 58 Total minimum lease payments $ 173 Indemnification Agreements The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with performance of services within the scope of the agreement, breach of the agreement by the Company, or noncompliance of regulations or laws by the Company, in all cases provided the indemnified party has not breached the agreement and/or the loss is not attributable to the indemnified party’s negligence or willful malfeasance. The term of these indemnification agreements is generally perpetual any time after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these arrangements is not determinable. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Loss Contingencies The Company is or has been subject to proceedings, lawsuits and other claims arising in the ordinary course of business. The Company evaluates contingent liabilities, including threatened or pending litigation, for potential losses. If the potential loss from any claim or legal proceeding in considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. Because of uncertainties related to these matters, accruals are based upon the best information available. For potential losses for which there is a reasonable possibility (meaning the likelihood is more than remote but less than probable) that a loss exists, the Company will disclose an estimate of the potential loss or range of such potential loss or include a statement that an estimate of the potential loss cannot be made. As additional information becomes available, the Company reassesses the potential liability related to pending claims and litigation and may revise its estimates, which could materially impact its condensed consolidated financial statements. |
Note 7 - Common Stock
Note 7 - Common Stock | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 7. Common Stock On June 17, 2016, in connection with the closing of the June 2016 Offering, we issued an aggregate of 3,105,000 shares of common stock, including the exercise of the underwriters’ overallotment option, at a public offering price of $5.00 per share for gross proceeds of approximately $15,525,000. The net proceeds to the Company, after the deduction of underwriting discounts, commissions and other offering expenses, were approximately $13,857,000. Warrants for Common Stock As of June 30, 2016, outstanding warrants to purchase shares of common stock were as follows: Issuance Date Exercisable for Expiration Date Exercise Price Number of Shares Outstanding Under Warrants September 2014 Common Shares September 23, 2019 $ 4.24 110,550 September 2014 Common Shares September 30, 2024 $ 4.24 58,962 October 2014 Common Shares October 13, 2019 $ 4.24 29,000 November 2014 Common Shares November 12, 2019 $ 4.24 12,500 February 2015 Common Shares February 17, 2025 $ 4.00 75,697 March 2015 Common Shares March 26, 2025 $ 2.72 1,454 May 2015 Common Shares May 12, 2025 $ 4.24 36,229 May 2015 Common Shares May 14, 2025 $ 2.96 3,125 May 2015 Common Shares May 17, 2020 $ 4.24 21,585 December 2015 Common Shares December 16, 2025 $ 5.60 26,875 April 2016 Common Shares April 1, 2026 $ 6.08 25,000 May 2016 Common Shares May 11, 2021 $ 7.74 5,000 June 2016 Common Shares June 20, 2026 $ 4.98 100,402 506,379 In connection with the 2014 Loan Agreement entered into on September 30, 2014, the Company issued a warrant to purchase a total of 58,962 shares of common stock at an exercise price of $4.24 per share. The fair value of the warrant was recorded as debt issuance costs, presented in the condensed consolidated balance sheets as a deduction from the carrying amount of the note payable, and was being amortized to interest expense over the loan term. The outstanding indebtedness was repaid in June 2016 from the proceeds of the new term loan in connection with the 2016 Loan Agreement and the remaining unamortized balance of debt issuance costs was recorded to interest expense for the quarter ended June 30, 2016. During the three and six months ended June 30, 2016, the Company recorded $342,000 and $387,000, respectively, of interest expense relating to the debt issuance costs. During the three and six months ended June 30, 2015, the Company recorded $55,000 and $102,000, respectively, of interest expense relating to the debt issuance costs. In conjunction with the second amendment to the 2014 Loan Agreement in May 2015, the Company issued a warrant to the lender to purchase a total of 3,125 shares of common stock at an exercise price of $2.96 per share. During the three and six months ended June 30 2015, the Company recorded $8,000 of interest expense relating to the debt issuance costs for this warrant. The debt issuance costs for this warrant were fully amortized as of September 30, 2015. In April 2016, the Company issued a common stock warrant to a distributor to purchase a total of 25,000 shares of common stock at an exercise price of $6.08 per share. The warrant has a contractual life of ten years and is exercisable immediately in whole or in part, on or before ten years from the issuance date. The Company determined the fair value of the warrant using the Black-Scholes option pricing model. Assumptions used were dividend yield of 0%, volatility of 72.1%, risk free interest rate of 1.78% and a contractual life of ten years. The fair value of the warrant was recorded as sales costs, which are included in selling, general and administrative expenses in the condensed consolidated statements of operations. In May 2016, the Company issued common stock warrants to nonemployee contractors to purchase a total of 5,000 shares of common stock at an exercise price of $7.74 per share. The warrants have a contractual life of five years and are exercisable immediately in whole or in part, on or before five years from the issuance date. The Company determined the fair value of the warrants using the Black-Scholes option pricing model. Assumptions used were dividend yield of 0%, volatility of 61.6%, risk free interest rate of 1.20% and a contractual life of five years. The fair value of the warrants were recorded as clinical consulting costs, which are included in research and development expenses in the condensed consolidated statements of operations. In connection with the 2016 Loan Agreement entered into on June 20, 2016, the Company issued a warrant to purchase a total of 100,402 shares of common stock at an exercise price of $4.98 per share. The warrant has a contractual life of ten years and is exercisable immediately in whole or in part, on or before ten years from the issuance date. The Company determined the fair value of the warrant on the date of issuance to be $350,000 using the Black-Scholes option pricing model. Assumptions used were dividend yield of 0%, volatility of 63.0%, risk free interest rate of 1.67% and a contractual life of ten years. The fair value of the warrant, along with other legal fees totaling $90,000, were recorded as debt issuance costs, presented in the condensed consolidated balance sheet as of June 30, 2016 as a deduction from the carrying amount of the note payable, and will be amortized to interest expense over the loan term. During the three and six months ended June 30, 2016, the Company recorded no interest expense relating to the debt issuance costs because it was immaterial for the financial reporting period. As of June 30, 2016, the unamortized debt issuance cost was $440,000. A total of 735 and 6,250 shares issuable pursuant to warrants issued in connection with the private offering on September 30, 2014 were exercised in 2015 and 2016, respectively. A total of 5,157 and 1,094 shares issuable pursuant to warrants issued to two vendors in October 2014 were cancelled in 2015 and 2016, respectively, as the milestones related to these shares were not achieved. The stock-based compensation expense related to warrants issued was $20,000 and $162,000 for the three and six months ended June 30, 2016, respectively. The stock-based compensation expense related to warrants issued was $118,000 and $380,000 for the three and six months ended June 30, 2015, respectively. |
Note 8 - Summary of Stock Optio
Note 8 - Summary of Stock Options | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 8. Summary of Stock Options Stock Option Plans The Company has issued equity awards in the form of stock options and restricted stock awards from three employee benefit plans. The plans include the Company’s 2005 Stock Incentive Plan (the “2005 Plan”), the Viveve Amended and Restated 2006 Stock Plan (the “2006 Plan”) and the Company’s 2013 Stock Option and Incentive Plan, as amended (the “2013 Plan”). The 2005 Plan was adopted by the Company’s board of directors and approved by its stockholders. As of June 30, 2016, 2,520 shares of common stock remain reserved for issuance under the 2005 Plan. The Company does not intend to grant further awards from the 2005 Plan, however, it will continue to administer the 2005 Plan until all outstanding awards are exercised, expire, terminate or are forfeited. There are currently outstanding stock option awards issued from the 2005 Plan covering a total of 2,520 shares of the Company’s common stock. The weighted average exercise price of the outstanding stock options is $101.26 per share and the weighted average remaining contractual term is 0.96 years. The 2006 Plan was adopted by the board of directors of Viveve, Inc. and was terminated in conjunction with the merger that took place on September 23, 2014 between PLC Systems Inc., Viveve, Inc. and PLC Systems Acquisition Corp. (the “Merger”). Prior to the Merger, the board of directors voted to accelerate the vesting of all unvested options that were outstanding as of the date of the Merger such that all options would be immediately vested and exercisable by the holders. In conjunction with the Merger, the Company agreed to assume and administer the 2006 Plan and all outstanding options to purchase shares of Viveve, Inc. common stock issued from the 2006 Plan were converted into options to purchase shares of the Company’s common stock (rounded down to the nearest whole share). The number of shares of the Company’s common stock into which the 2006 Plan options were converted was determined by multiplying the number of shares covered by each 2006 Plan option by the exchange ratio of 0.0080497 (or .0010062 on a post- reverse stock split basis). The exercise price of each 2006 Plan option was determined by dividing the exercise price of each 2006 Plan option immediately prior to the Merger by the exchange ratio of 0.0080497 (or .0010062 on a post- reverse stock split basis) (rounded up to the nearest cent). There are currently outstanding stock option awards issued from the 2006 Plan covering a total of 38,605 shares of the Company’s common stock and no shares are available for future awards. The weighted average exercise price of the outstanding stock options is $10.78 per share and the weighted average remaining contractual term is 6.35 years. The 2013 Plan was also adopted by the Company’s board of directors and approved by its stockholders. The 2013 Plan is administered by the Compensation Committee of the Company’s board of directors (the “Administrator”). Under the 2013 Plan, the Company may grant equity awards to eligible participants which may take the form of stock options (both incentive stock options and non-qualified stock options), stock appreciation rights, restricted, deferred or unrestricted stock awards, performance based awards or dividend equivalent rights. Awards may be granted to officers, employees, nonemployee directors (as defined in the 2013 Plan) and other key persons (including consultants and prospective employees). The term of any stock option award may not exceed 10 years and may be subject to vesting conditions, as determined by the Administrator. Options granted generally vest over four years. Incentive stock options may be granted only to employees of the Company or any subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of the Internal Revenue Code. The exercise price of any stock option award cannot be less than the fair market value of the Company’s common stock, provided, however, that an incentive stock option granted to an employee who owns more than 10% of the Company’s outstanding voting power must have an exercise price of no less than 110% of the fair market value of the Company’s common stock and a term that does not exceed five years. On July 22, 2015, the Company’s stockholders approved an amendment to the 2013 Plan increasing the number of shares of common stock authorized for awards under the 2013 Plan from 388,949 shares to a total of 1,262,500 shares. As of June 30, 2016, there are outstanding stock option awards issued from the 2013 Plan covering a total of 1,085,162 shares of the Company’s common stock and there remain reserved for future awards 134,015 shares of the Company’s common stock. The weighted average exercise price of the outstanding stock options is 6.06 per share, and the remaining contractual term is 9.09 years. Activity under the 2005 Plan, the 2006 Plan and the 2013 Plan is as follows: Six Months Ended June 30, 2016 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Options outstanding, beginning of period 1,022,195 $ 6.47 9.37 $ - Options granted 158,017 $ 6.57 Options exercised (3,020 ) $ 4.80 Options canceled (50,905 ) $ 7.60 Options outstanding, end of period 1,126,287 $ 6.44 8.98 $ 46,238 Vested and exercisable and expected to vest, end of period 1,043,020 $ 6.48 8.95 $ 43,704 Vested and exercisable, end of period 227,781 $ 8.70 7.78 $ 14,653 The aggregate intrinsic value reflects the difference between the exercise price of the underlying stock options and the Company’s closing share price as of June 30, 2016. The options outstanding and exercisable as of June 30, 2016 are as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding as of June 30, 2016 Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Number Exercisable as of June 30, 2016 Weighted Average Exercise Price $2.64 12,500 $ 2.64 8.87 3,646 $ 2.64 $3.68 - $3.76 79,376 $ 3.75 8.61 26,459 $ 3.75 $4.80 203,496 $ 4.80 8.06 92,254 $ 4.80 $6.00 584,253 $ 6.00 9.43 58,068 $ 6.00 $6.24 - $6.40 129,267 $ 6.35 9.66 - $ - $7.00 - $7.92 70,625 $ 7.62 9.41 584 $ 7.74 $9.92 38,135 $ 9.92 6.40 38,135 $ 9.92 $56.00 - $72.00 6,757 $ 69.71 1.14 6,757 $ 69.71 $96.00 - $149.04 1,846 $ 118.68 1.48 1,846 $ 118.68 $296.00 32 $ 296.00 1.23 32 $ 296.00 1,126,287 $ 6.44 8.98 227,781 $ 8.70 In January 2016, the Company granted restricted stock awards (“RSAs”) for 39,494 shares of common stock under the 2013 Plan to employees for 2015 accrued bonuses with a weighted-average grant date fair value of $6.24 per share . The fair value of the RSAs was determined on the grant date based on the fair value of the Company’s common stock. The total outstanding RSAs as of June 30, 2016 were 39,494 shares. Stock-Based Compensation During the three months ended June 30, 2016 and 2015, the Company granted stock options to employees to purchase 28,750 and 12,500 shares of common stock with a weighted average grant date fair value of $3.17 and $1.44 per share, respectively. During the six months ended June 30, 2016 and 2015, the Company granted stock options to employees to purchase 158,017 and 91,875 shares of common stock with a weighted average grant date fair value of $3.49 and $1.92 per share, respectively. Stock-based compensation expense recognized during the three months ended June 30, 2016 and 2015 was $202,000 and $48,000, respectively. Stock-based compensation expense recognized during the six months ended June 30, 2016 and 2015 was $390,000 and $90,000, respectively. As of June 30, 2016, the total unrecognized compensation cost in connection with unvested stock options was approximately $2,430,000. These costs are expected to be recognized over a period of approximately 3.30 years. The aggregate intrinsic value of options exercised during the six months ended June 30, 2016 and 2015 was $5,000 and $0, respectively. The Company estimated the fair value of stock options using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee stock options granted was estimated using the following assumptions: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Expected term (in years) 5 5 5 5 Average volatility 47% 64% 65% 62% Risk-free interest rate 1.26% 1.58% 1.53% 1.36% Dividend yield 0% 0% 0% 0% Option-pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The expected stock price volatility is based on analysis of the Company’s stock price history over a period commensurate with the expected term of the options, trading volume of comparable companies’ stock, look-back volatilities and Company specific events that affected volatility in a prior period. The expected term of employee stock options represents the weighted average period the stock options are expected to remain outstanding and is based on the history of exercises and cancellations on all past option grants made by the Company, the contractual term, the vesting period and the expected remaining term of the outstanding options. The risk-free interest rate is based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. No dividend yield is included as the Company has not issued any dividends and does not anticipate issuing any dividends in the future. The following table shows stock-based compensation expense included in the condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Research and development $ 28 $ 4 $ 49 $ 8 Selling, general and administrative 174 44 341 82 Total $ 202 $ 48 $ 390 $ 90 |
Note 9 - Income Taxes
Note 9 - Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 9. Income Taxes For interim periods, the Company estimates its annual effective income tax rate and applies the estimated rate to the year-to-date income or loss before income taxes. The Company also computes the tax provision or benefit related to items reported separately and recognizes the items net of their related tax effect in the interim periods in which they occur. The Company also recognizes the effect of changes in enacted tax laws or rates in the interim periods in which the changes occur. The Company’s effective tax rate is 0% for the three and six months ended June 30, 2016 and 2015. The Company expects that its effective tax rate for the full year 2016 will be 0%. |
Note 10 - Related Party Transac
Note 10 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 10. Related Party Transactions In June 2006, the Company entered into a Development and Manufacturing Agreement with Stellartech Research Corporation (the “Agreement”). The Agreement was amended on October 4, 2007. Under the Agreement, the Company agreed to purchase 300 generators manufactured by Stellartech. As of June 30, 2016, the Company has purchased 151 units. The price per unit is variable and dependent on the volume and timing of units ordered. In conjunction with the Agreement, Stellartech purchased 37,500 shares of Viveve’s common stock. Under the Agreement, the Company paid Stellartech $945,000 and $1,082,000 for goods and services during the three months ended June 30, 2016 and 2015, respectively, and $2,160,000 and $1,211,000 for goods and services during the six months ended June 30, 2016 and 2015, respectively. |
Note 11 - Subsequent Events
Note 11 - Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 11. Subsequent Events On July 11, 2016, the board of directors of the Company, subject to the approval of the Company’s stockholders, approved an amendment and restatement of the 2013 Plan to increase the maximum number of shares reserved and available for awards under the 2013 Plan (the “Stock Issuable”) by 737,500 shares, from 1,262,500 to 2,000,000 and to add an “evergreen” provision to the 2013 Plan which will automatically increase annually, on the first day of each January during the term, the Stock Issuable by an amount equal to the lesser of (i) the number of shares that will increase the Stock Issuable by 4% of the total number of shares of common stock outstanding (on a fully diluted basis) or (ii) an amount determined by the board. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Reclassification, Policy [Policy Text Block] | Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. Accounting Standards Update (“ASU”) 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for the Company’s fiscal year beginning January 1, 2016. We adopted this guidance in the first quarter of 2016. Accordingly, the Company has revised the classification in the condensed consolidated balance sheet to report debt issuance costs as a contra debt liability as of December 31, 2015. This resulted in a decrease of $387,000 to the December 31, 2015 amounts reported as prepaid expenses and other current assets, total assets, note payable, total liabilities, and total liabilities and stockholders’ equity. |
Stockholders' Equity, Policy [Policy Text Block] | Reverse Stock Split On April 15, 2016, the Company effected a 1-for-8 reverse stock split of its common stock. On the effective date of the reverse stock split, (i) each 8 shares of outstanding common stock were reduced to one share of common stock; (ii) the number of shares of common stock into which each outstanding warrant or option to purchase common stock is exercisable were proportionately reduced on an 8-to-1 basis; and (iii) the exercise price of each outstanding warrant or option to purchase common stock were proportionately increased on a 1-to-8 basis. All of the share numbers, share prices, and exercise prices have been adjusted, on a retroactive basis, to reflect this 1-for-8 reverse stock split. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of condensed consolidated financial statements in conformity with US GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In addition, any change in these estimates or their related assumptions could have an adverse effect on our operating results. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk and Other Risks and Uncertainties To achieve profitable operations, the Company must successfully develop, manufacture, and market its products. There can be no assurance that any such products can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products will be successfully marketed. These factors could have a material adverse effect upon the Company’s financial results, financial position, and future cash flows. The Company’s products may require approval from the U.S. Food and Drug Administration or other international regulatory agencies prior to commencing commercial sales. There can be no assurance that the Company’s products will receive any of these required approvals. If the Company was denied such approvals or such approvals were delayed, it would have a material adverse effect on the Company’s financial results, financial position and future cash flows. The Company is subject to risks common to companies in the medical device industry including, but not limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, uncertainty of market acceptance of products, product liability, and the need to obtain additional financing. The Company’s ultimate success is dependent upon its ability to raise additional capital and to successfully develop and market its products. The Company outsources the manufacture and repair of the Viveve System to a single contract manufacturer. Also, certain other components and materials that comprise the Viveve System are currently manufactured by a single supplier or a limited number of suppliers. A significant supply interruption or disruption in the operations of the contract manufacturer or these third-party suppliers would adversely impact the production of our products for a substantial period of time, which could have a material adverse effect on our business, financial condition, operating results and cash flows. During the three months ended June 30, 2016, two customers accounted for 92% of the Company’s revenue. During the three months ended June 30, 2015, five customers accounted for 97% of the Company’s revenue. During the six months ended June 30, 2016, two customers accounted for 75% of the Company’s revenue. During the six months ended June 30, 2015, four customers accounted for 90% of the Company’s revenue. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue from the sale of its products, the Viveve System, single-use treatment tips and ancillary consumables. Revenue is recognized upon shipment, provided that persuasive evidence of an arrangement exists, the price is fixed or determinable and collection of the resulting receivable is reasonably assured. Sales of our products are subject to regulatory requirements that vary from country to country. The Company has regulatory clearance outside the U.S. and currently sells the Viveve System in Canada, Hong Kong, Japan, Europe, the Middle East, Southeast Asia and Latin America. The Company does not provide its customers with a contractual right of return. |
Customer Advance Payments, Policy [Policy Text Block] | Customer Advance Payments From time to time, customers will pay for a portion of the products ordered in advance. Upon receipt of such payments, the Company records the customer advance payment as a component of accrued liabilities. The Company will remove the customer advance payment from accrued liabilities and revenue is recognized upon shipment of the product assuming all other revenue recognition criteria are met. |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranty The Company’s products are generally subject to a one-year warranty, which provides for the repair, rework or replacement of products (at the Company’ option) that fail to perform within stated specification. The Company has assessed the historical claims and, to date, product warranty claims have not been significant. The Company will continue to assess the need to record a warranty accrual at the time of sale going forward. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Loss Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the three and six months ended June 30, 2016 and 2015, the Company’s comprehensive loss is the same as its net loss. |
Earnings Per Share, Policy [Policy Text Block] | Net Loss per Share The Company’s basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents outstanding during the period. For purposes of this calculation, stock options and warrants to purchase common stock and restricted common stock awards are considered common stock equivalents. For periods in which the Company has reported net losses, diluted net loss per share is the same as basic net loss per share, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The following securities were excluded from the calculation of net loss per share because the inclusion would be anti-dilutive. June 30, 2016 2015 Stock options to purchase common stock 1,126,287 375,752 Warrants to purchase common stock 506,379 358,119 Restricted common stock awards 39,494 - |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued and Adopted Accounting Standards In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606).” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The ASU provides alternative methods of initial adoption and is effective for annual and interim periods beginning after December 15, 2017. The FASB has issued several updates to the standard which i) defer the original effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017 (ASU 2015-14); ii) clarify the application of the principal versus agent guidance (ASU 2016-08); and iii) clarify the guidance on inconsequential and perfunctory promises and licensing (ASU 2016-10). In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients”, to address certain narrow aspects of the guidance including collectibility criterion, collection of sales taxes from customers, noncash consideration, contract modifications and completed contracts. This issuance does not change the core principle of the guidance in the initial topic issued in May 2014. We are currently evaluating the impact that this standard will have on our condensed consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for the Company’s fiscal year beginning January 1, 2016 and subsequent interim periods, with earlier adoption permitted. We adopted this guidance in the first quarter of 2016 and have reclassified our condensed consolidated balance sheets to comply with the new standard. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires that an entity should measure inventory within the scope of this pronouncement at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The pronouncement does not apply to inventory that is being measured using the last-in, first-out (“LIFO”) method or the retail inventory method. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. ASU 2015-11 will be effective for the Company’s fiscal year beginning January 1, 2017 and subsequent interim periods, with earlier adoption permitted. We are currently evaluating the effect of the adoption of this guidance on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under this guidance, an entity is required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. This guidance offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within the reporting period, and requires a modified retrospective adoption, with early adoption permitted. We are currently evaluating the effect of the adoption of this guidance on our condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within the reporting period, with early adoption permitted. We are currently evaluating the effect of the adoption of this guidance on our condensed consolidated financial statements. |
Note 2 - Summary of Significa18
Note 2 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | June 30, 2016 2015 Stock options to purchase common stock 1,126,287 375,752 Warrants to purchase common stock 506,379 358,119 Restricted common stock awards 39,494 - |
Note 4 - Accrued Liabilities (T
Note 4 - Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30, 2016 December 31, 2015 Accrued professional fees $ 990 $ 388 Customer advance payments 442 20 Accrued bonuses 319 613 Accrued vacation 132 68 Accrued clinical trial costs 23 112 Other accruals 184 92 Total accrued liabilities $ 2,090 $ 1,293 |
Note 5 - Note Payable (Tables)
Note 5 - Note Payable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | Year Ending December 31, 2016 (remaining 6 months) $ 315 2017 2,719 2018 4,463 2019 4,512 Total payments 12,009 Less: Amount representing interest (2,009 ) Present value of obligations 10,000 Less: Unamortized debt discount (440 ) 9,560 Less: Note payable, noncurrent portion 9,560 Note payable, current portion $ - |
Note 6 - Commitments and Cont21
Note 6 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year Ending December 31, 2016 ( remaining 6 months) $ 115 2017 58 Total minimum lease payments $ 173 |
Note 7 - Common Stock (Tables)
Note 7 - Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Issuance Date Exercisable for Expiration Date Exercise Price Number of Shares Outstanding Under Warrants September 2014 Common Shares September 23, 2019 $ 4.24 110,550 September 2014 Common Shares September 30, 2024 $ 4.24 58,962 October 2014 Common Shares October 13, 2019 $ 4.24 29,000 November 2014 Common Shares November 12, 2019 $ 4.24 12,500 February 2015 Common Shares February 17, 2025 $ 4.00 75,697 March 2015 Common Shares March 26, 2025 $ 2.72 1,454 May 2015 Common Shares May 12, 2025 $ 4.24 36,229 May 2015 Common Shares May 14, 2025 $ 2.96 3,125 May 2015 Common Shares May 17, 2020 $ 4.24 21,585 December 2015 Common Shares December 16, 2025 $ 5.60 26,875 April 2016 Common Shares April 1, 2026 $ 6.08 25,000 May 2016 Common Shares May 11, 2021 $ 7.74 5,000 June 2016 Common Shares June 20, 2026 $ 4.98 100,402 506,379 |
Note 8 - Summary of Stock Opt23
Note 8 - Summary of Stock Options (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Six Months Ended June 30, 2016 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Options outstanding, beginning of period 1,022,195 $ 6.47 9.37 $ - Options granted 158,017 $ 6.57 Options exercised (3,020 ) $ 4.80 Options canceled (50,905 ) $ 7.60 Options outstanding, end of period 1,126,287 $ 6.44 8.98 $ 46,238 Vested and exercisable and expected to vest, end of period 1,043,020 $ 6.48 8.95 $ 43,704 Vested and exercisable, end of period 227,781 $ 8.70 7.78 $ 14,653 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding as of June 30, 2016 Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Number Exercisable as of June 30, 2016 Weighted Average Exercise Price $2.64 12,500 $ 2.64 8.87 3,646 $ 2.64 $3.68 - $3.76 79,376 $ 3.75 8.61 26,459 $ 3.75 $4.80 203,496 $ 4.80 8.06 92,254 $ 4.80 $6.00 584,253 $ 6.00 9.43 58,068 $ 6.00 $6.24 - $6.40 129,267 $ 6.35 9.66 - $ - $7.00 - $7.92 70,625 $ 7.62 9.41 584 $ 7.74 $9.92 38,135 $ 9.92 6.40 38,135 $ 9.92 $56.00 - $72.00 6,757 $ 69.71 1.14 6,757 $ 69.71 $96.00 - $149.04 1,846 $ 118.68 1.48 1,846 $ 118.68 $296.00 32 $ 296.00 1.23 32 $ 296.00 1,126,287 $ 6.44 8.98 227,781 $ 8.70 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Expected term (in years) 5 5 5 5 Average volatility 47% 64% 65% 62% Risk-free interest rate 1.26% 1.58% 1.53% 1.36% Dividend yield 0% 0% 0% 0% |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Research and development $ 28 $ 4 $ 49 $ 8 Selling, general and administrative 174 44 341 82 Total $ 202 $ 48 $ 390 $ 90 |
Note 1 - The Company and Basi24
Note 1 - The Company and Basis of Presentation (Details Textual) - USD ($) | Jun. 17, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | May 09, 2016 | Dec. 31, 2015 | [1] |
June 2016 Offering [Member] | ||||||
Stock Issued During Period, Shares, New Issues | 3,105,000 | |||||
Share Price | $ 5 | |||||
Proceeds from Issuance of Common Stock | $ 15,525,000 | |||||
Proceeds From Issuance of Common Stock, Net | $ 13,857,000 | |||||
Proceeds from Issuance of Common Stock | $ 13,857,000 | $ 11,040,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0 | |||
[1] | The condensed consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated financial statements as of that date. |
Note 2 - Summary of Significa25
Note 2 - Summary of Significant Accounting Policies (Details Textual) | Apr. 15, 2016 | Jun. 30, 2016 | Mar. 31, 2016USD ($) | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Reclassification to Report Debt Issuance Costs as a Contra Debt Liability [Member] | December 31, 2015 [Member] | ||||||
Prior Period Reclassification Adjustment | $ (387,000) | |||||
Reverse Stock Split [Member] | ||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 8 | |||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||||
Concentration Risk Number of Customers | 2 | 5 | 2 | 4 | ||
Concentration Risk, Percentage | 92.00% | 97.00% | 75.00% | 90.00% |
Note 2 - Summary of Significa26
Note 2 - Summary of Significant Accounting Policies - Antidilutive Securities (Details) - shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share (in shares) | 1,126,287 | 375,752 |
Common Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share (in shares) | 506,379 | 358,119 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share (in shares) | 39,494 |
Note 4 - Accrued Liabilities -
Note 4 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Accrued professional fees | $ 990 | $ 388 | |
Customer advance payments | 442 | 20 | |
Accrued bonuses | 319 | 613 | |
Accrued vacation | 132 | 68 | |
Accrued clinical trial costs | 23 | 112 | |
Other accruals | 184 | 92 | |
Total accrued liabilities | $ 2,090 | $ 1,293 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated financial statements as of that date. |
Note 5 - Note Payable (Details
Note 5 - Note Payable (Details Textual) - USD ($) | Jun. 20, 2016 | Jul. 15, 2015 | Apr. 06, 2015 | Mar. 16, 2015 | Feb. 19, 2015 | Oct. 01, 2014 | May 31, 2015 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
September 2014 Term Loan [Member] | Second Tranche [Member] | ||||||||||
Proceeds from Loans | $ 500,000 | $ 500,000 | $ 500,000 | |||||||
Debt Instrument, Face Amount | $ 1,500,000 | |||||||||
September 2014 Term Loan [Member] | First Tranche [Member] | ||||||||||
Proceeds from Loans | $ 2,500,000 | |||||||||
September 2014 Term Loan [Member] | Third Tranche [Member] | ||||||||||
Proceeds from Loans | $ 1,000,000 | |||||||||
September 2014 Term Loan [Member] | ||||||||||
Debt Instrument, Face Amount | $ 5,000,000 | |||||||||
The 2016 Loan Agreement [Member] | Second Tranche [Member] | ||||||||||
Proceeds from Issuance of Long-term Debt | $ 2,500,000 | |||||||||
The 2016 Loan Agreement [Member] | First Tranche [Member] | ||||||||||
Proceeds from Issuance of Long-term Debt | $ 7,500,000 | |||||||||
The 2016 Loan Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.96% | |||||||||
The 2016 Loan Agreement [Member] | Minimum [Member] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.40% | |||||||||
The 2016 Loan Agreement [Member] | ||||||||||
Debt Instrument, Face Amount | $ 10,000,000 | |||||||||
Debt Instrument Repayment Of Principal And Interest Number Of Installments | 30 | |||||||||
September 2014 Issuance Related to 2014 Loan Agreement [Member] | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 58,962 | 58,962 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.24 | $ 4.24 | ||||||||
Warrant Term | 10 years | |||||||||
May 2015 Issuance Related to 2014 Loan Agreement [Member] | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3,125 | 3,125 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.96 | $ 2.96 | ||||||||
June 2016 Issuance Related to 2016 Loan Agreement [Member] | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 100,402 | 100,402 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.98 | $ 4.98 | ||||||||
Warrant Term | 10 years | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 506,379 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights |
Note 5 - Note Payable - Summary
Note 5 - Note Payable - Summary of Note Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | [1] |
2016 (remaining 6 months) | $ 315 | ||
2,017 | 2,719 | ||
2,018 | 4,463 | ||
2,019 | 4,512 | ||
Total payments | 12,009 | ||
Less: Amount representing interest | (2,009) | ||
Present value of obligations | 10,000 | ||
Less: Unamortized debt discount | (440) | ||
9,560 | |||
Less: Note payable, noncurrent portion | 9,560 | ||
Note payable, current portion | $ 4,446 | ||
[1] | The condensed consolidated balance sheet as of December 31, 2015 has been derived from the audited consolidated financial statements as of that date. |
Note 6 - Commitments and Cont30
Note 6 - Commitments and Contingencies (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Leases, Rent Expense | $ 109,000 | $ 101,000 |
Note 6 - Commitments and Cont31
Note 6 - Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2016USD ($) |
2016 ( remaining 6 months) | $ 115 |
2,017 | 58 |
Total minimum lease payments | $ 173 |
Note 7 - Common Stock (Details
Note 7 - Common Stock (Details Textual) - USD ($) | Jun. 20, 2016 | Jun. 17, 2016 | May 31, 2016 | Apr. 30, 2016 | May 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Sep. 30, 2014 |
June 2016 Offering [Member] | |||||||||||
Stock Issued During Period, Shares, New Issues | 3,105,000 | ||||||||||
Share Price | $ 5 | ||||||||||
Proceeds from Issuance of Common Stock | $ 15,525,000 | ||||||||||
Proceeds From Issuance of Common Stock, Net | $ 13,857,000 | ||||||||||
September 2014 Issuance Related to 2014 Loan Agreement [Member] | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 58,962 | 58,962 | 58,962 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.24 | $ 4.24 | $ 4.24 | ||||||||
Amortization of Debt Discount (Premium) | $ 342,000 | $ 55,000 | $ 387,000 | $ 102,000 | |||||||
Warrant Term | 10 years | ||||||||||
May 2015 Issuance Related to 2014 Loan Agreement [Member] | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3,125 | 3,125 | 3,125 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.96 | $ 2.96 | $ 2.96 | ||||||||
Amortization of Debt Discount (Premium) | 8,000 | 8,000 | |||||||||
Distributor Warrants, March 2016 Issuance [Member] | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 25,000 | 25,000 | 25,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 6.08 | $ 6.08 | $ 6.08 | ||||||||
Warrant Term | 10 years | ||||||||||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||||||
Fair Value Assumptions, Expected Volatility Rate | 72.10% | ||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.78% | ||||||||||
Allocated Share-based Compensation Expense | $ 20,000 | 118,000 | $ 162,000 | 380,000 | |||||||
Contractor Warrants, May 2016 Issuance [Member] | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 5,000 | 5,000 | 5,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 7.74 | $ 7.74 | $ 7.74 | ||||||||
Warrant Term | 5 years | ||||||||||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||||||
Fair Value Assumptions, Expected Volatility Rate | 61.60% | ||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.20% | ||||||||||
June 2016 Issuance Related to 2016 Loan Agreement [Member] | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 100,402 | 100,402 | 100,402 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.98 | $ 4.98 | $ 4.98 | ||||||||
Warrant Term | 10 years | ||||||||||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||||||
Fair Value Assumptions, Expected Volatility Rate | 63.00% | ||||||||||
Fair Value Assumptions, Risk Free Interest Rate | 1.67% | ||||||||||
Warrants and Rights Outstanding | $ 350,000 | $ 440,000 | $ 440,000 | ||||||||
Vendors and Contractors Warrants, October and November 2014 Issuance [Member] | |||||||||||
Class of Warrant or Right Number of Securities Called by Warrants or Rights Cancelled In Period | 1,094 | 5,157 | |||||||||
The 2016 Loan Agreement [Member] | |||||||||||
Debt Issuance Costs, Net | $ 90,000 | $ 90,000 | |||||||||
Proceeds from Issuance of Common Stock | $ 13,857,000 | 11,040,000 | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 506,379 | 506,379 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | |||||||||||
Class of Warrants or Rights, Exercises in Period | 6,250 | 735 | |||||||||
Allocated Share-based Compensation Expense | $ 202,000 | $ 48,000 | $ 390,000 | $ 90,000 |
Note 7 - Common Stock - Summary
Note 7 - Common Stock - Summary of Outstanding Warrants (Details) - $ / shares | 6 Months Ended | |||||
Jun. 30, 2016 | Jun. 20, 2016 | May 31, 2016 | Apr. 30, 2016 | May 31, 2015 | Sep. 30, 2014 | |
September 2014 Issuance Through Private Offering [Member] | ||||||
Expiration Date | Sep. 23, 2019 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.24 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 110,550 | |||||
September 2014 Issuance Related to 2014 Loan Agreement [Member] | ||||||
Expiration Date | Sep. 30, 2024 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.24 | $ 4.24 | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 58,962 | 58,962 | ||||
Vendors and Contractor Warrants, October 2014 Issuance [Member] | ||||||
Expiration Date | Oct. 13, 2019 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.24 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 29,000 | |||||
Vendors and Contractor Warrants, November 2014 Issuance [Member] | ||||||
Expiration Date | Nov. 12, 2019 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.24 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 12,500 | |||||
Employee Performance Bonus Warrants, February 2015 Issuance [Member] | ||||||
Expiration Date | Feb. 17, 2025 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 75,697 | |||||
Contractor Warrants, March 2015 Issuance [Member] | ||||||
Expiration Date | Mar. 26, 2025 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.72 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,454 | |||||
Contractor Warrants, May 2015 Issuance [Member] | ||||||
Expiration Date | May 12, 2025 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.24 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 36,229 | |||||
May 2015 Issuance Related to 2014 Loan Agreement [Member] | ||||||
Expiration Date | May 14, 2025 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.96 | $ 2.96 | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3,125 | 3,125 | ||||
May 2015 Issuance Second Contractor [Member] | ||||||
Expiration Date | May 17, 2020 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.24 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 21,585 | |||||
Performance Bonus Warrants, December 2015 Issuance [Member] | ||||||
Expiration Date | Dec. 16, 2025 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5.60 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 26,875 | |||||
Distributor Warrants, March 2016 Issuance [Member] | ||||||
Expiration Date | Apr. 1, 2026 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 6.08 | $ 6.08 | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 25,000 | 25,000 | ||||
Contractor Warrants, May 2016 Issuance [Member] | ||||||
Expiration Date | May 11, 2021 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 7.74 | $ 7.74 | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 5,000 | 5,000 | ||||
June 2016 Issuance Related to 2016 Loan Agreement [Member] | ||||||
Expiration Date | Jun. 20, 2026 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.98 | $ 4.98 | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 100,402 | 100,402 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 506,379 |
Note 8 - Summary of Stock Opt34
Note 8 - Summary of Stock Options (Details Textual) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jan. 31, 2016$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Mar. 31, 2016 | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Dec. 31, 2015$ / sharesshares | Jul. 22, 2015shares | Jul. 21, 2015shares | |
Two Thousand Five Plan [Member] | |||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 2,520 | 2,520 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,520 | 2,520 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 101.26 | $ 101.26 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 350 days | ||||||||
The 2006 Stock Option Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 38,605 | 38,605 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 10.78 | $ 10.78 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 127 days | ||||||||
Conversion of Stock Exchange Ratio | 0.0080497 | ||||||||
Conversion of Stock, Post Revenue Stock Split Basis, Ratio | 0.0010062 | ||||||||
The 2013 Plan [Member] | Holdings Greater Than 10 Percent of Shares Outstanding [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||||
The 2013 Plan [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 39,494 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 6.24 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 39,494 | 39,494 | |||||||
The 2013 Plan [Member] | |||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 134,015 | 134,015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,085,162 | 1,085,162 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 6.06 | $ 6.06 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 9 years 32 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 10.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 110.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,262,500 | 388,949 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 28,750 | 12,500 | 158,017 | 91,875 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 3.17 | $ 1.44 | $ 3.49 | $ 1.92 | |||||
Allocated Share-based Compensation Expense | $ | $ 202,000 | $ 48,000 | |||||||
Employee Stock Option [Member] | |||||||||
Allocated Share-based Compensation Expense | $ | $ 390,000 | $ 90,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ | $ 2,430,000 | $ 2,430,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 109 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,126,287 | 1,126,287 | 1,022,195 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 6.44 | $ 6.44 | $ 6.47 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 8 years 357 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 158,017 | ||||||||
Allocated Share-based Compensation Expense | $ | $ 202,000 | $ 48,000 | $ 390,000 | 90,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 5,000 | $ 0 |
Note 8 - Summary of Stock Opt35
Note 8 - Summary of Stock Options - Summary of Option Activity Under All Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2016 | |
Options outstanding, beginning of period (in shares) | 1,022,195 |
Options outstanding, beginning of period (in dollars per share) | $ 6.47 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 158,017 |
Options granted (in dollars per share) | $ 6.57 |
Options exercised (in shares) | (3,020) |
Options exercised (in dollars per share) | $ 4.80 |
Options canceled (in shares) | (50,905) |
Options canceled (in dollars per share) | $ 7.60 |
Options outstanding, end of period (in shares) | 1,126,287 |
Options outstanding, end of period (in dollars per share) | $ 6.44 |
Options outstanding, end of period | 8 years 357 days |
Options outstanding, end of period | $ 46,238 |
Vested and exercisable and expected to vest, end of period, Number Of Shares (in shares) | 1,043,020 |
Vested and exercisable and expected to vest, end of period, Weighted Average Exercise Price (in dollars per share) | $ 6.48 |
Vested and exercisable and expected to vest, end of period, Weighted Average Remaining Contractual Term | 8 years 346 days |
Vested and exercisable and expected to vest, end of period, Aggregate Intrinsic Value | $ 43,704 |
Vested and exercisable, end of period, Number Of Shares (in shares) | 227,781 |
Vested and exercisable, end of period, Weighted Average Exercise Price (in dollars per share) | $ 8.70 |
Vested and exercisable, end of period, Weighted Average Remaining Contractual Term | 7 years 284 days |
Vested and exercisable, end of period, Aggregate Intrinsic Value | $ 14,653 |
Note 8 - Summary of Options Out
Note 8 - Summary of Options Outstanding and Exercisable (Details) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Range One [Member] | |
Exercise price range, upper limit (in dollars per share) | $ 2.64 |
Options outstanding, number (in shares) | shares | 12,500 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.64 |
Options outstanding, weighted average remaining contractual term | 8 years 317 days |
Options exercisable, number exercisable (in shares) | shares | 3,646 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.64 |
Range Two [Member] | |
Exercise price range, upper limit (in dollars per share) | $ 3.76 |
Options outstanding, number (in shares) | shares | 79,376 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 3.75 |
Options outstanding, weighted average remaining contractual term | 8 years 222 days |
Options exercisable, number exercisable (in shares) | shares | 26,459 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.75 |
Exercise price range, lower limit (in dollars per share) | 3.68 |
Range Three [Member] | |
Exercise price range, upper limit (in dollars per share) | $ 4.80 |
Options outstanding, number (in shares) | shares | 203,496 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 4.80 |
Options outstanding, weighted average remaining contractual term | 8 years 21 days |
Options exercisable, number exercisable (in shares) | shares | 92,254 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 4.80 |
Range Four [Member] | |
Exercise price range, upper limit (in dollars per share) | $ 6 |
Options outstanding, number (in shares) | shares | 584,253 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 6 |
Options outstanding, weighted average remaining contractual term | 9 years 156 days |
Options exercisable, number exercisable (in shares) | shares | 58,068 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 6 |
Range Five [Member] | |
Exercise price range, upper limit (in dollars per share) | $ 6.40 |
Options outstanding, number (in shares) | shares | 129,267 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 6.35 |
Options outstanding, weighted average remaining contractual term | 9 years 240 days |
Options exercisable, number exercisable (in shares) | shares | |
Options exercisable, weighted average exercise price (in dollars per share) | |
Exercise price range, lower limit (in dollars per share) | 6.24 |
Range Six [Member] | |
Exercise price range, upper limit (in dollars per share) | $ 7.92 |
Options outstanding, number (in shares) | shares | 70,625 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 7.62 |
Options outstanding, weighted average remaining contractual term | 9 years 149 days |
Options exercisable, number exercisable (in shares) | shares | 584 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 7.74 |
Exercise price range, lower limit (in dollars per share) | 7 |
Range Seven [Member] | |
Exercise price range, upper limit (in dollars per share) | $ 9.92 |
Options outstanding, number (in shares) | shares | 38,135 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.92 |
Options outstanding, weighted average remaining contractual term | 6 years 146 days |
Options exercisable, number exercisable (in shares) | shares | 38,135 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 9.92 |
Range Eight [Member] | |
Exercise price range, upper limit (in dollars per share) | $ 72 |
Options outstanding, number (in shares) | shares | 6,757 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 69.71 |
Options outstanding, weighted average remaining contractual term | 1 year 51 days |
Options exercisable, number exercisable (in shares) | shares | 6,757 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 69.71 |
Exercise price range, lower limit (in dollars per share) | 56 |
Range Nine [Member] | |
Exercise price range, upper limit (in dollars per share) | $ 149.04 |
Options outstanding, number (in shares) | shares | 1,846 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 118.68 |
Options outstanding, weighted average remaining contractual term | 1 year 175 days |
Options exercisable, number exercisable (in shares) | shares | 1,846 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 118.68 |
Exercise price range, lower limit (in dollars per share) | 96 |
Range Ten [Member] | |
Exercise price range, upper limit (in dollars per share) | $ 296 |
Options outstanding, number (in shares) | shares | 32 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 296 |
Options outstanding, weighted average remaining contractual term | 1 year 83 days |
Options exercisable, number exercisable (in shares) | shares | 32 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 296 |
Options outstanding, number (in shares) | shares | 1,126,287 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 6.44 |
Options outstanding, weighted average remaining contractual term | 8 years 357 days |
Options exercisable, number exercisable (in shares) | shares | 227,781 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 8.70 |
Note 8 - Summary of Stock Opt37
Note 8 - Summary of Stock Options - Valuation Assumptions for Stock Options (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Expected term (in years) | 5 years | 5 years | 5 years | 5 years |
Average volatility | 47.00% | 64.00% | 65.00% | 62.00% |
Risk-free interest rate | 1.26% | 1.58% | 1.53% | 1.36% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Note 8 - Summary of Stock Opt38
Note 8 - Summary of Stock Options - Stock-based Compensation Expense Included in the Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Research and Development Expense [Member] | ||||
Allocated Share-based Compensation Expense | $ 28 | $ 4 | $ 49 | $ 8 |
General and Administrative Expense [Member] | ||||
Allocated Share-based Compensation Expense | 174 | 44 | 341 | 82 |
Allocated Share-based Compensation Expense | $ 202 | $ 48 | $ 390 | $ 90 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2016 | |
Scenario, Forecast [Member] | |||||
Effective Income Tax Rate Reconciliation, Percent | 0.00% | ||||
Effective Income Tax Rate Reconciliation, Percent | 0.00% | 0.00% | 0.00% | 0.00% |
Note 10 - Related Party Trans40
Note 10 - Related Party Transactions (Details Textual) - Stellartech Research Corporation [Member] - USD ($) | Oct. 04, 2007 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Stock Issued During Period, Shares, New Issues | 37,500 | ||||
Related Party Transaction, Amounts of Transaction | $ 945,000 | $ 1,082,000 | $ 2,160,000 | $ 1,211,000 |
Note 11 - Subsequent Events (De
Note 11 - Subsequent Events (Details Textual) - The 2013 Plan [Member] - shares | Jul. 11, 2016 | Jul. 10, 2016 | Jul. 22, 2015 | Jul. 21, 2015 |
Subsequent Event [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 737,500 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000,000 | 1,262,500 | ||
Percentage of Annual Increase of Total Number of Shares Outstanding | 4.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,262,500 | 388,949 |