Cogentix Medical 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 04, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	COGENTIX MEDICAL INC /DE/
Entity Central Index Key	894,237
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		25,952,785
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 2,156,530	$ 1,976,594
Accounts receivable, net	6,863,488	8,191,391
Inventories	5,034,201	4,584,844
Other	854,269	834,076
Total current assets	14,908,488	15,586,905
Property, plant, and equipment, net	2,488,202	2,554,822
Goodwill	18,749,888	18,749,888
Other intangible assets, net	11,255,151	11,846,009
Deferred tax assets and other	282,252	269,121
Total assets	47,683,981	49,006,745
Current liabilities:
Accounts payable	2,224,481	2,209,473
Income taxes payable	21,750	20,866
Accrued liabilities:
Compensation	2,108,830	3,281,809
Deferred revenue	359,107	307,936
Other	833,818	641,561
Total current liabilities	5,547,986	6,461,645
Convertible debt - related party, net	23,612,351	23,336,854
Interest payable	853,062	757,615
Accrued pension liability	720,780	663,071
Deferred rent	665,324	671,088
Other	190,393	157,453
Total liabilities	31,589,896	32,047,726
Shareholders' equity:
Preferred stock, $0.01 par value 5,000,000 Shares authorized; none issued or outstanding	0	0
Common stock $.01 par value; 100,000,000 shares authorized, 25,953,317 and 26,057,327 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	259,535	260,574
Additional paid-in capital	76,571,081	76,485,650
Accumulated deficit	(59,877,115)	(58,910,707)
Accumulated other comprehensive loss	(859,416)	(876,498)
Total shareholders' equity	16,094,085	16,959,019
Total liabilities and shareholders' equity	$ 47,683,981	$ 49,006,745

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	25,953,317	26,057,327
Common stock, shares outstanding (in shares)	25,953,317	26,057,327

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
Net sales	$ 12,206,564	$ 7,019,811
Cost of goods sold	3,801,194	801,768
Gross profit	8,405,370	6,218,043
Operating expenses
General and administrative	1,796,020	1,402,372
Research and development	936,878	609,304
Selling and marketing	5,635,762	4,943,196
Amortization	590,858	7,262
Merger related costs	0	1,580,084
Total operating expenses	8,959,518	8,542,218
Operating loss	(554,148)	(2,324,175)
Other income (expense)
Interest income (expense)	(390,069)	1,619
Foreign currency exchange loss	(7,562)	(964)
Total other income (expense)	(397,631)	655
Loss before income taxes	(951,779)	(2,323,520)
Income tax expense	14,629	9,720
Net loss	$ (966,408)	$ (2,333,240)
Basic and diluted net loss per common share (in dollars per share)	$ (0.04)	$ (0.15)
Weighted average common shares outstanding:
Basic and diluted (in shares)	25,381,900	15,744,654

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) [Abstract]
Net loss	$ (966,408)	$ (2,333,240)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	25,656	(135,688)
Unrealized loss on available-for-sale investments	0	(32)
Pension adjustments	(8,574)	25,382
Total other comprehensive income (loss), net of tax	17,082	(110,338)
Comprehensive loss	$ (949,326)	$ (2,443,578)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - 3 months ended Mar. 31, 2016 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2015	$ 260,574	$ 76,485,650	$ (58,910,707)	$ (876,498)	$ 16,959,019
Balance (in shares) at Dec. 31, 2015	26,057,327
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	$ (1,039)	85,431	0	0	84,392
Share-based compensation (in shares)	(104,010)
Comprehensive income (loss)	$ 0	0	(966,408)	17,082	(949,326)
Balance at Mar. 31, 2016	$ 259,535	$ 76,571,081	$ (59,877,115)	$ (859,416)	$ 16,094,085
Balance (in shares) at Mar. 31, 2016	25,953,317

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (966,408)	$ (2,333,240)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	806,614	72,947
Loss on disposal of equipment	0	38,451
Share-based compensation expense	84,392	311,241
Amortization of discount on related party debt	275,498	0
Long term incentive plan expense (benefit)	(21,748)	20,685
Tax benefit	(1,060)	(88,532)
Deferred rent	12,694	406
Changes in operating assets and liabilities:
Accounts receivable	1,340,860	(557,847)
Inventories	(447,745)	66,984
Other current assets	(17,646)	65,958
Accounts payable	13,501	(63,450)
Interest payable	95,447	0
Accrued compensation	(1,175,529)	423,633
Accrued liabilities, other	175,873	741,329
Accrued pension liability	23,611	134,269
Deferred revenue	106,044	0
Net cash provided by (used in) operating activities	304,398	(1,167,166)
Cash flows from investing activities:
Purchases of property, plant and equipment	(137,761)	(214,228)
Net cash (used in) investing activities	(137,761)	(214,228)
Cash flows from financing activities:
Borrowings from line of credit	2,646,500	0
Repayments of line of credit	(2,646,500)	0
Net cash provided by financing activities	0	0
Effect of exchange rate changes on cash and cash equivalents	13,299	(80,102)
Net (decrease) increase in cash and cash equivalents	179,936	(1,461,496)
Cash and cash equivalents at beginning of period	1,976,594	8,703,790
Cash and cash equivalents at end of period	2,156,530	7,242,294
Cash paid during the period for income taxes	14,558	4,570
Cash paid during the period for interest	$ 19,360	$ 159

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Basis of Presentation Cogentix Medical, Inc., headquartered in Minnetonka, Minnesota, with additional operations in New York, Massachusetts, The Netherlands and the United Kingdom, is a global medical device company. We design, develop, manufacture and market a robust line of high performance fiberoptic and video endoscopy products under the PrimeSight TM ® The Company is the result of the Merger effective as of March 31, 2015, of two medical device companies, Uroplasty, Inc. (“UPI”) and Vision-Sciences, Inc. (“VSCI”). On the effective date of the Merger, the two companies completed an all-stock merger, pursuant to which UPI merged with and into Merger Sub, a wholly owned subsidiary of VSCI. Merger Sub was the surviving company from the Merger, and changed its name to Uroplasty, LLC. VSCI continued to be the sole member of the surviving company. After the merger, VSCI and its consolidated subsidiaries, including the surviving company, operate under the name Cogentix Medical, Inc. Upon closing of the Merger, the former UPI stockholders owned approximately 62.5% and the VSCI shareholders retained approximately 37.5% of the Company. Accordingly, while VSCI was the legal acquirer and issued its shares in the Merger, UPI is the acquiring company in the Merger for accounting purposes and the Merger has been accounted for as a reverse acquisition under the acquisition method of accounting for business combinations. As a result, the financial statements of the Company prior to the effective date of the Merger are the historical financial statements of UPI, whereas the financial statements of the Company after the effective date of the Merger reflect the results of the operations of UPI and VSCI on a combined basis. See additional disclosure provided in Note 2. All share amounts and price per share amounts for all periods presented relate to VSCI shares with UPI shares and price per share converted to VSCI amounts based on the conversion ratio in the acquisition agreement and the one for five reverse stock split that occurred on March 31, 2015. We have prepared our Condensed Consolidated Financial Statements included in this quarterly report on Form 10-Q, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, have been condensed or omitted, pursuant to such rules and regulations, although we believe that our disclosures are adequate to make the information not misleading. The consolidated results of operations for any interim period are not necessarily indicative of results for a full fiscal year. These Condensed Consolidated Financial Statements, presented herein, should be read in conjunction with the audited consolidated financial statements and related notes included in our annual report on Form 10-KT for the nine-months ended December 31, 2015. The Condensed Consolidated Financial Statements presented herein as of March 31, 2016 and for the three month period ended March 31, 2015, reflect, in the opinion of management, all material adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the consolidated financial condition, results of operations and cash flows for the interim periods. We have identified certain accounting policies that we consider particularly important for the portrayal of our results of operations and financial condition and which may require the application of a higher level of judgment by our management, and as a result are subject to an inherent level of uncertainty. These are characterized as “critical accounting policies” and address revenue recognition, accounts receivable, valuation of inventory, foreign currency translation/transactions, purchase price allocation on acquisition, the determination of recoverability of long-lived and intangible assets, long-term incentive plans, share-based compensation, defined benefit pension plans and income taxes, each of which is described in our annual report on Form 10-KT for the nine-months ended December 31, 2015. Based upon our review, we have determined that these policies remain our most critical accounting policies for the three months ended March 31, 2016 and we have made no changes to these policies during 2016. Liquidity and Capital Resources We have incurred substantial operating losses since our inception. During the quarter ended December 31, 2015, the Company generated its first ever cash operating profit and we accomplished this again for the quarter ended March 31, 2016. This performance is the result of increased sales and reduced expenses. Management will continue to press for improvements in operating performance during calendar 2016 although there can be no assurance these efforts will continue to generate cash operating profits. As of March 31, 2016, we had cash and cash equivalents totaling approximately $2.2 million. On September 18, 2015, we entered into a $7.0 million line of credit with Venture Bank to provide non-dilutive resources to execute management’s growth strategies for the PrimeSight TM ®

Business Combination - Merger B

Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc.	3 Months Ended
	Mar. 31, 2016
Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc. [Abstract]
Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc.	Note 2. Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc. The Merger has been accounted for as an acquisition of VSCI by UPI, in accordance with Accounting Standards Codification (ASC) Topic 805, "Business Combinations," using the acquisition method of accounting with UPI as the accounting acquirer. Since the Company (formerly known as Vision-Sciences), as the parent company of UPI after the Merger, is the legal acquirer, the Merger has been accounted for as a reverse acquisition. Under these accounting standards, UPI’s total purchase price of $16.5 million is calculated as if UPI had issued its shares to VSCI stockholders and converted options and warrants to purchase VSCI shares to options and warrants to purchase UPI’s common stock. Under the acquisition method of accounting, the total purchase price was allocated to the net tangible and intangible assets of VSCI acquired in the Merger, based on their fair values at the effective date of the Merger. The allocation was finalized without any change to the preliminary allocation and is as follows: Cash and cash equivalents $ 2,020,000 Accounts receivable 4,249,000 Inventories 4,462,000 Other current assets 369,000 Property, plant and equipment 817,000 Goodwill 18,750,000 Other intangibles 13,660,000 Other non-current assets 97,000 Total assets acquired 44,424,000 Accounts payable and other liabilities 5,209,000 Deferred revenue 176,000 Convertible debt – related party 22,530,000 Other non-current liabilities 40,000 Total liabilities assumed 27,955,000 Total purchase price $ 16,469,000 The allocation of the purchase price to the net assets acquired and liabilities assumed resulted in the recognition of the following intangible assets: Amount Weighted Average Life-Years Developed technology $ 6,200,000 7 Customer relationships 7,270,000 5 Trade names 190,000 10 $ 13,660,000 The supplemental unaudited pro forma net sales and net loss of the combined entity had the acquisition been completed on April 1, 2013: Three months ended March 31, 2015 Supplemental pro forma combined results of operations: Net sales $ 12,685,139 Net loss $ (6,226,829 ) Net loss per share – basic and diluted $ (0.25 ) Adjustments to the supplemental pro forma combined results of operations are as follows: Three months ended March 31, Increase in amortization of intangibles $ 275,000 Interest amortization on related party debt 510,000 Increase in net loss $ 785,000 These unaudited pro forma condensed consolidated financial results have been prepared for illustrative purposes only and do not purport to be indicative of the results of operations that actually would have resulted had the acquisition occurred on the April 1, 2013, or of future results of the consolidated entities. The unaudited pro forma condensed consolidated financial information does not reflect any operating efficiencies and cost savings that may be realized from the integration of the acquisition.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2016
Goodwill and Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets	Note 3. Goodwill and Other Intangible Assets Goodwill As described in Note 2, on March 31, 2015, for accounting purposes, UPI was deemed to have acquired VSCI for a purchase price of $16.5 million, and as a result, the Company recognized $18.8 million in goodwill. There was no change in the goodwill balance as of March 31, 2016. Other Intangible Assets Other intangible assets consisted of the following at March 31, 2016 and December 31 2015: March 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technology $ 6,200,000 $ 886,000 $ 6,200,000 $ 664,000 Patents 5,653,000 5,594,000 5,653,000 5,586,000 Trademarks and trade names 190,000 69,000 190,000 67,000 Customer relationships 7,270,000 1,510,000 7,270,000 1,150,000 $ 19,313,000 $ 8,059,000 $ 19,313,000 $ 7,467,000 Accumulated amortization 8,059,000 7,467,000 Net book value of amortizable intangible assets $ 11,254,000 $ 11,846,000 For the three months ended March 31, 2016 and 2015, amortization of intangible assets charged to operations was approximately $591,000 and $7,000, respectively. The weighted average remaining amortization period for intangible assets as of March 31, 2016 was approximately 4.98 years.

Newly Adopted Accounting Pronou

Newly Adopted Accounting Pronouncements	3 Months Ended
	Mar. 31, 2016
Newly Adopted Accounting Pronouncements [Abstract]
Newly Adopted Accounting Pronouncements	Note 4 . Newly Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting In 2015, the Company adopted ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs. The amendments in this update require 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 the debt liability. The Company adopted this standard in conjunction with obtaining its new loan facility. There was no impact of the retrospective adoption to prior periods. In February 2016, FASB issued ASU 2016-2, Leases, under which lessees will recognize most leases on-balance sheet. This will generally increase reported assets and liabilities. For public entities, this ASU is effective for annual and interim periods in fiscal years beginning after December 15, 2018. ASU 2016-2 mandates a modified retrospective transition method for all entities. The Company will begin the process of determining the impact this ASU will have on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805).” The amendments in this update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Under the new guidance, the acquirer should record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. On the face of the income statement or in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods need to be reflected as if the adjustment to the provisional amounts had been recognized as of the acquisition date. We do not believe the adoption of this update will have a material impact on our financial statements. In July 2015, the FASB issued ASU No. 2015-12, “Plan Accounting: Defined Benefit Pension Plans (Topic 815).” Under the new guidance, plans are no longer required to measure fully benefit-responsive investment contracts (FBRICs) at fair value, disaggregate investments by nature, risks and characteristics, disclose individual investments that represent five percent or more of net assets available for benefits, or disclose net appreciation or depreciation for investments by general price. The amendments in ASU No. 2015-12 are effective for fiscal years beginning after December 15, 2015 and earlier adoption is permitted. We are still evaluating whether or not this update is applicable to our business. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory (Topic 330).” Under the current guidance (i.e., ASC 330-10-352 before the ASU), an entity subsequently measures inventory at the lower of cost or market, with market defined as replacement cost, net realizable value (NRV), or NRV less a normal profit margin. An entity uses current replacement cost provided that it is not above NRV (i.e., the ceiling) or below NRV less an “approximately normal profit margin” (i.e., the floor). The new guidance requires entities to measure most inventory “at the lower of cost and net realizable value,” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market (market in this context is defined as one of three different measures). The ASU will not apply to inventories that are measured by using either the last-in, first-out (LIFO) method or the retail inventory method (RIM). We do not believe the adoption of this update will have a material impact on our financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The guidance in this update supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition.” We are still evaluating whether or not this update is applicable to our business.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 5. Fair Value Measurements Estimates of fair value for financial assets and liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework prioritizes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following three broad levels of inputs may be used to measure fair value under the fair value hierarchy: · Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. · Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. · Level 3: Significant unobservable inputs that cannot be corroborated by observable market data 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. If the inputs used to measure the financial assets and liabilities fall within more than one of the different levels described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. On March 31, 2016 and December 31, 2015, the only asset or liability measured at fair value on a recurring basis was the long-term incentive plan accrual with a fair value of $70,500 and $130,000, respectively, considered a level 3 measurement. The long-term incentive plan began on October 2, 2014 and is described in Note 9. The estimated fair value of the accrual is calculated on a quarterly basis using a Monte Carlo valuation model. Vesting is based on the probability of meeting the stock price criteria, the probability of which is considered in determining the estimated fair value. Remeasurements to fair value on a nonrecurring basis relate primarily to our property, plant and equipment and intangible assets and occur when the derived fair value is below their carrying value on our Consolidated Balance Sheet. As of March 31, 2016 and December 31, 2015 we had no remeasurements of such assets to fair value. The carrying amounts reported in the Condensed Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, inventories, other current assets, accounts payable, accrued liabilities and convertible debt-related party approximate fair market value.

Line of Credit

Line of Credit	3 Months Ended
	Mar. 31, 2016
Line of Credit [Abstract]
Line of Credit	Note 6. Line of Credit On September 18, 2015, we entered into a loan agreement with Venture Bank, a Minnesota banking corporation, providing us with a committed $7 million secured revolving credit facility (“Facility”), subject to eligible accounts receivable and inventory. The Facility will expire on March 18, 2017 and any loans outstanding on such date will mature and become payable. The Facility is secured by substantially all of our assets. Under the Facility, we may borrow the lesser of: (a) the sum of (i) eighty percent (80%) of the value of eligible accounts receivable; and (ii) forty percent (40%) of the value of eligible inventory capped at the lesser of (1) $2 million or (2) fifty percent (50%) of the Notes principal balance outstanding; or (b) $7 million. As of March 31, 2016, based on eligible receivables and inventory, our total available borrowing base was $5,187,000. We did not have any borrowings under the facility as of March 31, 2016. Loans under the Facility bear interest at a rate per annum equal to the Wall Street Journal Prime Rate plus 2.25%, provided that in no case will the interest charged be less than 5.5%. In the event that there is an event of default under the Facility, the interest rate will be increased by 6.0% for the entire period that an event of default exists. In addition, the Borrowers will pay a non-usage fee of 0.25% based on the average unused and available portion of the Facility on a monthly basis.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2016
Inventories [Abstract]
Inventories	Note 7. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market (net realizable value). We value at lower of cost or market the slow moving and obsolete inventories based upon current and expected future product sales and the expected impact of product transitions or modifications. Historically, the inventory write-offs have generally been within our expectations. Inventories consist of the following: March 31, 2016 December 31, 2015 Raw materials $ 3,996,000 $ 2,385,000 Work-in-process 23,000 793,000 Finished goods 1,015,000 1,407,000 $ 5,034,000 $ 4,585,000 Inventories acquired in a business combination are recorded at their estimated fair value less profit for sales efforts and expensed in cost of sales as that inventory is sold. As of March 31, 2015, the purchase accounting adjustment of $240,000 related to VSCI inventory was recorded in cost of goods sold over approximately the first four months of the transition period ended December 31, 2015.

Net Loss per Common Share

Net Loss per Common Share	3 Months Ended
	Mar. 31, 2016
Net Loss per Common Share [Abstract]
Net Loss per Common Share	Note 8. Net Loss per Common Share We calculate basic net loss per common share amounts by dividing net loss by the weighted-average common shares outstanding, excluding outstanding shares contingently subject to forfeiture. For calculating diluted net loss per common share amounts, we add additional shares to the weighted-average common shares outstanding for the assumed exercise of stock options and vesting of restricted shares, if dilutive. Because we had a net loss during the three months ended March 31, 2016 and 2015 the following options and warrants and outstanding and unvested restricted stock to purchase shares of our common stock were excluded from diluted net loss per common share because of their anti-dilutive effect, and therefore, basic net loss per common share equals dilutive net loss per common share: Number of options, warrants and unvested restricted stock Range of stock option and warrant exercise prices March 31, 2016 2,662,000 $ 1.20 to $24.40 March 31, 2015 2,409,000 $ 2.70 to $24.40

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2016
Shareholders' Equity [Abstract]
Shareholders' Equity	Note 9. Shareholders’ Equity Share-based compensation. We recognize share-based compensation expense in our Condensed Consolidated Statement of Operations based on the fair value at the time of grant of the share-based payment over the requisite service period. We incurred approximately $84,000 and $315,000 in share On March 31, 2016, we had approximately $490,000 of unrecognized share-based compensation expense, net of estimated forfeitures, related to stock options that we expect to recognize over a weighted-average period of approximately 1.33 years. We also had $872,000 of unrecognized share-based compensation expense, net of estimated forfeitures, related to restricted shares that we expect to recognize over a weighted-average period of approximately 1.45 years. We grant option awards with an exercise price equal to the closing market price of our stock at the date of the grant. Options granted under this plan generally expire over a period ranging from five to seven years from date of grant and vest at varying rates ranging up to three years. We determined the fair value of our option awards using the Black-Scholes option pricing model. We used the following weighted-average assumptions to value the options granted during the three months ended March 31: 2016 2015 (1) Expected life in years 3.00 n/a Risk-free interest rate 1.3 % n/a Expected volatility 60.00 % n/a Expected dividend yield 0 % n/a Weighted-average grant date fair value $ 0.49 n/a (1) There were no grants during the three months ended March 31, 2016. The expected life for options granted represents the period of time we expect options to be outstanding based on historical data of option holder exercise and termination behavior for similar grants. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate over the expected life at the time of grant. Expected volatility is based upon historical volatility of our stock. We estimate the forfeiture rate for stock awards to be approximately 15% for executive employees and directors and approximately 20% for non-executive employees for calendar year 2016 awards based on our historical experience. The following table summarizes the activity related to our stock options during the three months ended March 31, 2016: Number of shares Weighted average exercise price Weighted average remaining life in years Aggregate intrinsic value Outstanding at December 31, 2015 2,573,640 $ 4.46 5.24 $ - Options granted 14,400 1.20 Options exercised - - Options surrendered (151,936 ) 2.59 Outstanding at March 31, 2016 2,436,104 $ 4.56 4.69 $ - Exercisable at March 31, 2016 1,728,706 $ 5.54 3.44 $ - The total fair value of stock options that vested during the three months ended March 31, 2016 and 2015 was approximately $94,000 and $95,000, r Our 2015 Plan also permits the compensation committee of our board of directors to grant other stock-based benefits, including restricted shares. Number of Shares Weighted average grant date fair value Weighted average remaining life in years Aggregate intrinsic value Balance at December 31, 2015 686,910 $ 2.41 1.59 $ 886,114 Shares granted 21,398 1.18 Shares vested (14,958 ) 1.17 Shares forfeited (125,243 ) 2.88 Balance at March 31, 2016 568,107 $ 2.29 1.45 $ 617,834 The aggregate intrinsic value shown above for the restricted shares represents the total pre-tax value based on the closing price of our common stock at the end of each period. Stock Warrants-Related Party. Long-Term Incentive Plan and Awards. On October 1, 2014, the compensation committee of our board of directors and our board of directors approved and adopted a Performance Award Agreement under the Uroplasty, Inc. 2006 Amended Stock and Incentive Plan, as amended, and on October 2, 2014, grants of Performance Awards (the “Awards”) were made to members of our senior management team. Performance goals for the Awards are based on the achievement of specified stock price targets during the period beginning on the date of grant and ending on the fourth anniversary of the date of grant or, if earlier, the closing date of a change of control (as defined in the Plan) of the Company (the “Performance Period”). The stock price targets under the Awards are: $7.57 price per share of common stock, $10.32 price per share of common stock and $13.76 price per share of common stock. A stock price target is considered achieved on the date (a) the average closing price of a share of our common stock equals or exceeds a stock price target for at least 45 consecutive trading days or (b) of the consummation of a change of control of the Company, provided the closing price of a share of our common stock on the last trading day immediately preceding the closing date of the change of control equals or exceeds a stock price target not previously achieved during the Performance Period. The Awards are accounted for as liability awards under the share-based compensation accounting guidance, as the awards are based on the performance of our common stock and are expected to be settled in cash. Expense for the awards is recognized over the derived service period of approximately 2.4 years. We recorded a liability of approximately $53,000 at March 31, 2016 and related expense was approximately $(22,000) for the three months ended ending March 31, 2016 for the Awards.

Convertible Debt - Related Part

Convertible Debt - Related Party	3 Months Ended
	Mar. 31, 2016
Convertible Debt - Related Party [Abstract]
Convertible Debt - Related Party	Note 10. Convertible Debt – Related Party The following table is a summary of our convertible debt – related party on March 31, 2016: Gross Principal Amount Unamortized Debt Discount Net Amount Note Payable A $ 20,000,000 $ (3,444,876 ) $ 16,555,124 Note Payable B 3,500,000 (531,869 ) 2,968,131 Note Payable C 4,990,000 (900,904 ) 4,089,096 $ 28,490,000 $ (4,877,649 ) $ 23,612,351 The Convertible Debt-Related Party is held by Mr. Lewis C. Pell, a member of the Company’s board of directors, and consists of three convertible promissory notes. • Note Payable A accrues annual interest at the rate of 0.84%. The outstanding principal amount of Note Payable A is convertible into shares of our common stock at a conversion price of $6.00 per share. • Note Payable B accrues annual interest at the rate of 1.66%. The outstanding principal amount of Note Payable B is convertible into shares of our common stock at a conversion price of $4.45 per share. • Note Payable C accrues annual interest at the rate of 1.91%. The outstanding principal amount of Note Payable C is convertible into shares of our common stock at a conversion price of $5.55 per share. At March 31, 2016, we had an aggregate amount of $853,062 in accrued interest under the convertible notes payable, which is included in accrued expenses on our consolidated balance sheet. The convertible promissory notes mature on March 31, 2020 or earlier upon a change of control (as defined). The convertible promissory notes generally cannot be converted prior to March 31, 2018. The convertible promissory notes may be converted earlier prior to a change in control or in connection with our prepayment of the convertible promissory notes. The convertible promissory notes may be prepaid, at our option and upon 15 days’ notice to Mr. Pell, without other premium or penalty, with a combination of cash and common stock. Interest on the convertible promissory notes is payable on the maturity date or upon repayment or conversion of all or any portion of the principal under the note. Under purchase accounting for the Merger, the convertible promissory notes were recorded at fair value on the effective date of the Merger, resulting in a discount from their face value of $5,960,000 as of March 31, 2015. The discount is being amortized over the remaining term based on the effective interest rate method with an imputed interest rate of 4.72%.

Savings and Retirement Plans

Savings and Retirement Plans	3 Months Ended
	Mar. 31, 2016
Savings and Retirement Plans [Abstract]
Savings and Retirement Plans	Note 11. Savings and Retirement Plans We sponsor various retirement plans for eligible employees in the United States, the United Kingdom, and The Netherlands. Our retirement savings plan in the United States conforms to Section 401(k) of the Internal Revenue Code and participation is available to substantially all employees. We may also make discretionary contributions ratably to all eligible employees. We made discretionary contributions to the U.S. plan Our international subsidiaries have defined benefit retirement plans for eligible employees. These plans provide benefits based on the employee’s years of service and compensation during the years immediately preceding retirement, termination, disability, or death, as defined in the plans. The cost for our defined benefit retirement plans in The Netherlands and the United Kingdom includes the following components for the three months ended March 31: Three Months Ended March 31 2016 2015 Gross service cost $ 27,000 $ 29,000 Interest cost 29,000 29,000 Expected return on assets (24,000 ) (20,000 ) Amortization (1,000 ) - Net periodic retirement cost $ 31,000 $ 38,000

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2016
Business Segment Information [Abstract]
Business Segment Information	Note 12. Business Segment Information ASC 280, “Segment Reporting,” We operate in two markets, the medical market and the industrial market. ® None of the industrial market sales, net losses or assets are more than 10% of our total sales, losses or assets. Therefore, we aggregate our operating segments into one reportable segment in accordance with the objectives and principles of the applicable guidance. For the three months ended March 31, 2016, no country other than the United States represented more than 10% of our consolidated revenue. Information regarding net sales to customers by geographic area for the three months ended March 31 is as follows: United States United Kingdom All Other Foreign Countries (1) Consolidated Three months ended March 31, 2016 $ 8,643,000 $ 988,000 $ 2,576,000 $ 12,207,000 Three months ended March 31, 2015 $ 5,458,000 $ 557,000 $ 1,004,000 $ 7,019,000 (1) No other country accounts for 10% or more of the consolidated net sales. Information regarding geographic area in which we maintain long-lived assets is as follows: United States United Kingdom The Netherlands Consolidated March 31, 2016 $ 2,008,000 $ 3,000 $ 477,000 $ 2,488,000 December 31, 2015 $ 2,089,000 $ 3,000 $ 463,000 $ 2,555,000 Accounting policies of the operations in the various geographic areas are the same as those described in Note 1. Net sales attributed to each geographic area are net of intercompany equipment.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Cogentix Medical, Inc., headquartered in Minnetonka, Minnesota, with additional operations in New York, Massachusetts, The Netherlands and the United Kingdom, is a global medical device company. We design, develop, manufacture and market a robust line of high performance fiberoptic and video endoscopy products under the PrimeSight TM ® The Company is the result of the Merger effective as of March 31, 2015, of two medical device companies, Uroplasty, Inc. (“UPI”) and Vision-Sciences, Inc. (“VSCI”). On the effective date of the Merger, the two companies completed an all-stock merger, pursuant to which UPI merged with and into Merger Sub, a wholly owned subsidiary of VSCI. Merger Sub was the surviving company from the Merger, and changed its name to Uroplasty, LLC. VSCI continued to be the sole member of the surviving company. After the merger, VSCI and its consolidated subsidiaries, including the surviving company, operate under the name Cogentix Medical, Inc. Upon closing of the Merger, the former UPI stockholders owned approximately 62.5% and the VSCI shareholders retained approximately 37.5% of the Company. Accordingly, while VSCI was the legal acquirer and issued its shares in the Merger, UPI is the acquiring company in the Merger for accounting purposes and the Merger has been accounted for as a reverse acquisition under the acquisition method of accounting for business combinations. As a result, the financial statements of the Company prior to the effective date of the Merger are the historical financial statements of UPI, whereas the financial statements of the Company after the effective date of the Merger reflect the results of the operations of UPI and VSCI on a combined basis. See additional disclosure provided in Note 2. All share amounts and price per share amounts for all periods presented relate to VSCI shares with UPI shares and price per share converted to VSCI amounts based on the conversion ratio in the acquisition agreement and the one for five reverse stock split that occurred on March 31, 2015. We have prepared our Condensed Consolidated Financial Statements included in this quarterly report on Form 10-Q, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, have been condensed or omitted, pursuant to such rules and regulations, although we believe that our disclosures are adequate to make the information not misleading. The consolidated results of operations for any interim period are not necessarily indicative of results for a full fiscal year. These Condensed Consolidated Financial Statements, presented herein, should be read in conjunction with the audited consolidated financial statements and related notes included in our annual report on Form 10-KT for the nine-months ended December 31, 2015. The Condensed Consolidated Financial Statements presented herein as of March 31, 2016 and for the three month period ended March 31, 2015, reflect, in the opinion of management, all material adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the consolidated financial condition, results of operations and cash flows for the interim periods. We have identified certain accounting policies that we consider particularly important for the portrayal of our results of operations and financial condition and which may require the application of a higher level of judgment by our management, and as a result are subject to an inherent level of uncertainty. These are characterized as “critical accounting policies” and address revenue recognition, accounts receivable, valuation of inventory, foreign currency translation/transactions, purchase price allocation on acquisition, the determination of recoverability of long-lived and intangible assets, long-term incentive plans, share-based compensation, defined benefit pension plans and income taxes, each of which is described in our annual report on Form 10-KT for the nine-months ended December 31, 2015. Based upon our review, we have determined that these policies remain our most critical accounting policies for the three months ended March 31, 2016 and we have made no changes to these policies during 2016.
Liquidity and Capital Resources	Liquidity and Capital Resources We have incurred substantial operating losses since our inception. During the quarter ended December 31, 2015, the Company generated its first ever cash operating profit and we accomplished this again for the quarter ended March 31, 2016. This performance is the result of increased sales and reduced expenses. Management will continue to press for improvements in operating performance during calendar 2016 although there can be no assurance these efforts will continue to generate cash operating profits. As of March 31, 2016, we had cash and cash equivalents totaling approximately $2.2 million. On September 18, 2015, we entered into a $7.0 million line of credit with Venture Bank to provide non-dilutive resources to execute management’s growth strategies for the PrimeSight TM ®

Business Combination - Merger21

Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc. (Tables)	3 Months Ended
	Mar. 31, 2016
Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc. [Abstract]
Schedule of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed	The allocation was finalized without any change to the preliminary allocation and is as follows: Cash and cash equivalents $ 2,020,000 Accounts receivable 4,249,000 Inventories 4,462,000 Other current assets 369,000 Property, plant and equipment 817,000 Goodwill 18,750,000 Other intangibles 13,660,000 Other non-current assets 97,000 Total assets acquired 44,424,000 Accounts payable and other liabilities 5,209,000 Deferred revenue 176,000 Convertible debt – related party 22,530,000 Other non-current liabilities 40,000 Total liabilities assumed 27,955,000 Total purchase price $ 16,469,000
Schedule of Recognition of Intangible Assets	The allocation of the purchase price to the net assets acquired and liabilities assumed resulted in the recognition of the following intangible assets: Amount Weighted Average Life-Years Developed technology $ 6,200,000 7 Customer relationships 7,270,000 5 Trade names 190,000 10 $ 13,660,000
Schedule of Supplemental Pro forma Combined Results of Operations	The supplemental unaudited pro forma net sales and net loss of the combined entity had the acquisition been completed on April 1, 2013: Three months ended March 31, 2015 Supplemental pro forma combined results of operations: Net sales $ 12,685,139 Net loss $ (6,226,829 ) Net loss per share – basic and diluted $ (0.25 )
Schedule of Adjustments to Supplemental Pro forma Combined Results of Operations	Adjustments to the supplemental pro forma combined results of operations are as follows: Three months ended March 31, Increase in amortization of intangibles $ 275,000 Interest amortization on related party debt 510,000 Increase in net loss $ 785,000

Goodwill and Other Intangible22

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Other Intangible Assets [Abstract]
Schedule of Other Intangible Assets	Other intangible assets consisted of the following at March 31, 2016 and December 31 2015: March 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technology $ 6,200,000 $ 886,000 $ 6,200,000 $ 664,000 Patents 5,653,000 5,594,000 5,653,000 5,586,000 Trademarks and trade names 190,000 69,000 190,000 67,000 Customer relationships 7,270,000 1,510,000 7,270,000 1,150,000 $ 19,313,000 $ 8,059,000 $ 19,313,000 $ 7,467,000 Accumulated amortization 8,059,000 7,467,000 Net book value of amortizable intangible assets $ 11,254,000 $ 11,846,000

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2016
Inventories [Abstract]
Inventories	Inventories consist of the following: March 31, 2016 December 31, 2015 Raw materials $ 3,996,000 $ 2,385,000 Work-in-process 23,000 793,000 Finished goods 1,015,000 1,407,000 $ 5,034,000 $ 4,585,000

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	3 Months Ended
	Mar. 31, 2016
Net Loss per Common Share [Abstract]
Anti-dilutive Securities Excluded from Diluted Loss per Common Share	We calculate basic net loss per common share amounts by dividing net loss by the weighted-average common shares outstanding, excluding outstanding shares contingently subject to forfeiture. For calculating diluted net loss per common share amounts, we add additional shares to the weighted-average common shares outstanding for the assumed exercise of stock options and vesting of restricted shares, if dilutive. Because we had a net loss during the three months ended March 31, 2016 and 2015 the following options and warrants and outstanding and unvested restricted stock to purchase shares of our common stock were excluded from diluted net loss per common share because of their anti-dilutive effect, and therefore, basic net loss per common share equals dilutive net loss per common share: Number of options, warrants and unvested restricted stock Range of stock option and warrant exercise prices March 31, 2016 2,662,000 $ 1.20 to $24.40 March 31, 2015 2,409,000 $ 2.70 to $24.40

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Shareholders' Equity [Abstract]
Weighted-average Assumptions used to Value the Options Granted	We used the following weighted-average assumptions to value the options granted during the three months ended March 31: 2016 2015 (1) Expected life in years 3.00 n/a Risk-free interest rate 1.3 % n/a Expected volatility 60.00 % n/a Expected dividend yield 0 % n/a Weighted-average grant date fair value $ 0.49 n/a
Stock Option Activity	The following table summarizes the activity related to our stock options during the three months ended March 31, 2016: Number of shares Weighted average exercise price Weighted average remaining life in years Aggregate intrinsic value Outstanding at December 31, 2015 2,573,640 $ 4.46 5.24 $ - Options granted 14,400 1.20 Options exercised - - Options surrendered (151,936 ) 2.59 Outstanding at March 31, 2016 2,436,104 $ 4.56 4.69 $ - Exercisable at March 31, 2016 1,728,706 $ 5.54 3.44 $ -
Restricted Shares Activity	The following table summarizes the activity related to our restricted shares during the three months ended March 31, 2016: Number of Shares Weighted average grant date fair value Weighted average remaining life in years Aggregate intrinsic value Balance at December 31, 2015 686,910 $ 2.41 1.59 $ 886,114 Shares granted 21,398 1.18 Shares vested (14,958 ) 1.17 Shares forfeited (125,243 ) 2.88 Balance at March 31, 2016 568,107 $ 2.29 1.45 $ 617,834

Convertible Debt - Related Pa26

Convertible Debt - Related Party (Tables)	3 Months Ended
	Mar. 31, 2016
Convertible Debt - Related Party [Abstract]
Summary of Convertible Debt - Related Party	The following table is a summary of our convertible debt – related party on March 31, 2016: Gross Principal Amount Unamortized Debt Discount Net Amount Note Payable A $ 20,000,000 $ (3,444,876 ) $ 16,555,124 Note Payable B 3,500,000 (531,869 ) 2,968,131 Note Payable C 4,990,000 (900,904 ) 4,089,096 $ 28,490,000 $ (4,877,649 ) $ 23,612,351

Savings and Retirement Plans (T

Savings and Retirement Plans (Tables)	3 Months Ended
	Mar. 31, 2016
Savings and Retirement Plans [Abstract]
Components of Benefit Costs for Defined Benefit Retirement Plans	The cost for our defined benefit retirement plans in The Netherlands and the United Kingdom includes the following components for the three months ended March 31: Three Months Ended March 31 2016 2015 Gross service cost $ 27,000 $ 29,000 Interest cost 29,000 29,000 Expected return on assets (24,000 ) (20,000 ) Amortization (1,000 ) - Net periodic retirement cost $ 31,000 $ 38,000

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Business Segment Information [Abstract]
Sales to Customers and Long-Lived Assets by Geographic Area	Information regarding net sales to customers by geographic area for the three months ended March 31 is as follows: United States United Kingdom All Other Foreign Countries (1) Consolidated Three months ended March 31, 2016 $ 8,643,000 $ 988,000 $ 2,576,000 $ 12,207,000 Three months ended March 31, 2015 $ 5,458,000 $ 557,000 $ 1,004,000 $ 7,019,000 (1) No other country accounts for 10% or more of the consolidated net sales. Information regarding geographic area in which we maintain long-lived assets is as follows: United States United Kingdom The Netherlands Consolidated March 31, 2016 $ 2,008,000 $ 3,000 $ 477,000 $ 2,488,000 December 31, 2015 $ 2,089,000 $ 3,000 $ 463,000 $ 2,555,000

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details) $ in Millions	3 Months Ended
	Mar. 31, 2015Company	Mar. 31, 2016USD ($)	Sep. 18, 2015USD ($)
Business Acquisition [Line Items]
Number of companies merged | Company	2
Liquidity and Capital Resources [Abstract]
Cash and cash equivalents		$ 2.2
Uroplasty Inc ("UPI") [Member]
Business Acquisition [Line Items]
Ownership percentage	62.50%
Vision Sciences Inc ("VSCI") [Member]
Business Acquisition [Line Items]
Ownership percentage	37.50%
Reverse stock split ratio	5
Venture Bank [Member] | Revolving Credit Facility [Member]
Liquidity and Capital Resources [Abstract]
Line of credit			$ 7

Business Combination - Merger30

Business Combination - Merger Between Uroplasty, Inc. and Vision-Sciences, Inc. (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Goodwill	$ 18,749,888	$ 18,749,888	$ 18,749,888
Vision-Sciences Inc [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Cash and cash equivalents	2,020,000
Accounts receivable	4,249,000
Inventories	4,462,000
Other current assets	369,000
Property, plant and equipment	817,000
Goodwill	18,750,000
Other intangibles	13,660,000
Other non-current assets	97,000
Total assets acquired	44,424,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Accounts payable and other liabilities	5,209,000
Deferred revenue	176,000
Convertible debt - related party	22,530,000
Other non-current liabilities	40,000
Total liabilities assumed	27,955,000
Total purchase price	16,469,000
Recognition of Intangible Assets [Abstract]
Other intangibles	13,660,000
Supplemental Pro forma Combined Results of Operations [Abstract]
Net sales		12,685,139
Net loss		$ (6,226,829)
Net loss per share - basic and diluted (in dollars per share)		$ (0.25)
Adjustments to Supplemental Pro forma Combined Results of Operations [Abstract]
Increase in amortization of intangibles		$ 275,000
Interest amortization on related party debt		510,000
Increase in net loss		$ 785,000
Vision-Sciences Inc [Member] | Developed Technology [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Other intangibles	6,200,000
Recognition of Intangible Assets [Abstract]
Other intangibles	$ 6,200,000
Weighted Average Life-Years	7 years
Vision-Sciences Inc [Member] | Customer Relationships [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Other intangibles	$ 7,270,000
Recognition of Intangible Assets [Abstract]
Other intangibles	$ 7,270,000
Weighted Average Life-Years	5 years
Vision-Sciences Inc [Member] | Trade Names [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Other intangibles	$ 190,000
Recognition of Intangible Assets [Abstract]
Other intangibles	$ 190,000
Weighted Average Life-Years	10 years

Goodwill and Other Intangible31

Goodwill and Other Intangible Assets (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Goodwill and Other Intangible Assets [Abstract]
Amount of purchase price		$ 16,500,000
Goodwill	$ 18,749,888	18,749,888	$ 18,749,888
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	19,313,000		19,313,000
Accumulated amortization	8,059,000		7,467,000
Net book value of amortizable intangible assets	11,254,000		11,846,000
Amortization of intangible assets	$ 590,858	$ 7,262
Weighted average remaining amortization period	4 years 11 months 23 days
Developed Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 6,200,000		6,200,000
Accumulated amortization	886,000		664,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	5,653,000		5,653,000
Accumulated amortization	5,594,000		5,586,000
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	190,000		190,000
Accumulated amortization	69,000		67,000
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	7,270,000		7,270,000
Accumulated amortization	$ 1,510,000		$ 1,150,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets, Fair Value Disclosure [Abstract]
Fair value of plan assets	$ 70,500	$ 130,000

Line of Credit (Details)

Line of Credit (Details) - Revolving Credit Facility [Member] - USD ($)	3 Months Ended
	Mar. 31, 2016	Sep. 18, 2015
Line of Credit Facility [Line Items]
Borrowing capacity percentage based on value of eligible accounts receivable	80.00%
Borrowing capacity percentage based on value of eligible inventory	40.00%
Notes principal balance outstanding cap value	$ 2,000,000
Notes principal balance outstanding cap percentage	50.00%
Line of credit facility available borrowing	$ 5,187,000
Variable interest rate per annum	2.25%
Line of credit interest rate	5.50%
Line of credit interest rate increase	6.00%
Line of credit non-usage fee	0.25%
Venture Bank [Member]
Line of Credit Facility [Line Items]
Line of credit facility amount		$ 7,000,000

Inventories (Details)

Inventories (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Inventories [Abstract]
Raw materials	$ 3,996,000	$ 2,385,000
Work-in-process	23,000	793,000
Finished goods	1,015,000	1,407,000
Inventories	$ 5,034,201	$ 4,584,844
Inventory adjustment			$ 240,000

Net Loss per Common Share (Deta

Net Loss per Common Share (Details) - Options, Warrants and Unvested Restricted Stock [Member] - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares excluded from computation of diluted loss per common share (in shares)	2,662,000	2,409,000
Range of exercise prices - lower range limit (in dollars per share)	$ 1.20	$ 2.70
Range of exercise prices - upper range limit (in dollars per share)	$ 24.40	$ 24.40

Shareholders' Equity (Details)

Shareholders' Equity (Details)	3 Months Ended			9 Months Ended
	Mar. 31, 2016USD ($)Plan$ / sharesshares	Mar. 31, 2015USD ($)$ / shares		Dec. 31, 2015USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense | $	$ 84,000	$ 315,000
Restricted shares and warrants, additional disclosures [Abstract]
Warrants issued to purchase common stock (in shares) | shares	376,123
Warrants exercise price (in dollars per share)	$ 9.31
Recorded expenses | $	$ 21,748	$ (20,685)
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $	$ 490,000
Unrecognized compensation expense, weighted average period of recognition	1 year 3 months 29 days
Weighted-average assumptions used to value the options granted [Abstract]
Expected life in years	3 years		[1]
Risk-free interest rate	1.30%		[1]
Expected volatility	60.00%		[1]
Expected dividend yield	0.00%		[1]
Weighted-average grant date fair value (in dollars per share)	$ 0.49		[1]
Stock options, number of shares [Roll Forward]
Outstanding, beginning of period (in shares) | shares	2,573,640
Options granted (in shares) | shares	14,400
Options exercised (in shares) | shares	0
Options surrendered (in shares) | shares	(151,936)
Outstanding, end of period (in shares) | shares	2,436,104			2,573,640
Exercisable, end of period (in shares) | shares	1,728,706
Stock options, weighted average exercise price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 4.46
Options granted (in dollars per share)	1.20
Options exercised (in dollars per share)	0
Options surrendered (in dollars per share)	2.59
Outstanding, end of period (in dollars per share)	4.56			$ 4.46
Exercisable, end of period (in dollars per share)	$ 5.54
Stock options, additional disclosures [Abstract]
Outstanding, weighted average remaining life in years	4 years 8 months 8 days			5 years 2 months 26 days
Options exercisable, Weighted average remaining life in years	3 years 5 months 8 days
Outstanding, aggregate intrinsic value, end of period | $	$ 0			$ 0
Exercisable, aggregate intrinsic value, end of period | $	0
Fair value of stock options vested | $	$ 94,000	$ 95,000
Stock Options [Member] | Executive Employees and Directors [Member]
Weighted-average assumptions used to value the options granted [Abstract]
Forfeiture rate	15.00%
Stock Options [Member] | Non-Executive Employees [Member]
Weighted-average assumptions used to value the options granted [Abstract]
Forfeiture rate	20.00%
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $	$ 872,000
Unrecognized compensation expense, weighted average period of recognition	1 year 5 months 12 days
Restricted shares and warrants, number of shares [Roll Forward]
Balance, beginning of period (in shares) | shares	686,910
Shares granted (in shares) | shares	21,398
Shares vested (in shares) | shares	(14,958)
Shares forfeited (in shares) | shares	(125,243)
Balance, end of period (in shares) | shares	568,107			686,910
Restricted shares, weighted average grant date fair value [Roll Forward]
Balance, beginning of period (in dollars per share)	$ 2.41
Shares granted (in dollars per share)	1.18
Shares vested (in dollars per share)	1.17
Shares forfeited (in dollars per share)	2.88
Balance, end of period (in dollars per share)	$ 2.29			$ 2.41
Restricted shares and warrants, additional disclosures [Abstract]
Weighted average remaining life in years	1 year 6 months			1 year 7 months 2 days
Balance, end of period | $	$ 617,834			$ 886,114
Performance Award [Member]
Restricted shares and warrants, additional disclosures [Abstract]
First stock price target of common stock (in dollars per share)	$ 7.57
Second stock price target of common stock (in dollars per share)	10.32
Third stock price target of common stock (in dollars per share)	$ 13.76
Number of consecutive trading days	45 days
Award requisite service period	2 years 4 months 24 days
Recorded liability | $	$ 53,000
Recorded expenses | $	$ (22,000)
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of active plans for share-based compensation grants | Plan	1
Number of shares reserved for share-based grants (in shares) | shares	2,500,000
Shares remain available for grant (in shares) | shares	1,406,523
2015 Plan [Member] | Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of share-based payment award	5 years
2015 Plan [Member] | Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of share-based payment award	7 years
Vesting period	3 years
[1]	There were no grants during the three months ended March 31, 2016.

Convertible Debt - Related Pa37

Convertible Debt - Related Party (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Convertible Debt - Related Party [Abstract]
Net Amount	$ 23,612,351	$ 23,336,854
Accrued interest	$ 853,062
Maturity date	Mar. 31, 2020
Number of days notice for conversion of debt	15 days
Face value of debt	$ 5,960,000
Effective interest rate	4.72%
Convertible Debt [Member]
Convertible Debt - Related Party [Abstract]
Gross Principal Amount	$ 28,490,000
Unamortized Debt Discount	(4,877,649)
Net Amount	23,612,351
Convertible Debt [Member] | Note Payable A [Member]
Convertible Debt - Related Party [Abstract]
Gross Principal Amount	20,000,000
Unamortized Debt Discount	(3,444,876)
Net Amount	$ 16,555,124
Annual interest rate	0.84%
Debt conversion price (in dollars per share)	$ 6
Convertible Debt [Member] | Note Payable B [Member]
Convertible Debt - Related Party [Abstract]
Gross Principal Amount	$ 3,500,000
Unamortized Debt Discount	(531,869)
Net Amount	$ 2,968,131
Annual interest rate	1.66%
Debt conversion price (in dollars per share)	$ 4.45
Convertible Debt [Member] | Note Payable C [Member]
Convertible Debt - Related Party [Abstract]
Gross Principal Amount	$ 4,990,000
Unamortized Debt Discount	(900,904)
Net Amount	$ 4,089,096
Annual interest rate	1.91%
Debt conversion price (in dollars per share)	$ 5.55

Savings and Retirement Plans (D

Savings and Retirement Plans (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Savings and Retirement Plans [Abstract]
Employer discretionary contribution amount to U.S. plan	$ 123,000	$ 85,000
Defined Benefit Plans, Net Periodic Retirement Cost [Abstract]
Gross service cost	27,000	29,000
Interest cost	29,000	29,000
Expected return on assets	(24,000)	(20,000)
Amortization	(1,000)	0
Net periodic retirement cost	$ 31,000	$ 38,000

Business Segment Information (D

Business Segment Information (Details)		3 Months Ended
		Mar. 31, 2016USD ($)SegmentCustomer	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Business Segment Information [Abstract]
Number of operating markets | Segment		2
Number of operating segments | Segment		1
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues		$ 12,207,000	$ 7,019,000
Long-lived assets		$ 2,488,000		$ 2,555,000
Number of major customers | Customer		0
United States [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues		$ 8,643,000	5,458,000
Long-lived assets		2,008,000		2,089,000
United Kingdom [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues		988,000	557,000
Long-lived assets		3,000		3,000
All Other Foreign Countries [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	[1]	2,576,000	$ 1,004,000
The Netherlands | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets		$ 477,000		$ 463,000
[1]	No other country accounts for 10% or more of the consolidated net sales.