Cogentix Medical 10-Q 11 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 07, 2017
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		60,914,778
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 10,431,068	$ 9,369,624
Short-term investments	14,275,494	13,573,057
Accounts receivable, net	7,313,021	6,770,838
Inventories	7,235,436	7,235,043
Other	616,166	571,527
Total current assets	39,871,185	37,520,089
Property, plant, and equipment, net	2,186,034	2,115,316
Goodwill	18,749,888	18,749,888
Other intangible assets, net	8,303,379	9,482,578
Long-term investments	2,218,223	5,344,004
Deferred tax assets and other	162,044	163,427
Total assets	71,490,753	73,375,302
Current liabilities:
Accounts payable	1,644,109	2,689,035
Income taxes payable	90,762	113,191
Accrued liabilities:
Compensation	3,536,817	4,670,640
Deferred revenue	629,538	597,524
Other	1,281,043	838,272
Total current liabilities	7,182,269	8,908,662
Accrued pension liability	360,429	308,918
Deferred rent	613,888	639,019
Other	62,426	278,780
Total liabilities	8,219,012	10,135,379
Shareholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; none issued or outstanding at June 30, 2017 and December 31, 2016, respectively	0	0
Common stock $0.01 par value; 100,000,000 shares authorized, 60,914,778 and 60,436,548 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	609,149	604,368
Additional paid-in capital	145,226,680	144,430,381
Accumulated deficit	(81,907,939)	(81,005,654)
Accumulated other comprehensive loss	(656,149)	(789,172)
Total shareholders' equity	63,271,741	63,239,923
Total liabilities and shareholders' equity	$ 71,490,753	$ 73,375,302

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
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)	60,914,778	60,436,548
Common stock, shares outstanding (in shares)	60,914,778	60,436,548

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
Net sales	$ 14,064,216	$ 13,004,651	$ 27,014,349	$ 25,211,215
Cost of goods sold	4,658,334	4,087,165	9,152,247	7,888,359
Gross profit	9,405,882	8,917,486	17,862,102	17,322,856
Operating expenses
General and administrative	2,058,327	1,867,312	4,194,483	3,529,781
Research and development	1,031,851	1,100,056	2,322,509	2,036,934
Selling and marketing	5,347,078	5,433,439	11,002,038	11,069,201
One-time costs	0	2,177,990	0	2,311,541
Amortization of intangibles	588,646	590,858	1,179,199	1,181,716
Total operating expenses	9,025,902	11,169,655	18,698,229	20,129,173
Operating income (loss)	379,980	(2,252,169)	(836,127)	(2,806,317)
Other income (expense)
Interest income (expense)	61,704	(376,193)	107,933	(766,262)
Other income	6,192	0	6,364	0
Foreign currency exchange gain (loss)	33,453	(17,844)	46,193	(25,406)
Total other income (expense)	101,349	(394,037)	160,490	(791,668)
Income (loss) before income taxes	481,329	(2,646,206)	(675,637)	(3,597,985)
Income tax expense	61,700	18,561	115,151	33,190
Net income (loss)	$ 419,629	$ (2,664,767)	$ (790,788)	$ (3,631,175)
Basic net income (loss) per common share (in dollars per share)	$ 0.01	$ (0.10)	$ (0.01)	$ (0.14)
Diluted net income (loss) per common share (in dollars per share)	$ 0.01	$ (0.10)	$ (0.01)	$ (0.14)
Weighted average common shares outstanding:
Basic (in shares)	59,895,208	25,518,330	59,767,542	25,446,765
Diluted (in shares)	60,349,266	25,518,330	59,767,542	25,446,765

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract]
Net income (loss)	$ 419,629	$ (2,664,767)	$ (790,788)	$ (3,631,175)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	109,348	(50,278)	130,772	(24,622)
Unrealized loss on available-for-sale investments	8,065	0	7,860	0
Pension adjustments	(4,041)	12,491	(5,609)	3,917
Total other comprehensive income (loss), net of tax	113,372	(37,787)	133,023	(20,705)
Comprehensive income (loss)	$ 533,001	$ (2,702,554)	$ (657,765)	$ (3,651,880)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2016	$ 604,367	$ 144,430,382	$ (81,005,654)	$ (789,172)	$ 63,239,923
Balance (in shares) at Dec. 31, 2016	60,436,548
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation and vesting of restricted stock	$ 4,861	698,459	0	0	703,320
Share-based compensation and vesting of restricted stock (in shares)	486,080
Proceeds from exercise of stock options, net of shares exchanged	$ (79)	(13,658)			(13,737)
Proceeds from exercise of stock options, net of shares exchanged (in shares)	(7,850)
Adoption of ASU 2016-09	$ 0	111,497	(111,497)		0
Comprehensive loss	0	0	(790,788)	133,023	(657,765)
Balance at Jun. 30, 2017	$ 609,149	$ 145,226,680	$ (81,907,939)	$ (656,149)	$ 63,271,741
Balance (in shares) at Jun. 30, 2017	60,914,778

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (790,788)	$ (3,631,175)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,544,473	1,590,903
Loss on disposal of equipment	233	0
Share-based compensation expense	703,320	224,999
Amortization of premium on available-for-sale securities	68,829	0
Deferred tax benefit (expense)	6,764	(1,161)
Deferred rent	(14,983)	9,895
Amortization of discount on related party debt	0	554,247
Long term incentive plan benefit	0	(46,870)
Proceeds from restricted stock exchanged for taxes	(17,690)	(57,343)
Changes in operating assets and liabilities:
Accounts receivable, net	(402,955)	1,691,231
Inventories	7,333	(1,096,308)
Other current assets	(31,230)	68,790
Accounts payable	(1,050,123)	104,130
Interest payable	0	178,359
Accrued compensation	(1,349,293)	1,059,496
Accrued liabilities, other	384,213	118,912
Accrued pension liability	27,338	42,862
Deferred revenue	24,402	250,679
Net cash provided by (used in) operating activities	(890,157)	1,061,646
Cash flows from investing activities:
Proceeds from maturity of available-for-sale securities	4,800,000	0
Purchases of available-for-sale securities	(2,438,322)	0
Purchases of property, plant and equipment	(398,426)	(166,976)
Net cash provided by (used in) investing activities	1,963,252	(166,976)
Cash flows from financing activities:
Borrowings from line of credit	3,033,385	2,646,500
Repayments of line of credit	(3,033,385)	(2,646,500)
Proceeds from exercise of stock options	3,953	0
Net cash provided by financing activities	3,953	0
Effect of exchange rates on cash and cash equivalents	(15,604)	(4,184)
Net increase in cash and cash equivalents	1,061,444	890,486
Cash and cash equivalents at beginning of period	9,369,624	1,976,594
Cash and cash equivalents at end of period	10,431,068	2,867,080
Supplemental disclosure of cash flow information:
Cash paid during the period for income tax	135,936	19,378
Cash paid during the period for interest	$ 13,625	$ 34,061

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Basis of Presentation Cogentix Medical is a global medical device company headquartered in Minnetonka, Minnesota, with additional operations in New York, Massachusetts, The Netherlands and the United Kingdom. We design, develop, manufacture and market a robust line of high performance fiberoptic and video endoscopy products under the PrimeSight TM ® ® ® ® 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 (the “SEC”). 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-K for the year ended December 31, 2016. The Condensed Consolidated Financial Statements presented herein as of June 30, 2017 and for the three and six month periods ended June 30, 2017 and 2016, 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, the determination of recoverability of long-lived and intangible assets, share-based compensation, defined benefit pension plans and income taxes, each of which is described in our annual report on Form 10-K for the year ended December 31, 2016. Based upon our review, we have determined that these policies remain our most critical accounting policies for the six months ended June 30, 2017 and we have made no changes to these policies during 2017 other than for the adoption of Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting.” Under the new ASU we no longer account for forfeitures throughout the vesting period and instead account for them in the period in which they occur. We also recognize certain tax benefits or tax shortfalls upon a restricted-stock award vesting or stock option exercise relative to the deferred tax asset position established in the provision for income taxes line of the consolidated statements of operations instead of within the consolidated statement of shareholders’ equity.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2017
Goodwill and Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets	Note 2. Goodwill and Other Intangible Assets Goodwill There was no change in the goodwill balance as of June 30, 2017 as compared to December 31, 2016. Other Intangible Assets Other intangible assets consisted of approximately the following at June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Remaining Useful Life Gross Carrying Amount Accumulated Amortization Remaining Useful Life Developed technology $ 6,200,000 $ 1,993,000 4.75 $ 6,200,000 $ 1,550,000 5.25 Patents 5,653,000 5,628,000 7.75 5,653,000 5,616,000 8.25 Trademarks and trade names 190,000 79,000 7.75 190,000 74,000 8.25 Customer relationships 7,270,000 3,310,000 2.75 7,270,000 2,590,000 3.25 $ 19,313,000 $ 11,010,000 $ 19,313,000 $ 9,830,000 Accumulated amortization 11,010,000 9,830,000 Net book value of amortizable intangible assets $ 8,303,000 3.73 $ 9,483,000 4.23 For the six months ended June 30, 2017 and 2016, amortization of intangible assets charged to operations was approximately $1,179,000 and $1,182,000, respectively. Estimated amortization expense for all intangible assets as of June 30, 2017 is approximately as follows: July 1, 2017 through December 31, 2017 $ 1,174,000 2018 2,347,000 2019 2,341,000 2020 1,254,000 2021 894,000 Thereafter 293,000 Total 8,303,000

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements [Abstract]
New Accounting Pronouncements	Note 3 . New Accounting Pronouncements Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This new standard is effective for annual periods beginning after December 15, 2016, and interim periods within that reporting period. We adopted this standard as of January 1, 2017. The adoption did not have a material impact on our consolidated financial statements. Under the new ASU we no longer account for forfeitures throughout the vesting period and instead account for them in the period in which they occur. We also recognize certain tax benefits or tax shortfalls upon a restricted-stock award vesting or stock option exercise relative to the deferred tax asset position established in the provision for income taxes line of the consolidated statements of operations instead of within the consolidated statement of shareholders’ equity. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU is in response to diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows and provides guidance on eight specific cash flow classification issues. It will be effective for reporting periods beginning after December 15, 2017, and interim periods within that reporting period. Early adoption is permitted, including adoption in an interim period. The Company adopted this standard as of January 1, 2017. The adoption did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-09, “Compensation – Stock Compensation: Scope of Modification Accounting.” This ASU is intended to provide guidance about which changes to the terms or conditions on a share-based payment aware require and entity to apply modification accounting. This new standard is effective for annual periods beginning after December 15, 2017, and interim periods within that reporting period. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Receivables—Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities” related to the amortization period for certain purchased callable debt securities held at a premium. The amendments shorten the amortization period for the premium to the earliest call date. The amendment is effective for interim and annual periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In January 2017, the FASB, issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” which simplifies the accounting for goodwill impairment by eliminating Step 2 of the current goodwill impairment test. Goodwill impairment will now be the amount by which the reporting unit’s carrying value exceeds its fair value, limited to the carrying value of the goodwill. The standard is effective for us beginning January 1, 2020. Early adoption is permitted for any impairment tests performed after January 1, 2017. The new guidance is not expected to have a material impact on our results of operations and financial position. In February 2016, the 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. While the Company is still evaluating the timing and impact of the adoption of this guidance on its consolidated financial statements, it anticipates that the adoption could result in an increase in the assets and liabilities recorded on its consolidated balance sheet. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, as amended by ASU 2015-14, “Deferral of Effective Date”, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2017 including interim reporting periods within that reporting period. The provisions can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. We plan to adopt this ASU effective January 1, 2018 using the cumulative-effect adjustment method. The Company has completed the assessment of this ASU on each of our revenue streams and believes the impact on our consolidated financial statements will be immaterial. For each of our products, revenue will still be recognized when title passes to the customer, generally upon shipment. Revenue for service repairs of equipment will continue to be recognized after service has been completed, and service contract revenue will be recognized ratably over the term of the contract.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 4. 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. The following table shows our cash and available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short- or long-term investments as of June 30, 2017: June 30, 2017 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 2,290,062 $ - $ - $ 2,290,062 $ 2,290,062 $ - $ - Level 1: Money market funds 8,141,006 - - 8,141,006 8,141,006 - - Subtotal 8,141,006 - - 8,141,006 8,141,006 - - Level 2: Certificates of deposit 2,160,000 - (936 ) 2,159,064 - 1,439,326 719,738 Commercial paper 1,190,110 - (238 ) 1,189,872 - 1,189,872 - Corporate notes/bonds 9,656,454 - (6,198 ) 9,650,256 - 9,650,256 - U.S. government agencies 3,500,642 - (6,117 ) 3,494,525 - 1,996,040 1,498,485 Subtotal 16,507,206 - (13,489 ) 16,493,717 - 14,275,494 2,218,223 Total $ 26,938,274 $ - $ (13,489 ) $ 26,924,785 $ 10,431,068 $ 14,275,494 $ 2,218,223 We consider all cash on-hand and highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. We classify marketable securities having original maturities of more than three months when purchased and remaining maturities of one year or less as short-term investments and marketable securities with remaining maturities of more than one year as long-term investments. We further classify marketable securities as available-for-sale. We have not designated any of our marketable securities as trading securities or as held to maturity. We may sell any of our marketable securities prior to their stated maturities for strategic reason including, but not limited to, anticipation of credit deterioration and duration management. The long term securities have a contractual term that ranges from November to December 2018. We consider the declines in market value of our marketable securities investment portfolio to be temporary in nature. We typically invest in highly-rated securities, and our investment policy generally limits the amount of credit exposure to any one issuer. Cash and cash equivalents include highly liquid money market funds and debt securities with original maturities of three months or less totaling approximately $10.4 million and approximately $9.4 million at June 30, 2017 and December 31, 2016, respectively. Money market funds present negligible risk of changes in value due to changes in interest rates, and their cost approximates their fair market value. We maintain cash in bank accounts, which, at times, may exceed federally insured limits. We have not experienced any losses in such accounts. Cash and cash equivalents held in foreign bank accounts totaled approximately $669,000 and approximately $507,000 at June 30, 2017 and December 31, 2016, respectively.

Line of Credit

Line of Credit	6 Months Ended
	Jun. 30, 2017
Line of Credit [Abstract]
Line of Credit	Note 5. Line of Credit We have a loan agreement with Venture Bank, a Minnesota banking corporation, providing us with a $7.0 million secured revolving credit facility (the “Facility”), subject to eligible accounts receivable and inventory, and secured by substantially all of our assets. The Facility was amended in March 2017. Under the amended Facility, the Facility will expire on September 18, 2018. 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 $2.5 million; or (b) $7 million. As of June 30, 2017, based on eligible receivables and inventory, our total available borrowing base was approximately $6,110,000. We did not have any borrowings under the facility as of June 30, 2017. Loans under the Facility bear interest at a rate per annum equal to the Wall Street Journal Prime Rate plus 1.25%, provided that in no case will the interest charged be less than 5.25%. 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 0.15% based on the average unused and available portion of the Facility on a monthly basis.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventories [Abstract]
Inventories	Note 6. 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. Inventories consist of approximately the following: June 30, 2017 December 31, 2016 Raw materials $ 4,959,000 $ 4,483,000 Work-in-process 184,000 462,000 Finished goods 2,092,000 2,290,000 Total inventory $ 7,235,000 $ 7,235,000

Net Income (Loss) per Common Sh

Net Income (Loss) per Common Share	6 Months Ended
	Jun. 30, 2017
Net Income (Loss) per Common Share [Abstract]
Net Income (Loss) per Common Share	Note 7. Net Income (Loss) per Common Share We calculate basic net income (loss) per common share amounts by dividing net income (loss) by the weighted-average common shares outstanding. For calculating diluted net income (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. The following table sets forth the computation of our basic and diluted net income (loss) per share: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income (loss) $ 419,629 $ (2,664,767 ) $ (790,788 ) $ (3,631,175 ) Weighted average shares outstanding - Basic 59,895,208 25,518,330 59,767,542 25,446,765 Dilutive impact of common stock equivalents outstanding 454,058 - - - Weighted Averages shares used to compute diluted net income (loss) per shares 60,349,266 25,518,330 59,767,542 25,446,765 Net income (loss) per share – Basic $ 0.01 $ (0.10 ) $ (0.01 ) $ (0.14 ) Net income (loss) per share – Diluted $ 0.01 $ (0.10 ) $ (0.01 ) $ (0.14 ) The following options are excluded from our EPS calculations because they are antidilutive: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Restricted stock 1,985,541 417,742 819,725 417,742 Common stock options - 2,170,278 2,660,841 2,170,278 Stock warrants - 376,123 - 376,123 1,985,541 2,964,143 3,480,566 2,964,143

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2017
Shareholders' Equity [Abstract]
Shareholders' Equity	Note 8. Shareholders’ Equity Share-based compensation. We grant options at the discretion of our directors. We grant option awards with an exercise price equal to the closing market price of our stock at the date of the grant. We have options outstanding to purchase 2,660,841 shares of common stock granted under the 2015 Plan or predecessor companies’ plans. Options generally expire over a period ranging from seven to ten years from date of grant and vest at varying rates ranging up to three years. The options granted under the 2015 Plan generally provide for the exercise of options during a limited period following termination of employment, death or disability. 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 six months ended June 30: 2017 Expected life in years 3.00 Risk-free interest rate 1.45 % Expected volatility 66.89 % Expected dividend yield 0 % Weighted-average grant date fair value $ 0.74 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. The following table summarizes the activity related to our stock options during the six months ended June 30, 2017: Number of shares Weighted average exercise price Weighted average remaining life in years Aggregate intrinsic value Outstanding at December 31, 2016 1,680,990 $ 3.54 6.55 $ 752,290 Options granted 1,042,809 1.65 Options exercised (2,411 ) 1.64 Options surrendered (60,547 ) $ 5.71 Outstanding at June 30, 2017 2,660,841 $ 2.75 6.56 $ 585,776 Exercisable at June 30, 2017 999,104 $ 4.91 3.58 $ 114,561 The total fair value of stock options that vested during the six months ended June, 2017 and 2016 was approximately $155,000 and $252,000, r We grant restricted shares at the discretion of our directors with vesting terms ranging from six months to one year. Number of restricted shares Weighted average grant date fair value Weighted average remaining life in years Aggregate intrinsic value Balance at December 31, 2016 992,548 $ 1.30 1.35 $ 1,995,021 Shares granted 542,541 1.67 Shares vested (658,903 ) 1.40 $ 1,146,491 Shares surrendered (56,461 ) 1.62 Balance at June 30, 2017 819,725 $ 1.45 1.59 $ 1,426,322 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. 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 $703,000 and $225,000 in share On June 30, 2017, we had approximately $1,009,000 of unrecognized share-based compensation expense related to stock options that we expect to recognize over a weighted-average period of approximately 2.58 years. On June 30, 2017, we had approximately $1,020,000 of unrecognized share-based compensation expense related to restricted shares that we expect to recognize over a weighted-average period of approximately 1.59 years.

Savings and Retirement Plans

Savings and Retirement Plans	6 Months Ended
	Jun. 30, 2017
Savings and Retirement Plans [Abstract]
Savings and Retirement Plans	Note 9. 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- and six-month periods ended June 30: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Gross service cost $ 24,000 $ 28,000 $ 48,000 $ 56,000 Interest cost 23,000 29,000 46,000 58,000 Expected return on assets (21,000 ) (24,000 ) (42,000 ) (49,000 ) Amortization - (1,000 ) - (3,000 ) Net periodic retirement cost $ 26,000 $ 32,000 $ 52,000 $ 62,000

Business Segment Information

Business Segment Information	6 Months Ended
	Jun. 30, 2017
Business Segment Information [Abstract]
Business Segment Information	Note 10. Business Segment Information ASC 280, “Segment Reporting,” For financial reporting purposes, we report one operating segment as our Chief Operating Decision Maker utilizes financial statement information provided to him on a consolidated basis. Information regarding geographic area net sales to customers for the three and six months ended June 30, is approximately as follows: United States All Other Foreign Countries (1) Consolidated Three months ended June 30, 2017 $ 10,346,000 $ 3,718,000 $ 14,064,000 Three months ended June 30, 2016 $ 9,623,000 $ 3,382,000 $ 13,005,000 Six months ended June 30, 2017 $ 19,575,000 $ 7,439,000 $ 27,014,000 Six months ended June 30, 2016 $ 18,540,000 $ 6,671,000 $ 25,211,000 (1) No other country accounts for 10% of more of the consolidated net sales. Information regarding geographic area long-lived assets is approximately as follows: United States United Kingdom/ The Netherlands Consolidated June 30, 2017 $ 1,710,000 $ 476,000 $ 2,186,000 December 31, 2016 $ 1,676,000 $ 439,000 $ 2,115,000 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.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2017
Subsequent Event [Abstract]
Subsequent Event	Note 11. Subsequent Event On July 25, 2017, we purchased all of the outstanding shares of Genesis Medical Holdings, Ltd (“Genesis”), a London, UK based distributor of medical products to the urology and gynecology markets. Genesis has been the exclusive UK distributor of our PrimeSight urology technology since 2013. We believe this is a complimentary acquisition for us as it furthers our direct sales efforts in the UK. The terms of the acquisition included an upfront cash payment of £200,000 (approximately $260,000) for the tangible net assets of Genesis, subject to change based on the preparation of a schedule of net assets of Genesis as of the closing date. Further, we will pay £415,000 (approximately $540,000 using the July 25, 2017 exchange rate) at the rate of 5% of revenues for the ongoing business. If certain revenue targets are achieved for the twelve months ended March 31, 2019, we will pay an additional £100,000. A preliminary purchase price allocation, estimated acquisition costs and proforma financial information are not available due to the timing of the acquisition.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Cogentix Medical is a global medical device company headquartered in Minnetonka, Minnesota, with additional operations in New York, Massachusetts, The Netherlands and the United Kingdom. We design, develop, manufacture and market a robust line of high performance fiberoptic and video endoscopy products under the PrimeSight TM ® ® ® ® 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 (the “SEC”). 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-K for the year ended December 31, 2016. The Condensed Consolidated Financial Statements presented herein as of June 30, 2017 and for the three and six month periods ended June 30, 2017 and 2016, 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, the determination of recoverability of long-lived and intangible assets, share-based compensation, defined benefit pension plans and income taxes, each of which is described in our annual report on Form 10-K for the year ended December 31, 2016. Based upon our review, we have determined that these policies remain our most critical accounting policies for the six months ended June 30, 2017 and we have made no changes to these policies during 2017 other than for the adoption of Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting.” Under the new ASU we no longer account for forfeitures throughout the vesting period and instead account for them in the period in which they occur. We also recognize certain tax benefits or tax shortfalls upon a restricted-stock award vesting or stock option exercise relative to the deferred tax asset position established in the provision for income taxes line of the consolidated statements of operations instead of within the consolidated statement of shareholders’ equity.

New Accounting Pronouncements (

New Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements [Abstract]
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This new standard is effective for annual periods beginning after December 15, 2016, and interim periods within that reporting period. We adopted this standard as of January 1, 2017. The adoption did not have a material impact on our consolidated financial statements. Under the new ASU we no longer account for forfeitures throughout the vesting period and instead account for them in the period in which they occur. We also recognize certain tax benefits or tax shortfalls upon a restricted-stock award vesting or stock option exercise relative to the deferred tax asset position established in the provision for income taxes line of the consolidated statements of operations instead of within the consolidated statement of shareholders’ equity. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU is in response to diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows and provides guidance on eight specific cash flow classification issues. It will be effective for reporting periods beginning after December 15, 2017, and interim periods within that reporting period. Early adoption is permitted, including adoption in an interim period. The Company adopted this standard as of January 1, 2017. The adoption did not have a material impact on our consolidated financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-09, “Compensation – Stock Compensation: Scope of Modification Accounting.” This ASU is intended to provide guidance about which changes to the terms or conditions on a share-based payment aware require and entity to apply modification accounting. This new standard is effective for annual periods beginning after December 15, 2017, and interim periods within that reporting period. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Receivables—Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities” related to the amortization period for certain purchased callable debt securities held at a premium. The amendments shorten the amortization period for the premium to the earliest call date. The amendment is effective for interim and annual periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In January 2017, the FASB, issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” which simplifies the accounting for goodwill impairment by eliminating Step 2 of the current goodwill impairment test. Goodwill impairment will now be the amount by which the reporting unit’s carrying value exceeds its fair value, limited to the carrying value of the goodwill. The standard is effective for us beginning January 1, 2020. Early adoption is permitted for any impairment tests performed after January 1, 2017. The new guidance is not expected to have a material impact on our results of operations and financial position. In February 2016, the 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. While the Company is still evaluating the timing and impact of the adoption of this guidance on its consolidated financial statements, it anticipates that the adoption could result in an increase in the assets and liabilities recorded on its consolidated balance sheet. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, as amended by ASU 2015-14, “Deferral of Effective Date”, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2017 including interim reporting periods within that reporting period. The provisions can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. We plan to adopt this ASU effective January 1, 2018 using the cumulative-effect adjustment method. The Company has completed the assessment of this ASU on each of our revenue streams and believes the impact on our consolidated financial statements will be immaterial. For each of our products, revenue will still be recognized when title passes to the customer, generally upon shipment. Revenue for service repairs of equipment will continue to be recognized after service has been completed, and service contract revenue will be recognized ratably over the term of the contract.

Goodwill and Other Intangible21

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Other Intangible Assets [Abstract]
Schedule of Other Intangible Assets	Other intangible assets consisted of approximately the following at June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Remaining Useful Life Gross Carrying Amount Accumulated Amortization Remaining Useful Life Developed technology $ 6,200,000 $ 1,993,000 4.75 $ 6,200,000 $ 1,550,000 5.25 Patents 5,653,000 5,628,000 7.75 5,653,000 5,616,000 8.25 Trademarks and trade names 190,000 79,000 7.75 190,000 74,000 8.25 Customer relationships 7,270,000 3,310,000 2.75 7,270,000 2,590,000 3.25 $ 19,313,000 $ 11,010,000 $ 19,313,000 $ 9,830,000 Accumulated amortization 11,010,000 9,830,000 Net book value of amortizable intangible assets $ 8,303,000 3.73 $ 9,483,000 4.23
Estimated Amortization Expense for all Intangible Assets	Estimated amortization expense for all intangible assets as of June 30, 2017 is approximately as follows: July 1, 2017 through December 31, 2017 $ 1,174,000 2018 2,347,000 2019 2,341,000 2020 1,254,000 2021 894,000 Thereafter 293,000 Total 8,303,000

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Measurements [Abstract]
Available-for-sale Securities	The following table shows our cash and available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short- or long-term investments as of June 30, 2017: June 30, 2017 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 2,290,062 $ - $ - $ 2,290,062 $ 2,290,062 $ - $ - Level 1: Money market funds 8,141,006 - - 8,141,006 8,141,006 - - Subtotal 8,141,006 - - 8,141,006 8,141,006 - - Level 2: Certificates of deposit 2,160,000 - (936 ) 2,159,064 - 1,439,326 719,738 Commercial paper 1,190,110 - (238 ) 1,189,872 - 1,189,872 - Corporate notes/bonds 9,656,454 - (6,198 ) 9,650,256 - 9,650,256 - U.S. government agencies 3,500,642 - (6,117 ) 3,494,525 - 1,996,040 1,498,485 Subtotal 16,507,206 - (13,489 ) 16,493,717 - 14,275,494 2,218,223 Total $ 26,938,274 $ - $ (13,489 ) $ 26,924,785 $ 10,431,068 $ 14,275,494 $ 2,218,223

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventories [Abstract]
Inventories	Inventories consist of approximately the following: June 30, 2017 December 31, 2016 Raw materials $ 4,959,000 $ 4,483,000 Work-in-process 184,000 462,000 Finished goods 2,092,000 2,290,000 Total inventory $ 7,235,000 $ 7,235,000

Net Income (Loss) per Common 24

Net Income (Loss) per Common Share (Tables)	6 Months Ended
	Jun. 30, 2017
Net Income (Loss) per Common Share [Abstract]
Computation of Basic and Diluted Net Income (Loss) Per Share	The following table sets forth the computation of our basic and diluted net income (loss) per share: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income (loss) $ 419,629 $ (2,664,767 ) $ (790,788 ) $ (3,631,175 ) Weighted average shares outstanding - Basic 59,895,208 25,518,330 59,767,542 25,446,765 Dilutive impact of common stock equivalents outstanding 454,058 - - - Weighted Averages shares used to compute diluted net income (loss) per shares 60,349,266 25,518,330 59,767,542 25,446,765 Net income (loss) per share – Basic $ 0.01 $ (0.10 ) $ (0.01 ) $ (0.14 ) Net income (loss) per share – Diluted $ 0.01 $ (0.10 ) $ (0.01 ) $ (0.14 )
Anti-dilutive Securities Excluded from EPS Calculations	The following options are excluded from our EPS calculations because they are antidilutive: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Restricted stock 1,985,541 417,742 819,725 417,742 Common stock options - 2,170,278 2,660,841 2,170,278 Stock warrants - 376,123 - 376,123 1,985,541 2,964,143 3,480,566 2,964,143

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2017
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 six months ended June 30: 2017 Expected life in years 3.00 Risk-free interest rate 1.45 % Expected volatility 66.89 % Expected dividend yield 0 % Weighted-average grant date fair value $ 0.74
Stock Option Activity	The following table summarizes the activity related to our stock options during the six months ended June 30, 2017: Number of shares Weighted average exercise price Weighted average remaining life in years Aggregate intrinsic value Outstanding at December 31, 2016 1,680,990 $ 3.54 6.55 $ 752,290 Options granted 1,042,809 1.65 Options exercised (2,411 ) 1.64 Options surrendered (60,547 ) $ 5.71 Outstanding at June 30, 2017 2,660,841 $ 2.75 6.56 $ 585,776 Exercisable at June 30, 2017 999,104 $ 4.91 3.58 $ 114,561
Restricted Shares Activity	We grant restricted shares at the discretion of our directors with vesting terms ranging from six months to one year. Number of restricted shares Weighted average grant date fair value Weighted average remaining life in years Aggregate intrinsic value Balance at December 31, 2016 992,548 $ 1.30 1.35 $ 1,995,021 Shares granted 542,541 1.67 Shares vested (658,903 ) 1.40 $ 1,146,491 Shares surrendered (56,461 ) 1.62 Balance at June 30, 2017 819,725 $ 1.45 1.59 $ 1,426,322

Savings and Retirement Plans (T

Savings and Retirement Plans (Tables)	6 Months Ended
	Jun. 30, 2017
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- and six-month periods ended June 30: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Gross service cost $ 24,000 $ 28,000 $ 48,000 $ 56,000 Interest cost 23,000 29,000 46,000 58,000 Expected return on assets (21,000 ) (24,000 ) (42,000 ) (49,000 ) Amortization - (1,000 ) - (3,000 ) Net periodic retirement cost $ 26,000 $ 32,000 $ 52,000 $ 62,000

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Jun. 30, 2017
Business Segment Information [Abstract]
Sales to Customers and Long-Lived Assets by Geographic Area	Information regarding geographic area net sales to customers for the three and six months ended June 30, is approximately as follows: United States All Other Foreign Countries (1) Consolidated Three months ended June 30, 2017 $ 10,346,000 $ 3,718,000 $ 14,064,000 Three months ended June 30, 2016 $ 9,623,000 $ 3,382,000 $ 13,005,000 Six months ended June 30, 2017 $ 19,575,000 $ 7,439,000 $ 27,014,000 Six months ended June 30, 2016 $ 18,540,000 $ 6,671,000 $ 25,211,000 (1) No other country accounts for 10% of more of the consolidated net sales. Information regarding geographic area long-lived assets is approximately as follows: United States United Kingdom/ The Netherlands Consolidated June 30, 2017 $ 1,710,000 $ 476,000 $ 2,186,000 December 31, 2016 $ 1,676,000 $ 439,000 $ 2,115,000

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details) Adult in Millions	6 Months Ended
	Jun. 30, 2017Adult
Summary of Significant Accounting Policies [Abstract]
Number of adults affected by OAB	40

Goodwill and Other Intangible29

Goodwill and Other Intangible Assets (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 19,313,000		$ 19,313,000		$ 19,313,000
Accumulated amortization	11,010,000		$ 11,010,000		$ 9,830,000
Remaining useful life			3 years 8 months 23 days		4 years 2 months 23 days
Net book value of amortizable intangible assets	8,303,000		$ 8,303,000		$ 9,483,000
Amortization of intangible assets	588,646	$ 590,858	1,179,199	$ 1,181,716
Estimated amortization expense for all intangible assets [Abstract]
July 1, 2017 through December 31, 2017	1,174,000		1,174,000
2,018	2,347,000		2,347,000
2,019	2,341,000		2,341,000
2,020	1,254,000		1,254,000
2,021	894,000		894,000
Thereafter	293,000		293,000
Developed Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	6,200,000		6,200,000		6,200,000
Accumulated amortization	1,993,000		$ 1,993,000		$ 1,550,000
Remaining useful life			4 years 9 months		5 years 3 months
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	5,653,000		$ 5,653,000		$ 5,653,000
Accumulated amortization	5,628,000		$ 5,628,000		$ 5,616,000
Remaining useful life			7 years 9 months		8 years 3 months
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	190,000		$ 190,000		$ 190,000
Accumulated amortization	79,000		$ 79,000		$ 74,000
Remaining useful life			7 years 9 months		8 years 3 months
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	7,270,000		$ 7,270,000		$ 7,270,000
Accumulated amortization	$ 3,310,000		$ 3,310,000		$ 2,590,000
Remaining useful life			2 years 9 months		3 years 3 months

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Adjusted Cost	$ 26,938,274
Unrealized Gains	0
Unrealized Losses	(13,489)
Fair Value	26,924,785
Cash and Cash Equivalents	10,431,068
Short-Term Investments	14,275,494
Long-Term Investments	2,218,223
Cash, Cash Equivalents and Marketable Securities [Abstract]
Cash and cash equivalents	10,431,068	$ 9,369,624	$ 2,867,080	$ 1,976,594
Cash and cash equivalents held in foreign bank accounts	669,000	$ 507,000
Cash [Member]
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Adjusted Cost	2,290,062
Unrealized Gains	0
Unrealized Losses	0
Fair Value	2,290,062
Cash and Cash Equivalents	2,290,062
Short-Term Investments	0
Long-Term Investments	0
Level 1 [Member]
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Adjusted Cost	8,141,006
Unrealized Gains	0
Unrealized Losses	0
Fair Value	8,141,006
Cash and Cash Equivalents	8,141,006
Short-Term Investments	0
Long-Term Investments	0
Level 1 [Member] | Money Market Funds [Member]
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Adjusted Cost	8,141,006
Unrealized Gains	0
Unrealized Losses	0
Fair Value	8,141,006
Cash and Cash Equivalents	8,141,006
Short-Term Investments	0
Long-Term Investments	0
Level 2 [Member]
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Adjusted Cost	16,507,206
Unrealized Gains	0
Unrealized Losses	(13,489)
Fair Value	16,493,717
Cash and Cash Equivalents	0
Short-Term Investments	14,275,494
Long-Term Investments	2,218,223
Level 2 [Member] | Certificates of Deposit [Member]
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Adjusted Cost	2,160,000
Unrealized Gains	0
Unrealized Losses	(936)
Fair Value	2,159,064
Cash and Cash Equivalents	0
Short-Term Investments	1,439,326
Long-Term Investments	719,738
Level 2 [Member] | Commercial Paper [Member]
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Adjusted Cost	1,190,110
Unrealized Gains	0
Unrealized Losses	(238)
Fair Value	1,189,872
Cash and Cash Equivalents	0
Short-Term Investments	1,189,872
Long-Term Investments	0
Level 2 [Member] | Corporate Notes/Bonds [Member]
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Adjusted Cost	9,656,454
Unrealized Gains	0
Unrealized Losses	(6,198)
Fair Value	9,650,256
Cash and Cash Equivalents	0
Short-Term Investments	9,650,256
Long-Term Investments	0
Level 2 [Member] | U.S. Government Agencies [Member]
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Adjusted Cost	3,500,642
Unrealized Gains	0
Unrealized Losses	(6,117)
Fair Value	3,494,525
Cash and Cash Equivalents	0
Short-Term Investments	1,996,040
Long-Term Investments	$ 1,498,485

Line of Credit (Details)

Line of Credit (Details) - Revolving Credit Facility [Member]	6 Months Ended
	Jun. 30, 2017USD ($)
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	$ 2,500,000
Line of credit facility available borrowing	6,110,000
Amount borrowed under credit facility	$ 0
Variable interest rate per annum	1.25%
Line of credit interest rate	5.25%
Line of credit interest rate increase	6.00%
Line of credit non-usage fee	0.15%
Venture Bank [Member]
Line of Credit Facility [Line Items]
Line of credit facility amount	$ 7,000,000

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Inventories [Abstract]
Raw materials	$ 4,959,000	$ 4,483,000
Work-in-process	184,000	462,000
Finished goods	2,092,000	2,290,000
Total inventory	$ 7,235,436	$ 7,235,043

Net Income (Loss) per Common 33

Net Income (Loss) per Common Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net Income (Loss) per Common Share [Abstract]
Net income (loss)	$ 419,629	$ (2,664,767)	$ (790,788)	$ (3,631,175)
Weighted average shares outstanding - Basic	59,895,208	25,518,330	59,767,542	25,446,765
Dilutive impact of common stock equivalents outstanding (in shares)	454,058	0	0	0
Weighted Averages shares used to compute diluted net income (loss) per shares (in shares)	60,349,266	25,518,330	59,767,542	25,446,765
Net income (loss) per share - Basic (in dollars per share)	$ 0.01	$ (0.10)	$ (0.01)	$ (0.14)
Net income (loss) per share - Diluted (in dollars per share)	$ 0.01	$ (0.10)	$ (0.01)	$ (0.14)
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)	1,985,541	2,964,143	3,480,566	2,964,143
Restricted Stock [Member]
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)	1,985,541	417,742	819,725	417,742
Common Stock Options [Member]
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)	0	2,170,278	2,660,841	2,170,278
Stock Warrants [Member]
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)	0	376,123	0	376,123

Shareholders' Equity, Share-bas

Shareholders' Equity, Share-based Compensation (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)Plan$ / sharesshares	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense | $	$ 703,000	$ 225,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $	$ 1,009,000
Unrecognized compensation expense, weighted average period of recognition	2 years 6 months 29 days
Weighted-average assumptions used to value the options granted [Abstract]
Expected life in years	3 years
Risk-free interest rate	1.45%
Expected volatility	66.89%
Expected dividend yield	0.00%
Weighted-average grant date fair value (in dollars per share) | $ / shares	$ 0.74
Stock options, number of shares [Roll Forward]
Outstanding, beginning of period (in shares)	1,680,990
Options granted (in shares)	1,042,809
Options exercised (in shares)	(2,411)
Options surrendered (in shares)	(60,547)
Outstanding, end of period (in shares)	2,660,841		1,680,990
Exercisable, end of period (in shares)	999,104
Stock options, weighted average exercise price [Roll Forward]
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 3.54
Options granted (in dollars per share) | $ / shares	1.65
Options exercised (in dollars per share) | $ / shares	1.64
Options surrendered (in dollars per share) | $ / shares	5.71
Outstanding, end of period (in dollars per share) | $ / shares	2.75		$ 3.54
Exercisable, end of period (in dollars per share) | $ / shares	$ 4.91
Stock options, additional disclosures [Abstract]
Outstanding, weighted average remaining life in years	6 years 6 months 22 days		6 years 6 months 18 days
Options exercisable, Weighted average remaining life in years	3 years 6 months 29 days
Outstanding, aggregate intrinsic value | $	$ 585,776		$ 752,290
Exercisable, aggregate intrinsic value | $	114,561
Fair value of stock options vested | $	$ 155,000	$ 252,000
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)	2,500,000
Shares remain available for grant (in shares)	12,270
Vesting period	2 years
2015 Plan [Member] | Stock Options [Member]
Stock options, number of shares [Roll Forward]
Outstanding, end of period (in shares)	2,660,841
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	7 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	10 years
Vesting period	3 years

Shareholders' Equity, Restricte

Shareholders' Equity, Restricted Shares (Details) - Restricted Stock [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Restricted shares and warrants, number of shares [Roll Forward]
Balance, beginning of period (in shares)	992,548
Shares granted (in shares)	0
Shares vested (in shares)	(402,147)
Shares surrendered (in shares)	0
Balance, end of period (in shares)	590,401	992,548
Restricted shares, weighted average grant date fair value [Roll Forward]
Balance, beginning of period (in dollars per share)	$ 1.30
Shares granted (in dollars per share)	0
Shares vested (in dollars per share)	1.10
Shares surrendered (in dollars per share)	0
Balance, end of period (in dollars per share)	$ 1.44	$ 1.30
Restricted shares and warrants, additional disclosures [Abstract]
Weighted average remaining life in years, Balance	1 year 7 months 17 days	1 year 4 months 6 days
Aggregate intrinsic value, Balance	$ 1,995,021
Shares vested, Aggregate intrinsic value	723,865
Aggregate intrinsic value, Balance	1,062,722	$ 1,995,021
Unrecognized share-based compensation expense	$ 1,020,000
Unrecognized compensation expense, weighted average period of recognition	1 year 7 months 2 days
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	6 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year

Savings and Retirement Plans (D

Savings and Retirement Plans (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Savings and Retirement Plans [Abstract]
Employer discretionary contribution amount to U.S. plan			$ 322,000	$ 305,000
Defined Benefit Plans, Net Periodic Retirement Cost [Abstract]
Gross service cost	$ 24,000	$ 28,000	48,000	56,000
Interest cost	23,000	29,000	46,000	58,000
Expected return on assets	(21,000)	(24,000)	(42,000)	(49,000)
Amortization	0	(1,000)	0	(3,000)
Net periodic retirement cost	$ 26,000	$ 32,000	$ 52,000	$ 62,000

Business Segment Information (D

Business Segment Information (Details)		3 Months Ended		6 Months Ended
		Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)Segment	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Business Segment Information [Abstract]
Number of operating segments | Segment				1
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues		$ 14,064,216	$ 13,004,651	$ 27,014,349	$ 25,211,215
Long-lived assets		2,186,034		2,186,034		$ 2,115,316
United States [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues		10,346,000	9,623,000	19,575,000	18,540,000
Long-lived assets		1,710,000		1,710,000		1,676,000
All Other Foreign Countries [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	[1]	3,718,000	$ 3,382,000	7,439,000	$ 6,671,000
United Kingdom/The Netherlands [Member] | Reportable Geographical Components [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets		$ 476,000		$ 476,000		$ 439,000
[1]	No other country accounts for 10% or more of the consolidated net sales.

Subsequent Event (Details)

Subsequent Event (Details) - Genesis [Member]	Jul. 25, 2017USD ($)	Jul. 25, 2017GBP (£)
Forecast [Member]
Subsequent Event [Line Items]
Cash consideration payment	$ 540,000	£ 415,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Cash consideration payment	$ 260,000	£ 200,000
Consideration, percentage of revenues	5.00%	5.00%
Consideration, contingent upon acheivment of certain revenue targets		£ 100,000