2019 Q4 Form 10-Q Financial Statement

#000143774919021599 Filed on November 05, 2019

View on sec.gov

Income Statement

Concept 2019 Q4 2019 Q3 2018 Q3
Revenue $2.560M $2.410M $2.020M
YoY Change 26.11% 19.31% -2.46%
Cost Of Revenue $1.640M $1.563M $1.477M
YoY Change 11.56% 5.82% -54.89%
Gross Profit $930.0K $847.0K $543.0K
YoY Change 66.07% 55.99% -145.14%
Gross Profit Margin 36.33% 35.15% 26.88%
Selling, General & Admin $4.370M $4.091M $4.499M
YoY Change -11.9% -9.07% -8.71%
% of Gross Profit 469.89% 483.0% 828.55%
Research & Development $1.570M $1.371M $1.404M
YoY Change -5.99% -2.35% -39.53%
% of Gross Profit 168.82% 161.87% 258.56%
Depreciation & Amortization $240.0K $220.0K $220.0K
YoY Change -55.56% 0.0% -29.03%
% of Gross Profit 25.81% 25.97% 40.52%
Operating Expenses $5.930M $5.462M $5.903M
YoY Change -10.56% -7.47% -23.0%
Operating Profit -$5.000M -$4.615M -$5.360M
YoY Change -17.63% -13.9% -39.56%
Interest Expense -$340.0K $377.0K $324.0K
YoY Change 30.77% 16.36% -79.74%
% of Operating Profit
Other Income/Expense, Net $230.0K $299.0K $242.0K
YoY Change -4.17% 23.55%
Pretax Income -$5.120M -$4.620M -$5.390M
YoY Change -15.93% -14.29% -48.37%
Income Tax
% Of Pretax Income
Net Earnings -$5.120M -$4.623M -$5.388M
YoY Change -15.93% -14.2% -48.41%
Net Earnings / Revenue -200.0% -191.83% -266.73%
Basic Earnings Per Share
Diluted Earnings Per Share -$492.8K -$584.8K -$4.812M
COMMON SHARES
Basic Shares Outstanding 10.35M
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q4 2019 Q3 2018 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $10.94M $14.46M $10.01M
YoY Change -33.33% 44.46% -1.57%
Cash & Equivalents $10.94M $14.46M $10.01M
Short-Term Investments
Other Short-Term Assets $310.0K $490.0K $730.0K
YoY Change -51.56% -32.88% -17.05%
Inventory $3.912M $4.112M $3.450M
Prepaid Expenses
Receivables $1.458M $1.301M $1.460M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $16.62M $20.36M $15.65M
YoY Change -23.11% 30.12% -9.49%
LONG-TERM ASSETS
Property, Plant & Equipment $1.661M $1.873M $2.065M
YoY Change -20.07% -9.3% -40.32%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $684.0K $579.0K $584.0K
YoY Change -0.86% 165.45%
Total Long-Term Assets $7.201M $7.644M $2.649M
YoY Change 246.54% 188.56% -28.02%
TOTAL ASSETS
Total Short-Term Assets $16.62M $20.36M $15.65M
Total Long-Term Assets $7.201M $7.644M $2.649M
Total Assets $23.83M $28.01M $18.30M
YoY Change 0.53% 53.06% -12.74%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $663.0K $919.0K $2.158M
YoY Change -42.25% -57.41% 156.9%
Accrued Expenses $654.0K $681.0K $577.0K
YoY Change -54.87% 18.02% -83.75%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $8.970M $8.580M $8.150M
YoY Change 19.76% 5.28% -81.09%
Total Short-Term Liabilities $12.79M $14.91M $13.95M
YoY Change -9.93% 6.87% -70.64%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $7.000K $9.000K $187.0K
YoY Change -82.93% -95.19% 3.89%
Total Long-Term Liabilities $7.000K $9.000K $187.0K
YoY Change -82.93% -95.19% 3.89%
TOTAL LIABILITIES
Total Short-Term Liabilities $12.79M $14.91M $13.95M
Total Long-Term Liabilities $7.000K $9.000K $187.0K
Total Liabilities $16.93M $19.25M $14.14M
YoY Change 18.9% 36.2% -70.35%
SHAREHOLDERS EQUITY
Retained Earnings -$348.3M -$343.2M -$322.8M
YoY Change 5.91% 6.33%
Common Stock $355.2M $352.0M $327.0M
YoY Change 4.99% 7.65%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $6.895M $8.754M $4.162M
YoY Change
Total Liabilities & Shareholders Equity $23.83M $28.01M $18.30M
YoY Change 0.53% 53.06% -12.74%

Cashflow Statement

Concept 2019 Q4 2019 Q3 2018 Q3
OPERATING ACTIVITIES
Net Income -$5.120M -$4.623M -$5.388M
YoY Change -15.93% -14.2% -48.41%
Depreciation, Depletion And Amortization $240.0K $220.0K $220.0K
YoY Change -55.56% 0.0% -29.03%
Cash From Operating Activities -$3.520M -$4.120M -$3.090M
YoY Change -12.66% 33.33% -55.79%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 -$280.0K
YoY Change -100.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 $30.00K
YoY Change -100.0%
Cash From Investing Activities $0.00 $0.00 -$250.0K
YoY Change -100.0% -100.0% -2600.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 10.00K 3.830M 3.210M
YoY Change -99.9% 19.31% 0.63%
NET CHANGE
Cash From Operating Activities -3.520M -4.120M -3.090M
Cash From Investing Activities 0.000 0.000 -250.0K
Cash From Financing Activities 10.00K 3.830M 3.210M
Net Change In Cash -3.510M -290.0K -130.0K
YoY Change -154.84% 123.08% -96.57%
FREE CASH FLOW
Cash From Operating Activities -$3.520M -$4.120M -$3.090M
Capital Expenditures $0.00 $0.00 -$280.0K
Free Cash Flow -$3.520M -$4.120M -$2.810M
YoY Change -20.18% 46.62% -59.8%

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.</div> Organization</div></div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><div style="display: inline; font-weight: bold;">Organization, Nature of Business</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 21.9pt;text-align:left;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left; text-indent: 36pt;">Avinger,&nbsp;Inc. (the &#x201c;Company&#x201d;), a Delaware corporation, was incorporated in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March&nbsp;</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2007.</div> The Company designs, manufactures and sells image-guided, catheter-based systems that are used by physicians to treat patients with peripheral artery disease (&#x201c;PAD&#x201d;). Patients with PAD have a build-up of plaque in the arteries that supply blood to areas away from the heart, particularly the pelvis and legs. The Company manufactures and sells a suite of products in the United States (&#x201c;U.S.&#x201d;) and in select international markets. The Company has developed its Lumivascular platform, which integrates optical coherence tomography (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> &#x201c;OCT&#x201d;) </div>visualization with interventional catheters and is the industry&#x2019;s only system that provides real-time intravascular imaging during the treatment portion of PAD procedures. The Company&#x2019;s Lumivascular platform consists of a capital component, Lightbox, as well as a variety of disposable catheter products. The Company&#x2019;s current products include its non-imaging catheters, Wildcat and Kittycat, as well as its Lumivascular platform products, Ocelot, Ocelot PIXL and Ocelot MVRX, all of which are designed to allow physicians to penetrate a total blockage in an artery, known as a chronic total occlusion (&#x201c;CTO&#x201d;). In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March&nbsp;</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company received <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">510</div>(k)&nbsp;clearance from the U.S. Food and Drug Administration (&#x201c;FDA&#x201d;) for commercialization of Pantheris, the Company&#x2019;s image-guided atherectomy system, designed to allow physicians to precisely remove arterial plaque in PAD patients. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2018, </div>the Company also received <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">510</div>(K) clearance from the FDA for its next-generation of Pantheris. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2019, </div>the Company further received FDA clearance for Pantheris SV, a lower profile Pantheris, and commenced sales in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2019. </div>The Company has sales in the U.S. and select international markets. The Company is located in Redwood City, California.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 14.4pt;text-align:left;text-indent:36pt;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><div style="display: inline; font-weight: bold;">Liquidity Matters</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 21.9pt;text-align:left;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left; text-indent: 36pt;">The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Financial Accounting Standards Board (&#x201c;FASB&#x201d;) Accounting Standards Update (&#x201c;ASU&#x201d;) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div>&nbsp;<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div>&nbsp;<div style="display: inline; font-style: italic;">Presentation of Financial Statements - Going Concern (Subtopic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">205</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40</div>) </div>requires the Company to make certain disclosures if it concludes that there is substantial doubt about the entity&#x2019;s ability to continue as a going concern within <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year from the date of the issuance of these financial statements.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;text-indent:36pt;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left; text-indent: 36pt;">In the course of its activities, the Company has incurred losses and negative cash flows from operations since its inception. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2019, </div>the Company had an accumulated deficit of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$343.2</div>&nbsp;million. The Company expects to incur losses for the foreseeable future. The Company believes that its cash and cash equivalents of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$14.5</div> million at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September&nbsp;</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019</div> and expected revenues and funds from operations will be sufficient to allow the Company to fund its current operations through at least the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">second</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2020.</div> Even though we received net proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.8</div> million from the sales of our common stock in our <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2019 </div>offering, net proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.2</div> million from the sale of our Series C Preferred Stock and common stock in our <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2018 </div>offering, net proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.0</div> million from the sale of common stock and warrants in our <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 2018 </div>offering, net proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15.5</div> million from the sale of our Series B preferred stock and warrants in our <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2018 </div>offering, and proceeds from issuance of common stock upon the exercise of warrants in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2019 </div>of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8.0</div> million, the Company will need to raise additional funds through future equity or debt financings within the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> months to meet its operational needs and capital requirements for product development, clinical trials and commercialization and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>subsequently require additional fundraising. The Company can provide <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance that it will be successful in raising funds pursuant to additional equity or debt financings or that such funds will be raised at prices that do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> create substantial dilution for our existing stockholders. Given the recent decline in the Company&#x2019;s stock price, any financing that we undertake in the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> months could cause substantial dilution to our existing stockholders, there can be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance that the Company will be successful in acquiring additional funding at levels sufficient to fund its operations. These conditions raise substantial doubt about the Company&#x2019;s ability to continue as a going concern. If the Company is unable to raise additional capital in sufficient amounts or on terms acceptable to it, the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>have to significantly reduce its operations or delay, scale back or discontinue the development of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> or more of its products. The financial statements do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> include any adjustments that might result from the outcome of this uncertainty. The Company&#x2019;s ultimate success will largely depend on its continued development of innovative medical technologies, its ability to successfully commercialize its products and its ability to raise significant additional funding.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;text-indent:36pt;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left; text-indent: 36pt;">Additionally, due to the substantial doubt about the Company&#x2019;s ability to continue operating as a going concern and the material adverse change clause in the Loan Agreement with CRG, the entire amount of borrowings at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September&nbsp;</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018 </div>has been classified as current in these financial statements. CRG has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> invoked the material adverse change clause.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 21.9pt;text-align:left;text-indent:36pt;">&nbsp;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"></div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><div style="display: inline; font-weight: bold;">Public Offerings</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 21.9pt;text-align:left;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left; text-indent: 36pt;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February&nbsp;</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> we completed a public offering of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,979</div> shares of Series&nbsp;B preferred stock and warrants to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,797,900</div> shares of common stock. As a result, we received net proceeds of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15.5</div> million after underwriting discounts, commissions, legal and accounting fees. The Series&nbsp;B preferred stock has a liquidation preference of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.001</div> per share, full ratchet price based anti-dilution protection, has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> voting rights and is subject to certain ownership limitations. The Series&nbsp;B preferred stock is immediately convertible at the option of the holder, has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> stated maturity, and does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> pay regularly stated dividends or interest. Each share of Series&nbsp;B preferred stock is accompanied by <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> Series&nbsp;<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> warrant that expires on the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">seventh</div> anniversary of the date of issuance to purchase up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50</div> shares of common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> Series&nbsp;<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> warrant that expires on the earlier of (i)&nbsp;the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">seventh</div> anniversary of the date of issuance or (ii)&nbsp;the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60th</div> calendar day following the receipt and announcement of FDA clearance of our Pantheris below-the-knee device (or the same or similar product with a different name) to purchase up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50</div> shares of common stock; provided, however, if at any time during such <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60</div>-day period the volume weighted average price for any trading day is less than the then effective exercise price, the termination date shall be extended to the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">seven</div> year anniversary of the initial exercise date. FDA clearance of Pantheris SV was received in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2019, </div>triggering this <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60</div>-day period. During the entire <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60</div>-day period following clearance, the volume weighted average price was less than the then effective exercise price. As such, all Series <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> warrants are currently deemed to expire on the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">seventh</div> anniversary of the date of issuance. In addition, pursuant to the Series&nbsp;A Purchase Agreement, we issued to CRG <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41,800</div> shares of Series&nbsp;A preferred stock at the closing of the Series&nbsp;B Offering. The Series&nbsp;A preferred stock was issued in exchange for the conversion of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$38.0</div> million of the outstanding principal amount of their senior secured term loan (plus the back-end fee and prepayment premium applicable thereto), totaling approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$41.8</div> million. The Series&nbsp;A Preferred Stock is initially convertible into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,090,000</div> shares of common stock subject to certain limitations contained in the Series&nbsp;A Purchase Agreement.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;text-indent:36pt;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left; text-indent: 36pt;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July&nbsp;</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> we entered into a securities purchase agreement with certain investors pursuant to which we agreed to sell and issue, in a registered direct offering, an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">216,618</div> shares of our common stock at an offering price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$16.425</div> per share. In a concurrent private placement, or the Private Placement, we agreed to issue to these investors warrants exercisable for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of our common stock for each <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> shares purchased in the registered direct offering, which equals an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">108,309</div> shares of common stock. The closing of such registered direct offering and the concurrent Private Placement occurred on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July&nbsp;</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> in connection with which we received net proceeds of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.0</div> million after deducting placement agent fees and other expenses payable by us. The warrants have an exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15.80</div> per share of our common stock and expire on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July&nbsp;</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2021.</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;text-indent:36pt;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left; text-indent: 36pt;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 1, 2018, </div>we completed a public offering of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">728,500</div><div style="display: inline; text-decoration: underline;"> </div>shares of common stock and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,586</div> shares of Series C convertible preferred stock (the &#x201c;Series C preferred stock&#x201d;). As a result, we received net proceeds of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.2</div> million after underwriting discounts, commissions, legal and accounting fees. Upon any dissolution, liquidation or winding up, whether voluntary or involuntary, holders of Series C preferred stock will be entitled to receive distributions out of our assets, whether capital or surplus, of an amount equal to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.001</div> per share of Series C preferred stock before any distributions shall be made on the common stock but after distributions shall be made on any outstanding Series A preferred stock and any of our existing or future indebtedness. The Series C preferred stock has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> voting rights.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;text-indent:36pt;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left; text-indent: 36pt;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 26, 2019, </div>we completed a public offering of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,813,559</div> shares of common stock at an offering price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.18</div> per share. As a result, we received net proceeds of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.8</div> million after underwriting discounts, commissions, legal and accounting fees and the conversion price of the outstanding shares of Series B preferred stock, issued in our <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2018 </div>offering, was reduced to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.18</div> per share as a result.</div></div>
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
11858000
CY2019Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-5518000
CY2018Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-6224000
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-17014000
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-28766000
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1
CY2019Q3 us-gaap Operating Expenses
OperatingExpenses
5462000
CY2018Q3 us-gaap Operating Expenses
OperatingExpenses
5903000
us-gaap Operating Expenses
OperatingExpenses
16288000
us-gaap Operating Expenses
OperatingExpenses
17783000
CY2019Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-4615000
CY2018Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-5360000
us-gaap Operating Income Loss
OperatingIncomeLoss
-14348000
us-gaap Operating Income Loss
OperatingIncomeLoss
-16957000
CY2019Q3 us-gaap Operating Lease Expense
OperatingLeaseExpense
314000
us-gaap Operating Lease Expense
OperatingLeaseExpense
1100000
CY2018Q3 us-gaap Operating Lease Expense
OperatingLeaseExpense
481000
us-gaap Operating Lease Expense
OperatingLeaseExpense
1400000
CY2019Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
5192000
CY2019Q3 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
855000
CY2018Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
CY2019Q3 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
4337000
CY2018Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
CY2019Q2 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
6000000
CY2019Q3 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
5192000
CY2018Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
CY2019Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
579000
CY2018Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
CY2019Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
9000
CY2018Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
41000
CY2019Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
299000
CY2018Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
242000
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
868000
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
710000
us-gaap Payments Of Debt Restructuring Costs
PaymentsOfDebtRestructuringCosts
us-gaap Payments Of Debt Restructuring Costs
PaymentsOfDebtRestructuringCosts
155000
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
88000
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
411000
CY2019Q3 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
895000
CY2018Q3 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
836000
us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
2685000
us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
2082000
CY2019Q3 us-gaap Preferred Stock Liquidation Preference Value
PreferredStockLiquidationPreferenceValue
46535000
CY2018Q4 us-gaap Preferred Stock Liquidation Preference Value
PreferredStockLiquidationPreferenceValue
44718000
CY2019Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2018Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2018Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2019Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000
CY2018Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000
CY2019Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
44923
CY2018Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
45671
CY2019Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
44923
CY2018Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
45671
CY2019Q3 us-gaap Preferred Stock Value
PreferredStockValue
CY2018Q4 us-gaap Preferred Stock Value
PreferredStockValue
CY2019Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
489000
CY2018Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
635000
CY2019Q3 us-gaap Prepaid Rent
PrepaidRent
358000
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
18000
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
28000
us-gaap Proceeds From Warrant Exercises
ProceedsFromWarrantExercises
7993000
us-gaap Proceeds From Warrant Exercises
ProceedsFromWarrantExercises
581000
CY2018Q4 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
272000
CY2019Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
214000
us-gaap Product Warranty Accrual Warranties Issued
ProductWarrantyAccrualWarrantiesIssued
70000
us-gaap Profit Loss
ProfitLoss
-14329000
us-gaap Profit Loss
ProfitLoss
-21468000
CY2019Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
1873000
CY2018Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
2078000
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
45000
CY2019Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1371000
CY2018Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1404000
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
4120000
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
4340000
CY2019Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-343214000
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-328885000
CY2019Q3 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
2410000
CY2018Q3 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
2020000
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
6569000
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
5887000
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
4680000
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
CY2019Q3 us-gaap Secured Debt Current
SecuredDebtCurrent
8578000
CY2018Q4 us-gaap Secured Debt Current
SecuredDebtCurrent
7486000
CY2019Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
4091000
CY2018Q3 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
4499000
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
12168000
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
13443000
us-gaap Share Based Compensation
ShareBasedCompensation
1532000
us-gaap Share Based Compensation
ShareBasedCompensation
2028000
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1
P4Y
CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
7181000
CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
1300.40
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod
433000
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
105000
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
7954000
CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
7416000
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
1707.30
CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
1316.32
CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber
7416000
CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
1316.32
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
3015.01
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
1929.52
CY2019Q3 us-gaap Share Price
SharePrice
0.83
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Expiration Period
SharebasedCompensationArrangementBySharebasedPaymentAwardExpirationPeriod
P10Y
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P7Y18D
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P7Y251D
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P7Y18D
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P7Y18D
us-gaap Stock Issued1
StockIssued1
2918000
us-gaap Stock Issued1
StockIssued1
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
0
CY2019Q3 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
18000
CY2018Q3 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
5000
us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
54000
us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
5000
CY2018Q3 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
106000
CY2019Q3 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
3811000
CY2018Q3 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
3021000
us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
3811000
CY2019Q3 us-gaap Stock Issued During Period Value Restricted Stock Award Gross
StockIssuedDuringPeriodValueRestrictedStockAwardGross
us-gaap Stock Issued During Period Value Restricted Stock Award Gross
StockIssuedDuringPeriodValueRestrictedStockAwardGross
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
337000
CY2019Q2 us-gaap Stockholders Equity
StockholdersEquity
9920000
CY2019Q3 us-gaap Stockholders Equity
StockholdersEquity
8754000
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
6592000
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
4162000
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
9460000
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
-35690000
us-gaap Use Of Estimates
UseOfEstimates
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;"><div style="display: inline; font-weight: bold;">Use of Estimates</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.2pt;text-align:left;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: left; text-indent: 36pt;">The preparation of financial statements in conformity with U.S.&nbsp;GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements. Management uses significant judgment when making estimates related to its common stock valuation and related stock-based compensation, the valuation of the common stock warrants, the valuation of compound embedded derivatives, provisions for doubtful accounts receivable and excess and obsolete inventories, clinical trial accruals, and its reserves for sales returns and warranty costs. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> readily apparent from other sources. Although these estimates are based on the Company&#x2019;s knowledge of current events and actions it <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>undertake in the future, actual results <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>ultimately materially differ from these estimates and assumptions.</div></div></div></div></div></div></div></div></div>
CY2019Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
7900000
CY2018Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
1119000
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
6189000
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
669000
CY2018 us-gaap Weighted Average Number Of Shares Common Stock Subject To Repurchase Or Cancellation
WeightedAverageNumberOfSharesCommonStockSubjectToRepurchaseOrCancellation
0
us-gaap Weighted Average Number Of Shares Common Stock Subject To Repurchase Or Cancellation
WeightedAverageNumberOfSharesCommonStockSubjectToRepurchaseOrCancellation
0

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