2016 Q3 Form 10-Q Financial Statement

#000119312516679283 Filed on August 11, 2016

View on sec.gov

Income Statement

Concept 2016 Q3 2016 Q2 2015 Q2
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.770M $2.160M $1.740M
YoY Change -19.18% 24.14% 32.82%
% of Gross Profit
Research & Development $4.880M $5.794M $5.858M
YoY Change -16.55% -1.09% 25.47%
% of Gross Profit
Depreciation & Amortization $404.0K $432.0K $397.0K
YoY Change -2.42% 8.82% 148.13%
% of Gross Profit
Operating Expenses $6.648M $7.955M $7.593M
YoY Change -17.3% 4.77% 26.34%
Operating Profit -$6.648M -$7.955M -$7.593M
YoY Change -17.3% 4.77% 26.34%
Interest Expense $20.00K $17.00K $26.00K
YoY Change -13.04% -34.62% -101.14%
% of Operating Profit
Other Income/Expense, Net -$2.667M -$83.00K -$40.00K
YoY Change 6738.46% 107.5% -98.25%
Pretax Income -$9.320M -$8.040M -$7.630M
YoY Change 15.35% 5.37% -8.07%
Income Tax
% Of Pretax Income
Net Earnings -$9.315M -$8.038M -$7.633M
YoY Change 15.31% 5.31% -8.06%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$42.36M -$36.55M -$34.68M
COMMON SHARES
Basic Shares Outstanding 13.27M shares 13.27M shares 0.000 shares
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q3 2016 Q2 2015 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $37.99M $15.93M $45.22M
YoY Change 0.72% -64.77% 481.23%
Cash & Equivalents $37.99M $15.93M $45.22M
Short-Term Investments
Other Short-Term Assets $200.0K $350.0K $900.0K
YoY Change -45.95% -61.11% -65.38%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $38.20M $16.28M $46.12M
YoY Change 0.28% -64.71% 344.31%
LONG-TERM ASSETS
Property, Plant & Equipment $4.263M $4.665M $5.428M
YoY Change -22.67% -14.06% 151.3%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $140.0K $140.0K $1.180M
YoY Change -88.24% -88.14% -31.79%
Total Long-Term Assets $4.600M $5.002M $7.119M
YoY Change -36.23% -29.74% 59.62%
TOTAL ASSETS
Total Short-Term Assets $38.20M $16.28M $46.12M
Total Long-Term Assets $4.600M $5.002M $7.119M
Total Assets $42.80M $21.28M $53.24M
YoY Change -5.53% -60.03% 258.75%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.665M $1.769M $2.337M
YoY Change -16.79% -24.3% -18.0%
Accrued Expenses $4.290M $3.560M $2.093M
YoY Change 75.17% 70.09% 24.58%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $580.0K $580.0K $580.0K
YoY Change 0.0% 0.0%
Total Short-Term Liabilities $7.209M $6.721M $6.687M
YoY Change 7.76% 0.51% 10.35%
LONG-TERM LIABILITIES
Long-Term Debt $320.0K $470.0K $1.050M
YoY Change -64.84% -55.24%
Other Long-Term Liabilities $31.23M $1.200M $1.630M
YoY Change 1941.18% -26.38% -94.28%
Total Long-Term Liabilities $31.55M $1.670M $2.680M
YoY Change 1193.03% -37.69% -90.59%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.209M $6.721M $6.687M
Total Long-Term Liabilities $31.55M $1.670M $2.680M
Total Liabilities $38.76M $8.389M $9.373M
YoY Change 324.76% -10.5% -72.86%
SHAREHOLDERS EQUITY
Retained Earnings -$190.8M -$181.5M -$149.1M
YoY Change 21.38% 21.71%
Common Stock $194.9M $194.4M $193.0M
YoY Change 0.77% 0.73%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.036M $12.89M $43.87M
YoY Change
Total Liabilities & Shareholders Equity $42.80M $21.28M $53.24M
YoY Change -5.53% -60.03% 258.75%

Cashflow Statement

Concept 2016 Q3 2016 Q2 2015 Q2
OPERATING ACTIVITIES
Net Income -$9.315M -$8.038M -$7.633M
YoY Change 15.31% 5.31% -8.06%
Depreciation, Depletion And Amortization $404.0K $432.0K $397.0K
YoY Change -2.42% 8.82% 148.13%
Cash From Operating Activities -$5.460M -$6.540M -$7.470M
YoY Change -20.64% -12.45% 37.06%
INVESTING ACTIVITIES
Capital Expenditures -$10.00K -$280.0K -$400.0K
YoY Change -98.0% -30.0% 471.43%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$10.00K -$280.0K -$400.0K
YoY Change -98.0% -30.0% 471.43%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 27.53M -140.0K -90.00K
YoY Change -23041.67% 55.56% -100.91%
NET CHANGE
Cash From Operating Activities -5.460M -6.540M -7.470M
Cash From Investing Activities -10.00K -280.0K -400.0K
Cash From Financing Activities 27.53M -140.0K -90.00K
Net Change In Cash 22.06M -6.960M -7.960M
YoY Change -394.13% -12.56% -280.09%
FREE CASH FLOW
Cash From Operating Activities -$5.460M -$6.540M -$7.470M
Capital Expenditures -$10.00K -$280.0K -$400.0K
Free Cash Flow -$5.450M -$6.260M -$7.070M
YoY Change -14.58% -11.46% 31.41%

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<div> <p style="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> <b>Reclassifications</b></p> <p style="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> The Company has reclassified certain prior period amounts to conform to the current period presentation. The amounts reclassified impact Accounts Payable and Accrued Expenses and Accounts Payable due to Intrexon Corporation (&#x201C;Intrexon&#x201D;) and Accrued Expenses due to Intrexon Corporation for the six months ended June&#xA0;30, 2015 and the year ended December&#xA0;31, 2015.</p> </div>
us-gaap Operating Income Loss
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us-gaap Nature Of Operations
NatureOfOperations
<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> <b>1. NATURE OF BUSINESS</b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> <b>Organization</b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> Histogenics Corporation (the &#x201C;Company&#x201D;) was incorporated under the laws of the Commonwealth of Massachusetts on June&#xA0;28, 2000 and has its principal operations in Waltham, Massachusetts. In 2006, the Company&#x2019;s board of directors approved a corporate reorganization pursuant to which the Company incorporated as a Delaware corporation. The Company is a regenerative medicine company engaged in developing and commercializing products in the musculoskeletal segment of the marketplace. The Company combines cell therapy and tissue engineering technologies to develop products for tissue repair and regeneration focusing on patients suffering from cartilage-derived pain and immobility. The Company is developing technology and products to reverse or prevent cartilage damage, including NeoCart for the repair of cartilage lesions. NeoCart is currently in a Phase 3 clinical trial in the United States under a special protocol assessment with the U.S. Food and Drug Administration (&#x201C;FDA&#x201D;) for the treatment of knee cartilage damage.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> On May&#xA0;13, 2011, the Company completed the acquisition of ProChon Biotech Ltd. (&#x201C;ProChon&#x201D;), a privately-held biotechnology company focused on modulating the fibroblast growth factor system for consideration of $2,224 to enable it to create more effective solutions for tissue regeneration. ProChon&#x2019;s products combine cell regeneration technologies with proprietary growth factors and biocompatible scaffolds to restore injured or chronically damaged tissues. The acquisition of ProChon provided the Company with access to a significant portfolio of intellectual property, including proprietary cell growth factors, in addition to furthering opportunities for the use of biomaterials to create more effective solutions for regenerating human tissue. The acquisition led to the initial recognition of goodwill, which was subsequently written off in 2011, and intangible assets including IPR&amp;D and a licensing agreement which have been impaired as discussed in Note 2.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> On December&#xA0;18, 2014, the Company formed a wholly owned subsidiary, Histogenics Securities Corporation, under the laws of the Commonwealth of Massachusetts.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> Since its inception, the Company has devoted substantially all of its efforts to product development, recruiting management and technical staff, raising capital, starting up production and building infrastructure and has not yet generated revenues from its planned principal operations. Expenses have primarily been for research and development and administrative costs.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> The Company is subject to a number of risks. The developmental nature of its activities is such that significant inherent risks exist in the Company&#x2019;s operations. Principal among these risks are the successful development of therapeutics, successfully enrolling patients in its clinical trials in a timely manner, ability to obtain adequate financing, obtaining regulatory approval for any of its product candidates in any jurisdiction, compliance with government regulations, protection of proprietary therapeutics, fluctuations in operating results, dependence on key personnel and collaborative partners, adoption of the Company&#x2019;s products by the physician community, rapid technological changes inherent in the markets targeted, and substitute products and competition from larger companies.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <b>Liquidity</b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> The condensed consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying condensed consolidated financial statements, the Company had an accumulated deficit at June&#xA0;30, 2016 of $181.5 million and has incurred losses and cash flow deficits from operations for the six months ended June&#xA0;30, 2016 and 2015. The Company has financed operations to date primarily through private placements of equity securities, the issuance of common stock in the initial public offering completed in December 2014, and borrowings under debt agreements. The Company anticipates that it will continue to incur net losses for the next several years and will require additional capital to complete the enrollment of the NeoCart clinical trial, and for the further development of its existing product candidates. The Company believes that its existing cash and cash equivalents will be sufficient to fund its projected cash needs into the first quarter of 2017. To meet its capital needs, the Company intends to raise additional capital through debt or equity financing or other strategic transactions. However, there can be no assurance that the Company will be able to complete any such transaction on acceptable terms or otherwise. The failure of the Company to obtain sufficient funds on commercially acceptable terms when needed could have a material adverse effect on the Company&#x2019;s business, results of operations and financial condition. These conditions raise substantial doubt about the Company&#x2019;s ability to continue as a going concern.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <b>Basis of Accounting</b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> The condensed consolidated financial statements are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States of America (&#x201C;U.S. GAAP&#x201D;). However, they do not include all of the information and footnotes required by GAAP for complete financial statements. These interim condensed consolidated financial statements, in the opinion of the Company&#x2019;s management, reflect all normal recurring adjustments necessary for a fair presentation of the Company&#x2019;s financial position and results of operations for the interim periods ended June&#xA0;30, 2016 and 2015. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. These interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December&#xA0;31, 2015, and the notes thereto, which are included in the Company&#x2019;s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the &#x201C;SEC&#x201D;) on March&#xA0;10, 2016.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 12pt"> The condensed consolidated financial statements include the accounts of Histogenics Corporation and its wholly-owned subsidiaries, ProChon and Histogenics Securities Corporation. All significant intercompany accounts and transactions are eliminated in consolidation.</p> </div>
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NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
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us-gaap Payments To Acquire Property Plant And Equipment
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StockIssuedDuringPeriodSharesStockOptionsExercised
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ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodExpectedTerm1
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SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
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SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue
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ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
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SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
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ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
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ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodExpectedVolatilityRate
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dei Trading Symbol
TradingSymbol
HSGX
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ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodRiskFreeInterestRate
0.0161 pure
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
11380000
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.596 pure
us-gaap Payments Of Stock Issuance Costs
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
1.42
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0140 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
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us-gaap Share Based Compensation
ShareBasedCompensation
647000
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y29D
us-gaap Share Based Goods And Nonemployee Services Transaction Valuation Method Expected Dividend Rate
ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodExpectedDividendRate
0.000 pure
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
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us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
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hsgx Deferred Rent And Lease Incentive
DeferredRentAndLeaseIncentive
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hsgx Net Income Loss Available To Common Stockholders Basic And Diluted
NetIncomeLossAvailableToCommonStockholdersBasicAndDiluted
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hsgx Period Of Contractual Agreement
PeriodOfContractualAgreement
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hsgx Contractual Agreement Month Year
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CY2015Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.58
CY2015Q2 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
257000
CY2015Q2 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
1735000
CY2015Q2 us-gaap Depreciation
Depreciation
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CY2015Q2 us-gaap Sales Revenue Net
SalesRevenueNet
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OperatingLeasesRentExpenseNet
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CY2015Q2 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
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OtherNonoperatingIncomeExpense
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CY2015Q2 us-gaap Operating Expenses
OperatingExpenses
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CY2015Q2 us-gaap Net Income Loss
NetIncomeLoss
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CY2015Q2 us-gaap Interest Expense
InterestExpense
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CY2015Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
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P7Y8M23D
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
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ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodExpectedVolatilityRate
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CY2015Q2 us-gaap Share Based Goods And Nonemployee Services Transaction Valuation Method Expected Dividend Rate
ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodExpectedDividendRate
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CY2015Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
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NetIncomeLossAvailableToCommonStockholdersBasicAndDiluted
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CY2015Q2 us-gaap Share Based Goods And Nonemployee Services Transaction Valuation Method Risk Free Interest Rate
ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodRiskFreeInterestRate
0.0264 pure
CY2015Q2 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
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0.596 pure
CY2015Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
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CY2016Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.61
CY2016Q2 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
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GeneralAndAdministrativeExpense
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CY2016Q2 us-gaap Depreciation
Depreciation
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CY2016Q2 us-gaap Sales Revenue Net
SalesRevenueNet
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OperatingLeasesRentExpenseNet
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CY2016Q2 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-83000
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OtherNonoperatingIncomeExpense
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CY2016Q2 us-gaap Operating Expenses
OperatingExpenses
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CY2016Q2 us-gaap Net Income Loss
NetIncomeLoss
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InterestExpense
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CY2016Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
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CY2016Q2 us-gaap Share Based Goods And Nonemployee Services Transaction Valuation Method Expected Term1
ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodExpectedTerm1
P6Y11M12D
CY2016Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
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CY2016Q2 us-gaap Share Based Goods And Nonemployee Services Transaction Valuation Method Expected Volatility Rate
ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodExpectedVolatilityRate
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CY2016Q2 us-gaap Share Based Goods And Nonemployee Services Transaction Valuation Method Risk Free Interest Rate
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ResearchAndDevelopmentExpense
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
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ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
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CY2016Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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CY2016Q2 hsgx Net Income Loss Available To Common Stockholders Basic And Diluted
NetIncomeLossAvailableToCommonStockholdersBasicAndDiluted
-8038000

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