2018 Q4 Form 10-Q Financial Statement

#000143774918019916 Filed on November 08, 2018

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2017 Q4
Revenue $1.767M $2.246M $3.109M
YoY Change -43.17% 39.5% 331.81%
Cost Of Revenue $1.600M $1.784M $1.860M
YoY Change -13.98% 78.22% -43.81%
Gross Profit $167.0K $462.0K $1.247M
YoY Change -86.61% -24.14% -148.15%
Gross Profit Margin 9.45% 20.57% 40.11%
Selling, General & Admin $6.050M $5.372M $6.410M
YoY Change -5.62% 9.57% 12.26%
% of Gross Profit 3622.75% 1162.77% 514.03%
Research & Development $2.440M $2.672M $2.270M
YoY Change 7.49% 46.33% 9.13%
% of Gross Profit 1461.08% 578.35% 182.04%
Depreciation & Amortization $110.0K $110.0K $110.0K
YoY Change 0.0% -8.33% -8.33%
% of Gross Profit 65.87% 23.81% 8.82%
Operating Expenses $8.480M $9.008M $8.680M
YoY Change -2.3% 22.42% 11.42%
Operating Profit -$8.877M -$8.546M -$7.433M
YoY Change 19.43% 26.63% -28.39%
Interest Expense $20.00K $20.00K $20.00K
YoY Change 0.0% -33.33% 100.0%
% of Operating Profit
Other Income/Expense, Net $0.00
YoY Change
Pretax Income -$8.860M -$8.520M -$7.410M
YoY Change 19.57% 26.79% -28.54%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$8.858M -$8.522M -$7.409M
YoY Change 19.56% 26.89% -28.55%
Net Earnings / Revenue -501.3% -379.43% -238.31%
Basic Earnings Per Share
Diluted Earnings Per Share -$968.3K -$990.7K -$1.041M
COMMON SHARES
Basic Shares Outstanding 72.78M
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q4 2018 Q3 2017 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.470M $4.970M $7.840M
YoY Change -42.98% -62.74% -27.94%
Cash & Equivalents $4.471M $4.972M $7.839M
Short-Term Investments
Other Short-Term Assets $1.400M $510.0K $800.0K
YoY Change 75.0% 10.87% 11.11%
Inventory $3.250M $3.604M $2.700M
Prepaid Expenses
Receivables $504.0K $1.194M $1.831M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $9.620M $10.28M $13.17M
YoY Change -26.93% -42.0% -13.84%
LONG-TERM ASSETS
Property, Plant & Equipment $1.025M $1.114M $1.299M
YoY Change -21.09% -16.24% -12.82%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $40.00K $30.00K $30.00K
YoY Change 33.33% -25.0% -25.0%
Other Assets
YoY Change
Total Long-Term Assets $1.062M $1.143M $1.332M
YoY Change -20.27% -15.96% -12.94%
TOTAL ASSETS
Total Short-Term Assets $9.620M $10.28M $13.17M
Total Long-Term Assets $1.062M $1.143M $1.332M
Total Assets $10.68M $11.42M $14.50M
YoY Change -26.32% -40.15% -13.76%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.305M $1.546M $752.0K
YoY Change 73.54% 86.27% -35.17%
Accrued Expenses $2.503M $1.975M $2.425M
YoY Change 3.22% -62.16% -43.87%
Deferred Revenue $167.0K $111.0K $48.00K
YoY Change 247.92% -43.53%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $7.598M $7.528M $6.615M
YoY Change 14.86% 23.21% 16.87%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $7.598M $7.528M $6.615M
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $7.598M $7.530M $6.620M
YoY Change 14.77% 23.24% 16.96%
SHAREHOLDERS EQUITY
Retained Earnings -$269.5M -$260.6M -$234.4M
YoY Change 14.97%
Common Stock $229.0M $221.8M $202.2M
YoY Change 13.29%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.084M $3.892M $7.882M
YoY Change
Total Liabilities & Shareholders Equity $10.68M $11.42M $14.50M
YoY Change -26.32% -40.15% -13.76%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2017 Q4
OPERATING ACTIVITIES
Net Income -$8.858M -$8.522M -$7.409M
YoY Change 19.56% 26.89% -28.55%
Depreciation, Depletion And Amortization $110.0K $110.0K $110.0K
YoY Change 0.0% -8.33% -8.33%
Cash From Operating Activities -$7.730M -$7.460M -$6.720M
YoY Change 15.03% 59.74% -4.27%
INVESTING ACTIVITIES
Capital Expenditures -$20.00K -$20.00K -$90.00K
YoY Change -77.78% -33.33% 12.5%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$20.00K -$20.00K -$90.00K
YoY Change -77.78% -33.33% -101.26%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 7.240M 4.970M 1.290M
YoY Change 461.24% 760.0%
NET CHANGE
Cash From Operating Activities -7.730M -7.460M -6.720M
Cash From Investing Activities -20.00K -20.00K -90.00K
Cash From Financing Activities 7.240M 4.970M 1.290M
Net Change In Cash -510.0K -2.510M -5.520M
YoY Change -90.76% -46.6% -2308.0%
FREE CASH FLOW
Cash From Operating Activities -$7.730M -$7.460M -$6.720M
Capital Expenditures -$20.00K -$20.00K -$90.00K
Free Cash Flow -$7.710M -$7.440M -$6.630M
YoY Change 16.29% 60.34% -4.47%

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.</div>&nbsp; Organization and Business Operations</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">Second Sight Medical Products, Inc. (&#x201c;Second Sight,&#x201d; &#x201c;we,&#x201d; &#x201c;us,&#x201d; or &#x201c;the Company&#x201d;) was incorporated in the State of California in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2003.</div> Second Sight develops, manufactures and markets implantable visual prosthetics to enable blind individuals to achieve greater independence.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2007,</div> Second Sight formed Second Sight Medical Products (Switzerland) S&agrave;rl, initially to manage clinical trials for its products in Europe, and later to manage sales and marketing in Europe, the Middle East and Asia-Pacific. As the laws of Switzerland require at least <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> corporate stockholders, Second Sight Medical Products (Switzerland) S&agrave;rl is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">99.5%</div> owned directly by us and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.5%</div> owned by an executive of Second Sight&nbsp;as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2018. </div>Accordingly, Second Sight Medical Products (Switzerland) S&agrave;rl is considered <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100%</div> owned for financial statement purposes and is consolidated with Second Sight for all periods presented.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">&nbsp;Our current product, the Argus<div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">&reg;</div> II retinal prosthesis system (&#x201c;Argus II&#x201d;), entered clinical trials in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2006,</div> received CE Mark approval for marketing and sales in the European Union (&#x201c;EU&#x201d;) in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2011,</div> and received approval by the United States Food and Drug Administration (&#x201c;FDA&#x201d;) for marketing and sales in the United States in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2013.</div> We began selling the Argus II in Europe at the end of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2011,</div> Saudi Arabia in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2012,</div> the United States and Canada in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014,</div> Turkey in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> Iran, Taiwan, South Korea and Russia in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> and Singapore in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018.</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">We are currently developing the Orion<div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">&reg;</div> Visual Cortical Prosthesis System (&#x201c;Orion&#x201d;), an implanted cortical stimulation device intended to provide useful artificial vision to individuals who are blind due to a wide range of causes, including glaucoma, diabetic retinopathy, optic nerve injury or disease, or forms of cancer and trauma. A feasibility study of the Orion&nbsp;device is currently underway at the Ronald Reagan UCLA Medical Center in Los Angeles (&#x201c;UCLA&#x201d;) and Baylor College of Medicine in Houston (&#x201c;Baylor&#x201d;).</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Going Concern</div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">From inception, our operations have been funded primarily through the sales of our common stock and warrants, as well as from the issuance of convertible debt, research and clinical grants, and limited product revenue generated from the sale of our Argus II product. From <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> we have funded our business primarily through:</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style=";text-indent:0;font-family:'Times New Roman', Times, serif;font-size:10pt; min-width: 700px;"> <tr> <td style="vertical-align:top;width:3%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</div> </td> <td style="vertical-align:top;width:4%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</div> </td> <td style="vertical-align:top;width:93%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Issuance of common stock in our rights offering in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2016, </div>which provided net cash proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$19.5</div> million.</div> </td> </tr> <tr> <td style="vertical-align:top;width:3%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</div> </td> <td style="vertical-align:top;width:4%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</div> </td> <td style="vertical-align:top;width:93%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Issuance of common stock and warrants in our rights offering in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2017, </div>which provided net cash proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$19.7</div> million.</div> </td> </tr> <tr> <td style="vertical-align:top;width:3%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</div> </td> <td style="vertical-align:top;width:4%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</div> </td> <td style="vertical-align:top;width:93%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Issuance of common stock through our At Market Issuance Sales Agreement during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fourth</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> which provided <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.1</div> million of net cash proceeds.</div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style=";text-indent:0;font-family:'Times New Roman', Times, serif;font-size:10pt; min-width: 700px;"> <tr> <td style="vertical-align:top;width:3%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</div> </td> <td style="vertical-align:top;width:4%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</div> </td> <td style="vertical-align:top;width:93%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Issuance of common stock in a securities&nbsp;purchase agreement in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2018, </div>which provided net cash proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.0</div> million.</div> </td> </tr> <tr> <td style="vertical-align:top;width:3%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</div> </td> <td style="vertical-align:top;width:4%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</div> </td> <td style="vertical-align:top;width:93%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Issuance of common stock in a securities purchase agreement in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2018, </div>which provided net cash proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.0</div> million.</div> </td> </tr> <tr> <td style="vertical-align:top;width:3%;">&nbsp;</td> <td style="vertical-align:top;width:4%;">&#x25cf;</td> <td style="vertical-align:top;width:93%;">Issuance of common stock in a securities purchase agreement in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 2018, </div>which provided net cash proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.0</div> million.</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style=";text-indent:0;font-family:'Times New Roman', Times, serif;font-size:10pt; min-width: 700px;"> <tr> <td style="vertical-align:top;width:3%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</div> </td> <td style="vertical-align:top;width:4%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&#x25cf;</div> </td> <td style="vertical-align:top;width:93%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Revenue of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.1</div> million in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018,</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8.0</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.0</div> million, for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> respectively, generated by sales of our Argus II product.</div> </td> </tr> </table> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">We entered into stock purchase agreements on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 18, 2018, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 14, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 3, 2018 </div>with entities beneficially owned by Gregg Williams for the purchase of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,467,727,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,225,807</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,756,757</div> shares respectively of common stock priced at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.62,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.55</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.48</div> per share respectively, the last reported sale price of our common stock on each purchase date. Gregg Williams is the Chairman of our Board of Directors. These placements of common stock provided net proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.0</div> million, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5.0</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10.0</div> million respectively.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div> warrants or discounts were provided and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> placement agent or investment banking fees were incurred in connection with these transactions. The shares issuable to the purchasers under the Securities Purchase Agreements were also issued pursuant to the exemption from registration under Rule <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">506</div> of Regulation D. We relied on this exemption from registration based in part on representations made by the purchasers.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2017, </div>we entered into an At Market Issuance Sales Agreement (the &#x201c;Sales Agreement&#x201d;) with B. Riley FBR Inc. and H.C. Wainwright &amp; Co., LLC, as agents (&#x201c;Agents&#x201d;) pursuant to which we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>offer and sell, from time to time through either of the Agents, shares of our common stock having an aggregate offering price as set forth in the Sales Agreement and a related prospectus supplement filed with the SEC. We agreed to pay the Agents a cash commission of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.0%</div> of the aggregate gross proceeds from each sale of shares under the Sales Agreement. During <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2018, </div>we sold <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.2</div> million shares of common stock which provided net proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.0</div> million under the Sales Agreement. <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div> shares have been sold since <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2018 </div>under the Sales Agreement.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">Our financial statements have been presented on the basis that our business is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. We are subject to the risks and uncertainties associated with a business with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> product line and limited commercial product revenues, including limitations on our operating capital resources and uncertain demand for our products. We have incurred recurring operating losses and negative operating cash flows since inception, and we expect to continue to incur operating losses and negative operating cash flows for the foreseeable future. Management has concluded that there is substantial doubt about our ability to continue as a going concern, and our independent registered public accounting firm, in its report on our <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> consolidated financial statements, has raised substantial doubt about our ability to continue as a going concern.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">We do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have sufficient funds to support our operations for the next <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months from the date of issuance of these financial statements. We anticipate that we will seek to fund our operations through public or private equity or debt financings, grants, collaborations, strategic partnerships or other sources. However, we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be unable to raise additional capital or enter into such other arrangements when needed on favorable terms or at all. If we are unable to obtain funding on a timely basis, we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required to significantly curtail, delay or discontinue <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> or more of our research or development programs or the commercialization Argus II or any other approved product candidates, or we <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be unable to expand our operations, maintain our current organization and employee base or otherwise capitalize on our business opportunities, as desired, which could materially affect our business, financial condition and results of operations.</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;">&nbsp;</div></div>
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
19356000
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
19879000
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-144000
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-181000
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-22079000
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-17233000
CY2017Q1 us-gaap Net Income Loss
NetIncomeLoss
-7548000
CY2017Q2 us-gaap Net Income Loss
NetIncomeLoss
-6843000
CY2017Q3 us-gaap Net Income Loss
NetIncomeLoss
-6716000
CY2018Q1 us-gaap Net Income Loss
NetIncomeLoss
-9753000
CY2018Q2 us-gaap Net Income Loss
NetIncomeLoss
-7961000
CY2018Q3 us-gaap Net Income Loss
NetIncomeLoss
-8522000
us-gaap Net Income Loss
NetIncomeLoss
-26236000
us-gaap Net Income Loss
NetIncomeLoss
-21107000
CY2018Q3 us-gaap Operating Expenses
OperatingExpenses
9008000
CY2017Q3 us-gaap Operating Expenses
OperatingExpenses
7358000
us-gaap Operating Expenses
OperatingExpenses
28145000
us-gaap Operating Expenses
OperatingExpenses
22776000
us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
-8000
us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
36000
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
144000
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
181000
CY2018Q3 us-gaap Preferred Stock No Par Value
PreferredStockNoParValue
0
CY2017Q4 us-gaap Preferred Stock No Par Value
PreferredStockNoParValue
0
CY2018Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000
CY2017Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000
CY2018Q3 us-gaap Preferred Stock Value
PreferredStockValue
CY2017Q4 us-gaap Preferred Stock Value
PreferredStockValue
CY2018Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
507000
CY2017Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
795000
us-gaap Proceeds From Collection Of Notes Receivable
ProceedsFromCollectionOfNotesReceivable
us-gaap Proceeds From Collection Of Notes Receivable
ProceedsFromCollectionOfNotesReceivable
2000
us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
19688000
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
18939000
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
CY2018Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
4266000
CY2017Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
4123000
CY2018Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
1114000
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
1299000
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
-6000
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
-128000
CY2018Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
2672000
CY2017Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1826000
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
7567000
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
5622000
CY2018Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-260613000
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-234377000
CY2018Q3 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
2246000
CY2017Q3 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
1610000
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
5129000
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
4855000
CY2018Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
3040000
CY2017Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
2375000
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
8931000
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
7057000
us-gaap Share Based Compensation
ShareBasedCompensation
2789000
us-gaap Share Based Compensation
ShareBasedCompensation
2821000
us-gaap Stock Issued1
StockIssued1
us-gaap Stock Issued1
StockIssued1
20000
us-gaap Stock Issued During Period Shares Issued For Services
StockIssuedDuringPeriodSharesIssuedForServices
132996
CY2017Q2 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
189000
CY2018Q2 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
261000
CY2017Q1 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
65000
CY2017Q2 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
65000
CY2017Q3 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
65000
CY2018Q1 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
65000
CY2018Q2 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
44000
CY2017Q1 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
19668000
CY2018Q1 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
3992000
CY2018Q2 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
9978000
CY2018Q3 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
4969000
CY2018Q1 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
8000
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
7882000
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
3531000
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
6544000
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
3892000
CY2018Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
68763000
CY2017Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
56799000
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
64113000
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
53206000

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