2018 Q4 Form 10-Q Financial Statement
#000143774918019916 Filed on November 08, 2018
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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CY2018Q3 | us-gaap |
Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
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2962000 | |
CY2017Q4 | us-gaap |
Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
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2611000 | |
CY2018Q3 | us-gaap |
General And Administrative Expense
GeneralAndAdministrativeExpense
|
2332000 | |
CY2017Q3 | us-gaap |
General And Administrative Expense
GeneralAndAdministrativeExpense
|
2528000 | |
us-gaap |
General And Administrative Expense
GeneralAndAdministrativeExpense
|
8208000 | ||
us-gaap |
General And Administrative Expense
GeneralAndAdministrativeExpense
|
8170000 | ||
CY2018Q3 | us-gaap |
Gross Profit
GrossProfit
|
462000 | |
CY2017Q3 | us-gaap |
Gross Profit
GrossProfit
|
609000 | |
us-gaap |
Gross Profit
GrossProfit
|
1842000 | ||
us-gaap |
Gross Profit
GrossProfit
|
1600000 | ||
us-gaap |
Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
|
795000 | ||
us-gaap |
Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
|
-299000 | ||
us-gaap |
Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
|
-639000 | ||
us-gaap |
Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
|
311000 | ||
us-gaap |
Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
|
-447000 | ||
us-gaap |
Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
|
233000 | ||
us-gaap |
Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
|
63000 | ||
us-gaap |
Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
|
-25000 | ||
us-gaap |
Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
|
|||
us-gaap |
Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
|
-104000 | ||
us-gaap |
Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
|
351000 | ||
us-gaap |
Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
|
668000 | ||
us-gaap |
Increase Decrease In Inventories
IncreaseDecreaseInInventories
|
1082000 | ||
us-gaap |
Increase Decrease In Inventories
IncreaseDecreaseInInventories
|
-1955000 | ||
us-gaap |
Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
|
-291000 | ||
us-gaap |
Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
|
-261000 | ||
CY2018Q3 | us-gaap |
Interest Income Operating
InterestIncomeOperating
|
24000 | |
CY2017Q3 | us-gaap |
Interest Income Operating
InterestIncomeOperating
|
33000 | |
us-gaap |
Interest Income Operating
InterestIncomeOperating
|
67000 | ||
CY2018Q3 | us-gaap |
Operating Income Loss
OperatingIncomeLoss
|
-8546000 | |
CY2017Q3 | us-gaap |
Operating Income Loss
OperatingIncomeLoss
|
-6749000 | |
us-gaap |
Operating Income Loss
OperatingIncomeLoss
|
-26303000 | ||
us-gaap |
Operating Income Loss
OperatingIncomeLoss
|
-21176000 | ||
CY2017Q1 | us-gaap |
Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
|
30000 | |
CY2017Q2 | us-gaap |
Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
|
92000 | |
CY2017Q3 | us-gaap |
Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
|
-86000 | |
CY2018Q1 | us-gaap |
Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
|
45000 | |
CY2018Q2 | us-gaap |
Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
|
-77000 | |
CY2018Q3 | us-gaap |
Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
|
24000 | |
CY2018Q3 | us-gaap |
Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
|
0 | |
CY2017Q4 | us-gaap |
Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
|
0 | |
CY2018Q3 | us-gaap |
Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
|
771000 | |
CY2017Q4 | us-gaap |
Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
|
485000 | |
CY2018Q3 | us-gaap |
Inventory Work In Process
InventoryWorkInProcess
|
2362000 | |
CY2017Q4 | us-gaap |
Inventory Work In Process
InventoryWorkInProcess
|
2620000 | |
CY2018Q3 | us-gaap |
Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
|
11420000 | |
CY2017Q4 | us-gaap |
Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
|
14497000 | |
CY2018Q3 | us-gaap |
Liabilities Current
LiabilitiesCurrent
|
7528000 | |
CY2017Q4 | us-gaap |
Liabilities Current
LiabilitiesCurrent
|
6615000 | |
us-gaap |
Nature Of Operations
NatureOfOperations
|
<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> 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;"> </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. (“Second Sight,” “we,” “us,” or “the Company”) 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;"> </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) Sàrl, 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) Sàrl 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 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) Sàrl 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;"> </div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:18pt;"> Our current product, the Argus<div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">®</div> II retinal prosthesis system (“Argus II”), 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 (“EU”) 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 (“FDA”) 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;"> </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;">®</div> Visual Cortical Prosthesis System (“Orion”), 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 device is currently underway at the Ronald Reagan UCLA Medical Center in Los Angeles (“UCLA”) and Baylor College of Medicine in Houston (“Baylor”).</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </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;"> </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;"> </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;"> </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;">●</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;"> </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;">●</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;"> </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;">●</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;"> </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;">●</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;"> 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;"> </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;">●</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%;"> </td> <td style="vertical-align:top;width:4%;">●</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;"> </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;">●</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;"> </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;"> </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;"> </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 “Sales Agreement”) with B. Riley FBR Inc. and H.C. Wainwright & Co., LLC, as agents (“Agents”) 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;"> </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;"> </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;"> </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 |