2020 Q1 Form 10-Q Financial Statement
#000156459020030851 Filed on June 26, 2020
Income Statement
| Concept | 2020 Q1 | 2019 Q1 |
|---|---|---|
| Revenue | $1.128M | |
| YoY Change | 15.57% | |
| Cost Of Revenue | $0.00 | $731.0K |
| YoY Change | -100.0% | 9.43% |
| Gross Profit | $397.0K | |
| YoY Change | 28.9% | |
| Gross Profit Margin | 35.2% | |
| Selling, General & Admin | $2.722M | $4.552M |
| YoY Change | -40.2% | -27.23% |
| % of Gross Profit | 1146.6% | |
| Research & Development | $3.887M | $2.183M |
| YoY Change | 78.06% | -11.76% |
| % of Gross Profit | 549.87% | |
| Depreciation & Amortization | $106.0K | $99.00K |
| YoY Change | 7.07% | -10.81% |
| % of Gross Profit | 24.94% | |
| Operating Expenses | $8.904M | $10.17M |
| YoY Change | -12.41% | 0.87% |
| Operating Profit | -$8.904M | -$9.768M |
| YoY Change | -8.85% | -0.01% |
| Interest Expense | $20.00K | $70.00K |
| YoY Change | -71.43% | 250.0% |
| % of Operating Profit | ||
| Other Income/Expense, Net | ||
| YoY Change | ||
| Pretax Income | -$8.890M | -$9.700M |
| YoY Change | -8.35% | -0.51% |
| Income Tax | ||
| % Of Pretax Income | ||
| Net Earnings | -$8.886M | -$9.700M |
| YoY Change | -8.39% | -0.54% |
| Net Earnings / Revenue | -859.93% | |
| Basic Earnings Per Share | ||
| Diluted Earnings Per Share | -$568.1K | -$803.6K |
| COMMON SHARES | ||
| Basic Shares Outstanding | 124.2M | |
| Diluted Shares Outstanding |
Balance Sheet
| Concept | 2020 Q1 | 2019 Q1 |
|---|---|---|
| SHORT-TERM ASSETS | ||
| Cash & Short-Term Investments | $2.340M | $31.68M |
| YoY Change | -92.61% | 532.34% |
| Cash & Equivalents | $2.339M | $31.68M |
| Short-Term Investments | ||
| Other Short-Term Assets | $1.330M | $1.160M |
| YoY Change | 14.66% | 43.21% |
| Inventory | $0.00 | $1.602M |
| Prepaid Expenses | ||
| Receivables | $0.00 | $597.0K |
| Other Receivables | $0.00 | $0.00 |
| Total Short-Term Assets | $3.670M | $35.04M |
| YoY Change | -89.53% | 284.59% |
| LONG-TERM ASSETS | ||
| Property, Plant & Equipment | $230.0K | $963.0K |
| YoY Change | -76.12% | -23.57% |
| Goodwill | ||
| YoY Change | ||
| Intangibles | ||
| YoY Change | ||
| Long-Term Investments | $10.00K | $40.00K |
| YoY Change | -75.0% | 0.0% |
| Other Assets | ||
| YoY Change | ||
| Total Long-Term Assets | $230.0K | $3.512M |
| YoY Change | -93.45% | 170.15% |
| TOTAL ASSETS | ||
| Total Short-Term Assets | $3.670M | $35.04M |
| Total Long-Term Assets | $230.0K | $3.512M |
| Total Assets | $3.900M | $38.55M |
| YoY Change | -89.88% | 270.3% |
| SHORT-TERM LIABILITIES | ||
| YoY Change | ||
| Accounts Payable | $1.590M | $1.600M |
| YoY Change | -0.63% | -0.62% |
| Accrued Expenses | $3.300M | $2.309M |
| YoY Change | 42.92% | -54.73% |
| Deferred Revenue | $335.0K | |
| YoY Change | ||
| Short-Term Debt | $0.00 | $0.00 |
| YoY Change | ||
| Long-Term Debt Due | ||
| YoY Change | ||
| Total Short-Term Liabilities | $5.220M | $7.433M |
| YoY Change | -29.77% | 8.04% |
| LONG-TERM LIABILITIES | ||
| Long-Term Debt | $0.00 | $0.00 |
| YoY Change | ||
| Other Long-Term Liabilities | $0.00 | $2.590M |
| YoY Change | -100.0% | |
| Total Long-Term Liabilities | $0.00 | $2.590M |
| YoY Change | -100.0% | |
| TOTAL LIABILITIES | ||
| Total Short-Term Liabilities | $5.220M | $7.433M |
| Total Long-Term Liabilities | $0.00 | $2.590M |
| Total Liabilities | $5.220M | $10.02M |
| YoY Change | -47.9% | 45.63% |
| SHAREHOLDERS EQUITY | ||
| Retained Earnings | -$280.9M | |
| YoY Change | ||
| Common Stock | $263.4M | |
| YoY Change | ||
| Preferred Stock | ||
| YoY Change | ||
| Treasury Stock (at cost) | ||
| YoY Change | ||
| Treasury Stock Shares | ||
| Shareholders Equity | -$1.318M | $28.53M |
| YoY Change | ||
| Total Liabilities & Shareholders Equity | $3.900M | $38.55M |
| YoY Change | -89.88% | 270.3% |
Cashflow Statement
| Concept | 2020 Q1 | 2019 Q1 |
|---|---|---|
| OPERATING ACTIVITIES | ||
| Net Income | -$8.886M | -$9.700M |
| YoY Change | -8.39% | -0.54% |
| Depreciation, Depletion And Amortization | $106.0K | $99.00K |
| YoY Change | 7.07% | -10.81% |
| Cash From Operating Activities | -$8.654M | -$7.150M |
| YoY Change | 21.03% | 5.49% |
| INVESTING ACTIVITIES | ||
| Capital Expenditures | $331.0K | $37.00K |
| YoY Change | 794.59% | -45.59% |
| Acquisitions | ||
| YoY Change | ||
| Other Investing Activities | ||
| YoY Change | ||
| Cash From Investing Activities | -$331.0K | -$37.00K |
| YoY Change | 794.59% | -45.59% |
| FINANCING ACTIVITIES | ||
| Cash Dividend Paid | ||
| YoY Change | ||
| Common Stock Issuance & Retirement, Net | ||
| YoY Change | ||
| Debt Paid & Issued, Net | ||
| YoY Change | ||
| Cash From Financing Activities | -5.000K | 34.40M |
| YoY Change | -100.01% | 758.47% |
| NET CHANGE | ||
| Cash From Operating Activities | -8.654M | -7.150M |
| Cash From Investing Activities | -331.0K | -37.00K |
| Cash From Financing Activities | -5.000K | 34.40M |
| Net Change In Cash | -8.988M | 27.21M |
| YoY Change | -133.03% | -1058.47% |
| FREE CASH FLOW | ||
| Cash From Operating Activities | -$8.654M | -$7.150M |
| Capital Expenditures | $331.0K | $37.00K |
| Free Cash Flow | -$8.985M | -$7.187M |
| YoY Change | 25.02% | 4.98% |
Facts In Submission
| Frame | Concept Type | Concept / XBRL Key | Value | Unit |
|---|---|---|---|---|
| CY2019Q4 | us-gaap |
Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
|
237000 | |
| CY2019Q4 | us-gaap |
Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
|
2365000 | |
| CY2020Q1 | us-gaap |
Research And Development Expense
ResearchAndDevelopmentExpense
|
3887000 | |
| CY2020Q1 | eyes |
Clinical And Regulatory Expense Net Of Grants
ClinicalAndRegulatoryExpenseNetOfGrants
|
914000 | |
| CY2019Q1 | eyes |
Clinical And Regulatory Expense Net Of Grants
ClinicalAndRegulatoryExpenseNetOfGrants
|
1006000 | |
| CY2020Q1 | us-gaap |
Selling And Marketing Expense
SellingAndMarketingExpense
|
701000 | |
| CY2019Q1 | us-gaap |
Selling And Marketing Expense
SellingAndMarketingExpense
|
2103000 | |
| CY2020Q1 | us-gaap |
General And Administrative Expense
GeneralAndAdministrativeExpense
|
2021000 | |
| CY2019Q1 | us-gaap |
General And Administrative Expense
GeneralAndAdministrativeExpense
|
2449000 | |
| CY2020Q1 | us-gaap |
Restructuring Charges
RestructuringCharges
|
1381000 | |
| CY2019Q1 | us-gaap |
Restructuring Charges
RestructuringCharges
|
2424000 | |
| CY2020Q1 | us-gaap |
Operating Expenses
OperatingExpenses
|
8904000 | |
| CY2019Q1 | us-gaap |
Operating Expenses
OperatingExpenses
|
10165000 | |
| CY2020Q1 | us-gaap |
Operating Income Loss
OperatingIncomeLoss
|
-8904000 | |
| CY2019Q1 | us-gaap |
Operating Income Loss
OperatingIncomeLoss
|
-9768000 | |
| CY2020Q1 | us-gaap |
Interest Income Operating
InterestIncomeOperating
|
18000 | |
| CY2019Q1 | us-gaap |
Interest Income Operating
InterestIncomeOperating
|
68000 | |
| CY2020Q1 | us-gaap |
Net Income Loss
NetIncomeLoss
|
-8886000 | |
| CY2019Q1 | us-gaap |
Net Income Loss
NetIncomeLoss
|
-9700000 | |
| CY2020Q1 | us-gaap |
Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
|
-0.57 | |
| CY2019Q1 | us-gaap |
Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
|
-0.80 | |
| CY2020Q1 | us-gaap |
Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
|
15649000 | |
| CY2019Q1 | us-gaap |
Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
|
12071000 | |
| CY2020Q1 | us-gaap |
Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
|
19000 | |
| CY2019Q1 | us-gaap |
Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
|
-8000 | |
| CY2019Q1 | us-gaap |
Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
|
-9708000 | |
| CY2018Q4 | us-gaap |
Stockholders Equity
StockholdersEquity
|
3084000 | |
| CY2018Q4 | us-gaap |
Cumulative Effect Of New Accounting Principle In Period Of Adoption
CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption
|
-144000 | |
| CY2019Q1 | eyes |
Stock Issued During Period Value Common Stock And Warrants In Connection With Rights Offering Net Of Issuance Costs
StockIssuedDuringPeriodValueCommonStockAndWarrantsInConnectionWithRightsOfferingNetOfIssuanceCosts
|
34399000 | |
| CY2019Q1 | us-gaap |
Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
|
898000 | |
| CY2019Q1 | us-gaap |
Stockholders Equity
StockholdersEquity
|
28529000 | |
| CY2020Q1 | eyes |
Repurchase Of Fractional Shares In Connection With Reverse Stock Split
RepurchaseOfFractionalSharesInConnectionWithReverseStockSplit
|
11000 | |
| CY2020Q1 | us-gaap |
Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
|
6000 | |
| CY2020Q1 | us-gaap |
Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
|
279000 | |
| CY2020Q1 | us-gaap |
Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
|
106000 | |
| CY2019Q1 | us-gaap |
Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
|
99000 | |
| CY2020Q1 | us-gaap |
Share Based Compensation
ShareBasedCompensation
|
279000 | |
| CY2019Q1 | us-gaap |
Share Based Compensation
ShareBasedCompensation
|
898000 | |
| CY2020Q1 | us-gaap |
Operating Lease Expense
OperatingLeaseExpense
|
3000 | |
| CY2019Q1 | us-gaap |
Operating Lease Expense
OperatingLeaseExpense
|
6000 | |
| CY2020Q1 | us-gaap |
Restructuring Costs And Asset Impairment Charges
RestructuringCostsAndAssetImpairmentCharges
|
1115000 | |
| CY2019Q1 | us-gaap |
Restructuring Costs And Asset Impairment Charges
RestructuringCostsAndAssetImpairmentCharges
|
2424000 | |
| CY2020Q1 | us-gaap |
Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
|
-455000 | |
| CY2019Q1 | us-gaap |
Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
|
95000 | |
| CY2020Q1 | us-gaap |
Increase Decrease In Inventories
IncreaseDecreaseInInventories
|
112000 | |
| CY2019Q1 | us-gaap |
Increase Decrease In Inventories
IncreaseDecreaseInInventories
|
786000 | |
| CY2020Q1 | us-gaap |
Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
|
610000 | |
| CY2019Q1 | us-gaap |
Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
|
-236000 | |
| CY2020Q1 | us-gaap |
Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
|
497000 | |
| CY2019Q1 | us-gaap |
Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
|
297000 | |
| CY2020Q1 | us-gaap |
Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
|
286000 | |
| CY2019Q1 | us-gaap |
Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
|
-57000 | |
| CY2020Q1 | us-gaap |
Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
|
-1813000 | |
| CY2019Q1 | us-gaap |
Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
|
-609000 | |
| CY2020Q1 | eyes |
Increase Decrease Accrued Clinical Trial Expenses
IncreaseDecreaseAccruedClinicalTrialExpenses
|
26000 | |
| CY2019Q1 | eyes |
Increase Decrease Accrued Clinical Trial Expenses
IncreaseDecreaseAccruedClinicalTrialExpenses
|
84000 | |
| CY2019Q1 | us-gaap |
Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
|
53000 | |
| CY2020Q1 | us-gaap |
Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
|
-8654000 | |
| CY2019Q1 | us-gaap |
Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
|
-7150000 | |
| CY2020Q1 | us-gaap |
Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
|
331000 | |
| CY2019Q1 | us-gaap |
Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
|
37000 | |
| CY2020Q1 | us-gaap |
Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
|
-331000 | |
| CY2019Q1 | us-gaap |
Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
|
-37000 | |
| CY2020Q1 | eyes |
Proceeds From Issuance Of Common Stock And Warrants
ProceedsFromIssuanceOfCommonStockAndWarrants
|
6000 | |
| CY2019Q1 | eyes |
Proceeds From Issuance Of Common Stock And Warrants
ProceedsFromIssuanceOfCommonStockAndWarrants
|
34399000 | |
| CY2020Q1 | us-gaap |
Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
|
-5000 | |
| CY2019Q1 | us-gaap |
Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
|
34399000 | |
| CY2020Q1 | us-gaap |
Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
|
2000 | |
| CY2019Q1 | us-gaap |
Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
|
-1000 | |
| CY2020Q1 | us-gaap |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
|
-8988000 | |
| CY2019Q1 | us-gaap |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
|
27211000 | |
| CY2018Q4 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
4471000 | |
| CY2019Q1 | us-gaap |
Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
|
31682000 | |
| CY2020Q1 | us-gaap |
Nature Of Operations
NatureOfOperations
|
<p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">1. Organization and Business Operations</p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Second Sight Medical Products, Inc. (“Second Sight,” “we,” “us,” or “the Company”) was incorporated in the State of California in 2003. Second Sight develops implantable visual prosthetics to potentially enable blind individuals to achieve greater independence.</p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In 2007, Second Sight formed Second Sight Medical Products (Switzerland) Sàrl, initially to manage clinical trials and sales and marketing in Europe, the Middle East and Asia-Pacific, and more recently for the research of future technologies. As the laws of Switzerland require at least two corporate stockholders, Second Sight Medical Products (Switzerland) Sàrl is 99.5% owned directly by us and 0.5% owned by an executive of Second Sight as of March 31, 2020. Accordingly, Second Sight Medical Products (Switzerland) Sàrl is considered 100% owned for financial statement purposes and is consolidated with Second Sight for all periods presented.</p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We are currently developing the Orion<sup style="font-size:85%;line-height:120%;vertical-align:top">®</sup> 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 retinitis pigmentosa (RP), glaucoma, diabetic retinopathy, optic nerve injury or disease, or forms of cancer and trauma. The FDA granted Breakthrough Devices Program designation for Orion. 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”).</p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our first product that was commercially approved, the Argus<sup style="font-size:85%;line-height:120%;vertical-align:top">®</sup> II retinal prosthesis system (“Argus II”), entered clinical trials in 2006, received CE Mark approval for marketing and sales in the European Union (“EU”) in 2011, and received approval by the United States Food and Drug Administration (“FDA”) for marketing and sales in the United States in 2013. We began selling the Argus II in Europe at the end of 2011, Saudi Arabia in 2012, the United States and Canada in 2014, Turkey in 2015, Iran, Taiwan, South Korea and Russia in 2017, and Singapore in 2018. Given the limited addressable market of Argus II, we no longer market the Argus II and have focused all of our resources on the development of Orion.</p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In March 2020, we were severely adversely impacted by the COVID-19 pandemic and its related effects on our ability to finance our planned activities. As a result, we significantly reduced our staff and expenses and conserved liquidity as we continue operations and explore strategic options. These options include securing additional funding and exploring business alternatives that may include partnering, acquiring, investing in or combining with businesses that may or may not be in a related industry. No assurances can be given that any of these initiatives will occur.</p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Liquidity and Going Concern</p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">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. Funding of our business since 2017 has been primarily provided by:</p> <div align="left"> <table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;"> <tr> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;font-family:'Times New Roman';font-size:15pt;line-height:11pt;">•</p></td> <td valign="top"> <p style="text-align:justify;margin-top:0pt;margin-bottom:0pt;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Issuance of shares of common stock on May 5, 2020 which provided net proceeds of approximately $6.6 million.</p></td></tr></table></div> <div align="left"> <table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;"> <tr> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;font-family:'Times New Roman';font-size:15pt;line-height:11pt;">•</p></td> <td valign="top"> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Issuance of common stock and warrants in a Rights Offering in February 2019 which provided $34.4 million of net cash proceeds</p></td></tr></table></div> <div align="left"> <table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;"> <tr> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-family:'Times New Roman';font-size:15pt;line-height:11pt;">•</p></td> <td valign="top"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Issuances of common stock through our At Market Issuance Sales Agreement during the fourth quarter of 2019 which provided $0.1 million of net cash proceeds</p></td></tr></table></div> <div align="left"> <table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;"> <tr> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-family:'Times New Roman';font-size:15pt;line-height:11pt;">•</p></td> <td valign="top"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Issuances of common stock through our At Market Issuance Sales Agreement during the first quarter of 2018, which provided $4.0 million of net cash proceeds</p></td></tr></table></div> <div align="left"> <table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;"> <tr> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-family:'Times New Roman';font-size:15pt;line-height:11pt;">•</p></td> <td valign="top"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Issuances of common stock via stock purchase agreements in May, August, October and December 2018, which provided net cash proceeds of $22.0 million</p></td></tr></table></div> <div align="left"> <table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse; width:100%;"> <tr> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="top" style="width:3.33%;white-space:nowrap"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-family:'Times New Roman';font-size:15pt;line-height:11pt;">•</p></td> <td valign="top"> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Revenue of $3.4 million and $6.9 million, for the years ended December 31, 2019 and 2018, respectively, generated by sales of our Argus II product</p></td></tr></table></div> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On May 5, 2020, we closed our underwritten public offering of 7,500,000 shares of common stock at an offering price of $1.00 per share for aggregate net proceeds of approximately $6.6 million.</p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We received an award for $1.6 million grant (with the intent to fund $6.4 million over five years subject to annual review and approval) from the National Institutes of Health (NIH) to fund the “Early Feasibility Clinical Trial of a Visual Cortical Prosthesis” that commenced in January 2018. Our second year grant was recently approved under this grant. As of March 31, 2020 we recorded $0.3 million of deferred grant costs, included in prepaid expenses and other current assets, associated with this grant which were offset with the related grant funds when received in April 2020.</p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On September 17, 2019, we received a $2.4 million, four-year grant from the National Institutes of Health (NIH) to develop spatial localization and mapping technology (“SLAM”). This grant involves a joint collaboration with the Johns Hopkins University Applied Physics Laboratory (APL), and is intended to speed the integration of SLAM into future generations of Orion. The goal is to give Orion users the ability to localize objects and navigate landmarks in unfamiliar surroundings in real time. APL is the primary recipient of the grant. We have suspended our activities on the project until we clarify our future plans.</p> <p style="text-align:justify;margin-bottom:0pt;margin-top:10pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In a rights offering completed on February 22, 2019, we sold approximately 5,976,000 million units, each priced at $5.792 for net proceeds of approximately $34.4 million. Each unit consisted of one share and one immediately exercisable warrant having an exercise price of $11.76 per share. Entities controlled by Gregg Williams, our Chairman of the Board of Directors, acquired approximately 5,180,000 million units in the offering for an aggregate investment of approximately $30 million.<font style="font-weight:bold;"> </font></p> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:3.33%;font-size:10pt;"> </p> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In November 2017, we entered into an At Market Issuance Sales Agreement (“Sales Agreement”) with B. Riley FBR Inc. and H.C. Wainwright & Co., LLC, as agents (“Agents”) pursuant to which we offered and sold, 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 3.0% of the aggregate gross proceeds from each sale of shares under the Sales Agreement. During January and February 2018, we sold approximately 278,000 shares of common stock which provided net proceeds of $4.0 million under the Sales Agreement.<font style="font-size:12pt;"> </font>During December 2019, we sold approximately 17,000 shares of common stock which provided net proceeds of $0.1 million under the Sales Agreement. In April 2020, we terminated the Sales Agreement with the Agents.</p> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:3.33%;font-size:10pt;"> </p> <p style="text-align:justify;margin-bottom:0pt;margin-top:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">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 no revenue that is developing a novel medical device, including limitations on our operating capital resources. 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.<font style="font-size:12pt;">  </font></p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As more fully described in Note 11, we have been notified by the Nasdaq stock market regarding our non-compliance with the continued listing requirement on the Nasdaq capital market pursuant to its listing rules, and therefore we could be subject to delisting if we do not regain compliance within the compliance period (or the compliance period as may be extended).</p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Based upon our current plans we do not have sufficient funds to support our operations for the next 12 months from the date of issuance of these financial statements. Accordingly, these and other related factors raise substantial doubt about our ability to continue as a going concern. We anticipate that we will seek to additionally fund our operations through public or private equity or debt financings, grants, collaborations, strategic partnerships or other sources. However, we may 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 may be required to significantly curtail, delay or discontinue one or more of our research or development programs or any other approved product candidates, or we may be unable to maintain our current limited operations, maintain our current organization and reduced employee base or otherwise capitalize on our business opportunities, as desired, which could materially and adversely affect our business, financial condition and results of operations. The accompanying financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.</p> <p style="text-align:justify;margin-top:10pt;margin-bottom:0pt;text-indent:3.33%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our independent registered public accounting firm, in its report on our 2019 consolidated financial statements, has raised substantial doubt about our ability to continue as a going concern. </p> | |
| CY2020Q1 | us-gaap |
Inventory Finished Goods
InventoryFinishedGoods
|
1282000 | |
| CY2019Q4 | us-gaap |
Inventory Finished Goods
InventoryFinishedGoods
|
2069000 | |
| CY2020Q1 | us-gaap |
Inventory Gross
InventoryGross
|
3804000 | |
| CY2019Q4 | us-gaap |
Inventory Gross
InventoryGross
|
4588000 | |
| CY2020Q1 | us-gaap |
Inventory Adjustments
InventoryAdjustments
|
3804000 | |
| CY2019Q4 | us-gaap |
Inventory Adjustments
InventoryAdjustments
|
3559000 | |
| CY2020Q1 | us-gaap |
Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
|
653000 | |
| CY2019Q4 | us-gaap |
Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
|
4778000 | |
| CY2020Q1 | us-gaap |
Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
|
421000 | |
| CY2019Q4 | us-gaap |
Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
|
3656000 | |
| CY2018Q4 | us-gaap |
Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
|
335000 | |
| CY2019Q1 | us-gaap |
Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
|
335000 | |
| CY2019Q4 | us-gaap |
Product Warranty Accrual
ProductWarrantyAccrual
|
1575000 | |
| CY2020Q1 | us-gaap |
Product Warranty Accrual Payments
ProductWarrantyAccrualPayments
|
60000 | |
| CY2020Q1 | eyes |
Product Warranty Accrual Total
ProductWarrantyAccrualTotal
|
1515000 | |
| CY2020Q1 | eyes |
Finished Goods Inventory Expected To Be Used Or Future Warranty Claims
FinishedGoodsInventoryExpectedToBeUsedOrFutureWarrantyClaims
|
-750000 | |
| CY2020Q1 | us-gaap |
Product Warranty Accrual
ProductWarrantyAccrual
|
765000 | |
| CY2019Q4 | us-gaap |
Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
|
117000 | |
| CY2020Q1 | us-gaap |
Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
|
117000 | |
| CY2020Q1 | us-gaap |
Subordinated Borrowing Interest Rate
SubordinatedBorrowingInterestRate
|
0.10 | |
| CY2019 | us-gaap |
Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
|
3400000 | |
| CY2018 | us-gaap |
Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
|
6900000 | |
| CY2019 | us-gaap |
Type Of Revenue Extensible List
TypeOfRevenueExtensibleList
|
us-gaap:ProductMember | |
| CY2018 | us-gaap |
Type Of Revenue Extensible List
TypeOfRevenueExtensibleList
|
us-gaap:ProductMember | |
| CY2020Q1 | us-gaap |
Deferred Costs Current And Noncurrent
DeferredCostsCurrentAndNoncurrent
|
300000 | |
| CY2019Q3 | eyes |
Grant Received To Develop Spatial Localization And Mapping Technology
GrantReceivedToDevelopSpatialLocalizationAndMappingTechnology
|
2400000 | |
| CY2019Q3 | eyes |
Grant Received Funding Period
GrantReceivedFundingPeriod
|
P4Y | |
| CY2020Q1 | us-gaap |
Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
|
1-for-8 | |
| CY2020Q1 | us-gaap |
Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
|
823000 | |
| CY2019Q4 | us-gaap |
Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
|
803000 | |
| CY2020Q1 | us-gaap |
Inventory Work In Process
InventoryWorkInProcess
|
1699000 | |
| CY2019Q4 | us-gaap |
Inventory Work In Process
InventoryWorkInProcess
|
1716000 | |
| CY2020Q1 | us-gaap |
Operating Lease Cost
OperatingLeaseCost
|
123000 | |
| CY2019Q1 | us-gaap |
Operating Lease Cost
OperatingLeaseCost
|
123000 | |
| CY2020Q1 | us-gaap |
Lease Cost
LeaseCost
|
123000 | |
| CY2019Q1 | us-gaap |
Lease Cost
LeaseCost
|
123000 | |
| CY2020Q1 | us-gaap |
Operating Lease Payments
OperatingLeasePayments
|
121000 | |
| CY2019Q1 | us-gaap |
Operating Lease Payments
OperatingLeasePayments
|
117000 | |
| CY2019Q1 | us-gaap |
Common Stock No Par Value
CommonStockNoParValue
|
||
| CY2019Q2 | us-gaap |
Common Stock No Par Value
CommonStockNoParValue
|
||
| CY2019Q1 | us-gaap |
Common Stock Shares Authorized
CommonStockSharesAuthorized
|
200000000 | |
| CY2019Q2 | us-gaap |
Common Stock Shares Authorized
CommonStockSharesAuthorized
|
300000000 | |
| CY2020Q1 | us-gaap |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
|
8597000 | |
| CY2019Q1 | us-gaap |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
|
8975000 | |
| CY2020Q1 | us-gaap |
Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
|
279000 | |
| CY2019Q1 | us-gaap |
Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
|
898000 | |
| CY2020Q1 | eyes |
Number Of Retained Employees
NumberOfRetainedEmployees
|
10 | |
| CY2020Q2 | us-gaap |
Shortduration Insurance Contracts Cumulative Paid Claims And Allocated Claim Adjustment Expense Net
ShortdurationInsuranceContractsCumulativePaidClaimsAndAllocatedClaimAdjustmentExpenseNet
|
3000000 |
