x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 04-3308180 |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
incorporation or organization) | |
4B Gill Street Woburn, Massachusetts | 01801 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered |
Common Stock, $0.0001 par value per share | NURO | The Nasdaq Stock Market LLC |
Preferred Stock Purchase Rights |
Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company x |
Emerging growth company ¨ |
Item 1. | |||
Balance Sheets as of September 30, 2020 (unaudited) and December 31, 2019 | |||
Statements of Operations (unaudited) for the Quarters and Nine Months Ended September 30, 2020 and 2019 | |||
Statement of Changes in Stockholders' Equity (unaudited) for the Quarters and Nine Months Ended September 30, 2020 and 2019 | |||
Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2020 and 2019 | |||
Item 2. | 13 | ||
Item 3. | 21 | ||
Item 4. | 21 | ||
Item 1. | 22 | ||
Item 1A. | 22 | ||
Item 2. | 22 | ||
Item 3. | 22 | ||
Item 4. | 22 | ||
Item 5. | 22 | ||
Item 6. | 22 | ||
23 |
September 30, 2020 | December 31, 2019 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,929,175 | $ | 3,126,206 | |||
Accounts receivable, net | 633,146 | 298,967 | |||||
Inventories | 1,050,293 | 1,163,714 | |||||
Collaboration receivable | — | 189,008 | |||||
Prepaid expenses and other current assets | 677,526 | 652,919 | |||||
Total current assets | 7,290,140 | 5,430,814 | |||||
Fixed assets, net | 205,676 | 273,448 | |||||
Right to use asset | 815,558 | 1,159,774 | |||||
Other long-term assets | 28,664 | 29,650 | |||||
Total assets | $ | 8,340,038 | $ | 6,893,686 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 192,356 | $ | 725,658 | |||
Accrued expenses and compensation | 1,011,228 | 1,443,574 | |||||
Accrued product returns | 586,000 | 689,000 | |||||
Lease obligation, current | 596,779 | 588,546 | |||||
Total current liabilities | 2,386,363 | 3,446,778 | |||||
Lease obligation, net of current portion | 581,903 | 916,674 | |||||
Total liabilities | 2,968,266 | 4,363,452 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock | — | — | |||||
Convertible preferred stock | 1 | 1 | |||||
Common stock, $0.0001 par value; 25,000,000 shares authorized at September 30, 2020 and December 31, 2019; 3,784,657 and 1,400,674 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 378 | 140 | |||||
Additional paid-in capital | 201,927,426 | 197,319,698 | |||||
Accumulated deficit | (196,556,033 | ) | (194,789,605 | ) | |||
Total stockholders’ equity | 5,371,772 | 2,530,234 | |||||
Total liabilities and stockholders’ equity | $ | 8,340,038 | $ | 6,893,686 |
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues | $ | 2,036,228 | $ | 2,088,001 | $ | 5,568,243 | $ | 7,565,619 | |||||||
Cost of revenues | 537,614 | 914,322 | 1,652,890 | 6,382,340 | |||||||||||
Gross profit | 1,498,614 | 1,173,679 | 3,915,353 | 1,183,279 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 652,671 | 475,137 | 1,846,569 | 2,365,139 | |||||||||||
Sales and marketing | 340,927 | 647,719 | 1,144,389 | 4,046,956 | |||||||||||
General and administrative | 762,903 | 1,462,887 | 2,693,146 | 4,646,932 | |||||||||||
Total operating expenses | 1,756,501 | 2,585,743 | 5,684,104 | 11,059,027 | |||||||||||
Loss from operations | (257,887 | ) | (1,412,064 | ) | (1,768,751 | ) | (9,875,748 | ) | |||||||
Other income: | |||||||||||||||
Collaboration income | — | — | — | 7,116,667 | |||||||||||
Other income | 774 | 7,464 | 2,323 | 42,797 | |||||||||||
Total other income | 774 | 7,464 | 2,323 | 7,159,464 | |||||||||||
Net loss | $ | (257,113 | ) | $ | (1,404,600 | ) | $ | (1,766,428 | ) | $ | (2,716,284 | ) | |||
Net loss per common share applicable to common stockholders, basic and diluted | $ | (0.07 | ) | $ | (1.44 | ) | $ | (0.64 | ) | $ | (3.06 | ) |
Series B Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total | |||||||||||||||||||||
Number of Shares | Amount | Number of Shares | Amount | ||||||||||||||||||||||
Balance at December 31, 2019 | 200.00 | $ | 1 | 1,400,674 | $ | 140 | $ | 197,319,698 | $ | (194,789,605 | ) | $ | 2,530,234 | ||||||||||||
Stock-based compensation expense | — | — | — | — | 144,047 | — | 144,047 | ||||||||||||||||||
Issuance of common stock under at the market offering | — | — | 256,078 | 25 | 453,432 | — | 453,457 | ||||||||||||||||||
Issuance of common stock to settle compensation obligations | — | — | 31,000 | 3 | 43,748 | — | 43,751 | ||||||||||||||||||
Net loss | — | (657,371 | ) | (657,371 | ) | ||||||||||||||||||||
Balance at March 31, 2020 | 200.00 | $ | 1 | 1,687,752 | $ | 168 | $ | 197,960,925 | $ | (195,446,976 | ) | $ | 2,514,118 | ||||||||||||
Stock-based compensation expense | — | — | — | — | 128,862 | — | 128,862 | ||||||||||||||||||
Issuance of common stock under at the market offering | — | — | 2,092,541 | 209 | 3,689,765 | — | 3,689,974 | ||||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | 4,364 | 1 | 7,605 | — | 7,606 | ||||||||||||||||||
Net loss | — | — | — | — | — | (851,944 | ) | (851,944 | ) | ||||||||||||||||
Balance at June 30, 2020 | 200.00 | $ | 1 | 3,784,657 | $ | 378 | $ | 201,787,157 | $ | (196,298,920 | ) | $ | 5,488,616 | ||||||||||||
Stock-based compensation expense | — | — | — | — | 140,269 | — | 140,269 | ||||||||||||||||||
Net loss | — | — | — | — | — | (257,113 | ) | (257,113 | ) | ||||||||||||||||
Balance at September 30, 2020 | 200.00 | $ | 1 | 3,784,657 | $ | 378 | $ | 201,927,426 | $ | (196,556,033 | ) | $ | 5,371,772 |
Series B – F Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total | |||||||||||||||||||||
Number of Shares | Amount | Number of Shares | Amount | ||||||||||||||||||||||
Balance at December 31, 2018 | 17,513.63 | $ | 18 | 738,029 | $ | 74 | $ | 197,114,310 | $ | (191,016,591 | ) | $ | 6,097,811 | ||||||||||||
Stock-based compensation expense | — | — | — | — | 44,093 | — | 44,093 | ||||||||||||||||||
Issuance of common stock upon conversion of preferred stock | (2,445.90 | ) | (3 | ) | 93,000 | 9 | (6 | ) | — | — | |||||||||||||||
Net income | — | — | — | — | — | 2,050,507 | 2,050,507 | ||||||||||||||||||
Balance at March 31, 2019 | 15,067.73 | $ | 15 | 831,029 | $ | 83 | $ | 197,158,397 | $ | (188,966,084 | ) | $ | 8,192,411 | ||||||||||||
Stock-based compensation expense | — | — | — | — | 19,933 | — | 19,933 | ||||||||||||||||||
Issuance of common stock upon conversion of preferred stock | (3,813.00 | ) | (4 | ) | 144,981 | 15 | (11 | ) | — | — | |||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | 2,148 | 1 | 7,496 | — | 7,497 | ||||||||||||||||||
Net loss | — | — | — | — | — | (3,362,191 | ) | (3,362,191 | ) | ||||||||||||||||
Balance at June 30, 2019 | 11,254.73 | $ | 11 | 978,158 | $ | 99 | $ | 197,185,815 | $ | (192,328,275 | ) | $ | 4,857,650 | ||||||||||||
Stock-based compensation expense | — | — | — | — | 120,460 | — | 120,460 | ||||||||||||||||||
Net loss | — | — | — | — | — | (1,404,600 | ) | (1,404,600 | ) | ||||||||||||||||
Balance at September 30, 2019 | 11,254.73 | $ | 11 | 978,158 | $ | 99 | $ | 197,306,275 | $ | (193,732,875 | ) | $ | 3,573,510 | ||||||||||||
Nine Months Ended September 30, | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (1,766,428 | ) | $ | (2,716,284 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation | 67,772 | 98,166 | |||||
Stock-based compensation | 413,178 | 184,486 | |||||
Settlement of compensation obligation | 43,751 | — | |||||
Impairment charge against right of use asset | 280,000 | — | |||||
Inventory provision | — | 2,595,884 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (334,179 | ) | 558,968 | ||||
Inventories | 113,421 | (357,673 | ) | ||||
Collaboration receivable | 189,008 | (1,174,092 | ) | ||||
Prepaid expenses and other current and long-term assets | (23,621 | ) | 189,092 | ||||
Accounts payable | (533,302 | ) | (659,538 | ) | |||
Accrued expenses and compensation | (694,668 | ) | 115,752 | ||||
Accrued product returns | (103,000 | ) | (438,352 | ) | |||
Deferred collaboration income | — | (1,956,522 | ) | ||||
Net cash used in operating activities | (2,348,068 | ) | (3,560,113 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of fixed assets | — | (41,177 | ) | ||||
Net cash used in investing activities | — | (41,177 | ) | ||||
Cash flows from financing activities: | |||||||
Net proceeds from issuance of stock | 4,151,037 | 7,497 | |||||
Proceeds from debt issuance | 773,200 | — | |||||
Repayment of debt | (773,200 | ) | — | ||||
Net cash provided by financing activities | 4,151,037 | 7,497 | |||||
Net increase (decrease) in cash and cash equivalents | 1,802,969 | (3,593,793 | ) | ||||
Cash and cash equivalents, beginning of period | 3,126,206 | 6,780,429 | |||||
Cash and cash equivalents, end of period | $ | 4,929,175 | $ | 3,186,636 | |||
Supplemental disclosure of cash flow information: | |||||||
Common stock issued to settle employee compensation | $ | 43,751 | $ | — |
1. | Business and Basis of Presentation |
2. | Comprehensive Income (Loss) |
3. | Net Loss Per Common Share |
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net loss applicable to common stockholders | $ | (257,113 | ) | $ | (1,404,600 | ) | $ | (1,766,428 | ) | $ | (2,716,284 | ) | |||
Weighted average number of common shares outstanding, basic | 3,784,657 | 978,175 | 2,755,903 | 886,609 | |||||||||||
Dilutive convertible preferred stock | — | — | — | — | |||||||||||
Weighted average number of common shares outstanding, dilutive | 3,784,657 | 978,175 | 2,755,903 | 886,609 | |||||||||||
Net loss per common share applicable to common stockholders, basic and diluted | $ | (0.07 | ) | $ | (1.44 | ) | $ | (0.64 | ) | $ | (3.06 | ) |
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Options | 162,373 | 40,396 | 163,303 | 45,777 | |||||||
Warrants | — | 44,221 | 23,040 | 45,359 | |||||||
Convertible preferred stock | 62 | 420,395 | 62 | 510,830 | |||||||
Total | 162,435 | 505,012 | 186,405 | 601,966 |
4. | Inventories |
September 30, 2020 | December 31, 2019 | ||||||
Purchased components | $ | 690,643 | $ | 720,209 | |||
Finished goods | 359,650 | 443,505 | |||||
$ | 1,050,293 | $ | 1,163,714 |
5. | Accrued Expenses and Compensation |
September 30, 2020 | December 31, 2019 | ||||||
Technology fees | $ | 450,000 | $ | 450,000 | |||
Professional services | 291,000 | 454,000 | |||||
Compensation | 109,896 | 62,322 | |||||
Advertising and promotion | 6,000 | 68,000 | |||||
Warranty | 62,200 | 75,300 | |||||
Other | 92,132 | 333,952 | |||||
$ | 1,011,228 | $ | 1,443,574 |
6. | Leases |
2020 | 160,797 | |||
2021 | 653,164 | |||
2022 | 247,347 | |||
2023 | 165,785 | |||
2024 | 165,785 | |||
2025 | 117,431 | |||
Total minimum lease payments | $ | 1,510,309 | ||
Weighted-average discount rate, 14.7% | $ | 331,627 | ||
Lease obligation, current portion | 596,779 | |||
Lease obligation, net of current portion | 581,903 | |||
$ | 1,510,309 |
7. | Business Restructuring |
September 30, 2020 | ||||
Severance obligations: | ||||
Provision | $ | 224,773 | ||
Amounts paid out | (224,773 | ) | ||
Total | — | |||
Relocation costs: | ||||
Provision | 100,000 | |||
Amounts paid out | (100,000 | ) | ||
Total | — | |||
Impairment charge for idle facility | 680,000 | |||
Amounts paid out | (280,000 | ) | ||
Total | 400,000 | |||
Balance - September 30, 2020 | $ | 400,000 |
8. | Fair Value Measurements |
Fair Value Measurements at September 30, 2020 Using | |||||||||||||||
September 30, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 2,159,475 | $ | 2,159,475 | $ | — | $ | — | |||||||
Total | $ | 2,159,475 | $ | 2,159,475 | $ | — | $ | — |
Fair Value Measurements at December 31, 2019 Using | |||||||||||||||
December 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 698,807 | $ | 698,807 | $ | — | $ | — | |||||||
Total | $ | 698,807 | $ | 698,807 | $ | — | $ | — |
9. | Credit Facility and Debt |
10. | Stockholders’ Equity |
September 30, 2020 | December 31, 2019 | ||||||
Preferred stock, $0.001 par value; 5,000,000 shares authorized at September 30, 2020 and December 31, 2019; no shares issued and outstanding at September 30, 2020 and December 31, 2019 | $ | — | $ | — | |||
Series B convertible preferred stock, $0.001 par value; 147,000 shares designated at September 30, 2020 and December 31, 2019; 200 shares issued and outstanding at September 30, 2020 and December 31, 2019 | $ | 1 | $ | 1 | |||
Series D convertible preferred stock, $0.001 par value; 21,300 shares designated at September 30, 2020 and December 31, 2019; no shares issued and outstanding at September 30, 2020 and December 31, 2019 | $ | — | $ | — | |||
Series E convertible preferred stock, $0.001 par value; 7,000 shares designated at September 30, 2020 and December 31, 2019; no shares issued and outstanding at September 30, 2020 and December 31, 2019 | $ | — | $ | — | |||
Series F convertible preferred stock, $0.001 par value; 10,621 shares designated at September 30, 2020 and December 31, 2019; no shares issued and outstanding at September 30, 2020 and December 31, 2019 | $ | — | $ | — |
11. | Reverse Stock Split |
Quarters Ended September 30, | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Revenues | $ | 2,036.2 | $ | 2,088.0 | $ | (51.8 | ) | (2.5 | )% |
Quarters Ended September 30, | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Cost of revenues | $ | 537.6 | $ | 914.3 | $ | (376.7 | ) | (41.2 | )% | |||||
Gross profit | $ | 1,498.6 | $ | 1,173.7 | $ | 324.9 | 27.7 | % |
Quarters Ended September 30 | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Operating expenses: | ||||||||||||||
Research and development | $ | 652.7 | $ | 475.1 | $ | 177.6 | 37.4 | % | ||||||
Sales and marketing | 340.9 | 647.7 | (306.8 | ) | (47.4 | )% | ||||||||
General and administrative | 762.9 | 1,462.9 | (700.0 | ) | (47.9 | )% | ||||||||
Total operating expenses | $ | 1,756.5 | $ | 2,585.7 | $ | (829.2 | ) | (32.1 | )% |
Quarters Ended September 30, | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Other income | $ | 0.8 | $ | 7.5 | $ | (6.7 | ) | (89.3 | )% |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Revenues | $ | 5,568.2 | $ | 7,565.6 | $ | (1,997.4 | ) | (26.4 | )% |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Cost of revenues | $ | 1,652.9 | $ | 6,382.3 | $ | (4,729.4 | ) | (74.1 | )% | |||||
Gross profit | $ | 3,915.4 | $ | 1,183.3 | $ | 2,732.1 | 230.9 | % |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Operating expenses: | ||||||||||||||
Research and development | $ | 1,846.6 | $ | 2,365.1 | (518.5 | ) | (21.9 | )% | ||||||
Sales and marketing | 1,144.4 | 4,047.0 | (2,902.6 | ) | (71.7 | )% | ||||||||
General and administrative | 2,693.1 | 4,646.9 | (1,953.8 | ) | (42.0 | )% | ||||||||
Total operating expenses | $ | 5,684.1 | $ | 11,059.0 | $ | (5,374.9 | ) | (48.6 | )% |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Collaboration income | $ | — | $ | 7,116.7 | $ | (7,116.7 | ) | (100.0 | )% |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Other income | $ | 2.3 | $ | 42.8 | $ | (40.5 | ) | (94.6 | )% |
September 30, 2020 | December 31, 2019 | Change | % Change | |||||||||||
(in thousands) | ||||||||||||||
Cash and cash equivalents | $ | 4,929.2 | $ | 3,126.2 | $ | 1,803 | 57.7 | % |
Quarters Ended September 30, | Year Ended December 31, | ||||
2020 | 2019 | 2019 | |||
Days sales outstanding (days) | 23 | 27 | 27 | ||
Inventory turnover rate (times per year) | 1.9 | 2.3 | 3.5 |
Nine Months Ended September 30, | |||||||
2020 | 2019 | ||||||
(in thousands) | |||||||
Net cash used in operating activities (excluding collaboration income) | $ | (2,348.1 | ) | $ | (6,582.4 | ) | |
Net cash provided by collaboration income | — | 4,760.1 | |||||
Net cash used in operating activities | (2,348.1 | ) | (3,560.1 | ) | |||
Net cash used in investing activities | — | (41.2 | ) | ||||
Net cash provided by financing activities | 4,151.0 | 7.5 | |||||
Net cash (used) provided | $ | 1,802.9 | $ | (3,593.8 | ) |
NEUROMETRIX, INC. | ||
October 22, 2020 | /s/ | SHAI N. GOZANI, M.D., PH. D. |
Shai N. Gozani, M.D., Ph. D. | ||
Chairman, President and Chief Executive Officer | ||
October 22, 2020 | /s/ | THOMAS T. HIGGINS |
Thomas T. Higgins | ||
Senior Vice President, Chief Financial Officer and Treasurer |
Exhibit No. | Description | |
Certification of Principal Executive Officer Under Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, and pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002. Filed herewith. | ||
Certification of Principal Financial Officer Required Under Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. | ||
Certification of Principal Executive Officer and Principal Financial Officer Required Under Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350. Furnished herewith. | ||
101 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, formatted in XBRL (eXtensible Business Reporting Language): (i) Balance Sheets at September 30, 2020 and December 31, 2019, (ii) Statements of Operations for the quarter and nine months ended September 30, 2020 and 2019, (iii) Statements of Changes in Stockholders' Equity for the nine months ended September 30, 2020 and 2019, (iv) Statements of Cash Flows for the nine months ended September 30, 2020 and 2019, and (v) Notes to Financial Statements. | |
1. | I have reviewed this Quarterly Report on Form 10-Q of NeuroMetrix, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | October 22, 2020 | /s/ SHAI N. GOZANI, M.D., PH. D. |
Shai N. Gozani, M.D., Ph.D. | ||
Chairman, President and Chief Executive Officer |
I, Thomas T. Higgins, certify that: | ||
1. | I have reviewed this Quarterly Report on Form 10-Q of NeuroMetrix, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | October 22, 2020 | /s/ THOMAS T. HIGGINS |
Thomas T. Higgins | ||
Senior Vice President, Chief Financial Officer and Treasurer |
/s/ SHAI N. GOZANI, M.D., PH. D. | |
Shai N. Gozani, M.D., Ph.D. | |
Chairman, President and Chief Executive Officer | |
/s/ THOMAS T. HIGGINS | |
Thomas T. Higgins | |
Senior Vice President, Chief Financial Officer and Treasurer |
Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Common Stock, Shares, Outstanding | 3,784,657 | 1,400,674 |
Common Stock, Shares, Issued | 3,784,657 | 1,400,674 |
Common Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Statements of Operations (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Revenue from Contract with Customer, Including Assessed Tax | $ 2,036,228 | $ 2,088,001 | $ 5,568,243 | $ 7,565,619 |
Other Nonoperating Income | 774 | 7,464 | 2,323 | 42,797 |
Nonoperating Income (Expense) | 774 | 7,464 | 2,323 | 7,159,464 |
Net loss | (257,113) | (1,404,600) | (1,766,428) | (2,716,284) |
Loss from operations | (257,887) | (1,412,064) | (1,768,751) | (9,875,748) |
Collaboration Income | $ 0 | $ 0 | $ 0 | $ 7,116,667 |
Net income (loss) applicable to common stockholders: | ||||
Earnings Per Share, Basic and Diluted | $ (0.07) | $ (1.44) | $ (0.64) | $ (3.06) |
Weighted Average Number of Shares Outstanding, Basic | 3,784,657 | 978,175 | 2,755,903 | 886,609 |
Operating expenses: | ||||
Research and development | $ 652,671 | $ 475,137 | $ 1,846,569 | $ 2,365,139 |
Sales and marketing | 340,927 | 647,719 | 1,144,389 | 4,046,956 |
General and administrative | 762,903 | 1,462,887 | 2,693,146 | 4,646,932 |
Total operating expenses | 1,756,501 | 2,585,743 | 5,684,104 | 11,059,027 |
Gross profit (loss) | 1,498,614 | 1,173,679 | 3,915,353 | 1,183,279 |
Cost of revenues | $ 537,614 | $ 914,322 | $ 1,652,890 | $ 6,382,340 |
Business and Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Our Business-An Overview NeuroMetrix, Inc., or the Company, is a leading developer and manufacturer of diagnostic and therapeutic neurostimulation based medical devices that are used throughout the world. The Company has three FDA cleared commercial products. DPNCheck® is a point-of-care test that is used to evaluate peripheral neuropathies. ADVANCE™ is a point-of-care device that provides nerve conduction studies as an aid in diagnosing and evaluating patients suspected of having focal or systemic neuropathies. Quell® 2.0 is a wearable, mobile app enabled, neurostimulation device indicated for symptomatic relief and management of chronic pain and is available OTC. The Company maintains an active, industry-leading R&D program. The accompanying financial statements have been prepared on a basis which assumes that the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company has reported recurring losses from operations and negative cash flows from operating activities. At September 30, 2020, the Company had an accumulated deficit of $196.6 million. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the one-year period from the date of issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company held cash and cash equivalents of $4.9 million as of September 30, 2020. The Company believes that these resources and the cash to be generated from future product sales will be sufficient to meet its projected operating requirements into the fourth quarter of 2021. Accordingly, the Company may need to raise additional funds to support its operating and capital needs in the fourth quarter of 2021 and beyond. The Company continues to face challenges and uncertainties. Among these uncertainties is the future effect on the Company's business of the COVID-19 pandemic which has depressed sales of the Company's products. As a result, the Company’s available capital resources may be consumed more rapidly than currently expected due to (a) decreases in sales of the Company’s products, including decreases in customer orders related to the COVID-19 pandemic, and the uncertainty of future revenues from new products; (b) the effect of the COVID-19 pandemic on the Company's ability to obtain parts and materials from the Company's suppliers while continuing to staff critical production and fulfillment functions; (c) changes the Company may make to the business that affect ongoing operating expenses; (d) changes the Company may make in its business strategy; (e) regulatory developments affecting the Company’s existing products; (f) changes the Company may make in its research and development spending plans; and (g) other items affecting the Company’s forecasted level of expenditures and use of cash resources. The Company may attempt to obtain additional funding through public or private financing, collaborative arrangements with strategic partners, or through additional credit lines or other debt financing sources to increase the funds available to fund operations. However, the Company may not be able to secure such funding in a timely manner or on favorable terms, if at all. Furthermore, if the Company issues equity or debt securities to raise additional funds, its existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences and privileges senior to those of the Company’s existing stockholders. If the Company raises additional funds through collaboration, licensing or other similar arrangements, it may be necessary to relinquish valuable rights to its potential products or proprietary technologies, or grant licenses on terms that are not favorable to the Company. Without additional funds, the Company may be forced to delay, scale back or eliminate some of its sales and marketing efforts, research and development activities, or other operations and potentially delay product development in an effort to provide sufficient funds to continue its operations. If any of these events occurs, the Company’s ability to achieve its development and commercialization goals would be adversely affected. Unaudited Interim Financial Statements The accompanying unaudited balance sheet as of September 30, 2020, unaudited statements of operations, changes in stockholders' equity for the quarters and nine months ended September 30, 2020 and 2019 and cash flows for the nine months ended September 30, 2020 and 2019 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The accompanying balance sheet as of December 31, 2019 has been derived from audited financial statements prepared at that date but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, the financial statements include all normal and recurring adjustments considered necessary for a fair presentation of the Company’s financial position and operating results. Operating results for the nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or the SEC, on January 28, 2020 (File No. 001-33351), or the Company’s 2019 Form 10-K. Revenues Revenues include product sales, net of estimated returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for product transferred. Revenue is recognized when contractual performance obligations have been satisfied and control of the product has been transferred to the customer. In most cases, the Company has a single product delivery performance obligation. Accrued product returns are estimated based on historical data and evaluation of current information. Accounts receivable are recorded net of the allowance for doubtful accounts, which represents the Company’s best estimate of credit losses. Allowance for doubtful accounts was $70,000 as of September 30, 2020 and December 31, 2019. For the quarters ended September 30, 2020 and 2019, three customers accounted for 47% of total revenues and one customer accounted for 19% of total revenues, respectively. For the nine months ended September 30, 2020 and 2019, two customers accounted for 34% and one customer accounted for 20% of total revenues, respectively. Three customers accounted for 54% and two customers accounted for 42% of accounts receivable as of September 30, 2020 and December 31, 2019, respectively. Collaboration Income Collaboration Income is recognized within Other Income when contractual performance obligations, outside the ordinary activities of the Company, have been satisfied and control has been transferred to a collaboration partner. Collaboration Income for each performance obligation is based on the fair value of such performance obligation relative to the total fair value of all performance obligations multiplied by the overall transaction price. A deferred collaboration income liability is recorded when payments are received prior to satisfaction of performance obligations. A collaboration receivable is recorded when amounts are owed to the Company under the collaboration agreements and related support services. The Company recognized Collaboration income net of costs, within Other income in the Statement of Operations of zero and $7,116,667, for the nine months ended September 30, 2020 and 2019, respectively. Stock-based Compensation Total compensation cost related to non-vested awards not yet recognized at September 30, 2020 was $136,569. The total compensation costs are expected to be recognized over a weighted-average period of 0.3 years. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during reporting periods. Actual results could differ from those estimates. |
Comprehensive Loss |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Equity [Abstract] | |
Comprehensive Loss | Comprehensive Income (Loss) For the quarters and nine months ended September 30, 2020 and 2019, the Company had no components of other comprehensive income (loss) other than net income (loss) itself. |
Net Loss Per Common Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Common Share |
Basic and dilutive net income (loss) per common share were as follows:
Shares underlying the following potentially dilutive weighted average number of common stock equivalents were excluded from the calculation of diluted net loss per common share because their effect was anti-dilutive for each of the periods presented:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
|
Inventories |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consist of the following:
|
Accrued Expenses |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses | Accrued Expenses and Compensation Accrued expenses and compensation consist of the following:
|
Leases Leases (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Leases [Text Block] | Operating Leases The Company's lease on its Woburn, Massachusetts facilities (the “Woburn Lease”) extends through September 2025 with a monthly base rent of $13,846 and a 5-year extension option. The Company's lease on its Waltham, Massachusetts facilities, now inactive and offered for sublet, extends through February 2022 with an average monthly base rent of $41,074 and a 5-year extension option. At September 30, 2020, an impairment reserve of $400,000 reduced the right of use asset for Waltham idle facility costs. The impairment reserve was increased during the nine months ended September 30, 2020 by a charge of $280,000 recorded within the Company's Statement of Operations as follows: $98,000 within research and development, $56,000 within sales and marketing, and $126,000 within general and administrative. Future minimum lease payments under non-cancellable operating leases as of September 30, 2020 are as follows:
Total recorded rent expense was $166,905 and $166,025, for the quarters ended September 30, 2020 and 2019, respectively. Total recorded rent expense was $500,713 and $498,073, for the nine months ended September 30, 2020 and 2019, respectively. The Company records rent expense on its facility leases on a straight-line basis over the lease term. Weighted average remaining operating lease term was 3.1 years as of September 30, 2020. |
Restructuring And Related Activities (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | The obligations relating to the business restructuring outstanding as of September 30, 2020 are presented below.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | Business Restructuring In the second quarter of 2019, the Company was restructured to reduce operating costs and improve efficiency. Operations were consolidated in a single location, headcount was reduced, and excess inventory was written down to net realizable value. Total 2019 restructuring charges were $2.5 million. During 2020 revised estimates of idle facility costs at the Company's Waltham location resulted in impairment charges in the quarter and nine months ended September 30, 2020 of $76,000 and $280,000, respectively. The impairment reserve against the right to use asset was $400,000 at September 30, 2020. The obligations relating to the business restructuring outstanding as of September 30, 2020 are presented below.
|
Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis for the periods presented and indicates the fair value hierarchy of the valuation techniques it utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates, and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. All Company assets and liabilities measured at fair value utilize Level 1 inputs.
|
Credit Facility |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility and Debt The Company's Loan and Security Agreement (the “Credit Facility”) with a bank expired April 30, 2020 and was not renewed. The Credit Facility had previously supported letters of credit in the amount of $226,731 issued in favor of the Company's landlords. These letters of credit remain outstanding and are secured by the Company's cash balances. In April 2020 the Company received a loan of $773,200 under the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security Act and fully repaid the loan in May 2020. |
Stockholders' Equity |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock and convertible preferred stock | Preferred stock and convertible preferred stock consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Preferred stock and convertible preferred stock consist of the following:
2020 equity activity In February 2020, the Company entered into an At Market Issuance Sales Agreement (the "Agreement") with respect to an at-the-market offering program ("ATM program"), under which the Company may offer and sell, from time to time at its sole discretion, shares of its common stock, par value $0.0001 per share (the "Common Stock"), having an aggregate offering price of up to $4,482,000 (the "Placement Shares"). The issuance and sale of the Placement Shares by the Company under the Agreement will be made pursuant to the Company's effective "shelf" registration statement on Form S-3. During the nine months ended September 30, 2020, 2,348,619 shares of common stock were issued pursuant to the Agreement for net proceeds of $4,143,431. In March 2020, the Company issued 31,000 shares of fully vested common stock with a value of $43,751 pursuant to a Separation Agreement between the Company and an employee. The shares issued reflected the $1.41 closing price of the Company's common stock as reported on the Nasdaq Capital Market on March 11, 2020. In June 2020, the Company issued 4,364 shares of fully vested common stock with a value of $7,606 pursuant to the Company's 2010 Employee Stock Purchase Plan. 2019 equity activity During the nine months ended September 30, 2019, 2,998.2 shares of the Company's Series D Preferred Stock were converted into a total of 114,000 shares of Common Stock and 3,260.70 shares of the Company's Series E Preferred Stock were converted into a total of 123,981 shares of Common Stock. On November 18, 2019, the Company effected a 1-for-10 reverse stock split of its Common Stock, or the Reverse Stock Split. The par value and other terms of the common stock were not affected by the Reverse Stock Split. Share, per share, and stock option amounts for all periods presented within the financial statements contained in the Quarterly Report on Form 10-Q, including the December 31, 2019 Balance Sheet amounts for Common Stock and additional paid-in capital, have been retroactively adjusted to reflect the Reverse Stock Split. |
Reverse Stock Split |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reverse Stock Split | Stockholders’ Equity Preferred stock and convertible preferred stock consist of the following:
2020 equity activity In February 2020, the Company entered into an At Market Issuance Sales Agreement (the "Agreement") with respect to an at-the-market offering program ("ATM program"), under which the Company may offer and sell, from time to time at its sole discretion, shares of its common stock, par value $0.0001 per share (the "Common Stock"), having an aggregate offering price of up to $4,482,000 (the "Placement Shares"). The issuance and sale of the Placement Shares by the Company under the Agreement will be made pursuant to the Company's effective "shelf" registration statement on Form S-3. During the nine months ended September 30, 2020, 2,348,619 shares of common stock were issued pursuant to the Agreement for net proceeds of $4,143,431. In March 2020, the Company issued 31,000 shares of fully vested common stock with a value of $43,751 pursuant to a Separation Agreement between the Company and an employee. The shares issued reflected the $1.41 closing price of the Company's common stock as reported on the Nasdaq Capital Market on March 11, 2020. In June 2020, the Company issued 4,364 shares of fully vested common stock with a value of $7,606 pursuant to the Company's 2010 Employee Stock Purchase Plan. 2019 equity activity During the nine months ended September 30, 2019, 2,998.2 shares of the Company's Series D Preferred Stock were converted into a total of 114,000 shares of Common Stock and 3,260.70 shares of the Company's Series E Preferred Stock were converted into a total of 123,981 shares of Common Stock. On November 18, 2019, the Company effected a 1-for-10 reverse stock split of its Common Stock, or the Reverse Stock Split. The par value and other terms of the common stock were not affected by the Reverse Stock Split. Share, per share, and stock option amounts for all periods presented within the financial statements contained in the Quarterly Report on Form 10-Q, including the December 31, 2019 Balance Sheet amounts for Common Stock and additional paid-in capital, have been retroactively adjusted to reflect the Reverse Stock Split. |
Commitments And Contingencies Commitments And Contingencies (Notes) |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | The previously reported investigation by the Federal Trade Commission (the “Commission”) regarding Quell® advertising was settled in March 2020. The Company did not admit to any of the Commission's allegations, agreed to certain modifications of Quell advertising claims, and pledged to pay to the Commission future commercial milestone payments, if and when received, pursuant to a collaboration agreement with a third party. |
Business and Basis of Presentation (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Share-based Payment Arrangement [Policy Text Block] | Stock-based Compensation Total compensation cost related to non-vested awards not yet recognized at September 30, 2020 was $136,569. The total compensation costs are expected to be recognized over a weighted-average period of 0.3 years. |
Unaudited Interim Financial Statements | Unaudited Interim Financial Statements The accompanying unaudited balance sheet as of September 30, 2020, unaudited statements of operations, changes in stockholders' equity for the quarters and nine months ended September 30, 2020 and 2019 and cash flows for the nine months ended September 30, 2020 and 2019 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The accompanying balance sheet as of December 31, 2019 has been derived from audited financial statements prepared at that date but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, the financial statements include all normal and recurring adjustments considered necessary for a fair presentation of the Company’s financial position and operating results. Operating results for the nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or the SEC, on January 28, 2020 (File No. 001-33351), or the Company’s 2019 Form 10-K. |
Revenues | Revenues Revenues include product sales, net of estimated returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for product transferred. Revenue is recognized when contractual performance obligations have been satisfied and control of the product has been transferred to the customer. In most cases, the Company has a single product delivery performance obligation. Accrued product returns are estimated based on historical data and evaluation of current information. Accounts receivable are recorded net of the allowance for doubtful accounts, which represents the Company’s best estimate of credit losses. Allowance for doubtful accounts was $70,000 as of September 30, 2020 and December 31, 2019. For the quarters ended September 30, 2020 and 2019, three customers accounted for 47% of total revenues and one customer accounted for 19% of total revenues, respectively. For the nine months ended September 30, 2020 and 2019, two customers accounted for 34% and one customer accounted for 20% of total revenues, respectively. Three customers accounted for 54% and two customers accounted for 42% of accounts receivable as of September 30, 2020 and December 31, 2019, respectively. Collaboration Income Collaboration Income is recognized within Other Income when contractual performance obligations, outside the ordinary activities of the Company, have been satisfied and control has been transferred to a collaboration partner. Collaboration Income for each performance obligation is based on the fair value of such performance obligation relative to the total fair value of all performance obligations multiplied by the overall transaction price. A deferred collaboration income liability is recorded when payments are received prior to satisfaction of performance obligations. A collaboration receivable is recorded when amounts are owed to the Company under the collaboration agreements and related support services. The Company recognized Collaboration income net of costs, within Other income in the Statement of Operations of zero and $7,116,667, for the nine months ended September 30, 2020 and 2019, respectively. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during reporting periods. Actual results could differ from those estimates. |
Net Loss Per Common Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
|
Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories consist of the following:
|
Accrued Expenses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses | Accrued expenses and compensation consist of the following:
|
Leases Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Lease, Liability, Maturity [Table Text Block] |
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis |
|
Comprehensive Loss (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Equity [Abstract] | ||||
Other comprehensive income (loss), net of tax | $ 0 | $ 0 | $ 0 | $ 0 |
Net Loss Per Common Share Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Earnings Per Share [Abstract] | ||||||||
Net Income (Loss) Attributable to Parent | $ (257,113) | $ (851,944) | $ (657,371) | $ (1,404,600) | $ (3,362,191) | $ 2,050,507 | $ (1,766,428) | $ (2,716,284) |
Weighted Average Number of Shares Outstanding, Basic | 3,784,657 | 978,175 | 2,755,903 | 886,609 | ||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 0 | 0 | 0 | 0 | ||||
Weighted Average Number of Shares Outstanding, Diluted | 3,784,657 | 978,175 | 2,755,903 | 886,609 | ||||
Earnings Per Share, Basic and Diluted | $ (0.07) | $ (1.44) | $ (0.64) | $ (3.06) |
Inventories (Detail) - USD ($) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Inventory [Line Items] | |||
Purchased components | $ 690,643 | $ 720,209 | |
Inventory Write-down | 0 | $ (2,595,884) | |
Finished goods | 359,650 | 443,505 | |
Inventories | $ 1,050,293 | $ 1,163,714 |
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Payables and Accruals [Abstract] | ||
Sales return allowance | $ 586,000 | $ 689,000 |
Technology fees | 450,000 | 450,000 |
Professional services | 291,000 | 454,000 |
Warranty reserve | 62,200 | 75,300 |
Accrued Advertising | 6,000 | 68,000 |
Accrued Salaries | 109,896 | 62,322 |
Other | 92,132 | 333,952 |
Accrued expenses | $ 1,011,228 | $ 1,443,574 |
Restructuring And Related Activities (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | |
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
Sep. 30, 2020 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 2,500,000 | ||||
Severance Costs | 224,773 | ||||
Restructuring Reserve | $ 400,000 | $ 400,000 | $ 400,000 | ||
IdleFacilityImpairmentCharge | 76,000 | 280,000 | $ 0 | 680,000 | |
Facility Relocation Costs | 100,000 | ||||
Inventory Write-down | 0 | $ 2,595,884 | |||
Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments for Restructuring | (224,773) | ||||
Restructuring Reserve | 0 | 0 | 0 | ||
Facility Relocation [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments for Restructuring | $ (100,000) | ||||
Restructuring Reserve | 0 | 0 | 0 | ||
Idle Facility Impairment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments for Restructuring | (280,000) | ||||
Restructuring Reserve | $ 400,000 | $ 400,000 | $ 400,000 |
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Assets | ||
Cash equivalents | $ 2,159,475 | $ 698,807 |
Assets, Fair Value Disclosure | 2,159,475 | 698,807 |
Level 1 | ||
Assets | ||
Cash equivalents | 2,159,475 | 698,807 |
Assets, Fair Value Disclosure | 2,159,475 | 698,807 |
Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Credit Facility (Detail) - USD ($) |
May 06, 2020 |
Apr. 28, 2020 |
Jan. 23, 2020 |
Sep. 30, 2020 |
---|---|---|---|---|
Line of Credit Facility [Line Items] | ||||
Credit facility expiration date | Apr. 30, 2020 | |||
Credit facility limit restricted to support letter of credit | $ 226,731 | |||
Paycheck Protection Program [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Repayments of Bank Debt | $ 773,200 | |||
Proceeds from Bank Debt | $ 773,200 |
Reverse Stock Split (Details) |
Nov. 18, 2019 |
Sep. 30, 2020
shares
|
Dec. 31, 2019
shares
|
---|---|---|---|
Class of Stock [Line Items] | |||
Shares outstanding (in shares) | 3,784,657 | 1,400,674 | |
Reverse stock split conversion ratio | 0.1 |
Subsequent Event Subsequent Events (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Subsequent Event [Line Items] | ||
Common Stock, Shares, Issued | 3,784,657 | 1,400,674 |
At The Market Offering Program [Member] | ||
Subsequent Event [Line Items] | ||
Proceeds from Issuance of Common Stock | $ 4,143,431 |
R:E]^+7*TN1O$(Y6R1
M;DMUSY]_9SM @1XOXZ6L_Z+GG:PW0ME6*K[>*8,%ZZ)J_J
6:*U*
M&POT]U(HY,8)V-O\;39&9*8'_-JZ/+ 8ICTI,/>>8ZQD'E_0RL-48MP4LSD
M95#W@=#I7?A86Q+T:-YY(",-6JQ]M+WWQWTE&QAPS:O=2Y^)]LSYG:86YLQ3
M,M9*6;UNZ]3O)WKOVYM.GDPB<@&Y@QX(XOG)B4+-:5[1STOVF5R"WM-_<=61
M&U_92.OCW>^YKA\"8N\NN[I!W=O SM[MX;/KC$OG6FS[1H91S)E=K/USPF!!
MKV%&@?EV*%5XAN$M]QUQH%E=0&6:NWSZ\FW.\?&@( DK,'V5C?OF#/\Y.?
MJMGL]/C\_/SNZ9W=>7>OGIRA5VD*/7,CUW_HX+LUS>"45%HYPT&I3E,V%.E,
M8'DE&_4:Y6LK(9R:"ETS%*5^SSA/0!X7 D:J3R$M0DDF-9TEEBD*D540>7M
M(LJWP$0U$HMU?NGLG[3LRHC+Y=4&'0'T""G*8 ME_S)G^8&PTU324FM)FECK
MJP[,G>B>ST8Z=!5/UUP+8]0^-DPG)NX.!SE*8(E7F5$Q4>&\<.9^+67&$UI3
M]@NRT242!U>DEPZPZPJEJ0_IU8-N]-9H/?%'GCB,4T6:)+5.FCTZ0*HY+5T^
MTY=04]_'@]7\C>A)S\B,$BUTQ[HX=)JS!).9*^Z%X9SO)+H#B%ZY5Y*!+33Z
MN!1U VM^>7\VF 0KES
M,D%#LX)PF UU2>>KM\..F%2*D<()PUM(.:
M-MY#F[!;K;"P;*QRR'?@1X?QEP?P(4EL=<8;G8/X(.$$JC.61* ]!D(2PM!1NP]Y2;"YY]QSKX^,/=M+]:03 $->LC37
M E W?>OO'+X+V)FC-;.5+)1:6^,^'7J!30AR2- R'M,#C]2O[G:N=:EEP Q.5_Q IKH9>WV,I9'R3XZ/:?8&JGJ[E2U1N
MW"_;'7QCBIAL#"I9@@ZX0KAOE6-T'I0MP H 3%=L#,4&*16C6:,;ZA4-
M\VQ\"D<1$((H^P25$G\"B=&017V[KW53+VK;Q[LW5%1N%>
M$G_O[CVAI[N=GNX^*7=?>A1].8KCMG_88&T*W+.>/NOILYX^Z^GWZ9Z;CEZX
M7.MB']X*>(-355/[Y":$3IC.95DQ<0
PC< ?U#._L#
M4$L#!!0 ( $M<5E$$3XOXF0( &<& 9 >&PO=V]R:W-H965T&PO=V]R:W-H965T=N<]DR PLEOO,2ZWDP"T@)%3L(7*O3
M1^CSN7>\0@GCG^34Q2;3@!0'@ZKIQ=9!PV7W9B]]'4:"*+TBB'M!_$H0AU<$
M22](_E>0]@)?:MJEXNNP9,CR3*L3T2[:TMS %].K;?I