Annual report pursuant to Section 13 and 15(d)

Significant Accounting Policies (Policies)

v3.20.4
Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
Financial Statement Presentation
 
The consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries, Viveve, Inc. and Viveve BV. All significant intercompany accounts and transactions have been eliminated in consolidation. 
Reserve Stock Split, Policy [Policy Text Block]
Reverse Stock Split -
December 2020
 
The Company effected a
1
-for-
10
reverse stock split of its common stock that became effective after market close on
December 1, 2020.
The reverse stock split uniformly affected all issued and outstanding shares of the Company's common stock. The reverse stock split provided that every
ten
shares of the Company's issued and outstanding common stock was automatically combined into
one
issued and outstanding share of common stock, without any change in par value per share. The number of authorized shares of common stock remained at
75,000,000
shares.
 
As a result of the reverse stock split, proportionate adjustments were made to the per share exercise price and/or the number of shares issuable upon the exercise or vesting of all then outstanding stock options, deferred restricted stock awards and warrants, which will result in a proportional decrease in the number of shares of the Company's common stock reserved for issuance upon exercise or vesting of such stock options, deferred restricted stock awards and warrants, and, in the case of stock options and warrants, a proportional increase in the exercise price of all such stock options and warrants. In addition, the number of shares reserved for issuance under the Company's equity compensation plans immediately prior to the effective date will be reduced proportionately. The Company issued
5,931
shares of common stock as a result of this adjustment.
 
No
fractional shares were issued as a result of the reverse stock split. Stockholders of record who would otherwise have been entitled to receive a fractional share were rounded up to the nearest whole number.
 
All of the share numbers, share prices, and exercise prices have been adjusted, on a retroactive basis, to reflect this
1
-for-
10
reverse stock split.
 
Reverse Stock Split -
September 2019
 
The Company effected a
1
-for-
100
reverse stock split of its common stock that became effective after market close on
September 18, 2019.
The reverse stock split uniformly affected all issued and outstanding shares of the Company's common stock. The reverse stock split did
not
alter any stockholder's percentage ownership interest in the Company, except to the extent that the reverse stock split resulted in fractional shares.
No
fractional shares were issued in connection with the reverse stock split. Any fractional shares that resulted from the reverse stock split were rounded down, and stockholders were issued cash in lieu of such fractional share interest of approximately
$6,000.
 
The par value of the Company's common stock remained unchanged at
$0.0001
per share after the reverse stock split.
 
The number of authorized shares of common stock remained at
75,000,000.
 
The reverse stock split proportionately affected the number of shares of common stock available for issuance under the Company's equity incentive plans. All stock options, warrants and restricted stock awards of the Company outstanding shares immediately prior to the reverse stock split were adjusted in accordance with their terms.
 
On the effective date of the reverse stock split, (i) each
100
shares of outstanding common stock were reduced to
one
share of common stock; (ii) the number of shares of common stock into which each outstanding stock option or warrant to purchase common stock is exercisable were proportionately reduced on an
100
-to-
1
basis; (iii) the exercise price of each outstanding stock option or warrant to purchase common stock were proportionately increased on a
1
-to-
100
basis; and (iv) the number of shares of common stock each outstanding restricted stock award will be issued upon vesting were proportionally reduced on a
100
-to-
1
basis.
 
All of the share numbers, share prices, and exercise prices have been adjusted, on a retroactive basis, to reflect this
1
-for-
100
reverse stock split.
Use of Estimates, Policy [Policy Text Block]
Use of Estimates
 
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are
not
readily apparent from other sources. Actual results
may
differ from these estimates. In addition, any change in these estimates or their related assumptions could have an adverse effect on our operating results. 
Changes in Accounting Policies, Policy [Policy Text Block]
Changes in Accounting Policies
 
Except for the changes for the adoption of the new accounting standard for leases, the Company has consistently applied the accounting policies to all periods presented in these consolidated financial statements.
 
Adoption of New Accounting Standard-Leases
 
The Company adopted FASB's Accounting Standards Update (“ASU”)
No.
2016
-
02,
Leases (Topic
842
), as of
January 1, 2019,
using the modified retrospective approach. The modified retrospective approach provides a method for recording existing leases at the beginning of the period of adoption. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification and we elected the hindsight practical expedient to determine the lease term for existing leases. We determined that the renewal options for the facilities lease would be reasonably certain to be renewed and as such, included that renewal period in determining the expected lease term of that lease. Adoption of the new standard resulted in the recording of operating lease right-of-use assets of
$629,000
and operating lease liabilities of
$629,000,
as of
January 1, 2019.
The standard did
not
have an impact on our consolidated results of operations, cash flows or stockholders' equity previously reported. The comparative information has
not
been restated and continues to be reported under the accounting standards in effect for those periods. 
 
The effect of the changes made to our consolidated
January 1, 2019
balance sheet for the adoption of the new lease standard was as follows (in thousands):  
 
   
 
 
 
 
Adjustments
 
 
 
 
 
 
   
 
 
 
 
Due to
 
 
 
 
 
 
   
December 31,
   
Adoption of
 
 
 
January 1,
 
   
2018
   
ASC 842
 
 
 
2019
 
                           
Other assets
  $
171
    $
629
(1)
    $
800
 
Total assets
  $
46,834
    $
629
(1)
    $
47,463
 
Accrued liabilities
  $
6,766
    $
230
(2)
    $
6,996
 
Total current liabilities
  $
10,760
    $
230
(2)
    $
10,990
 
Other noncurrent liabilities
  $
634
    $
399
(2)
    $
1,033
 
Total liabilities
  $
41,922
    $
629
(2)
    $
42,551
 
Total liabilities and stockholders' equity
  $
46,834
    $
629
(2)
    $
47,463
 
 
(
1
)
Represents capitalization of operating lease right-of-use assets and reclassification of deferred rent. 
(
2
)
Represents recognition of operating lease liabilities.
Cash and Cash Equivalents, Policy [Policy Text Block]
Cash and Cash Equivalents
 
The Company considers all highly liquid investments purchased with an original maturity of
three
months or less, at the time of purchase, to be cash equivalents. The Company's cash and cash equivalents are deposited in demand accounts primarily at
one
financial institution. Deposits in this institution
may,
from time to time, exceed the federally insured amounts.
Concentration Risk, Credit Risk, Policy [Policy Text Block]
Concentration of Credit Risk and Other Risks and Uncertainties
 
To achieve profitable operations, the Company must successfully develop, manufacture, and market its products. There can be
no
assurance that any such products can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products will be successfully marketed. These factors could have a material adverse effect upon the Company's financial results, financial position, and future cash flows.
 
Most of the Company's products to date require clearance or approvals from the U.S. Food and Drug Administration (“FDA”) or other international regulatory agencies prior to commencing commercial sales. There can be
no
assurance that the Company's products will receive any of these required clearances or approvals or for the indications requested. If the Company was denied such clearances or approvals or if such clearances or approvals were delayed, it would have a material adverse effect on the Company's financial results, financial position and future cash flows.
 
The Company is subject to risks common to companies in the medical device industry including, but
not
limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, uncertainty of market acceptance of products, product liability, and the need to obtain additional financing. The Company's ultimate success is dependent upon its ability to raise additional capital and to successfully develop and market its products.
 
The Company designs, develops, manufactures and markets a medical device that it refers to as the Viveve System, which is intended for the non-invasive treatment of vaginal introital laxity, for improved sexual function, for vaginal rejuvenation, for use in general surgical procedures for electrocoagulation and hemostasis, and stress urinary incontinence, depending on the relevant country-specific clearance or approval. The Viveve System consists of
three
main components: a radiofrequency generator housed in a table-top console, a reusable handpiece and a single-use treatment tip. Included with the system are single-use accessories (e.g. return pad, coupling fluid), as well as a cryogen canister that can be used for approximately
four
to
five
procedures, and a foot pedal. The Company outsources the manufacture and repair of the Viveve System to a single contract manufacturer. Also, certain other components and materials that comprise the device are currently manufactured by a single supplier or a limited number of suppliers. A significant supply interruption or disruption in the operations of the contract manufacturer or these
third
-party suppliers would adversely impact the production of our products for a substantial period of time, which could have a material adverse effect on our business, financial condition, operating results and cash flows.
 
In North America, the Company sells its products primarily through a direct sales force to health care practitioners. Outside North America, the Company sells through an extensive network of distribution partners. During the year ended
December 31, 2020,
one
distributor accounted for
36%
of the Company's revenue. During the year ended
December 31, 
2019,
one
distributor accounted for
16%
of the Company's revenue. 
 
There were
no
direct sales to customers that accounted for more than
10%
of the Company's revenue during the years ended
December 31, 2020
and
2019.
 
As of
December 31, 2020,
one
distributor, accounted for
37%
of total accounts receivable, net. As of
December 31, 2019,
two
distributors, collectively, accounted for
49%
of total accounts receivable, net.
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]
Accounts Receivable and Allowance for Doubtful Accounts
 
Accounts receivable are recorded at the invoiced amount and are
not
interest bearing. Our typical payment terms vary by region and type of customer (distributor or physician). Occasionally, payment terms of up to
six
months
may
be granted to customers with an established history of collections without concessions. Should we grant payment terms greater than
six
months or terms that are
not
in accordance with established history for similar arrangements, revenue would be recognized as payments become due and payable assuming all other criteria for revenue recognition have been met. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company makes ongoing assumptions relating to the collectability of its accounts receivable in its calculation of the allowance for doubtful accounts. In determining the amount of the allowance, the Company makes judgments about the creditworthiness of customers based on ongoing credit evaluations and assesses current economic trends affecting its customers that might impact the level of credit losses in the future and result in different rates of bad debts than previously seen. The Company also considers its historical level of credit losses. The allowance for doubtful accounts was
$124,000
and
$407,000
as of
December 31, 2020
and
2019,
respectively.
 
During the year ended
December 31, 2020,
the Company wrote-off accounts receivable totaling
$736,000
primarily related to Middle Eastern and Latin American distributors in connection with the Company's shift in its international business model to a strategic focus on the Asia Pacific geographic territory. During the year ended
December 31, 2019,
the Company wrote-off accounts receivable totaling
$905,000
primarily related to U.S. distributors in connection with the Company's shift in its U.S. business model to a recurring revenue rental model versus selling systems under a capital equipment sales model.
Inventory, Policy [Policy Text Block]
Inventory
 
Inventory is stated at the lower of cost or net realizable value. Inventory as of
December 31, 2020
consisted of
$2,818,000
of finished goods and
$436,000
of raw materials. Inventory as of
December 31, 2019
consisted of
$4,051,000
of finished goods and
$810,000
of raw materials. Cost is determined on an actual cost basis on a
first
-in,
first
-out method. Lower of cost or net realizable value is evaluated by considering obsolescence, excessive levels of inventory, deterioration and other factors. Adjustments to reduce the cost of inventory to its net realizable value, if required, are made for estimated excess, obsolescence or impaired inventory. Excess and obsolete inventory is charged to cost of revenue and a new lower-cost basis for that inventory is established and subsequent changes in facts and circumstances do
not
result in the restoration or increase in that newly established cost basis.
 
As part of the Company's recurring revenue rental model, the Company utilizes Viveve Systems transferred from finished goods inventory. The Company is amortizing these units over an estimated useful life of
five
years. The amortization of these Viveve Systems is charged to cost of sales and these units are included in the property and equipment, net balance on the consolidated balance sheets as of
December 31, 2020
and
2019.
 
As part of the Company's normal business, the Company generally utilizes various finished goods inventory as sales demos to facilitate the sale of its products to prospective customers. The Company is amortizing these demos over an estimated useful life of
five
years. The amortization of the demos is charged to selling, general and administrative expense and the demos are included in the property and equipment, net balance on the consolidated balance sheets as of
December 31, 2020
and
2019.
Property, Plant and Equipment, Policy [Policy Text Block]
Property and Equipment, net
 
Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over their estimated useful lives of
three
to
seven
years. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful lives or the life of the lease. Upon sale or retirement of assets, the cost and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]
Impairment of Long-Lived Assets
 
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might
not
be recoverable. When such an event occurs, management determines whether there has been an impairment by comparing the anticipated undiscounted future net cash flows to the related asset's carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset. The Company has
not
identified any such impairment losses to date. 
Revenue from Contract with Customer [Policy Text Block]
Revenue from Contracts with Customers
 
Revenue consists primarily of the sale of the Viveve System, single-use treatment tips and ancillary consumables. The Company applies the following
five
steps: (
1
) identify the contract with a customer, (
2
) identify the performance obligations in the contract, (
3
) determine the transaction price, (
4
) allocate the transaction price to the performance obligations in the contract, and (
5
) recognize revenue when a performance obligation is satisfied. The Company considers customer purchase orders to be the contracts with a customer. Revenues, net of expected discounts, are recognized when the performance obligations of the contract with the customer are satisfied and when control of the promised goods are transferred to the customer, typically when products, which have been determined to be the only distinct performance obligations, are shipped to the customer. Expected costs of assurance warranties and claims are recognized as expense. Revenue is recognized net of any sales taxes from the sale of the products.
 
Rental revenue is generated through the lease of the Viveve System. The Company's operating leases for the Viveve System generally have a rental period of
six
to
nine
months and can be extended or terminated by the customer after that time or the Viveve System could be purchased by the customer. Rental revenue on those operating leases is recognized on a straight-line basis over the terms of the underlying leases. The Company began this rental program in the quarter ended
June 30, 2019.
For the years ended
December 31, 2020
and
2019,
rental revenue recognized was
$1,337,000
and
$530,000.
As of 
December 31, 2020
and
2019,
the Company had deferred revenue in the amount of
$345,000
and
$662,000
related to its rental program. During the year ended
December 31, 2020,
the Company recognized
$594,000
of rental revenue, which was deferred as of
December 31, 2019.
 
Late in the
first
quarter of
2020,
the negative impact of the COVID-
19
pandemic on medical facilities and practitioners was in full effect in the United States. Federal, regional, and local government and public health agencies issued directives halting performance of non-essential medical treatments and elective procedures in an effort to combat the spread of the coronavirus and protect public health and safety. As a result, an estimated
70
-
80%
of Viveve's U.S. customers either temporarily closed their medical practices or dramatically reduced services and staff. The consequence has been both a public health and economic crisis that is continuing for existing and prospective Viveve customers. In a supportive partnership response, Viveve contacted all of its subscription customers and provided them with a
three
-month deferral of the rental payment. Although clinics in various regions are beginning to re-open and provide limited services, we anticipate that until the COVID-
19
pandemic abates, more practices begin to re-open and elective patient's safety concerns are reduced, that we will continue to experience reduced revenue from existing subscription customers, as well as a greatly reduced number of new and prospective customers. 
 
In connection with the lease of the Viveve System, the Company offers single-use treatment tips and ancillary consumables that are considered non-lease components. In the contracts with lease and non-lease components, the Company follows the relevant guidance in ASC
606,
Revenue from Contracts with Customers, to determine how to allocate contractual consideration between the lease and non-lease components.
 
Sales of our products are subject to regulatory requirements that vary from country to country. The Company has regulatory clearance for differing indications, or can sell its products without a clearance, in many countries throughout the world, including countries within the following regions: North America, Latin America, Europe, the Middle East and Asia Pacific. In North America, we market and sell primarily through a direct sales force. Outside of North America, we market and sell primarily through distribution partners.
 
The Company does 
not
 provide its customers with a right of return.
 
Customer Advance Payments
 
From time to time, customers will pay for a portion of the products ordered in advance.  Upon receipt of such payments, the Company records the customer advance payment as a component of accrued liabilities.  The Company will remove the customer advance payment from accrued liabilities when revenue is recognized upon shipment of the products. 
 
Contract Assets and Liabilities
 
The Company continually evaluates whether the revenue generating activities and advanced payment arrangements with customers result in the recognition of contract assets or liabilities.
No
such assets existed as of 
December 31, 2020
or
2019.
The Company had customer contract liabilities in the amount of
$17,000
and
$108,000,
primarily related to marketing programs that performance had
not
yet been delivered to its customers as of
December 31, 2020
and
December 31, 2019,
respectively. Contract liabilities are recorded in accrued liabilities on the consolidated balance sheets.
 
The following table reflects the changes in our customer contract liabilities for the year ended
December 31, 2020:
 
   
December 31,
   
December 31,
   
 
 
 
   
2020
   
2019
   
Change
 
                         
Customer contracts liabilities:
                       
Marketing programs
  $
17
    $
108
    $
(91
)
Total
  $
17
    $
108
    $
(91
)
 
Separately, accounts receivable, net represents receivables from contracts with customers.
 
Significant Financing Component
 
The Company applies the practical expedient to
not
make any adjustment for a significant financing component if, at contract inception, the Company does
not
expect the period between customer payment and transfer of control of the promised goods or services to the customer to exceed
one
year. During the years ended
December 31, 2020
and
2019,
the Company did
not
have any contracts for the sale of its products with its customers with a significant financing component. 
 
Contract Costs
 
 
The Company began its rental program in the quarter ended
June 30, 2019.
The Company expects that commissions paid to obtain subscriptions are recoverable and has therefore capitalized them as a contract costs in the amount of
$132,000
and
$486,000
at
December 31, 2020
and
2019,
respectively. Capitalized commissions are amortized based on the subscription periods to which the assets relate and are included in selling, general and administrative expenses. For the year ended
December 31, 2020
and
2019,
the amount of amortization was
$417,000
and
$143,000,
respectively. There was
no
impairment loss in relation to the costs capitalized.
 
Shipping and Handling
 
Shipping costs billed to customers are recorded as revenue. Shipping and handling expense related to costs incurred to deliver product are recognized within cost of goods sold. The Company accounts for shipping and handling activities that occur after control has transferred as a fulfillment cost as opposed to a separate performance obligation, and the costs of shipping and handling are recognized concurrently with the related revenue. 
 
Revenue by Geographic Area:
 
 
Management has determined that the sales by geography is a key indicator for understanding the Company's financials because of the different sales and business models that are required in the various regions of the world (including regulatory, selling channels, pricing, customers and marketing efforts). The following table presents the revenue from unaffiliated customers disaggregated by geographic area for the year ended
December 31, 2020
and
2019
(in thousands):
 
   
Year Ended
 
   
December
31,
 
   
2020
   
2019
 
                 
                 
Asia Pacific
  $
2,732
    $
2,349
 
United States
   
2,537
     
3,672
 
Canada
   
110
     
277
 
Europe and Middle East
   
86
     
254
 
Latin America
   
14
     
15
 
Total
  $
5,479
    $
6,567
 
 
The Company determines geographic location of its revenue based upon the destination of the shipments of its products.
Equity Method Investments [Policy Text Block]
Investments in Unconsolidated Affiliates
 
The Company uses the equity method to account for its investments in entities that it does
not
control but have the ability to exercise significant influence over the investee. Equity method investments are recorded at original cost and adjusted periodically to recognize (
1
) the proportionate share of the investees' net income or losses after the date of investment, (
2
) additional contributions made and dividends or distributions received, and (
3
) impairment losses resulting from adjustments to net realizable value. The Company eliminates all intercompany transactions in accounting for equity method investments. The Company records the proportionate share of the investees' net income or losses in equity in earnings of unconsolidated affiliates on the consolidated statements of operations. The Company utilizes a
three
-month lag in reporting equity income from its investments, adjusted for known amounts and events, when the investee's financial information is
not
available timely or when the investee's reporting period differs from our reporting period.
 
The Company assesses the potential impairment of the equity method investments when indicators such as a history of operating losses, a negative earnings and cash flow outlook, and the financial condition and prospects for the investee's business segment might indicate a loss in value. The carrying value of the investments is reviewed annually for changes in circumstances or the occurrence of events that suggest the investment
may
not
be recoverable. During the years ended
December 31, 2020
and
2019,
no
impairment charges have been recorded in the consolidated statements of operations. 
Standard Product Warranty, Policy [Policy Text Block]
Product Warranty
 
The Company's products sold to customers are generally subject to warranties between
one
and
three
years, which provides for the repair, rework or replacement of products (at the Company's option) that fail to perform within stated specifications. The Company has assessed the historical claims and, to date, product warranty claims have
not
been significant.
Advertising Cost [Policy Text Block]
Advertising Costs
 
Advertising costs are charged to selling, general and administrative expenses as incurred. Advertising expenses, which are recorded in selling, general and administrative expenses, were immaterial for the years ended
December 31, 2020
and
2019.
Research and Development Expense, Policy [Policy Text Block]
Research and Development
 
Research and development costs are charged to operations as incurred. Research and development costs include, but are
not
limited to, payroll and personnel expenses, prototype materials, laboratory supplies, consulting costs, and allocated overhead, including rent, equipment depreciation, and utilities.
Income Tax, Policy [Policy Text Block]
Income Taxes
 
The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than
not
that a tax benefit will
not
be realized.
 
The Company must assess the likelihood that the Company's deferred tax assets will be recovered from future taxable income, and to the extent the Company believes that recovery is
not
likely, the Company establishes a valuation allowance. Management judgment is required in determining the Company's provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against the net deferred tax assets. The Company recorded a full valuation allowance as of
December 31, 2020
and
2019.
Based on the available evidence, the Company believes it is more likely than
not
that it will
not
be able to utilize its deferred tax assets in the future. The Company intends to maintain valuation allowances until sufficient evidence exists to support the reversal of such valuation allowances. The Company makes estimates and judgments about its future taxable income that are based on assumptions that are consistent with its plans. Should the actual amounts differ from the Company's estimates, the carrying value of the Company's deferred tax assets could be materially impacted.
 
The Company recognizes in the financial statements the impact of a tax position, if that position is more likely than
not
of being sustained on audit, based on the technical merits of the position. The Company's policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does
not
believe there are any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within
12
months of the reporting date.
Share-based Payment Arrangement [Policy Text Block]
Accounting for Stock-Based Compensation
 
Share-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as expense over the employee's service period. The Company recognizes compensation expense on a straight-line basis over the requisite service period of the award.
 
The Company determined that the Black-Scholes option pricing model is the most appropriate method for determining the estimated fair value for stock options and purchase rights under the employee stock purchase plan. The Black-Scholes option pricing model requires the use of highly subjective and complex assumptions which determine the fair value of share-based awards, including the option's expected term and the price volatility of the underlying stock.
 
Equity instruments issued to nonemployees are recorded in the same manner as similar instruments issued to employees.
Comprehensive Income, Policy [Policy Text Block]
Comprehensive Loss
 
Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss
may
include certain changes in equity that are excluded from net loss. For the years ended
December 31, 2020
and
2019,
the Company's comprehensive loss is the same as its net loss.  
Earnings Per Share, Policy [Policy Text Block]
Net Loss per Share
 
The Company's basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents outstanding during the period. For purposes of this calculation, stock options and warrants to purchase common stock and restricted common stock awards are considered common stock equivalents. For periods in which the Company has reported net losses, diluted net loss per share is the same as basic net loss per share, since dilutive common shares are
not
assumed to have been issued if their effect is anti-dilutive. 
 
The following securities were excluded from the calculation of net loss per share because the inclusion would be anti-dilutive.
 
   
December
31,
 
   
2020
   
2019
 
                 
Convertible preferred stock:
               
Series A convertible preferred stock
   
-
(a)
   
185,218
 
Series B convertible preferred stock
   
2,341,111
(b)
   
2,070,458
 
Warrants to purchase common stock
   
1,728,725
 
   
2,473,785
 
Stock options to purchase common stock
   
986,399
 
   
1,008,833
 
Deferred restricted common stock awards
   
394
 
   
277
 
 
 
(a)
Each share of Series A convertible preferred stock was convertible at any time at the holder's option into
one
share of common stock. In
December 2020,
the Company filed a Certificate of Elimination with the Delaware Secretary of State with respect to the authorized shares of Series A convertible preferred stock. As of
December 31, 2020,
all Series A convertible preferred stock had been converted into common stock and there were
no
remaining shares outstanding.
 
(b)
As of
December 31, 2020
and
2019,
a total of
35,819
and
31,678
shares of Series B convertible preferred stock were outstanding and convertible into
2,341,111
and
2,70,458
shares of common stock, respectively. Each share of Series B convertible preferred stock is convertible at the holder's option into shares of common stock at a conversion ratio of
1
-for-
65.36
per share determined by dividing the Series B liquidation amount of
$1,000
per share by the Series B conversion price of
$15.30
per share. However, under the terms of the Series B Preferred Stock and Warrant Purchase Agreement, as amended, CRG will
not
convert the Series B preferred stock or exercise the CRG warrants until the Company's stockholders act to authorize additional number of shares of common stock sufficient to cover the conversion shares.
New Accounting Pronouncements, Policy [Policy Text Block]
Other Recently Issued and Adopted Accounting Standards
 
In
November 2019,
the FASB issued ASU
2019
-
08,
“Stock Compensation (Topic
718
) and Revenue from Contracts with Customers (Topic
606
). The amendments in this Update require measurement and classification of share-based payment awards granted to a customer by applying the guidance in Topic
718.
This guidance is effective for annual reporting periods beginning after
December 15, 2019,
including interim periods within that reporting period, with early adoption permitted. We adopted this guidance as of
January 1, 2020
and the adoption of the guidance did
not
have a significant impact on the consolidated financial statements.
 
In
December 2019,
the FASB issued ASU
2019
-
12,
“Income Taxes (Topic
740
). The amendments in this Update provide further simplification of accounting standards for the accounting for income taxes. Certain exceptions for are removed and requirements regarding the accounting for franchise taxes, tax basis of goodwill, and tax law rate changes are made. This guidance is effective for annual reporting periods beginning after
December 15, 2020,
including interim periods within that reporting period, with early adoption permitted. We will adopt this guidance as of
January 1, 2021
and the adoption of the guidance is
not
expected to have a significant impact on the consolidated financial statements.
 
We have reviewed other recent accounting pronouncements and concluded they are either
not
applicable to the business, or
no
material effect is expected on the consolidated financial statements as a result of future adoption.