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Share Name | Share Symbol | Market | Type |
---|---|---|---|
XG Technology, | NASDAQ:XGTI | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.45 | 0.45 | 0.459 | 0 | 01:00:00 |
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| | |
June 30,
2017 |
| |
December 31,
2016 |
| |
December 31,
2015 |
| |||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||
Consolidated Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 4,656 | | | | | $ | 9,054 | | | | | $ | 368 | | |
Intangible assets, net
|
| | | | 8,236 | | | | | | 5,872 | | | | | | 11,903 | | |
Total assets
|
| | | | 48,005 | | | | | | 19,899 | | | | | | 16,574 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Convertible note payable
|
| | | | 2,000 | | | | | | 2,000 | | | | | | 2,000 | | |
Total liabilities
|
| | | | 19,955 | | | | | | 7,260 | | | | | | 6,283 | | |
Additional paid in capital
|
| | | | 229,772 | | | | | | 221,960 | | | | | | 198,710 | | |
Accumulated deficit
|
| | | | (202,048 ) | | | | | | (209,299 ) | | | | | | (188,397 ) | | |
Total stockholders’ equity
|
| | | $ | 28,050 | | | | | $ | 12,639 | | | | | $ | 10,291 | | |
| | |
For the Six Months Ended
June 30, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Revenue
|
| | | $ | 23,553 | | | | | $ | 2,584 | | |
Cost of revenue and operating expenses | | | | | | | | | | | | | |
Total cost of revenue and operating expenses
|
| | | | 34,848 | | | | | | 11,832 | | |
Loss from operations
|
| | | | (11,295 ) | | | | | | (9,248 ) | | |
Other income (expense) | | | | | | | | | | | | | |
Total other income
|
| | | | 18,546 | | | | | | 603 | | |
Net income (loss)
|
| | | $ | 7,251 | | | | | $ | (8,645 ) | | |
Dividends and deemed dividends
|
| | | | — | | | | | | (1,808 ) | | |
Net income (loss) attributable to common shareholders
|
| | | $ | 7,251 | | | | | $ | (10,453 ) | | |
Basic earnings (loss) per share
|
| | | $ | 0.69 | | | | | $ | (25.43 ) | | |
Diluted earnings (loss) per share
|
| | | $ | 0.69 | | | | | $ | (25.43 ) | | |
Weighted average number of shares outstanding: | | | | | | | | | | | | | |
Basic
|
| | | | 10,500 | | | | | | 411 | | |
Diluted
|
| | | | 10,500 | | | | | | 411 | | |
Comprehensive loss: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 7,251 | | | | | $ | (8,645 ) | | |
Unrealized gain on currency translation adjustment
|
| | | | 348 | | | | | | — | | |
Comprehensive income (loss)
|
| | | $ | 7,599 | | | | | $ | (8,645 ) | | |
|
| | |
For the Years Ended
December 31, |
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Revenue
|
| | | $ | 6,574 | | | | | $ | 932 | | |
Cost of Revenue and operating expenses | | | | | | | | | | | | | |
Total cost of revenue and operating expenses
|
| | | | 29,434 | | | | | | 20,793 | | |
Loss from operations
|
| | | | (22,860 ) | | | | | | (19,861 ) | | |
Other income (expenses) | | | | | | | | | | | | | |
Total other income
|
| | | | 1,958 | | | | | | 2,004 | | |
Net loss
|
| | | $ | (20,902 ) | | | | | $ | (17,857 ) | | |
Dividends and deemed dividends
|
| | | | (1,808 ) | | | | | | (3,079 ) | | |
Net loss attributable to common shareholders
|
| | | $ | (22,710 ) | | | | | $ | (20,936 ) | | |
Basic and diluted net loss per common share
|
| | | $ | (36.87 ) | | | | | $ | (332.32 ) | | |
Weighted average number of shares outstanding basic and diluted
|
| | | | 616 | | | | | | 63 | | |
|
Name of Selling Securityholder
|
| |
Number of
Shares of Common Stock Owned Prior to Offering (1) |
| |
Maximum
Number of Shares of Common Stock to be Sold Pursuant to this Prospectus (2) |
| |
Number of
Shares of Common Stock Owned After Offering |
| |
Percentage
Beneficially Owned After Offering (2) |
| ||||||||||||
Anson Investments Master Fund LP
(3)
|
| | | | 2,427,013 | | | | | | 260,163 | | | | | | 2,166,850 | | | | | | 9.99 % (17) | | |
Benjamin H. Dickens Jr.
(4)
|
| | | | 137 | | | | | | 137 | | | | | | — | | | | | | — | | |
Gary Cuccio
(5)
|
| | | | 12,505 | | | | | | 7,283 | | | | | | 5,222 | | | | | | * | | |
George Schmitt
(6)
|
| | | | 503,316 | | | | | | 29,315 | | | | | | 474,001 | | | | | | 3.26 % | | |
Gerald J. Duffy
(7)
|
| | | | 138 | | | | | | 138 | | | | | | — | | | | | | — | | |
Harold Mordkofsky and Barbara C. Mordkofsky
(Joint Tenants) (8) |
| | | | 142 | | | | | | 142 | | | | | | — | | | | | | — | | |
Intracoastal Capital
(9)
|
| | | | 1,330,797 | | | | | | 260,163 | | | | | | 1,070,634 | | | | | | 7.36 % (17) | | |
Iroquois Capital Investment Group LLC
(10)
|
| | | | 335,667 | | | | | | 78,000 | | | | | | 257,667 | | | | | | 1.77 % | | |
Iroquois Master Fund, Ltd.
(11)
|
| | | | 882,908 | | | | | | 182,163 | | | | | | 700,745 | | | | | | 4.82 % (17) | | |
Jerry O’Brien and Nancy Anderson (Joint Tenants)
|
| | | | 283 | | | | | | 283 | | | | | | — | | | | | | — | | |
John A. Prendergast
(12)
|
| | | | 138 | | | | | | 138 | | | | | | — | | | | | | — | | |
Kenneth Hoffman
(13)
|
| | | | 12,484 | | | | | | 7,300 | | | | | | 5,184 | | | | | | * | | |
Louis T. Fiore
|
| | | | 9,572 | | | | | | 7,651 | | | | | | 1,921 | | | | | | * | | |
MBTH (14) | | | | | 164,717 | | | | | | 164,717 | | | | | | — | | | | | | — | | |
Raymond Sidney
(15)
|
| | | | 11,714 | | | | | | 7,295 | | | | | | 4,419 | | | | | | * | | |
Treco International SA
(16)
|
| | | | 96,293 | | | | | | 96,293 | | | | | | — | | | | | | — | | |
TOTAL
|
| | | | 5,787,824 | | | | | | 1,101,181 | | | | | | 4,686,643 | | | | | | 32.21 % | | |
| | |
Share Price
|
| |||||||||
Quarter
|
| |
High
|
| |
Low
|
| ||||||
Fourth Quarter 2017 (through October 17, 2017)
|
| | | $ | 1.84 | | | | | $ | 1.61 | | |
Third Quarter 2017
|
| | | $ | 2.54 | | | | | $ | 1.60 | | |
Second Quarter 2017
|
| | | $ | 2.02 | | | | | $ | 1.36 | | |
First Quarter 2017
|
| | | $ | 2.53 | | | | | $ | 1.42 | | |
Fourth Quarter 2016
|
| | | $ | 6.20 | | | | | $ | 1.17 | | |
Third Quarter 2016
|
| | | $ | 11.70 | | | | | $ | 2.50 | | |
Second Quarter 2016
|
| | | $ | 34.80 | | | | | $ | 8.40 | | |
First Quarter 2016
|
| | | $ | 28.80 | | | | | $ | 9.60 | | |
Fourth Quarter 2015
|
| | | $ | 96.00 | | | | | $ | 22.80 | | |
Third Quarter 2015
|
| | | $ | 384.00 | | | | | $ | 42.00 | | |
Second Quarter 2015
|
| | | $ | 672.00 | | | | | $ | 240.00 | | |
First Quarter 2015
|
| | | $ | 768.00 | | | | | $ | 312.00 | | |
| | |
For the Years Ended
December 31, |
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Revenue
|
| | | $ | 6,574 | | | | | $ | 932 | | |
Cost of Revenue and operating expenses | | | | ||||||||||
Cost of components and personnel
|
| | | | 3,133 | | | | | | 510 | | |
Inventory valuation adjustments
|
| | | | 2,417 | | | | | | 861 | | |
General and administrative expenses
|
| | | | 9,534 | | | | | | 7,573 | | |
Research and development
|
| | | | 6,106 | | | | | | 4,928 | | |
Impairment charge
|
| | | | 2,683 | | | | | | 2,092 | | |
Amortization and depreciation
|
| | | | 5,561 | | | | | | 4,829 | | |
Total cost of revenue and operating expenses
|
| | | | (29,434 ) | | | | | | (20,793 ) | | |
Loss from operations
|
| | | | (22,860 ) | | | | | | (19,861 ) | | |
Other income (expenses) | | | | ||||||||||
Changes in fair value of derivative liabilities
|
| | | | 2,545 | | | | | | 2,559 | | |
Offering expenses
|
| | | | (684 ) | | | | | | — | | |
Gain on bargain purchase
|
| | | | 2,749 | | | | | | — | | |
Other expense
|
| | | | (1,727 ) | | | | | | (26 ) | | |
Interest expense
|
| | | | (925 ) | | | | | | (529 ) | | |
Total other income
|
| | | | 1,958 | | | | | | 2,004 | | |
Net loss
|
| | | $ | (20,902 ) | | | | | $ | (17,857 ) | | |
Dividends and deemed dividends
|
| | | | (1,808 ) | | | | | | (3,079 ) | | |
Net loss attributable to common shareholders
|
| | | $ | (22,710 ) | | | | | $ | (20,936 ) | | |
Basic and diluted net loss per common share
|
| | | $ | (36.87 ) | | | | | $ | (332.32 ) | | |
Weighted average number of shares outstanding basic and diluted
|
| | | | 616 | | | | | | 63 | | |
|
| | |
June 30,
2017 |
| |
June 30,
2016 |
| ||||||
Cash flows provided by (used in) Operations
|
| | | $ | 371 | | | | | $ | (4,361 ) | | |
Investing Activities
|
| | | $ | (6,895 ) | | | | | $ | (35 ) | | |
Financing Activities
|
| | | $ | 1,778 | | | | | $ | 4,182 | | |
Cash at end of period
|
| | | $ | 4,656 | | | | | $ | 154 | | |
Name of Executive Officer or Director
|
| |
Age
|
| |
Position
|
| |
Date First Elected or
Appointed |
|
George F. Schmitt | | |
73
|
| | Executive Chairman of the Board, Director and Chief Executive Officer | | | February 4, 2011 | |
Roger G. Branton | | |
50
|
| | Chief Financial Officer | | | August 26, 2002 | |
Belinda Marino | | |
57
|
| | Secretary | | | August 20, 2013 | |
John C. Coleman | | |
63
|
| | Director and President of Federal and Expeditionary Business Division | | | January 19, 2011 | |
John Payne IV | | |
47
|
| | President of the IMT Division | | | January 29, 2016 | |
James Walton | | |
37
|
| | President of IMT Ltd. | | |
February 16, 2017
|
|
Gary Cuccio | | |
71
|
| | Director | | | July 18, 2013 | |
Kenneth Hoffman | | |
61
|
| | Director | | | July 18, 2013 | |
Richard L. Mooers | | |
53
|
| | Director | | | February 4, 2004 | |
Raymond M. Sidney | | |
46
|
| | Director | | | July 18, 2013 | |
General James T. Conway | | |
69
|
| | Director | | | January 6, 2015 | |
Audit Committee
|
| |
Compensation Committee
|
| |
Governance and Nomination Committee
|
|
Gary Cuccio* | | | Gary Cuccio | | | Gary Cuccio | |
Kenneth Hoffman | | | Kenneth Hoffman | | | Kenneth Hoffman* | |
General James T. Conway | | | Raymond Sidney | | | Raymond Sidney | |
| | | General James T. Conway* | | | General James T. Conway | |
Name and Principal
Position |
| |
Fiscal
Year |
| |
Salary
($) |
| |
Bonus
($) |
| |
Stock
Awards ($) |
| |
Option
Awards ($) (1) |
| |
Non-Equity
Incentive Plan Compensation ($) |
| |
Non-qualified
Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($) (2) |
| |
Total
($) |
| |||||||||||||||||||||||||||
George F. Schmitt,
Executive Chairman (3) |
| | | | 2016 | | | | | | 300,000 | | | | | | 0 | | | | | | 0 | | | | | | 12,924 | | | | | | — | | | | | | — | | | | | | 0 | | | | | | 312,924 | | |
| | | 2015 | | | | | | 187,500 | | | | | | 0 | | | | | | 0 | | | | | | 26,636 | | | | | | — | | | | | | — | | | | | | 694 | | | | | | 214,830 | | | ||
John C. Coleman,
President, Federal |
| | | | 2016 | | | | | | 250,000 | | | | | | 0 | | | | | | 0 | | | | | | 12,924 | | | | | | — | | | | | | — | | | | | | 36,675 | | | | | | 299,599 | | |
| | | 2015 | | | | | | 250,000 | | | | | | 0 | | | | | | 0 | | | | | | 26,636 | | | | | | — | | | | | | — | | | | | | 36,672 | | | | | | 313,308 | | | ||
Roger G. Branton,
Chief Financial Officer |
| | | | 2016 | | | | | | 240,000 | | | | | | 0 | | | | | | 0 | | | | | | 12,924 | | | | | | — | | | | | | — | | | | | | 12,270 | | | | | | 265,194 | | |
| | | 2015 | | | | | | 240,000 | | | | | | 0 | | | | | | 0 | | | | | | 26,636 | | | | | | — | | | | | | — | | | | | | 11,154 | | | | | | 277,790 | | | ||
John Payne IV,
President, IMT Americas (4) |
| | | | 2016 | | | | | | 210,787 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | — | | | | | | — | | | | | | 7,272 | | | | | | 218,059 | | |
| | | 2015 | | | | | | NA | | | | | | 0 | | | | | | 0 | | | | | | NA | | | | | | — | | | | | | — | | | | | | NA | | | | | | NA | | |
Plan Category
|
| |
Number of
Securities to be Issued upon Exercise of Outstanding Options |
| |
Weighted
Average Exercise Price of Outstanding Options |
| |
Number of Securities
Remaining Available for Future Issuance under Equity Compensation Plans (excluding securities reflected in column (a)) (5) |
| |||||||||
| | |
(a)
|
| |
(b)
|
| |
(c)
|
| |||||||||
Equity compensation plans approved by
security holders (1) |
| | | | — | | | | | $ | — | | | | | | 1,140,978 (5) | | |
Equity compensation plans approved by
security holders (2) |
| | | | — | | | | | | — | | | | | | 1,739,710 (5) | | |
Equity compensation plans approved by
security holders (3) |
| | | | — | | | | | | — | | | | | | 921,475 (5) | | |
Equity compensation plans approved by
security holders (4) |
| | | | — | | | | | | — | | | | | | 2,643,695 | | |
| | | | | — | | | | | $ | — | | | | | | 6,445,858 (5) | | |
|
Name
|
| |
Fees
earned or paid in cash ($) |
| |
Stock
Awards ($) |
| |
Option
Awards ($) (1) |
| |
Non-equity
incentive plan compensation ($) |
| |
Change in
pension value and nonqualified deferred compensation earnings ($) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| |||||||||||||||||||||
Gary Cuccio
|
| | | | 0 | | | | | | 15,000 | | | | | | 1,707 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 16,707 | | |
Kenneth Hoffman
|
| | | | 0 | | | | | | 15,000 | | | | | | 1,707 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 16,707 | | |
Raymond Sidney
|
| | | | 0 | | | | | | 15,000 | | | | | | 1,707 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 16,707 | | |
General James T. Conway
|
| | | | 15,000 | | | | | | 0 | | | | | | 1,707 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 16,707 | | |
Name and Address of Beneficial Owner:
|
| |
Amount and
Nature of Beneficial Ownership |
| |
Percent of Class
of Common Stock (1) |
| ||||||
5% Stockholders: | | | | ||||||||||
None | | | | ||||||||||
Named Executive Officers and Directors: | | | | ||||||||||
George F. Schmitt
(2)
|
| | | | 482,483 | | | | | | 3.32 % | | |
Roger G. Branton
(3)
|
| | | | 179,927 | | | | | | 1.24 % | | |
John C. Coleman
(4)
|
| | | | 38,978 | | | | | | * | | |
John Payne IV
|
| | | | — | | | | | | — | | |
Belinda Marino
(5)
|
| | | | 7,507 | | | | | | * | | |
Gary Cuccio
(6)
|
| | | | 12,505 | | | | | | * | | |
Richard L. Mooers
(7)
|
| | | | 247,269 | | | | | | 1.70 % | | |
Ken Hoffman
(8)
|
| | | | 12,484 | | | | | | * | | |
Raymond M. Sidney
(9)
|
| | | | 11,714 | | | | | | * | | |
General James T. Conway
|
| | | | 4,616 | | | | | | * | | |
James Walton
|
| | | | — | | | | | | — | | |
All Executive Officers and Directors as a Group (11 Persons):
|
| | | | 668,049 | | | | | | 4.59 % | | |
| | |
December 31,
2016 Number of Options and Warrants |
| |
December 31,
2015 Number of Options and Warrants |
| ||||||
At January 1
|
| | | | 77,690 | | | | | | 4,651 | | |
Granted
|
| | | | 7,602,945 | | | | | | 195,142 | | |
Forfeited or Expired
|
| | | | (2,422 ) | | | | | | (5,186 ) | | |
Exercised
|
| | | | (64,466 ) | | | | | | (116,917 ) | | |
Unexercised as at December 31, 2016 and December 31, 2015
|
| | | | 7,613,747 | | | | | | 77,690 | | |
|
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-6 | | |
| | |
June 30,
2017 (unaudited) |
| |
December 31,
2016 |
| ||||||
ASSETS | | | | ||||||||||
Current assets | | | | ||||||||||
Cash
|
| | | $ | 4,656 | | | | | $ | 9,054 | | |
Accounts receivable, net
|
| | | | 10,393 | | | | | | 1,369 | | |
Inventories, net
|
| | | | 18,669 | | | | | | 2,722 | | |
Prepaid expenses and other current assets
|
| | | | 1,879 | | | | | | 111 | | |
Total current assets
|
| | | | 35,597 | | | | | | 13,256 | | |
Property and equipment, net
|
| | | | 4,172 | | | | | | 771 | | |
Intangible assets, net
|
| | | | 8,236 | | | | | | 5,872 | | |
Total assets
|
| | | $ | 48,005 | | | | | $ | 19,899 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | ||||||||||
Current liabilities | | | | ||||||||||
Accounts payable
|
| | | $ | 10,366 | | | | | $ | 1,606 | | |
Accrued expenses
|
| | | | 4,183 | | | | | | 1,813 | | |
Accrued interest
|
| | | | 132 | | | | | | 269 | | |
Due to related parties
|
| | | | 1,633 | | | | | | 96 | | |
Deferred revenue and customer deposits
|
| | | | 189 | | | | | | 186 | | |
Obligation under capital leases
|
| | | | 43 | | | | | | 58 | | |
Derivative liabilities
|
| | | | 1,373 | | | | | | 1,183 | | |
Total current liabilities
|
| | | | 17,919 | | | | | | 5,211 | | |
Long-term obligation under capital leases, net of current portion
|
| | | | 36 | | | | | | 49 | | |
Convertible note payable
|
| | | | 2,000 | | | | | | 2,000 | | |
Total liabilities
|
| | | | 19,955 | | | | | | 7,260 | | |
Commitments and contingencies | | | | ||||||||||
Stockholders’ equity | | | | ||||||||||
Preferred stock – $0.00001 par value per share: 10,000,000 shares authorized as
of June 30, 2017 and December 31, 2016; 0 shares issued and outstanding as of June 30, 2017 and December 31, 2016 |
| | | | — | | | | | | — | | |
Common stock – $0.00001 par value, 100,000,000 shares authorized, 11,621,229 and 7,606,518 shares issued and 11,621,227 and 7,606,516 shares outstanding as of June 30, 2017 and December 31, 2016, respectively
|
| | | | — | | | | | | — | | |
Additional paid in capital
|
| | | | 229,772 | | | | | | 221,960 | | |
Accumulated other comprehensive gain
|
| | | | 348 | | | | | | — | | |
Treasury stock, at cost – 2 shares at June 30, 2017 and December 31, 2016, respectively
|
| | | | (22 ) | | | | | | (22 ) | | |
Accumulated deficit
|
| | | | (202,048 ) | | | | | | (209,299 ) | | |
Total stockholders’ equity
|
| | | | 28,050 | | | | | | 12,639 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 48,005 | | | | | $ | 19,899 | | |
|
| | |
For the Three Months Ended
June 30, |
| |
For the Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
Revenue
|
| | | $ | 14,218 | | | | | $ | 1,655 | | | | | $ | 23,553 | | | | | $ | 2,584 | | |
Cost of revenue and operating expenses | | | | | | ||||||||||||||||||||
Cost of components and personnel
|
| | | | 9,695 | | | | | | 814 | | | | | | 15,266 | | | | | | 1,240 | | |
Inventory valuation adjustments
|
| | | | (23 ) | | | | | | 42 | | | | | | 76 | | | | | | 110 | | |
General and administrative expenses
|
| | | | 6,441 | | | | | | 2,377 | | | | | | 12,989 | | | | | | 4,413 | | |
Research and development expenses
|
| | | | 2,511 | | | | | | 1,542 | | | | | | 4,385 | | | | | | 3,202 | | |
Amortization and depreciation
|
| | | | 1,143 | | | | | | 1,512 | | | | | | 2,132 | | | | | | 2,867 | | |
Total cost of revenue and operating expenses
|
| | | | 19,767 | | | | | | 6,287 | | | | | | 34,848 | | | | | | 11,832 | | |
Loss from operations
|
| | | | (5,549 ) | | | | | | (4,632 ) | | | | | | (11,295 ) | | | | | | (9,248 ) | | |
Other income (expense) | | | | | | ||||||||||||||||||||
Changes in fair value of derivative liabilities
|
| | | | 27 | | | | | | (1,773 ) | | | | | | (190 ) | | | | | | (1,260 ) | | |
Offering expenses
|
| | | | — | | | | | | (158 ) | | | | | | — | | | | | | (158 ) | | |
Gain on bargain purchase
|
| | | | 3,691 | | | | | | 2,237 | | | | | | 15,530 | | | | | | 2,749 | | |
Gain on debt and payables extinguishments
|
| | | | 1,090 | | | | | | — | | | | | | 3,990 | | | | | | — | | |
Other expense
|
| | | | (253 ) | | | | | | (58 ) | | | | | | (253 ) | | | | | | (57 ) | | |
Interest expense, net
|
| | | | (47 ) | | | | | | (198 ) | | | | | | (531 ) | | | | | | (671 ) | | |
Total other income
|
| | | | 4,508 | | | | | | 50 | | | | | | 18,546 | | | | | | 603 | | |
Net income (loss)
|
| | | $ | (1,041 ) | | | | | $ | (4,582 ) | | | | | $ | 7,251 | | | | | $ | (8,645 ) | | |
Dividends and deemed dividends
|
| | | | — | | | | | | (1,438 ) | | | | | | — | | | | | | (1,808 ) | | |
Net income (loss) attributable to common shareholders
|
| | | $ | (1,041 ) | | | | | $ | (6,020 ) | | | | | $ | 7,251 | | | | | $ | (10,453 ) | | |
Basic earnings (loss) per share
|
| | | $ | (0.09 ) | | | | | $ | (9.80 ) | | | | | $ | 0.69 | | | | | $ | (25.43 ) | | |
Diluted earnings (loss) per share
|
| | | $ | (0.09 ) | | | | | $ | (9.80 ) | | | | | $ | 0.69 | | | | | $ | (25.43 ) | | |
Weighted average number of shares outstanding: | | | | | | ||||||||||||||||||||
Basic
|
| | | | 11,405 | | | | | | 614 | | | | | | 10,500 | | | | | | 411 | | |
Diluted
|
| | | | 11,405 | | | | | | 614 | | | | | | 10,500 | | | | | | 411 | | |
Comprehensive loss: | | | | | | ||||||||||||||||||||
Net income (loss)
|
| | | $ | (1,041 ) | | | | | $ | (4,582 ) | | | | | $ | 7,251 | | | | | $ | (8,645 ) | | |
Unrealized gain on currency translation adjustment
|
| | | | 365 | | | | | | — | | | | | | 348 | | | | | | — | | |
Comprehensive income (loss)
|
| | | $ | (676 ) | | | | | $ | (4,582 ) | | | | | $ | 7,599 | | | | | $ | (8,645 ) | | |
|
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Cash flows provided by (used in) operating activities | | | | ||||||||||
Net income (loss)
|
| | | $ | 7,251 | | | | | $ | (8,645 ) | | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
|
| | | ||||||||||
Gain on bargain purchase
|
| | | | (15,530 ) | | | | | | (2,749 ) | | |
Gain on debt and payables extinguishment
|
| | | | (3,990 ) | | | | | | — | | |
Stock-based compensation
|
| | | | 603 | | | | | | 180 | | |
Payment made in stock (payroll and consultants)
|
| | | | 1,426 | | | | | | 1,020 | | |
Provision for bad debt
|
| | | | — | | | | | | 97 | | |
Inventory valuation adjustments
|
| | | | 76 | | | | | | 110 | | |
Depreciation and amortization
|
| | | | 2,132 | | | | | | 2,867 | | |
Change in fair value of derivative liabilities
|
| | | | 190 | | | | | | 1,260 | | |
Guaranteed interest and debt issuance costs
|
| | | | 434 | | | | | | — | | |
Amortization of debt discount
|
| | | | — | | | | | | 50 | | |
Offering expenses
|
| | | | — | | | | | | 158 | | |
Changes in assets and liabilities | | | | ||||||||||
Accounts receivable
|
| | | | (1,895 ) | | | | | | 72 | | |
Inventory
|
| | | | 2,181 | | | | | | 480 | | |
Prepaid expenses and other current assets
|
| | | | (559 ) | | | | | | (67 ) | | |
Accounts payable
|
| | | | 3,187 | | | | | | 329 | | |
Deferred rent
|
| | | | — | | | | | | (64 ) | | |
Accrued expenses and interest expense
|
| | | | 3,205 | | | | | | 196 | | |
Deferred revenue and customer deposits
|
| | | | 3 | | | | | | 33 | | |
Due to related parties
|
| | | | 1,657 | | | | | | 312 | | |
Net cash provided by (used in) operating activities
|
| | | | 371 | | | | | | (4,361 ) | | |
Cash flows used in investing activities | | | | ||||||||||
Cash acquired with the acquisition of IMT
|
| | | | — | | | | | | (23 ) | | |
Cash disbursed for property and equipment
|
| | | | (395 ) | | | | | | (12 ) | | |
Cash used in Vislink acquisition
|
| | | | (6,500 ) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (6,895 ) | | | | | | (35 ) | | |
Cash flows provided by financing activities | | | | ||||||||||
Principal repayments made on of capital lease obligations
|
| | | | (28 ) | | | | | | (25 ) | | |
Proceeds from multiple issuances of convertible preferred stock, common stock and warrants
|
| | | | 3,500 | | | | | | 4,537 | | |
Costs incurred in connection with multiple financings
|
| | | | (459 ) | | | | | | (791 ) | | |
Proceeds received from issuance of convertible notes payable
|
| | | | — | | | | | | 1,000 | | |
Principal repayments of Vislink notes
|
| | | | (2,000 ) | | | | | | — | | |
Principal repayments of convertible notes payable
|
| | | | — | | | | | | (1,031 ) | | |
Principal repayments of notes payable
|
| | | | (824 ) | | | | | | — | | |
Proceeds from the exercise of warrants
|
| | | | 1,589 | | | | | | 492 | | |
Net cash provided by financing activities
|
| | | | 1,778 | | | | | | 4,182 | | |
Effect of exchange rate changes on cash
|
| | | | 348 | | | | | | — | | |
Net decrease in cash
|
| | | | (4,398 ) | | | | | | (214 ) | | |
Cash, beginning of period
|
| | | | 9,054 | | | | | | 368 | | |
Cash, end of period
|
| | | $ | 4,656 | | | | | $ | 154 | | |
|
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Cash paid for interest
|
| | | $ | 242 | | | | | $ | 472 | | |
Cash paid for taxes
|
| | | $ | — | | | | | $ | — | | |
Supplemental cash flow disclosures of non-cash investing and financing activities | | | | ||||||||||
Common stock issued in connection with:
|
| | | ||||||||||
Conversion of convertible notes payable
|
| | | $ | — | | | | | $ | 465 | | |
Conversion of Series B Convertible Preferred Stock
|
| | | | — | | | | | | 2,722 | | |
Conversion of Series D Convertible Preferred Stock
|
| | | | 648 | | | | | | 250 | | |
Settlement of services previously accrued
|
| | | | 295 | | | | | | — | | |
Settlement of amounts due to related parties
|
| | | | 120 | | | | | | 244 | | |
Settlement of notes payable to sellers of Vislink with assumption of liabilities and debt extinguishment
|
| | | | 7,500 | | | | | | — | | |
Issuance of Series D Convertible Preferred Stock
|
| | | | — | | | | | | 500 | | |
Stock issued as payment of interest on convertible note
|
| | | | 90 | | | | | | — | | |
Reclassification of derivative liabilities to stockholders’ equity upon the exercise
of warrants |
| | | | — | | | | | | 376 | | |
Dividends and deemed dividend on Series B Convertible Preferred Stock conversion
|
| | | | — | | | | | | 1,808 | | |
| | |
Vislink
|
| |
IMT
|
| ||||||
Amount of consideration:
|
| | | $ | 16,000 | | | | | $ | 3,000 | | |
Assets acquired and liabilities assumed at preliminary fair value | | | | ||||||||||
Cash
|
| | | | — | | | | | | 477 | | |
Accounts receivable
|
| | | | 7,129 | | | | | | 676 | | |
Inventories
|
| | | | 18,234 | | | | | | 3,329 | | |
Property and equipment
|
| | | | 3,868 | | | | | | 1,470 | | |
Prepaid expenses
|
| | | | 1,209 | | | | | | 55 | | |
Accounts payable
|
| | | | (2,079 ) | | | | | | (423 ) | | |
Deferred rent
|
| | | | — | | | | | | (167 ) | | |
Accrued expenses
|
| | | | (451 ) | | | | | | (378 ) | | |
Net tangible assets acquired
|
| | | $ | 27,910 | | | | | $ | 5,039 | | |
Identifiable intangible assets | | | | ||||||||||
Trade names and technology
|
| | | $ | 1,100 | | | | | $ | 350 | | |
Customer relationships
|
| | | | 2,520 | | | | | | 360 | | |
Total Identifiable Intangible Assets
|
| | | $ | 3,620 | | | | | $ | 710 | | |
Total net assets acquired
|
| | | $ | 31,530 | | | | | $ | 5,749 | | |
Consideration paid
|
| | | | 16,000 | | | | | | 3,000 | | |
Preliminary gain on bargain purchase
|
| | | $ | 15,530 | | | | | $ | 2,749 | | |
|
| Purchase Consideration | | | |||||
| Amount of consideration: | | | | $ | 16,000,000 | | |
| Tangible assets acquired and liabilities assumed at fair value | | | |||||
|
Accounts receivable
|
| | | $ | 7,129,000 | | |
|
Inventories
|
| | | | 18,234,000 | | |
|
Property and equipment
|
| | | | 3,868,000 | | |
|
Prepaid expenses
|
| | | | 1,209,000 | | |
|
Accounts payable
|
| | | | (2,079,000 ) | | |
|
Accrued expenses
|
| | | | (451,000 ) | | |
|
Net tangible assets acquired
|
| | | $ | 27,910,000 | | |
| Identifiable intangible assets | | | |||||
|
Trade names and technology
|
| | | $ | 1,100,000 | | |
|
Customer relationships
|
| | | | 2,520,000 | | |
|
Total Identifiable Intangible Assets
|
| | | $ | 3,620,000 | | |
|
Total net assets acquired
|
| | | $ | 31,530,000 | | |
|
Consideration paid
|
| | | | 16,000,000 | | |
|
Gain on bargain purchase
|
| | | $ | 15,530,000 | | |
|
| | |
Three Months
Ended June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||
| | |
2016
|
| |
2017
|
| |
2016
|
| |||||||||
Revenues, net
|
| | | $ | 14,520 | | | | | $ | 24,806 | | | | | $ | 28,426 | | |
Net (loss) allocable to common shareholders
|
| | | $ | (6,572 ) | | | | | $ | (12,584 ) | | | | | $ | (12,344 ) | | |
Net (loss) per share
|
| | | $ | (10.70 ) | | | | | $ | (1.20 ) | | | | | $ | (30.03 ) | | |
Weighted average number of shares outstanding
|
| | | | 614 | | | | | | 10,500 | | | | | $ | 411 | | |
| | |
Software Development
Costs |
| |
Patents & Licenses
|
| |
Trade Names &
Technology |
| |
Customer Relationships
|
| | |||||||||||||||||||||||||||||||||||||||||
| | |
Costs
|
| |
Accumulated
Amortization |
| |
Costs
|
| |
Accumulated
Amortization |
| |
Costs
|
| |
Accumulated
Amortization |
| |
Costs
|
| |
Accumulated
Amortization |
| |
Net
|
| |||||||||||||||||||||||||||
Balance as of December 31, 2016
|
| | | $ | 18,647,000 | | | | | $ | (17,288,000 ) | | | | | $ | 12,378,000 | | | | | $ | (8,507,000 ) | | | | | $ | 350,000 | | | | | $ | (35,000 ) | | | | | $ | 360,000 | | | | | $ | (33,000 ) | | | | | $ | 5,872,000 | | |
Additions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,100,000 | | | | | | — | | | | | | 2,520,000 | | | | | | — | | | | | | 3,620,000 | | |
Impairments
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Amortization
|
| | | | — | | | | | | (460,000 ) | | | | | | — | | | | | | (332,000 ) | | | | | | — | | | | | | (96,000 ) | | | | | | — | | | | | | (368,000 ) | | | | | | (1,256,000 ) | | |
Balance as of June 30, 2017
|
| | | $ | 18,647,000 | | | | | $ | (17,748,000 ) | | | | | $ | 12,378,000 | | | | | $ | (8,839,000 ) | | | | | $ | 1,450,000 | | | | | $ | (131,000 ) | | | | | $ | 2,880,000 | | | | | $ | (401,000 ) | | | | | $ | 8,236,000 | | |
|
|
Balance 2017
|
| | | $ | 1,344,000 | | |
|
2018
|
| | | | 2,298,000 | | |
|
2019
|
| | | | 1,763,000 | | |
|
2020
|
| | | | 993,000 | | |
|
2021
|
| | | | 817,000 | | |
|
Thereafter
|
| | | | 1,021,000 | | |
| | | | | $ | 8,236,000 | | |
|
| | |
Amount
|
||
Balance 2017
|
| | | $ | 608,000 |
2018
|
| | | | 1,091,000 |
2019
|
| | | | 971,000 |
2020
|
| | | | 509,000 |
2021
|
| | | | 141,000 |
Thereafter
|
| | | | 188,000 |
| | | | $ | 3,508,000 |
|
| | |
Number of
Warrants (in Shares) |
| |
Weighted
Average Exercise Price |
| ||||||
Outstanding January 1, 2017
|
| | | | 7,611,904 | | | | | $ | 5.98 | | |
Granted
|
| | | | 1,365,000 | | | | | | 2.02 | | |
Exercised
|
| | | | (794,400 ) | | | | | | 2.00 | | |
Forfeited or Expired
|
| | | | (7 ) | | | | | | 42,000.00 | | |
Outstanding, June 30, 2017
|
| | | | 8,182,497 | | | | | $ | 5.67 | | |
Exercisable, June 30, 2017
|
| | | | 8,032,497 | | | | | $ | 5.73 | | |
|
| | |
Number of
Options (in Shares) |
| |
Weighted
Average Exercise Price |
| ||||||
Outstanding January 1, 2017
|
| | | | 1,844 | | | | | $ | 1,544.37 | | |
Granted
|
| | | | 3,555,500 | | | | | | 1.55 | | |
Exercised
|
| | | | — | | | | | | — | | |
Cancelled
|
| | | | (1,844 ) | | | | | | 1,544.37 | | |
Outstanding, June 30, 2017
|
| | | | 3,555,500 | | | | | $ | 1.55 | | |
Exercisable, June 30, 2017
|
| | | | — | | | | | $ | — | | |
|
|
Number of shares underlying the warrants on June 30, 2017
|
| |
977,751
|
|
|
Fair market value of stock
|
| |
$1.63
|
|
|
Exercise price
|
| |
$2.00 to 2,400.00
|
|
|
Volatility
|
| |
169% to 184%
|
|
|
Risk-free interest rate
|
| |
1.24% to 1.89%
|
|
|
Expected dividend yield
|
| |
—
|
|
|
Warrant life (years)
|
| |
1.3 to 4.1
|
|
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
Beginning balance
|
| | | $ | 1,400,000 | | | | | $ | 938,000 | | | | | $ | 1,183,000 | | | | | $ | 1,284,000 | | |
Recognition of warrant liabilities on issuance dates
|
| | | | — | | | | | | 826,000 | | | | | | — | | | | | | 1,057,000 | | |
Reclassification to stockholders’ equity upon exercise
|
| | | | — | | | | | | (2,315,000 ) | | | | | | — | | | | | | (2,379,000 ) | | |
Change in fair value of derivative liabilities
|
| | | | (27,000 ) | | | | | | 1,773,000 | | | | | | 190,000 | | | | | | 1,260,000 | | |
Ending balance
|
| | | $ | 1,373,000 | | | | | $ | 1,222,000 | | | | | $ | 1,373,000 | | | | | $ | 1,222,000 | | |
|
| | |
Six Months
Ended June 30, 2017 |
| |
Three Months
Ended June 30, 2017 |
| ||||||
Revenue: | | | | ||||||||||
North America
|
| | | $ | 7,674,000 | | | | | $ | 5,808,000 | | |
South America
|
| | | | 3,111,000 | | | | | | 2,452,000 | | |
Europe
|
| | | | 7,032,000 | | | | | | 3,130,000 | | |
Asia/ROW
|
| | | | 5,736,000 | | | | | | 2,828,000 | | |
| | | | $ | 23,553,000 | | | | | $ | 14,218,000 | | |
|
| | |
Six Months
Ended June 30, 2017 |
| | | | |||
Long-Lived Assets: | | | | |||||||
United States
|
| | | $ | 6,911,000 | | | |
|
|
United Kingdom
|
| | | | 5,497,000 | | | | | |
| | | | $ | 12,408,000 | | | | | |
|
| | |
Page
|
| |||
Consolidated Financial Statements | | | |||||
| | | | F-26 | | | |
| | | | F-27 | | | |
| | | | F-28 | | | |
| | | | F-29 | | | |
| | | | F-31 | | | |
| | | | F-33 | | |
| | |
December 31,
|
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
ASSETS | | | | ||||||||||
Current assets | | | | ||||||||||
Cash
|
| | | $ | 9,054 | | | | | $ | 368 | | |
Accounts receivable, net
|
| | | | 1,369 | | | | | | 641 | | |
Inventories, net
|
| | | | 2,722 | | | | | | 777 | | |
Prepaid expenses and other current assets
|
| | | | 111 | | | | | | 15 | | |
Total current assets
|
| | | | 13,256 | | | | | | 1,801 | | |
Inventories, net
|
| | | | — | | | | | | 2,078 | | |
Property and equipment, net
|
| | | | 771 | | | | | | 792 | | |
Intangible assets, net
|
| | | | 5,872 | | | | | | 11,903 | | |
Total assets
|
| | | $ | 19,899 | | | | | $ | 16,574 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | ||||||||||
Current liabilities | | | | ||||||||||
Accounts payable
|
| | | $ | 1,606 | | | | | $ | 1,196 | | |
Accrued expenses
|
| | | | 1,813 | | | | | | 252 | | |
Accrued interest
|
| | | | 269 | | | | | | 137 | | |
Due to related parties
|
| | | | 96 | | | | | | 324 | | |
Customer deposits and deferred revenue
|
| | | | 186 | | | | | | 149 | | |
Convertible notes payable
|
| | | | — | | | | | | 781 | | |
Obligation under capital lease
|
| | | | 58 | | | | | | 54 | | |
Derivative liabilities
|
| | | | 1,183 | | | | | | 1,284 | | |
Total current liabilities
|
| | | | 5,211 | | | | | | 4,177 | | |
Obligation under capital lease, net of current portion
|
| | | | 49 | | | | | | 106 | | |
Convertible notes payable
|
| | | | 2,000 | | | | | | 2,000 | | |
Total liabilities
|
| | | | 7,260 | | | | | | 6,283 | | |
Commitments and contingencies | | | | ||||||||||
Stockholders’ equity | | | | ||||||||||
Preferred stock – $0.00001 par value per share: 10,000,000 shares authorized at December 31, 2016 and 2015; 0 shares issued and outstanding as of December 31, 2016 and 2015
|
| | | | — | | | | | | — | | |
Common stock – $0.00001 par value, 100,000,000 shares authorized, 7,606,518 and 168,565 shares issued and 7,606,516 and 168,563 outstanding as of December 31, 2016 and 2015, respectively
|
| | | | — | | | | | | — | | |
Additional paid in capital
|
| | | | 221,960 | | | | | | 198,710 | | |
Treasury stock, at cost – 2 shares as of December 31, 2016 and 2015,
respectively |
| | | | (22 ) | | | | | | (22 ) | | |
Accumulated deficit
|
| | | | (209,299 ) | | | | | | (188,397 ) | | |
Total stockholder’s equity
|
| | | | 12,639 | | | | | | 10,291 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 19,899 | | | | | $ | 16,574 | | |
|
| | |
For the Years Ended
December 31, |
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Revenue
|
| | | $ | 6,574 | | | | | $ | 932 | | |
Cost of Revenue and operating expenses | | | | ||||||||||
Cost of components and personnel
|
| | | | 3,133 | | | | | | 510 | | |
Inventory valuation adjustments
|
| | | | 2,417 | | | | | | 861 | | |
General and administrative expenses
|
| | | | 9,534 | | | | | | 7,573 | | |
Research and development
|
| | | | 6,106 | | | | | | 4,928 | | |
Impairment charge
|
| | | | 2,683 | | | | | | 2,092 | | |
Amortization and depreciation
|
| | | | 5,561 | | | | | | 4,829 | | |
Total cost of revenue and operating expenses
|
| | | | (29,434 ) | | | | | | (20,793 ) | | |
Loss from operations
|
| | | | (22,860 ) | | | | | | (19,861 ) | | |
Other income (expenses) | | | | ||||||||||
Changes in fair value of derivative liabilities
|
| | | | 2,545 | | | | | | 2,559 | | |
Offering expenses
|
| | | | (684 ) | | | | | | — | | |
Gain on bargain purchase
|
| | | | 2,749 | | | | | | — | | |
Other expense
|
| | | | (1,727 ) | | | | | | (26 ) | | |
Interest expense
|
| | | | (925 ) | | | | | | (529 ) | | |
Total other income
|
| | | | 1,958 | | | | | | 2,004 | | |
Net loss
|
| | | $ | (20,902 ) | | | | | $ | (17,857 ) | | |
Dividends and deemed dividends
|
| | | | (1,808 ) | | | | | | (3,079 ) | | |
Net loss attributable to common shareholders
|
| | | $ | (22,710 ) | | | | | $ | (20,936 ) | | |
Basic and diluted net loss per common share
|
| | | $ | (36.87 ) | | | | | $ | (332.32 ) | | |
Weighted average number of shares outstanding basic and diluted
|
| | | | 616 | | | | | | 63 | | |
|
| | |
Common Stock
|
| |
Additional
Paid In Capital |
| |
Treasury
Stock |
| |
Accumulated
Deficit |
| |
Total
|
| |||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance, January 1, 2015
|
| | | | 21,814 | | | | | $ | — | | | | | $ | 186,919 | | | | | $ | (22 ) | | | | | $ | (170,540 ) | | | | | $ | 16,357 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (17,857 ) | | | | | | (17,857 ) | | |
Issuance of common stock in connection with underwritten offering, net of offering costs
|
| | | | 21,250 | | | | | | — | | | | | | 1,302 | | | | | | — | | | | | | — | | | | | | 1,302 | | |
Issuance of common stock in connection with reclassification
of derivative liability and warrant exercise |
| | | | 78,042 | | | | | | — | | | | | | 3,147 | | | | | | — | | | | | | — | | | | | | 3,147 | | |
Compensation granted in common stock
|
| | | | 15,274 | | | | | | — | | | | | | 1,834 | | | | | | — | | | | | | — | | | | | | 1,834 | | |
Issuance of common stock in connection with conversion of convertible notes payable
|
| | | | 6,320 | | | | | | — | | | | | | 150 | | | | | | — | | | | | | — | | | | | | 150 | | |
Issuance of common stock in connection with conversion of advances from related parties
|
| | | | 7,441 | | | | | | — | | | | | | 500 | | | | | | — | | | | | | — | | | | | | 500 | | |
Issuance of common stock in settlement of due to related party (MBTH)
|
| | | | 3,326 | | | | | | — | | | | | | 1,756 | | | | | | — | | | | | | — | | | | | | 1,756 | | |
Issuance of common stock in connection with Series A Preferred Stock conversion See Note 13.
|
| | | | 1,994 | | | | | | — | | | | | | 1,011 | | | | | | — | | | | | | — | | | | | | 1,011 | | |
Issuance of common stock in connection with Series B Preferred Stock conversion (related parties) See Note 13.
|
| | | | 1,857 | | | | | | — | | | | | | 1,003 | | | | | | — | | | | | | — | | | | | | 1,003 | | |
Issuance of common stock in connection with settlement of amounts due to related parties
|
| | | | 45 | | | | | | — | | | | | | 24 | | | | | | — | | | | | | — | | | | | | 24 | | |
Issuance of common stock in connection with Series B Preferred Stock conversion
|
| | | | 1,523 | | | | | | — | | | | | | 474 | | | | | | — | | | | | | — | | | | | | 474 | | |
Issuance of common stock in connection with Series C Preferred Stock conversion
|
| | | | 7,888 | | | | | | — | | | | | | 3,189 | | | | | | — | | | | | | — | | | | | | 3,189 | | |
Issuance of common stock in connection with Series B Financing See Note 13.
|
| | | | 21 | | | | | | — | | | | | | 10 | | | | | | — | | | | | | — | | | | | | 10 | | |
Issuance of common stock in connection with Series C Financing See Note 13.
|
| | | | 99 | | | | | | — | | | | | | 53 | | | | | | — | | | | | | — | | | | | | 53 | | |
Issuance of common stock in connection with repayment of accrued interest
|
| | | | 1,671 | | | | | | — | | | | | | 180 | | | | | | — | | | | | | — | | | | | | 180 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | 531 | | | | | | — | | | | | | — | | | | | | 531 | | |
Amortization of commitment fees
|
| | | | — | | | | | | — | | | | | | (294 ) | | | | | | — | | | | | | — | | | | | | (294 ) | | |
Dividends and deemed dividends
|
| | | | — | | | | | | — | | | | | | (3,079 ) | | | | | | | | | | | | — | | | | | | (3,079 ) | | |
Balance, December 31, 2015
|
| | | | 168,565 | | | | | $ | — | | | | | $ | 198,710 | | | | | $ | (22 ) | | | | | $ | (188,397 ) | | | | | $ | 10,291 | | |
|
| | |
Series D
Preferred Stock |
| |
Common Stock
|
| |
Additional
Paid In Capital |
| |
Treasury
Stock |
| |
Series D
Preferred Stock Issuable |
| |
Accumulated
Deficit |
| |
Total
|
| |||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2016
|
| | | | — | | | | | $ | — | | | | | | 168,565 | | | | | $ | — | | | | | $ | 198,710 | | | | | $ | (22 ) | | | | | $ | — | | | | | $ | (188,397 ) | | | | | $ | 10,291 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (20,902 ) | | | | | | (20,902 ) | | |
Issuance of common stock in connection with:
|
| | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Underwritten offerings, net of offering
costs |
| | | | — | | | | | | — | | | | | | 5,846,667 | | | | | | — | | | | | | 13,926 | | | | | | — | | | | | | — | | | | | | — | | | | | | 13,926 | | |
Exercise of common stock warrants
|
| | | | — | | | | | | — | | | | | | 64,466 | | | | | | — | | | | | | 492 | | | | | | — | | | | | | — | | | | | | — | | | | | | 492 | | |
Compensation awards granted
|
| | | | — | | | | | | — | | | | | | 601,089 | | | | | | — | | | | | | 2,935 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,935 | | |
Conversion of convertible promissory notes
|
| | | | — | | | | | | — | | | | | | 60,913 | | | | | | — | | | | | | 610 | | | | | | — | | | | | | — | | | | | | — | | | | | | 610 | | |
Conversion of amounts due to related parties
|
| | | | — | | | | | | — | | | | | | 49,712 | | | | | | — | | | | | | 364 | | | | | | — | | | | | | — | | | | | | — | | | | | | 364 | | |
Conversion of Series B Preferred
stock |
| | | | — | | | | | | — | | | | | | 326,294 | | | | | | — | | | | | | 4,530 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,530 | | |
Satisfaction of interest accrued due on
convertible promissory notes |
| | | | — | | | | | | — | | | | | | 9,653 | | | | | | — | | | | | | 90 | | | | | | — | | | | | | — | | | | | | — | | | | | | 90 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 369 | | | | | | — | | | | | | — | | | | | | — | | | | | | 369 | | |
Series D Preferred stock: | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Creation of Series D Preferred stock
issuable under the IMT modification agreement |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,500 | | | | | | — | | | | | | 2,500 | | |
Transfer of Series D Preferred stock from issuable to shares actually issued to IMT
|
| | | | 2,500,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,500 | | | | | | — | | | | | | (2,500 ) | | | | | | — | | | | | | — | | |
Issuance of common stock in connection with the conversion of the original tranche of Series D Preferred stock
|
| | | | (2,500,000 ) | | | | | | — | | | | | | 208,330 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of second tranche of Series D
Preferred stock |
| | | | 3,250,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,250 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,250 | | |
Issuance of common stock in connection with the conversion of the second tranche of Series D Preferred stock
|
| | | | (3,250,000 ) | | | | | | — | | | | | | 270,829 | | | | | | — | | | | | | (2,479 ) | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,479 ) | | |
Offering costs associated with derivative liabilities issued in the May and July offerings
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 684 | | | | | | — | | | | | | — | | | | | | — | | | | | | 684 | | |
Derivative liability associated with common stock warrants issued in connection with various underwriting offerings
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,592 ) | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,592 ) | | |
Reclassification of derivative liabilities
in connection with the exercise of common stock warrants |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,379 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,379 | | |
Preferred stock dividends and deemed dividends
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,808 ) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,808 ) | | |
Balance, December 31, 2016
|
| | | | — | | | | | $ | — | | | | | | 7,606,518 | | | | | $ | — | | | | | $ | 221,960 | | | | | $ | (22 ) | | | | | $ | — | | | | | $ | (209,299 ) | | | | | $ | 12,639 | | |
|
| | |
Years Ended
December 31, |
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Cash flows used in operating activities | | | | ||||||||||
Net loss
|
| | | $ | (20,902 ) | | | | | $ | (17,857 ) | | |
Adjustments to reconcile net loss to net cash used in operating activities
|
| | | ||||||||||
Gain on bargain purchase
|
| | | | (2,749 ) | | | | | | — | | |
Stock-based compensation
|
| | | | 369 | | | | | | 530 | | |
Payments made in stock (payroll and consultants)
|
| | | | 2,935 | | | | | | 1,834 | | |
Provision for bad debt
|
| | | | 631 | | | | | | 78 | | |
Inventory valuation adjustments
|
| | | | 2,417 | | | | | | 861 | | |
Depreciation and amortization
|
| | | | 5,561 | | | | | | 4,830 | | |
Impairment charge
|
| | | | 2,683 | | | | | | 2,092 | | |
Offering expenses
|
| | | | 684 | | | | | | 640 | | |
Change in fair value of derivative liabilities
|
| | | | (2,545 ) | | | | | | (2,559 ) | | |
Amortization of debt discount
|
| | | | 50 | | | | | | 326 | | |
Accrual of potential shortfall (See Note 13)
|
| | | | 1,669 | | | | | | — | | |
Changes in assets and liabilities | | | | ||||||||||
Accounts receivable
|
| | | | (683 ) | | | | | | (336 ) | | |
Inventory
|
| | | | 1,045 | | | | | | 354 | | |
Prepaid expenses and other current assets
|
| | | | (41 ) | | | | | | 102 | | |
Accounts payable
|
| | | | 139 | | | | | | 328 | | |
Accrued expenses and interest expense
|
| | | | 340 | | | | | | 1,096 | | |
Deferred revenue and customer deposits
|
| | | | (115 ) | | | | | | (12 ) | | |
Due to related parties
|
| | | | 436 | | | | | | (85 ) | | |
Net cash used in operating activities
|
| | | | (8,076 ) | | | | | | (7,778 ) | | |
Cash flows used in investing activities | | | | ||||||||||
Cash acquired with the acquisition of IMT
|
| | | | (23 ) | | | | | | — | | |
Cash disbursed for property and equipment
|
| | | | (12 ) | | | | | | (34 ) | | |
Capitalization of intangible assets
|
| | | | — | | | | | | (2,192 ) | | |
Net cash used in investing activities
|
| | | | (35 ) | | | | | | (2,226 ) | | |
Cash flows provided by financing activities | | | | ||||||||||
Principal repayments made on capital lease obligations
|
| | | | (53 ) | | | | | | (156 ) | | |
Proceeds from multiple issuances of convertible preferred stock, common stock and warrants
|
| | | | 19,539 | | | | | | 1,977 | | |
Costs incurred in connection with multiple financings
|
| | | | (2,660 ) | | | | | | (946 ) | | |
Proceeds received from related party advances
|
| | | | — | | | | | | 1,900 | | |
Repayments of advances to related parties
|
| | | | (300 ) | | | | | | (500 ) | | |
Proceeds received from issuance of convertible notes payable
|
| | | | 1,000 | | | | | | 1,470 | | |
Principle repayments of convertible notes payable
|
| | | | (1,221 ) | | | | | | (702 ) | | |
Costs incurred in connection with convertible notes payable
|
| | | | — | | | | | | (163 ) | | |
Proceeds received from issuance of common stock and warrants
|
| | | | — | | | | | | 4,976 | | |
Proceeds received from the exercise of warrants
|
| | | | 492 | | | | | | 1,758 | | |
Net cash provided by financing activities
|
| | | | 16,797 | | | | | | 9,614 | | |
Net increase (decrease) in cash
|
| | | | 8,686 | | | | | | (390 ) | | |
Cash, beginning of year
|
| | | | 368 | | | | | | 758 | | |
Cash, end of year
|
| | | $ | 9,054 | | | | | $ | 368 | | |
|
| | |
Year EndedDecember 31,
|
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Cash paid for interest
|
| | | $ | 626 | | | | | $ | 240 | | |
Cash paid for taxes
|
| | | $ | — | | | | | $ | — | | |
Supplemental cash flow disclosures of investing and financing activities
|
| | | ||||||||||
Common stock issued in connection with:
|
| | | ||||||||||
Conversion of amounts due to related party
|
| | | $ | 364 | | | | | $ | 1,756 | | |
Conversion of amounts due under convertible notes payable
|
| | | | 610 | | | | | | 150 | | |
Conversion of amounts due under convertible notes payable for related parties
|
| | | | — | | | | | | 500 | | |
Conversion of Series B Convertible Preferred Stock
|
| | | | 4,530 | | | | | | 5,677 | | |
Conversion of Series D Convertible Preferred Stock into common stock
|
| | | | 3,271 | | | | | | — | | |
Stock issued as payment of interest on convertible notes
|
| | | | 90 | | | | | | 180 | | |
Conversion of amounts due to related parties into Series B Preferred, common stock and warrants
|
| | | | — | | | | | | 845 | | |
Derivative liability in connection with conversion option & warrants
|
| | | | — | | | | | $ | 270 | | |
Reclassification of derivative liabilities to stockholders’ equity upon the exercise of
warrants |
| | | | 2,379 | | | | | | 1,390 | | |
Amortization of commitment fees
|
| | | | — | | | | | | 294 | | |
Acquisition of equipment under capital lease obligations
|
| | | | — | | | | | | 193 | | |
Dividends and deemed dividend on Series B Preferred Stock conversion
|
| | | | 1,808 | | | | | | 3,079 | | |
Purchase Consideration | | | | ||||||||||
Amount of consideration
|
| | | $ | 3,000 | | | | | | — | | |
Tangible assets acquired and liabilities assumed at fair value
|
| | | ||||||||||
Cash
|
| | | $ | 477 | | | | | | — | | |
Accounts receivable
|
| | | | 676 | | | | | | — | | |
Inventories
|
| | | | 3,329 | | | | | | — | | |
Property and equipment
|
| | | | 1,470 | | | | | | — | | |
Other current assets
|
| | | | 55 | | | | | | — | | |
Accounts payable and deferred revenue
|
| | | | (423 ) | | | | | | — | | |
Deferred rent
|
| | | | (167 ) | | | | | | — | | |
Accrued expenses
|
| | | | (378 ) | | | | | | — | | |
Net tangible assets acquired
|
| | | $ | 5,039 | | | | | | — | | |
Identifiable intangible assets | | | | ||||||||||
Trade names and technology
|
| | | $ | 350 | | | | | | — | | |
Customer relationships
|
| | | | 360 | | | | | | — | | |
Total Identifiable Intangible Assets
|
| | | $ | 710 | | | | | | — | | |
Total net assets acquired
|
| | | $ | 5,749 | | | | |||||
Consideration paid
|
| | | | 3,000 | | | | | | — | | |
Gain on bargain purchase
|
| | | $ | 2,749 | | | | | | — | | |
|
| | |
Warranty Reserve
|
| |||
January 1, 2015
|
| | | $ | 9,000 | | |
Warranty reserve expense
|
| | | | 6,000 | | |
Warranty claims settled and true-up of accrual
|
| | | | (6,000 ) | | |
December 31, 2015
|
| | | $ | 9,000 | | |
Warranty reserve acquired in IMT acquisition
|
| | | | 167,000 | | |
Warranty reserve expense
|
| | | | 52,000 | | |
Warranty claims settled and true-up of accrual
|
| | | | (46,000 ) | | |
December 31, 2016
|
| | | $ | 182,000 | | |
|
| | |
Quoted Prices
in Active Markets for Identical Assets/Liabilities (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |
Total
|
| ||||||||||||
Assets (non-recurring): | | | | | | ||||||||||||||||||||
Capitalized software development costs
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,359,000 | | | | | $ | 1,359,000 | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,359,000 | | | | | $ | 1,359,000 | | |
Liabilities: | | | | | | ||||||||||||||||||||
| | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Derivative liability
|
| | | | — | | | | | | — | | | | | | 1,183,000 | | | | | | 1,183,000 | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,183,000 | | | | | $ | 1,183,000 | | |
|
| | |
Quoted Prices
in Active Markets for Identical Assets/Liabilities (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| |
Total
|
| ||||||||||||
Assets (non-recurring): | | | | | | ||||||||||||||||||||
Capitalized software development costs
|
| | | $ | — | | | | | $ | — | | | | | $ | 7,147,000 | | | | | $ | 7,147,000 | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | 7,147,000 | | | | | $ | 7,147,000 | | |
Liabilities: | | | | | | ||||||||||||||||||||
| | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Derivative liability
|
| | | | — | | | | | | — | | | | | | 1,284,000 | | | | | | 1,284,000 | | |
Total
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,284,000 | | | | | $ | 1,284,000 | | |
|
|
Amount of consideration:
|
| | | $ | 3,000,000 | | |
| Tangible assets acquired and liabilities assumed at fair value | | | | | | | |
|
Cash
|
| | | $ | 477,000 | | |
|
Accounts receivable
|
| | | | 676,000 | | |
|
Inventories
|
| | | | 3,329,000 | | |
|
Property and equipment
|
| | | | 1,470,000 | | |
|
Prepaid expenses
|
| | | | 55,000 | | |
|
Accounts payable and deferred revenue
|
| | | | (423,000 ) | | |
|
Deferred rent
|
| | | | (167,000 ) | | |
|
Accrued expenses
|
| | | | (378,000 ) | | |
|
Net tangible assets acquired
|
| | | $ | 5,039,000 | | |
| Identifiable intangible assets | | | |||||
|
Trade names and technology
|
| | | $ | 350,000 | | |
|
Customer relationships
|
| | | | 360,000 | | |
|
Total Identifiable Intangible Assets
|
| | | $ | 710,000 | | |
|
Total net assets acquired
|
| | | $ | 5,749,000 | | |
|
Consideration paid
|
| | | | 3,000,000 | | |
|
Gain on bargain purchase
|
| | | $ | 2,749,000 | | |
|
| | |
For the Year Ended
December 31, |
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Revenues, net
|
| | | $ | 7,058 | | | | | $ | 8,160 | | |
Net loss allocable to common shareholders
|
| | | $ | (22,987 ) | | | | | $ | (24,634 ) | | |
Net loss per share
|
| | | $ | (37.32 ) | | | | | $ | (391.02 ) | | |
Weighted average number of shares outstanding
|
| | | | 616 | | | | | | 63 | | |
| | |
December 31,
2016 |
| |
December 31,
2015 |
| ||||||
Raw materials
|
| | | $ | 3,642,000 | | | | | $ | 2,113,000 | | |
Finished goods
|
| | | | 2,328,000 | | | | | | 1,803,000 | | |
Sub-total inventories
|
| | | | 5,970,000 | | | | | | 3,916,000 | | |
Less reserve for slow moving and excess inventory
|
| | | | (3,248,000 ) | | | | | | (1,061,000 ) | | |
Total inventories, net
|
| | | $ | 2,722,000 | | | | | $ | 2,855,000 | | |
|
| | |
December 31,
2016 |
| |
December 31,
2015 |
| ||||||
Accounts receivable
|
| | | $ | 1,696,000 | | | | | $ | 572,000 | | |
Accounts receivable – related party (see note 17)
|
| | | | — | | | | | | 156,000 | | |
| | | | | 1,696,000 | | | | | | 728,000 | | |
Allowance for doubtful accounts
|
| | | | (327,000 ) | | | | | | (87,000 ) | | |
Net accounts receivable
|
| | | $ | 1,369,000 | | | | | $ | 641,000 | | |
|
| | |
Useful Life
(years) |
| |
December 31,
|
| |||||||||
| | |
2016
|
| |
2015
|
| |||||||||
Cost: | | | | | | | | | | | | | | | | |
Furniture and equipment
|
| |
3 – 7 years
|
| | | $ | 4,640,000 | | | | | $ | 3,157,000 | | |
Accumulated depreciation
|
| | | | | | | (3,869,000 ) | | | | | | (2,365,000 ) | | |
Property and equipment, net
|
| | | | | | $ | 771,000 | | | | | $ | 792,000 | | |
|
| | |
Software Development Costs
|
| |
Patents & Licenses
|
| |
Trade Names &
Technology |
| |
Customer Relationships
|
| | |||||||||||||||||||||||||||||||||||||||||
| | |
Costs
|
| |
Accumulated
Amortization |
| |
Costs
|
| |
Accumulated
Amortization |
| |
Costs
|
| |
Accumulated
Amortization |
| |
Costs
|
| |
Accumulated
Amortization |
| |
Net
|
| |||||||||||||||||||||||||||
Balance as of
December 31, 2014 |
| | | $ | 16,455,000 | | | | | $ | (5,494,000 ) | | | | | $ | 12,378,000 | | | | | $ | (6,957,000 ) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 16,382,000 | | |
Additions
|
| | | | 2,192,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,192,000 | | |
Impairments
|
| | | | — | | | | | | (2,092,000 ) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,092,000 ) | | |
Amortization
|
| | | | — | | | | | | (3,914,000 ) | | | | | | — | | | | | | (665,000 ) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,579,000 ) | | |
Balance as of
December 31, 2015 |
| | | $ | 18,647,000 | | | | | $ | (11,500,000 ) | | | | | $ | 12,378,000 | | | | | $ | (7,622,000 ) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 11,903,000 | | |
Additions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 350,000 | | | | | | — | | | | | | 360,000 | | | | | | — | | | | | | 710,000 | | |
Impairments
|
| | | | — | | | | | | (2,462,000 ) | | | | | | — | | | | | | (221,000 ) | | | | | | — | | | | | | — | | | | | | (2,683,000 ) | | | | | ||||||||||
Amortization
|
| | | | — | | | | | | (3,326,000 ) | | | | | | — | | | | | | (664,000 ) | | | | | | — | | | | | | (35,000 ) | | | | | | — | | | | | | (33,000 ) | | | | | | (4,058,000 ) | | |
Balance as of
December 31, 2016 |
| | | $ | 18,647,000 | | | | | $ | (17,288,000 ) | | | | | $ | 12,378,000 | | | | | $ | (8,507,000 ) | | | | | $ | 350,000 | | | | | $ | (35,000 ) | | | | | $ | 360,000 | | | | | $ | (33,000 ) | | | | | $ | 5,872,000 | | |
|
|
2017
|
| | | $ | 1,661,000 | | |
|
2018
|
| | | | 1,273,000 | | |
|
2019
|
| | | | 738,000 | | |
|
2020
|
| | | | 738,000 | | |
|
2021
|
| | | | 738,000 | | |
|
Thereafter
|
| | | | 724,000 | | |
| | | | | $ | 5,872,000 | | |
|
|
2017
|
| | | | 66,000 | | |
|
2018
|
| | | | 24,000 | | |
|
2019
|
| | | | 16,000 | | |
|
2020
|
| | | | 14,000 | | |
|
Total minimum lease payments
|
| | | | 120,000 | | |
|
Less amount representing interest
|
| | | | (13,000 ) | | |
|
Present value of the net minimum lease payments
|
| | | | 107,000 | | |
|
Less obligations under capital lease maturing within one year
|
| | | | 58,000 | | |
|
Long-term portion of obligations under capital lease
|
| | | $ | 49,000 | | |
|
| | |
December 31,
|
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Current tax provision (benefit) | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | |
| | | | | — | | | | | | — | | |
Deferred tax provision (benefit) | | | | | | | | | | | | | |
Federal
|
| | | | (7,632,000 ) | | | | | | (6,923,000 ) | | |
State
|
| | | | 106,000 | | | | | | (741,000 ) | | |
Change in valuation allowance
|
| | | | 7,526,000 | | | | | | 7,664,000 | | |
Income tax provision (benefit)
|
| | | $ | — | | | | | $ | — | | |
|
| | |
December 31,
|
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Statutory Federal income tax rate
|
| | | | 34.0 % | | | | | | 34.0 % | | |
State and local taxes net of Federal benefit
|
| | | | 0.53 | | | | | | 4.15 | | |
Permanent differences
|
| | | | 4.66 | | | | | | 4.77 | | |
Provision to return
|
| | | | 1.47 | | | | | | — | | |
IMT opening balance
|
| | | | (4.65 ) | | | | | | — | | |
Valuation allowance
|
| | | | (36.01 ) | | | | | | (42.92 ) | | |
Effective tax rate
|
| | | | — % | | | | | | — % | | |
|
| | |
December 31,
|
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Deferred Tax Assets | | | | | | | | | | | | | |
Federal R&D credit
|
| | | $ | 2,586,000 | | | | | $ | 2,285,000 | | |
Inventory
|
| | | | 2,161,000 | | | | | | 399,000 | | |
Allowance for bad debt
|
| | | | 109,000 | | | | | | 33,000 | | |
Compensation Related
|
| | | | 77,000 | | | | | | 68,000 | | |
Other Accruals
|
| | | | 23,000 | | | | | | 9,000 | | |
State NOL
|
| | | | 5,230,000 | | | | | | 5,094,000 | | |
Federal NOL
|
| | | | 51,175,000 | | | | | | 47,831,000 | | |
Property & Equipment
|
| | | | 92,000 | | | | | | 157,000 | | |
Stock Options
|
| | | | 7,069,000 | | | | | | 7,371,000 | | |
Valuation Allowance
|
| | | | (66,548,000 ) | | | | | | (59,023,000 ) | | |
Total Deferred Tax Assets
|
| | | | 1,974,000 | | | | | | 4,224,000 | | |
Deferred Tax Liabilities | | | | ||||||||||
Intangibles
|
| | | | (1,974,000 ) | | | | | | (4,224,000 ) | | |
Total Deferred Tax Liabilities
|
| | | | (1,974,000 ) | | | | | | (4,224,000 ) | | |
Net Deferred Tax Asset/(Liability)
|
| | | $ | — | | | | | $ | — | | |
|
| | |
Years Ended
December 31, |
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Number of shares underlying the warrants
|
| | | | 977,751 | | | | | | 154,543 | | |
Fair market value of stock
|
| | | $ | 1.35 | | | | | $ | 27.60 | | |
Exercise price
|
| |
$2.00 to 2,400
|
| |
$90 to $2,400
|
| ||||||
Volatility
|
| |
173% to 201%
|
| |
116% to 140%
|
| ||||||
Risk-free interest rate
|
| |
1.20% to 1.93%
|
| |
0.48% to 1.2%
|
| ||||||
Expected dividend yield
|
| | | | — | | | | | | — | | |
Warrant life (years)
|
| |
1.8 to 4.55
|
| |
2.8 to 4.88
|
|
| | |
Years Ended
December 31, |
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Beginning balance
|
| | | $ | 1,284,000 | | | | | $ | 270,000 | | |
Recognition of conversion feature liability
|
| | | | — | | | | | | 769,000 | | |
Recognition of warrant liability on issuance dates
|
| | | | 4,823,000 | | | | | | 7,268,000 | | |
Reclassification to stockholders’ equity upon exercise
|
| | | | (2,379,000 ) | | | | | | (4,464,000 ) | | |
Change in fair value of derivative liabilities
|
| | | | (2,545,000 ) | | | | | | (2,559,000 ) | | |
Ending balance
|
| | | $ | 1,183,000 | | | | | $ | 1,284,000 | | |
|
Plan Name
|
| |
Options
Authorized |
| |
Options
Granted |
| |
Shares
Exercised |
| |
Shares
Forfeited/Expired |
| |
Options
Outstanding |
| |||||||||||||||
2004
|
| | | | 119 | | | | | | 119 | | | | | | (56 ) | | | | | | (63 ) | | | | | | — | | |
2005
|
| | | | 119 | | | | | | 119 | | | | | | (8 ) | | | | | | (111 ) | | | | | | — | | |
2006
|
| | | | 262 | | | | | | 258 | | | | | | (5 ) | | | | | | (250 ) | | | | | | 3 | | |
2007
|
| | | | 24 | | | | | | 22 | | | | | | — | | | | | | (4 ) | | | | | | 18 | | |
2009
|
| | | | 238 | | | | | | 299 | | | | | | (8 ) | | | | | | (122 ) | | | | | | 169 | | |
2013
|
| | | | 756 | | | | | | 411 | | | | | | — | | | | | | (175 ) | | | | | | 236 | | |
2015
|
| | | | 1,971 | | | | | | 1,971 | | | | | | — | | | | | | (553 ) | | | | | | 1,418 | | |
Total
|
| | | | 3,489 | | | | | | 3,199 | | | | | | (77 ) | | | | | | (1,278 ) | | | | | | 1,844 | | |
|
| | |
2015
|
| |||
Exercise price
|
| | | $ | 306 | | |
Volatility
|
| | | | 116 % | | |
Risk-free interest rate
|
| | | | 1.54 % | | |
Expected dividend yield
|
| | | | 0 % | | |
Expected term (years)
|
| | | | 6 | | |
| | |
Number of Options
(in Shares) |
| |
Weighted
Average Exercise Price |
| ||||||
Options Outstanding, January 1, 2016
|
| | | | 2,528 | | | | | $ | 9,588 | | |
Granted
|
| | | | — | | | | | | — | | |
Exercised
|
| | | | — | | | | | | — | | |
Forfeited or Expired
|
| | | | (684 ) | | | | | | 2,596 | | |
Options outstanding, December 31, 2016
|
| | | | 1,844 | | | | | | 1,544 | | |
Exercisable, December 31, 2016
|
| | | | 1,129 | | | | | $ | 2,339 | | |
|
| | |
Outstanding
|
| |
Exercisable
|
| ||||||||||||||||||||||||
Range of Exercise Prices
|
| |
Number
Outstanding (in shares) |
| |
Weighted
Average Remaining Contractual Life (in years) |
| |
Weighted
Average Exercise Price |
| |
Number
Exercisable (in shares) |
| |
Weighted
Average Exercise Price |
| |||||||||||||||
$0 – 4,622
|
| | | | 1,686 | | | | | | 8.24 | | | | | $ | 509 | | | | | | 971 | | | | | $ | 647 | | |
4,622 – 9,244
|
| | | | 16 | | | | | | 3.48 | | | | | | 8,190 | | | | | | 16 | | | | | | 8,190 | | |
9,244 – 13,866
|
| | | | 85 | | | | | | 4.23 | | | | | | 9,794 | | | | | | 85 | | | | | | 9,794 | | |
13,866 – 18,488
|
| | | | 18 | | | | | | 5.69 | | | | | | 15,697 | | | | | | 18 | | | | | | 15,697 | | |
18,488 – 23,110
|
| | | | 39 | | | | | | 5.61 | | | | | | 19,099 | | | | | | 39 | | | | | | 19,099 | | |
| | | | | 1,844 | | | | | | | | | | | | | | | | | | 1,129 | | | | |||||
|
| | |
Number of
Options/Warrants (in Shares) |
| |
Weighted
Average Exercise Price |
| ||||||
Warrants Outstanding, January 1, 2016
|
| | | | 75,163 | | | | | $ | 505.20 | | |
Granted
|
| | | | 7,602,945 | | | | | | 2.92 | | |
Exercised
|
| | | | (64,466 ) | | | | | | 96.04 | | |
Forfeited or Expired
|
| | | | (7,738 ) | | | | | | 1,959.00 | | |
Warrants Outstanding, December 31, 2016
|
| | | | 7,611,904 | | | | | | 5.98 | | |
Exercisable, December 31, 2016
|
| | | | 7,441,071 | | | | | $ | 6.04 | | |
|
Exercise Price
|
| |
Number Outstanding
(in shares) |
| |
Weighted Average
Remaining Contractual Life (in years) |
| ||||||
$2.00
|
| | | | 6,250,000 | | | | | | 4.99 | | |
$2.00*
|
| | | | 1,049,376 | | | | | | 4.55 | | |
$2.50
|
| | | | 150,000 | | | | | | 2.97 | | |
$8.40
|
| | | | 20,833 | | | | | | 4.82 | | |
$13.79
|
| | | | 116,666 | | | | | | 4.38 | | |
$90.00
|
| | | | 20,417 | | | | | | 1.84 | | |
$420.00
|
| | | | 59 | | | | | | 1.25 | | |
$1,380.00
|
| | | | 1,209 | | | | | | 3.10 | | |
$2,400.00
|
| | | | 353 | | | | | | 3.15 | | |
$2,625.00
|
| | | | 143 | | | | | | 1.88 | | |
$8,244.00
|
| | | | 2,723 | | | | | | 1.66 | | |
$10,500.00
|
| | | | 118 | | | | | | 1.04 | | |
$42,000.00
|
| | | | 7 | | | | | | 0.20 | | |
Outstanding, December 31, 2016
|
| | | | 7,611,904 | | | | |||||
|
Year Ending December 31,
|
| | | | | | |
2017
|
| | | $ | 259,000 | | |
2018
|
| | | | 174,000 | | |
2019
|
| | | | 156,000 | | |
2020
|
| | | | 31,000 | | |
| | | | $ | 620,000 | | |
|
|
Amount of consideration:
|
| | | $ | 16,000,000 | | |
| Tangible assets acquired and liabilities assumed at preliminary fair value | | | |||||
|
Accounts receivable
|
| | | $ | 10,231,000 | | |
|
Inventories
|
| | | | 12,459,000 | | |
|
Property and equipment
|
| | | | 1,284,000 | | |
|
Prepaid expenses
|
| | | | 76,000 | | |
|
Intangible assets
|
| | | | 5,944,000 | | |
|
Accounts payable and deferred revenue
|
| | | | (1,599,000 ) | | |
|
Accrued expenses
|
| | | | (929,000 ) | | |
|
Net tangible assets acquired
|
| | | $ | 27,466,000 | | |
|
Total net assets acquired
|
| | | $ | 27,466,000 | | |
|
Consideration paid
|
| | | | 16,000,000 | | |
|
Preliminary gain on bargain purchase
|
| | | $ | 11,466,000 | | |
|
| | |
For the Year Ended
December 31, |
| |||||||||
| | |
2016
|
| |
2015
|
| ||||||
Revenues, net
|
| | | $ | 52,191 | | | | | $ | 78,421 | | |
Net loss allocable to common shareholders
|
| | | $ | (81,597 ) | | | | | $ | (23,883 ) | | |
Net loss per share
|
| | | $ | (132.46 ) | | | | | $ | (379.09 ) | | |
Weighted average number of shares outstanding
|
| | | | 616 | | | | | | 63 | | |
1 Year XG Technology, Inc. Chart |
1 Month XG Technology, Inc. Chart |
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