Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.2
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Schedule of Disaggregation of Revenue

In the following table, revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition.

 

In thousands of US dollars ($)   Three Months Ended
June 30,		     Six Months Ended
June 30,		  
Primary geographical markets   2019     2018     2019     2018  
North America     368       351       592       716  
Europe     54       64       94       219  
Asia     97       224       343       315  
      519       639       1,029       1,250  

 

    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
Major products/services lines   2019     2018     2019     2018  
Hardware     212       397       352       817  
Grants     0       20       0       45  
Consumables     91       64       153       139  
Contract research services     111       67       349       67  
Sample preparation accessories     35       47       35       96  
Technical support/extended service contracts     28       22       67       50  
Shipping and handling     14       16       19       28  
Other     28       6       54       8  
      519       639       1,029       1,250  

 

    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
Timing of revenue recognition   2019     2018     2019     2018  
Products transferred at a point in time     506       609       1,007       1,185  
Products and services transferred over time     13       30       22       65  
      519       639       1,029       1,250  
Schedule of Contract Balances

Contract balances

 

In thousands of US dollars ($)   June 30, 2019     December 31, 2018  
Receivables, which are included in ‘Accounts Receivable’     411       475  
Contract liabilities (deferred revenue)     58       58  
Schedule of Future Related to Performance Obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.

 

In thousands of US dollars ($)   2019     2020     2021     Total  
Extended warranty service     26       32       -       58  
Schedule of Customer Concentration Risk Percentage

The following table illustrates the level of concentration as a percentage of total revenues during the three months and six months ended June 30, 2019 and 2018.

 

    For the Three Months Ended  
    June 30,  
    2019     2018  
Top Five Customers     47 %     54 %
Federal Agencies     9 %     12 %

 

    For the Six Months Ended  
    June 30,  
    2019     2018  
Top Five Customers     55 %     38 %
Federal Agencies     14 %     8 %

 

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of June 30, 2019 and December 31, 2018. The Top Five Customers category may include federal agency receivable balances if applicable.

 

    June 30, 2019     December, 31, 2018  
Top Five Customers     60 %     54 %
Federal Agencies     5 %     5 %
Schedule of Computation of Loss Per Share

The following table illustrates our computation of loss per share for the three months and six months ended June 30, 2019 and 2018:

 

    For the Three Months Ended     For the Six Months Ended  
    June 30,     June 30,  
    2019     2018     2019     2018  
Numerator:                                
Net loss   $ (2,766,842 )   $ (2,281,232 )   $ (4,822,015 )   $ (4,512,886 )
Deemed dividend on down round feature     -       (213,012 )     -       (213,012 )
Deemed dividend on beneficial conversion feature     (889,532 )     (10,532,291 )     (1,949,731 )     (10,532,291 )
Preferred stock dividends     (420,489 )     (95,879 )     (776,098 )     (95,879 )
Net loss applicable to common shareholders   $ (4,076,863 )   $ (13,122,414 )   $ (7,547,844 )   $ (15,354,068 )
                                 
Denominator for basic and diluted loss per share:                                
Weighted average common stock shares outstanding    

1,837,913

       1,426,698       1,780,881       1,395,187  
                                 
Loss per common share – basic and diluted   $ (2.22 )   $ (9.20 )   $ (4.24 )   $ (11.01 )
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

The following table presents securities that could potentially dilute basic loss per share in the future. For all periods presented, the potentially dilutive securities were not included in the computation of diluted loss per share because these securities would have been anti-dilutive to our net loss. The Series D Convertible Preferred Stock, Series G Convertible Preferred Stock, Series H Convertible Preferred Stock, Series H2 Convertible Preferred Stock, Series J Convertible Preferred Stock, Series K Convertible Preferred Stock and Series AA Convertible Preferred Stock are presented below as if they were converted into shares of common stock according to the conversion terms.

 

    As of June 30,  
    2019     2018  
Stock options     347,070       244,467  
Convertible debt     692,715       346,133  
Common stock warrants     8,880,554       6,263,607  
Convertible preferred stock:                
Series D Convertible Preferred Stock     25,000       25,000  
Series G Convertible Preferred Stock     26,857       26,857  
Series H Convertible Preferred Stock     33,334       33,334  
Series H2 Convertible Preferred Stock     70,000       70,000  
Series J Convertible Preferred Stock     115,267       115,267  
Series K Convertible Preferred Stock     229,334       229,334  
Series AA Convertible Preferred Stock     7,518,622       5,195,400  
      17,938,753       12,549,399  
Schedule of Stock Based Compensation Expense

The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Consolidated Statements of Operations:

 

    For the Three Months Ended     For the Six Months Ended  
    June 30,     June 30,  
    2019     2018     2019     2018  
Cost of sales   $ 12,082     $ -     $ 20,398   $ -  
Research and development     49,948       15,649       84,573       31,148  
Selling and marketing     28,959       7,279       51,078       14,476  
General and administrative     271,193       39,321       451,525       102,646  
Total stock-based compensation expense   $ 362,182     $ 62,249     $ 607,574     $ 148,270  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2019:

 

          Fair value measurements at
June 30, 2019 using:		  
    June 30, 2019     Quoted
prices in
active
markets
(Level 1)		    

Significant
other
observable
inputs

(Level 2)

    

Significant
unobservable
inputs

(Level 3)

  
Equity Securities     16,643       16,643       -       -  
Total Financial Assets   $ 16,643     $ 16,643     $              -     $                -  

 

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2018:

 

          Fair value measurements at
December 31, 2018 using:		  
    December 31, 2018     Quoted
prices in
active
markets
(Level 1)		     Significant
other
observable
inputs
(Level 2)		     Significant
unobservable
inputs
(Level 3)		  
Equity Securities     16,643       16,643        -        -  
Total Financial Assets   $ 16,643     $ 16,643     $              -     $                 -