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Document and Entity Information
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9 Months Ended | |
|---|---|---|
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Sep. 30, 2011
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Oct. 20, 2011
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| Document Information [Line Items] | ||
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | Sep. 30, 2011 | |
| Document Fiscal Year Focus | 2011 | |
| Document Fiscal Period Focus | Q3 | |
| Trading Symbol | NURO | |
| Entity Registrant Name | NEUROMETRIX, INC. | |
| Entity Central Index Key | 0001289850 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Filer Category | Smaller Reporting Company | |
| Entity Common Stock, Shares Outstanding | 3,888,082 |
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- Definition
If the value is true, then the document as an amendment to previously-filed/accepted document. No definition available.
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- Definition
End date of current fiscal year in the format --MM-DD. No definition available.
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- Definition
This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY. No definition available.
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- Definition
This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006. No definition available.
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- Details
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- Definition
The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements containing historical data, it is the date up through which that historical data is presented. If there is no historical data in the report, use the filing date. The format of the date is CCYY-MM-DD. No definition available.
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- Definition
The type of document being provided (such as 10-K, 10-Q, N-1A, etc). The document type is limited to the same value as the supporting SEC submission type, minus any "/A" suffix. The acceptable values are as follows: S-1, S-3, S-4, S-11, F-1, F-3, F-4, F-9, F-10, 6-K, 8-K, 10, 10-K, 10-Q, 20-F, 40-F, N-1A, 485BPOS, 497, NCSR, N-CSR, N-CSRS, N-Q, 10-KT, 10-QT, 20-FT, POS AM and Other. No definition available.
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Indicate number of shares outstanding of each of registrant's classes of common stock, as of latest practicable date. Where multiple classes exist define each class by adding class of stock items such as Common Class A [Member], Common Class B [Member] onto the Instrument [Domain] of the Entity Listings, Instrument No definition available.
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- Definition
Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Trading symbol of an instrument as listed on an exchange. No definition available.
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- Definition
Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Amount due from customers or clients, within one year of the balance sheet date (or the normal operating cycle, whichever is longer), for goods or services (including trade receivables) that have been delivered or sold in the normal course of business, reduced to the estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying value as of the balance sheet date of obligations incurred and payable, pertaining to costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered. Examples include taxes, interest, rent and utilities. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of additional paid-in capital associated with common and preferred stock. For additional paid-in capital associated with only common stock, use the element additional paid in capital, common stock. For additional paid-in capital associated with only preferred stock, use the element additional paid in capital, preferred stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Amount equal to the present value (the principal) at the beginning of the lease term of minimum lease payments during the lease term (excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, together with any profit thereon) net of payments or other amounts applied to the principal, through the balance sheet date and due to be paid within one year (or one operating cycle, if longer) of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Amount equal to the present value (the principal) at the beginning of the lease term of minimum lease payments during the lease term (excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, together with any profit thereon) net of payments or other amounts applied to the principal, through the balance sheet date and due to be paid more than one year (or one operating cycle, if longer) after the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate par or stated value of issued nonredeemable common stock (or common stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of deferred costs capitalized at the end of the reporting period that are expected to be charged against earnings within one year or the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The carrying amount of consideration received or receivable as of the balance sheet date on potential earnings that were not recognized as revenue in conformity with GAAP, and which are expected to be recognized as such within one year or the normal operating cycle, if longer, including sales, license fees, and royalties, but excluding interest income. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The noncurrent portion of deferred revenue amount as of balance sheet date. Deferred revenue is a liability related to a revenue producing activity for which revenue has not yet been recognized, and is not expected to be recognized in the next twelve months. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of the carrying values as of the balance sheet date of obligations incurred through that date and payable for obligations related to services received from employees, such as accrued salaries and bonuses, payroll taxes and fringe benefits. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of all Liabilities and Stockholders' Equity items (or Partners' Capital, as applicable), including the portion of equity attributable to noncontrolling interests, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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| X | ||||||||||
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- Definition
Aggregate par or stated value of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The total of the amounts paid in advance for capitalized costs that will be expensed with the passage of time or the occurrence of a triggering event, and will be charged against earnings within one year or the normal operating cycle, if longer, and the aggregate carrying amount of current assets, as of the balance sheet date, not separately presented elsewhere in the balance sheet. Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The total of the carrying amounts as of the balance sheet date of amounts paid in advance for expenses which will be charged against earnings in periods after one year or beyond the operating cycle, if longer, and the aggregate carrying amount of noncurrent assets not separately disclosed in the balance sheet. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Cash and equivalents whose use in whole or in part is restricted for the long-term, generally by contractual agreements or regulatory requirements. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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Balance Sheets (Parenthetical) (USD $)
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Sep. 30, 2011
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Dec. 31, 2010
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| Preferred stock, par value | $ 0.001 | $ 0.001 |
| Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
| Preferred stock, outstanding | 0 | 0 |
| Common stock, par value | $ 0.0001 | $ 0.0001 |
| Common stock, shares authorized | 50,000,000 | 50,000,000 |
| Common stock, shares issued | 3,888,082 | 3,866,256 |
| Common stock, shares outstanding | 3,888,082 | 3,866,256 |
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- Definition
Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Shares outstanding equals shares issued minus shares held in treasury and other adjustments, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The maximum number of nonredeemable preferred shares (or preferred stock redeemable solely at the option of the issuer) permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate share number for all nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) held by stockholders. Does not include preferred shares that have been repurchased. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Statements of Operations (USD $)
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3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2011
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Sep. 30, 2010
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Sep. 30, 2011
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Sep. 30, 2010
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| Revenues | $ 2,560,226 | $ 3,414,335 | $ 8,036,912 | $ 10,833,204 |
| Cost of revenues | 1,156,119 | 1,347,816 | 3,521,767 | 4,049,178 |
| Gross margin | 1,404,107 | 2,066,519 | 4,515,145 | 6,784,026 |
| Operating expenses: | ||||
| Research and development | 829,556 | 1,475,640 | 3,049,887 | 4,808,171 |
| Sales and marketing | 1,810,653 | 2,535,810 | 5,164,782 | 8,919,631 |
| General and administrative | 1,199,676 | 1,589,723 | 3,883,247 | 5,905,376 |
| Total operating expenses | 3,839,885 | 5,601,173 | 12,097,916 | 19,633,178 |
| Loss from operations | (2,435,778) | (3,534,654) | (7,582,771) | (12,849,152) |
| Interest income | 4,936 | 13,983 | 17,954 | 45,381 |
| Net loss before taxes | (2,430,842) | (3,520,671) | (7,564,817) | (12,803,771) |
| Income tax benefit | 120,490 | 120,490 | ||
| Net loss | $ (2,430,842) | $ (3,400,181) | $ (7,564,817) | $ (12,683,281) |
| Per common share data, basic and diluted: | ||||
| Net loss | $ (0.63) | $ (0.89) | $ (1.96) | $ (3.30) |
| Weighted average number of common shares outstanding, basic and diluted | 3,859,682 | 3,839,684 | 3,854,106 | 3,838,045 |
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- Definition
Weighted Average Number of Shares Outstanding where Basic and Diluted are the same and reported as a single line No definition available.
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- Definition
The aggregate cost of goods produced and sold and services rendered during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of net income or loss for the period per each share in instances when basic and diluted earnings per share are the same amount and reported as a single line item on the face of the financial statements. Basic earnings per share is the amount of net income or loss for the period per each share of common stock or unit outstanding during the reporting period. Diluted earnings per share includes the amount of net income or loss for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period. No definition available.
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- Details
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- Definition
The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting entity, which are not directly or indirectly associated with the manufacture, sale or creation of a product or product line. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Sum of operating profit and nonoperating income or expense before Income or Loss from equity method investments, income taxes, extraordinary items, and noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Income derived from investments in debt securities and on cash and cash equivalents the earnings of which reflect the time value of money or transactions in which the payments are for the use or forbearance of money. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Generally recurring costs associated with normal operations except for the portion of these expenses which can be clearly related to production and included in cost of sales or services. Includes selling, general and administrative expense. No definition available.
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- Details
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- Definition
The net result for the period of deducting operating expenses from operating revenues. No definition available.
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- Definition
The aggregate costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility, and costs allocated in accounting for a business combination to in-process projects deemed to have no alternative future use. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate total amount of expenses directly related to the marketing or selling of products or services. No definition available.
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- Details
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The increase (decrease) during the reporting period in cash and cash equivalents. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The amount of impairment loss recognized in the period resulting from the write-down of the carrying amount of an indefinite-lived intangible asset, other than goodwill, to fair value. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in the aggregate amount of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in the aggregate amount of accrued expenses and other operating obligations not separately disclosed in the statement of cash flows. No definition available.
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| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The increase (decrease) during the reporting period in other assets used in operating activities less other operating liabilities used in operating activities not separately disclosed in the statement of cash flows. May include changes in other current assets and liabilities, other noncurrent assets and liabilities, or a combination of other current and noncurrent assets and liabilities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The increase (decrease) during the reporting period in the value of prepaid expenses and other assets not separately disclosed in the statement of cash flows, for example, deferred expenses, intangible assets,or income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net cash inflow or outflow for the increase (decrease) associated with funds that are not available for withdrawal or use (such as funds held in escrow) and are associated with underlying transactions that are classified as investing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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| X | ||||||||||
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- Definition
The net cash inflow or outflow from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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| X | ||||||||||
|
- Definition
The net cash inflow or outflow from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Details
|
| X | ||||||||||
|
- Definition
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow from the additional capital contribution to the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash inflow associated with the sale, maturity and collection of all investments such as debt, security and so forth during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The cash outflow for the obligation for a lease meeting the criteria for capitalization (with maturities exceeding one year or beyond the operating cycle of the entity, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
| X | ||||||||||
|
- Definition
The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock or unit options, amortization of restricted stock or units, and adjustment for officers' compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
Business and Basis of Presentation
|
9 Months Ended | ||
|---|---|---|---|
|
Sep. 30, 2011
|
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| Business and Basis of Presentation |
Our Business – An Overview
NeuroMetrix,
Inc., or the Company, a Delaware corporation, was founded in June
1996. It is a science-based health care company transforming
patient care through neurotechnology. The Company develops and
markets innovative products for the detection, diagnosis, and
monitoring of peripheral nerve disorders such as those associated
with diabetes and carpal tunnel syndrome.
The
Company’s primary focus is diabetes, specifically the
detection and monitoring of diabetic peripheral neuropathy, or DPN,
which is a common complication of the disease. The Company views
diabetes as representing the largest and fastest growing
opportunity for its proprietary technology. Neuropathy is a common
and serious complication of the disease that may lead to foot
ulcers and limb amputation. The Company has over a decade of
experience in neuropathy detection starting with approval in 1999
by the United States Food and Drug Administration, or FDA,
of the NC-stat System, a point-of-care device for the
performance of general purpose nerve conduction studies.
In
support of its efforts, the Company has hired a dedicated
endocrinology and podiatry sales force and,
in September 2011, the Company commercially launched
NC-stat DPNCheck, which is a rapid, low cost, modified version of
its NC-stat device designed to assess systemic neuropathies, such
as DPN, at the point-of-care. The Company is focusing its initial
sales efforts for NC-stat DPNCheck on endocrinologists and
podiatrists because of their high concentration of diabetes
patients and focus on DPN. The Company’s sales process for
NC-stat DPNCheck starts with a 30-day, no-charge physician
evaluation. All third quarter NC-stat DPNCheck shipments were under
terms of physician evaluation agreements. The
Company expects to record its first revenue from sales of NC-stat
DPNCheck in the fourth quarter of 2011.
The
Company’s ADVANCE™ NCS/EMG System, or the ADVANCE
System, has also been cleared by the FDA and is a comprehensive
platform for the performance of traditional nerve conduction
studies and invasive electromyography procedures. The Company
focuses its sales efforts for the ADVANCE System on physician
offices and clinics. The ADVANCE System is comprised of:
(1) various types of electrodes and needles, (2) the
ADVANCE device and related modules, and (3) a communication
hub that enables the physician’s office to network their
device to the Company’s servers for data archiving, report
generation and other network services. The Company does not intend
to support the original NC-stat System beyond 2011 and therefore it
is transitioning its NC-stat customers to the ADVANCE
System.
The
Company’s neurodiagnostic equipment is used in approximately
3,200 physicians’ offices, clinics, and hospitals. Over 1.5
million patient studies have been performed with the
Company’s neurodiagnostic devices since 1999.
The
Company believes that its current cash and cash equivalents of
$11.7 million and the cash to be generated from expected product
sales will be sufficient to meet its projected operating
requirements for at least the next twelve months. The Company
continues to face significant challenges and uncertainties and, as
a result, the Company’s available capital resources may be
consumed more rapidly than currently expected due to (a) decreases
in sales of its products and future revenues; (b) changes the
Company makes to its business that affect ongoing operating
expenses; (c) changes in the Company’s business
strategy; (d) regulatory developments affecting the Company and its
products; (e) changes the Company makes to research and
development spending plans; and (f) other items
affecting the Company’s forecasted level of expenditures and
use of cash resources. Accordingly, the Company will likely need to
raise additional funds to support its operating and capital needs.
The Company may attempt to obtain additional funding through public
or private financing, collaborative arrangements with strategic
partners, or through additional credit lines or other debt
financing sources to increase the funds available to fund its
operations. However, the Company may not be able to secure such
financing in a timely manner and on favorable terms, if at all.
Without additional funds, the Company may be forced to delay, scale
back or eliminate some of its sales and marketing efforts, research
and development activities, or other operations and potentially
delay product development in an effort to provide sufficient funds
to continue its operations.
Unaudited Interim Financial Statements
The
accompanying unaudited balance sheet as of September 30, 2011,
unaudited statements of operations for the quarters and nine months
ended September 30, 2011 and 2010 and the unaudited statements of
cash flows for the nine months ended September 30, 2011 and 2010
have been prepared in accordance with accounting principles
generally accepted in the United States of America for interim
financial information and with the instructions to Form 10-Q
and Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by accounting
principles generally accepted in the United States of America for
complete financial statements. In the opinion of management, the
financial statements include all normal and recurring adjustments
considered necessary for a fair statement of the Company’s
financial position and operating results. Certain prior period
amounts have been adjusted to reflect the Company's 1-for-6 reverse
stock split (see Note 12, Reverse Stock Split, for further
details). Operating results for the quarter and nine months ended
September 30, 2011 are not necessarily indicative of the results
that may be expected for the year ending December 31, 2011 or
any other period. These financial statements and notes should be
read in conjunction with the financial statements for the year
ended December 31, 2010 included in the Company’s Annual
Report on Form 10-K, as filed with the Securities and Exchange
Commission, or the SEC, on March 7, 2011. The accompanying balance
sheet as of December 31, 2010 has been derived from audited
financial statements prepared at that date, but does not include
all disclosures required by accounting principles generally
accepted in the United States of America, or GAAP.
Revenues
The
Company recognizes revenue when the following criteria have been
met: persuasive evidence of an arrangement exists, delivery has
occurred and risk of loss has passed, the seller’s price to
the buyer is fixed or determinable, and collection is reasonably
assured.
Revenues
associated with the sale of the ADVANCE devices to customers and
distributors are recognized upon shipment provided that the fee is
fixed or determinable, persuasive evidence of an arrangement
exists, collection of receivables is reasonably assured, product
returns are reasonably estimable, and no continuing obligations
exist. The revenues from the sale of an ADVANCE communication hub
together with access to NeuroMetrix information systems are
considered one unit of accounting and deferred and recognized on a
straight-line basis over the estimated period of time the Company
provides the service associated with the information systems of
three years. The resulting deferred revenue and deferred costs are
presented as separate line items on the accompanying balance sheet.
Revenues related to extended service agreements for the devices are
recognized ratably over the term of the extended service
agreement.
Revenues
associated with the sale of the NC-stat DPNCheck devices will be
recognized upon shipment provided that the fee is fixed or
determinable, persuasive evidence of an arrangement exists,
collection of receivables is reasonably assured, product returns
are reasonably estimable, and no continuing obligations
exist.
Revenues
also include sales of consumables, including single use nerve
specific electrodes, EMG needles, and other accessories. These
revenues are recognized upon shipment provided that the fee is
fixed or determinable, persuasive evidence of an arrangement
exists, collection of receivables is reasonably assured, and
product returns are reasonably estimable.
When multiple elements are contained in a single arrangement, the
Company allocates revenue between the elements based on
their relative selling prices. The
Company determines selling price using vendor specific objective
evidence, or VSOE, if it is available, third-party evidence, or
TPE, if VSOE is not available, and best estimate of selling price,
or BESP, if neither VSOE nor TPE are available. The Company
generally expects that it will not be able to establish TPE due to
the nature of the markets in which it competes, and, as such, it
will typically determine selling price using VSOE or if not
available, BESP. The objective of BESP is to determine the selling
price of a deliverable on a standalone basis. The
Company’s determination of BESP involves a weighting of
several factors based on the specific facts and circumstances of an
arrangement. Specifically, the Company considers the cost to
produce the deliverable, the anticipated margin on that
deliverable, the selling price and profit margin for similar parts,
the Company’s ongoing pricing strategy, the value of any
enhancements that have been built into the deliverable, and the
characteristics of the varying markets in which the deliverable is
sold.
The
Company extends to customers traditional payment terms which
generally require payment within 30 days from invoice date.
In
addition, from the fourth quarter of 2009 through July 2010, the
Company offered extended payment terms of up to one year for new
customers placing large dollar value orders for a combination of
medical equipment and consumables. Typically these sales involved
installment payments in 12 equal monthly amounts. Revenues were
recognized upon shipment provided the selling price was
fixed or determinable, persuasive evidence of an arrangement
existed, delivery had occurred and risk of loss had passed,
collection of the resulting receivables was reasonably assured, and
product returns were reasonably estimable. In developing parameters
for revenue recognition, the Company relied on its historical
experience for similar arrangements. As of September 30, 2011,
accounts receivable, net included $25,000, net of accounts under
extended payment terms.
Certain
product sales are made with a 30-day right of return. Because the
Company can reasonably estimate future returns, the Company
recognizes revenues associated with product sales that contain a
right of return upon shipment and at the same time reduces revenue
and accounts receivable by the amount of estimated
returns.
Use of Estimates
The
preparation of financial statements in conformity with GAAP
requires management to make significant estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and
expenses during reporting periods. Actual results could differ from
those estimates.
Recent Accounting Pronouncements
In
September 2009, the Emerging Issues Task Force, or EITF, issued new
rules pertaining to the accounting for revenue arrangements with
multiple deliverables. The new rules provide an alternative method
for establishing fair value of a deliverable when vendor specific
objective evidence cannot be determined. The guidance provides for
the determination of the best estimate of selling price to separate
deliverables and allows the allocation of arrangement consideration
using this relative selling price model. The guidance supersedes
the prior multiple element revenue arrangement accounting rules
that are currently used by the Company. The new guidance was
adopted prospectively by the Company beginning January 1, 2011.
Adoption has not had a material effect on the Company’s
financial statements.
In
September 2009, the EITF issued new rules to exclude
(a) non-software components of tangible products and
(b) software components of tangible products that are sold,
licensed, or leased with tangible products when the software
components and non-software components of the tangible product
function together to deliver the tangible product’s essential
functionally. The new guidance was adopted prospectively by the
Company beginning January 1, 2011. Adoption has not had a material
effect on the Company’s financial statements.
In
January 2010, the Financial Accounting Standards Board issued
Accounting Standards Update No. 2010-06, “Fair Value
Measurements and Disclosures (Topic 820)—Improving
Disclosures about Fair Value Measurements”, or ASU
2010-06. ASU 2010-06 requires new disclosures regarding significant
transfers in and out of Levels 1 and 2, as well as information
about activity in Level 3 fair value measurements, including
presenting information about purchases, sales, issuances, and
settlements on a gross versus a net basis in the Level 3 activity
roll forward. In addition, ASU 2010-06 also clarifies existing
disclosures regarding input and valuation techniques, as well as
the level of disaggregation for each class of assets and
liabilities. ASU No. 2010-06 is effective for interim and
annual periods beginning after December 15, 2009, except for
the disclosures pertaining to purchases, sales, issuances, and
settlements in the rollforward of Level 3 activity, which were
effective for interim and annual periods beginning after
December 15, 2010. The new guidance was adopted prospectively
by the Company beginning January 1, 2011. Adoption has not had a
material effect on the Company’s financial
statements.
In
May 2011, the Financial Accounting Standards Board, or FASB, issued
Accounting Standards Update, or ASU, No. 2011-04, “Fair Value
Measurement (Topic 820)—Amendments to Achieve Common Fair
Value Measurement and Disclosure Requirements in U.S. GAAP and
IFRSs”, or ASU 2011-04. The amendments in ASU 2011-04
result in common fair value measurement and disclosure requirements
in GAAP and International Financial Reporting Standards, or IFRS.
Consequently, the amendments change the wording used to describe
many of the requirements in GAAP for measuring fair value and for
disclosing information about fair value measurements. The new
guidance is to be adopted prospectively, effective for interim and
annual periods beginning after December 15, 2011. The Company does
not believe adoption of ASU 2011-04 will have a material effect on
its financial statements.
In
June 2011, the FASB issued ASU No. 2011-05, “Comprehensive Income
(Topic 220) —Presentation of Comprehensive
Income.” ASU No. 2011-05 requires that all
nonowner changes in stockholders’ equity be presented either
in a single continuous statement of comprehensive income or in two
separate but consecutive statements, eliminating the option to
present other comprehensive income in the statement of changes in
equity. Under either choice, items that are reclassified from other
comprehensive income to net income are required to be presented on
the face of the financial statements where the components of net
income and the components of other comprehensive income are
presented. The new guidance is to be adopted retrospectively,
effective for interim and annual periods beginning after December
15, 2011. The Company does not believe adoption of ASU 2011-05 will
have a material effect on its financial statements.
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| X | ||||||||||
|
- Definition
The entire disclosure for the business description and basis of presentation concepts. Business description describes the nature and type of organization including but not limited to organizational structure as may be applicable to holding companies, parent and subsidiary relationships, business divisions, business units, business segments, affiliates and information about significant ownership of the reporting entity. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). No definition available.
|
|
Comprehensive Loss
|
9 Months Ended | ||
|---|---|---|---|
|
Sep. 30, 2011
|
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| Comprehensive Loss |
For
the quarters and nine months ended September 30, 2011 and 2010, the
Company had no components of other comprehensive income or loss
other than net loss.
|
| X | ||||||||||
|
- Definition
The entire disclosure for comprehensive income. Includes, but is not limited to, the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
Net Loss Per Common Share
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011
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| Net Loss Per Common Share |
Basic
net loss per common share is computed by dividing net loss by the
weighted average number of common shares outstanding during the
period. Unvested restricted shares, although legally issued and
outstanding, are not considered outstanding for purposes of
calculating basic net income per share. Diluted net loss per common
share is computed by dividing net loss by the weighted average
number of common shares outstanding during the period plus the
dilutive effect of outstanding instruments such as options,
warrants, and restricted stock. Because the Company has reported a
net loss for all periods presented, diluted loss per common share
is the same as basic loss per common share, as the effect of
utilizing the fully diluted share count would have reduced the net
loss per common share. Therefore, in calculating net loss per share
amounts, shares underlying the following
potentially dilutive common stock equivalents were excluded from
the calculation of diluted net income per common share because
their effect was anti-dilutive for each of the periods presented.
See Note 12 regarding the reverse split of the Company’s
common stock which occurred on September 1,
2011.
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| X | ||||||||||
|
- Definition
The entire disclosure for earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
Inventories
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011
|
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| Inventories |
Inventories
consist of the following:
|
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| X | ||||||||||
|
- Definition
The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
Intangible Assets
|
9 Months Ended | ||
|---|---|---|---|
|
Sep. 30, 2011
|
|||
| Intangible Assets |
In January 2009, the
Company acquired certain technological and intellectual property
assets from Cyberkinetics Neurotechnology Systems, Inc., or
Cyberkinetics, and Andara Life Science, Inc., a wholly-owned
subsidiary of Cyberkinetics, for $350,000 in cash. The Company had
been amortizing these intangible assets using the straight-line
method over their economic lives, which was estimated to be
five years. Research and development expenses included
amortization of this technological and intellectual property of
$17,500 and $52,500 for the quarter and nine months ended September
30, 2010, respectively, and $17,500 for the nine months ended
September 30, 2011. Following its decision to terminate development
work related to this technology, the Company recorded within
research and development expense in the second quarter of 2011 an
impairment charge of $192,500 for the remaining unamortized balance
of these assets.
|
| X | ||||||||||
|
- Definition
The entire disclosure for all or part of the information related to intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
Accrued Expenses
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
Sep. 30, 2011
|
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| Accrued Expenses |
Accrued
expenses consist of the following:
|
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| X | ||||||||||
|
- Definition
The entire disclosure for accounts payable, accrued expenses, and other liabilities that are classified as current at the end of the reporting period. No definition available.
|
|
Commitments and Contingencies
|
9 Months Ended | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sep. 30, 2011
|
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| Commitments and Contingencies |
Operating Lease
The
Company leases office and engineering laboratory space in Waltham,
Massachusetts. The lease term extends through March 31, 2013.
Base rent for the period October 2011 through March 2013 will range
from $735,000 to $765,000 annually.
Future
minimum lease payments under noncancelable operating leases as of
September 30, 2011 are as follows:
On
April 2, 2011, $178,500 of restricted cash was released under terms
of the lease for the Company’s Massachusetts headquarters
building.
|
| X | ||||||||||
|
- Definition
The entire disclosure for commitments and contingencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
|
Fair Value Measurements
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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|
Sep. 30, 2011
|
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| Fair Value Measurements |
The
following tables present information about the Company’s
assets and liabilities that are measured at fair value on a
recurring basis for the periods presented and indicates the fair
value hierarchy of the valuation techniques it utilized to
determine such fair value. In general, the fair values of the
Company’s assets and liabilities are determined by
Level 1 inputs that utilize quoted prices (unadjusted) in
active markets for identical assets or liabilities, as required by
GAAP. Fair values determined by Level 2 inputs utilize data
points that are observable such as quoted prices, interest rates,
and yield curves. Fair values determined by Level 3 inputs are
unobservable data points for the asset or liability, and include
situations where there is little, if any, market activity for the
asset or liability. The carrying amounts of
financial assets and liabilities, including cash and cash
equivalents, restricted cash, accounts receivable, accounts
payable, and other liabilities, approximated their fair value at
September 30, 2011 and December 31, 2010. The Company currently has
no financial instruments subject to fair value measurement on a
recurring or nonrecurring basis.
|
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| X | ||||||||||
|
- Definition
The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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|
Legal Matters
|
9 Months Ended | ||
|---|---|---|---|
|
Sep. 30, 2011
|
|||
| Legal Matters |
As
previously disclosed in the Company's filings with the Securities
and Exchange Commission, or SEC, on March 17, 2008, a putative
securities class action complaint was filed in the United States
District Court for the District of Massachusetts against the
Company and certain of its current and former officers. On
March 27, 2008, a related putative securities class action
complaint was filed in the same court, against the same defendants.
These two actions were subsequently consolidated, and the court
appointed a lead plaintiff. On November 10, 2008, a
consolidated amended class action complaint was filed, which
alleged, among other things, that between October 27, 2005 and
February 12, 2008, the defendants violated the federal
securities laws by allegedly making false and misleading statements
and failing to disclose material information to the investing
public. The plaintiffs sought unspecified damages. On
January 30, 2009, the Company filed a motion to dismiss the
consolidated amended complaint on the grounds, among others, that
it failed to state a claim on which relief can be granted. On
December 8, 2009, the Court entered an order granting
defendants' motion to dismiss and dismissing the consolidated
amended complaint in its entirety with prejudice. The plaintiffs
filed a notice of appeal with the United States Court of Appeals
for the First Circuit on January 6, 2010. Oral arguments on
the plaintiffs' appeal were conducted on September 15, 2010.
On March 18, 2011, the Court of Appeals for the First Circuit
affirmed the District Court’s dismissal of the amended
complaint. On April 1, 2011, the plaintiffs filed a petition for
rehearing en banc with the First Circuit, seeking a rehearing of
their appeal by the full members of the First Circuit court. The
defendants’ response to that petition was filed on April 25,
2011. On May 26, 2011, the Court denied the plaintiffs’
request for a rehearing. The plaintiffs had until August 24, 2011
to file an appeal with the United States Supreme Court, but no
appeal was filed. As a result, all legal action related to this
lawsuit has concluded.
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- Definition
The entire disclosure for legal proceedings, legal contingencies, litigation, regulatory and environmental matters and other contingencies. No definition available.
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Credit Facility
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9 Months Ended | ||
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Sep. 30, 2011
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| Credit Facility |
In
order to supplement the Company’s access to capital, on March
5, 2010, it entered into a Loan and Security Agreement, or the
Credit Facility, with a bank, which permits the Company to borrow
up to $7.5 million on a revolving basis. The Credit Facility was
extended for one year on March 1, 2011 and will expire on March 2,
2012. Amounts borrowed under the Credit Facility will bear interest
equal to the prime rate plus 0.5%. Any borrowings under the Credit
Facility will be secured by the Company’s cash, accounts
receivable, inventory, and equipment. The Credit
Facility includes traditional lending and reporting covenants
including that certain financial covenants applicable to liquidity
are to be maintained by the Company. As of September 30, 2011, the
Company was in compliance with these covenants and had not borrowed
any funds under the Credit Facility.
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- Definition
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Business Restructuring
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Sep. 30, 2011
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| Business Restructuring |
In
December 2010 and January 2011, the Company restructured its
neurodiagnostic activities resulting in the elimination of twenty-
five employee positions. Restructuring charges totaled $2.2 million
related to severance costs and inventory. Approximately $2.0
million, consisting of $208,000 in severance and $1.8 million in
inventory charges, was recorded as of December 31, 2010 and the
balance of approximately $185,000 in severance was recorded in the
first quarter of 2011.
The
following table provides a rollforward of the liability balance for
these restructuring actions, substantially all of which were
recorded as sales and marketing expense in the Company’s
Statement of Operations. The balance as of September 30, 2011 will
be paid out by October 31, 2011.
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- Definition
The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reverse Stock Split
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9 Months Ended | ||
|---|---|---|---|
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Sep. 30, 2011
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| Reverse Stock Split |
The
Company’s common stock is quoted on the The NASDAQ Stock
Market LLC, or NASDAQ, Capital Market under the symbol
“NURO.” One of the requirements for continued listing
on the NASDAQ Capital Market is maintenance of a minimum closing
bid price of $1.00. Because the Company’s common stock had
been trading below $1.00, on September 1, 2011, the Company filed a
Certificate of Amendment to its Restated Certificate of
Incorporation, as amended, with the Secretary of State of the State
of Delaware, to effect a 1-for-6 reverse stock split of its common
stock, or the Reverse Stock Split. This action had previously been
approved by the Company’s stockholders at the Company’s
annual meeting held on May 16, 2011. As a result of the Reverse
Stock Split, every six shares of the Company’s pre-reverse
split common stock were combined and reclassified into one share of
its common stock. No fractional shares were issued in connection
with the Reverse Stock Split. Stockholders who otherwise would have
been entitled to receive a fractional share in connection with the
Reverse Stock Split received a cash payment in lieu thereof. The
par value and other terms of the common stock were not affected by
the Reverse Stock Split.
The
Company’s shares outstanding immediately prior to the Reverse
Stock Split totaled 23,331,646. These were adjusted to 3,888,607
shares outstanding as a result of the Reverse Stock Split. The
Company’s common stock began trading at its post-Reverse
Stock Split price at the beginning of trading on September 2, 2011.
Share,
per share, and stock option amounts for all periods presented
within this quarterly report on Form 10-Q and the December 31, 2010
Balance Sheet amounts for common stock and additional paid-in
capital have been retroactively adjusted to reflect the Reverse
Stock Split.
On
September 19, 2011, the Company received a letter from NASDAQ
indicating that it had regained compliance with the minimum bid
price requirement under NASDAQ Listing Rule 5550(a)(2) for
continued listing on The NASDAQ Capital Market. The Company’s
common stock continues to be listed on NASDAQ.
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- Definition
Reverse Stock Split Disclosure [Text Block] No definition available.
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