Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2019	Jan. 24, 2020	Jun. 30, 2019
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	NeuroMetrix, Inc.
Entity File Number	001-33351
Entity Tax Identification Number	043308180
Entity Address, Address Line One	4B Gill Street
Entity Address, City or Town	Woburn
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01801
City Area Code	781
Local Phone Number	890-9989
Entity Central Index Key	0001289850
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 3,893,251
Trading Symbol	NURO
Entity Common Stock, Shares Outstanding		1,400,674
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		41,627

Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 3,126,206	$ 6,780,429
Accounts receivable, net of allowances of $70,000 and $25,000 at December 31, 2019 and 2018, respectively	298,967	1,082,957
Inventories	1,163,714	2,861,864
Collaborator Payments Receivable	189,008	0
Prepaid expenses and other current assets	652,919	860,915
Total current assets	5,430,814	11,586,165
Fixed assets, net	273,448	407,339
Operating Lease, Right-of-Use Asset	1,159,774	1,968,062
Other long-term assets	29,650	30,314
Total assets	6,893,686	13,991,880
Current liabilities:
Accounts payable	725,658	1,298,084
Accrued product returns	1,443,574	1,659,173
Accrued Sales Return provisions	689,000	1,101,658
Operating Lease, Liability, Current	588,546	577,460
Deferred Collaboration Income	0	1,956,522
Total current liabilities	3,446,778	6,592,897
Operating Lease, Liability, Noncurrent	916,674	1,301,172
Total liabilities	4,363,452	7,894,069
Commitments and contingencies (Note 8)
Stockholders’ equity
Common stock, $0.0001 par value; 25,000,000 and 100,000,000 authorized at December 31, 2019 and 2018; 1,400,674 and 738,029 shares issued and outstanding at December 31, 2019 and 2018, respectively	140	74
Additional paid-in capital	197,319,698	197,114,310
Accumulated deficit	(194,789,605)	(191,016,591)
Total stockholders’ equity	2,530,234	6,097,811
Total liabilities and stockholders’ equity	6,893,686	13,991,880
Preferred stock
Stockholders’ equity
Preferred stock	0	0
Convertible preferred stock
Stockholders’ equity
Preferred stock	$ 1	$ 18

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Assets, Current [Abstract]
Allowance for doubtful accounts receivable, current	$ 70,000	$ 25,000
Stockholders' Equity Attributable to Parent [Abstract]
Common stock, shares issued (in shares)	1,400,674	738,029
Common stock, shares outstanding (in shares)	1,400,674	738,029
Common stock, shares authorized (in shares)	25,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001

Statements of Operations - USD ($)	12 Months Ended
Statements of Operations - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Revenue from Contract with Customer, Including Assessed Tax	$ 9,272,522	$ 16,090,138
Cost of revenues	7,026,899	8,707,082
Gross profit	2,245,623	7,383,056
Operating expenses:
Research and development	3,101,976	5,134,592
Sales and marketing	4,755,168	9,698,753
General and administrative	5,923,190	4,841,278
Total operating expenses	13,780,334	19,674,623
Loss from operations	(11,534,711)	(12,291,567)
Collaboration Income	7,716,667	12,255,704
Other Income	45,030	59,468
Other Nonoperating Income	7,761,697	12,315,172
Net income (loss) applicable to common stockholders:	(3,773,014)	23,605
Net income (loss) applicable to common stockholders:
Net income (loss) applicable to common stockholders	$ (3,773,014)	$ 23,605
Earnings Per Share, Diluted	$ (3.90)	$ 0.02
Earnings Per Share, Basic	$ (3.90)	$ 0.03

Statements of Changes in Stockholders' Equity - USD ($)	Total	Series B – F Convertible Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Management Incentive [Member]	Management Incentive [Member] Common Stock	Management Incentive [Member] Additional Paid-In Capital
Beginning Balance at Dec. 31, 2017	$ 5,017,389	$ 30	$ 27	$ 196,355,386	$ (191,338,054)
Beginning Balance (in shares) at Dec. 31, 2017		29,479.98	270,590
Stock-based compensation expense	446,077			446,077
Conversion of Stock, Shares Converted		11,966.35
Conversion of Stock, Amount Converted		$ (12)		(32)
Issuance of common stock upon conversion of preferred stock	0		$ 44
Stock Issued During Period, Shares, Other							21,479
Stock Issued During Period, Value, Other						$ 294,264	$ 2	$ 294,262
Issuance of common stock upon conversion of preferred stock (in shares)			(443,680)
Issuance of common stock under employees stock purchase plan	18,618		$ 1	18,617
Issuance of common stock under employee stock purchase plan (in shares)			2,280
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	297,858				297,858
Net income (loss)	23,605				23,605
Ending Balance at Dec. 31, 2018	6,097,811	$ 18	$ 74	197,114,310	(191,016,591)
Ending Balance (in shares) at Dec. 31, 2018		17,513.63	738,029
Conversion of Stock, Shares Converted		17,313.63
Conversion of Stock, Amount Converted		$ (17)		(48)
Issuance of common stock upon conversion of preferred stock	0		$ 65
Issuance of common stock upon conversion of preferred stock (in shares)			(658,314)
Issuance of common stock under employees stock purchase plan	15,106		$ 1	15,105
Issuance of common stock under employee stock purchase plan (in shares)			4,331
Net income (loss)	(3,773,014)				(3,773,014)
Ending Balance at Dec. 31, 2019	$ 2,530,234	$ 1	$ 140	$ 197,319,698	$ (194,789,605)
Ending Balance (in shares) at Dec. 31, 2019		200	1,400,674

Statements of Cash Flows - USD ($)	12 Months Ended
Statements of Cash Flows - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Statement of Cash Flows [Abstract]
Net Cash Provided by (Used in) Financing Activities	$ 15,106	$ 18,618
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(3,654,223)	2,736,748
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(3,773,014)	23,605
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	124,012	169,712
Stock-based compensation	190,331	446,077
AllowanceForDoubtfulAccountsCharge	49,361	0
IdleFacilityImpairmentCharge	400,000	0
Inventory Write-down	2,595,884	0
Changes in operating assets and liabilities:
Accounts receivable	734,629	1,319,871
Inventories	(897,734)	(719,303)
Increase (Decrease) In Collaboration Receivable	(189,008)	0
Prepaid expenses and other current and long-term assets	243,536	358,661
Accounts payable	(572,426)	572,153
Accrued expenses and compensation	(157,644)	(408,687)
Increase (Decrease) in Accrued Product Returns	(412,658)	(856,898)
Increase (Decrease) in Deferred Collaboration Income	(1,956,522)	1,956,522
Net Cash Provided by (Used in) Operating Activities	(3,621,253)	2,861,713
Cash flows for investing activities:
Purchases of fixed assets	(48,076)	(143,583)
Net Cash Provided by (Used in) Investing Activities	(48,076)	(143,583)
Proceeds from Issuance or Sale of Equity	15,106	18,618
Cash flows from financing activities:
Cash and cash equivalents, end of year	3,126,206	6,780,429
Supplemental disclosure of cash flow information:
Common stock issued to settle employee incentive compensation obligations	0	294,264
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 3,126,206	$ 6,780,429

Description of Business and Basis of Presentation	12 Months Ended
Description of Business and Basis of Presentation	Dec. 31, 2019
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation NeuroMetrix, Inc (the Company) develops and commercializes health care products that utilize non-invasive neurostimulation and digital medicine. Revenues are derived from the sale of medical devices and after-market consumable products and accessories. The Company’s products are sold in the United States and select overseas markets. They are cleared by the U.S. Food and Drug Administration (FDA) and regulators in foreign jurisdictions where appropriate. The Company has two primary products. DPNCheck® is a point-of-care test for diabetic peripheral neuropathy which is the most common long-term complication of Type 2 diabetes. Quell is an app-enabled, over-the-counter wearable device for chronic pain. In January 2018, the Company entered a collaboration with GlaxoSmithKline ("GSK") under terms of which GSK acquired the rights to Quell outside the United States and committed to a joint development program. The initial term of the GSK collaboration runs through 2020. Through December 31, 2019, GSK made development milestone payments of approximately $20.5 million to the Company in addition to co-funding the 2019 development program. Commercialization milestones totaling approximately $4.5 million are payable under the GSK collaboration when and if product launch occurs in pre-defined countries. The accompanying financial statements have been prepared on a basis which assumes that the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The Company has suffered recurring losses from operations and negative cash flows from operating activities. At December 31, 2019, the Company had an accumulated deficit of $194.8 million. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the one-year period from the date of issuance of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. At December 31, 2019, the Company held cash and cash equivalents of $3.1 million. The Company believes that these resources and the cash to be generated from future product sales will be sufficient to meet its projected operating requirements into the second quarter of 2020. Accordingly, the Company will need to raise additional funds to support its operating and capital needs in the second quarter of 2020 and beyond. 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 the Company’s products and the uncertainty of future revenues from new products; (b) changes the Company may make to the business that affect ongoing operating expenses; (c) changes the Company may make in its business strategy; (d) regulatory developments affecting the Company’s existing products; (e) changes the Company may make in its research and development spending plans; and (f) other items affecting the Company’s forecasted level of expenditures and use of cash resources. The Company may attempt to obtain additional funding from a public or private financing, collaborative arrangements with strategic partners, divestiture of assets or through additional credit lines or other debt financing sources to increase the funds available to fund operations. However, the Company may not be able to secure such financing in a timely manner or on favorable terms, if at all. Furthermore, if the Company issues equity or debt securities to raise additional funds, its existing stockholders may experience dilution, and the new equity or debt securities may have rights, preferences and privileges senior to those of the Company’s existing stockholders. If the Company raises additional funds through collaboration, licensing or other similar arrangements, it may be necessary to relinquish valuable rights to its potential products or to proprietary technologies, or grant licenses on terms that are not favorable to the Company. Without additional funds, the Company may be forced to delay, scale back or eliminate some of its sales and marketing efforts, research and development activities, or other operations and potentially delay product development in an effort to provide sufficient funds to continue its operations. If any of these events occurs, the Company’s ability to achieve its development and commercialization goals would be adversely affected.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Use of Estimates and Assumptions

The preparation of financial statements in conformity with United States generally accepted accounting principles 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.

The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances and regularly assesses these estimates, but actual results could differ materially from these estimates. Effects of changes in estimates are recorded in the period in which they occur.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of ninety days or less to be cash equivalents. Cash equivalents are recorded at cost which approximates fair value. The Company invests cash primarily in a money market account and other investments which management believes are subject to minimal credit and market risk.

Concentrations of Credit Risk

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents in bank deposit accounts and trade receivables. The Company invests its funds in highly rated institutions and limits its investment in any individual account so that they do not exceed FDIC limits. The Company has not experienced significant losses related to cash and cash equivalents and does not believe it is exposed to any significant credit risks relating to its cash and cash equivalents.

At December 31, 2019 and 2018, two customers accounted for 42% and 45% of accounts receivable, respectively. One customer accounted for 19% of revenues for the year ended December 31, 2019 and two customers accounted for 23% of revenues, for the year ended December 31, 2018.

The Company relies on in-house assembly and four third-party manufacturers to manufacture the major portion of its current products and product components. The disruption or termination of the supply of these products or a significant increase in the cost of these products from these sources could have an adverse effect on the Company’s business, financial position, and results of operations.

Inventories

Inventories, consisting primarily of finished goods and purchased components, are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The Company writes down inventory to its net realizable value for excess or obsolete inventory. The realizable value of inventories is based upon the types and levels of inventories held, forecasted demand, pricing, competition, and changes in technology. The Company's consumable electrodes and biosensors have an eighteen to twenty-four month shelf life. Should current market and economic conditions deteriorate, our actual recoveries could be less than our estimates.

Fair Value

The carrying amounts of the Company’s accounts receivable, accounts payable, and accrued expenses approximate their fair value at December 31, 2019 and 2018 due to the short-term nature of these assets and liabilities. The Company’s cash equivalents are carried at fair value determined according to the fair value hierarchy described in Note 9.

Revenue Recognition

Revenues include product sales, net of estimated returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for product transferred. Revenue is recognized when contractual performance obligations have been satisfied and control of the product has been transferred to the customer. In most cases, the Company has a single product delivery performance obligation. Accrued product returns are estimated based on historical data and evaluation of current information.

Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), is a comprehensive revenue recognition standard that superseded nearly all existing revenue recognition guidance. The Company adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, the Company discontinued revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns.

Accounts Receivable

Accounts receivable are recorded net of the allowance for doubtful accounts receivable. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company reviews the allowance for doubtful accounts and determines the allowance based on an analysis of customer past payment history, product usage activity, and recent communications with the customer. Individual customer balances which are past due and over 90 days outstanding are reviewed individually for collectability. Account balances are written-off against the allowance when the Company feels it is probable the receivable will not be recovered. The Company does not have any off-balance sheet credit exposure related to its customers. Allowance for doubtful accounts was $70,000 as of December 31, 2019 and 25,000 as of December 31, 2018.

Income Taxes

The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. The Company’s financial statements contain certain deferred tax assets, which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax accounting. In accordance with the provisions of the Income Taxes topic of the Codification, the Company is required to establish a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining the Company’s provision for income taxes, the Company’s deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. The Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized.

Utilization of the NOL and research and development credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that have occurred previously or that could occur in the future, as provided by Section 382 of the Internal Revenue Code of 1986, as well as similar state provisions. Ownership changes may limit the amount of NOL and tax credit carryforwards that can be utilized to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain shareholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. If the Company has experienced a change of control, utilization of its NOL or tax credits carryforwards would be subject to an annual limitation under Section 382. Any limitation may result in expiration of a portion of the NOL or research and development credit carryforwards before utilization. Subsequent ownership changes could further impact the limitation in future years. Further, until a study is completed and any limitation known, no amounts are being presented as an uncertain tax position. A full valuation allowance has been provided against the Company’s NOL carryforwards and research and development credit carryforwards and, if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the balance sheet or statement of operations if an adjustment were required.

Management performed a two-step evaluation of all tax positions, ensuring that these tax return positions meet the “more likely than not” recognition threshold and can be measured with sufficient precision to determine the benefit recognized in the financial statements. These evaluations provide management with a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements certain tax positions that the Company has taken or expects to take on income tax returns.

Research and Development

Costs incurred in research and development are expensed as incurred. Included in research and development costs are wages, benefits, product design consulting, and other operating costs such as facilities, supplies, and overhead directly related to the Company’s research and development efforts.

Collaboration income

Collaboration income is recognized within Other Income when contractual performance obligations, outside the ordinary activities of the Company, have been satisfied and control has been transferred to a collaboration partner. Collaboration income for each performance obligation is based on relative fair value of the overall transaction price. A deferred collaboration income liability is recorded when payments are received prior to satisfaction of performance obligations.

Product Warranty Costs

The Company accrues estimated product warranty costs at the time of sale which are included in cost of sales in the statements of operations. The amount of the accrued warranty liability is based on historical information such as past experience, product failure rates, number of units repaired, and estimated cost of material and labor. The liabilities for product warranty costs of $75,300 and $129,837 at December 31, 2019 and 2018, respectively, are included in accrued expenses and compensation in the accompanying balance sheets.

Fixed Assets and Long-Lived Assets

Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful life of each asset. Expenditures for repairs and maintenance are charged to expense as incurred. On disposal, the related assets and accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in the Company’s statement of operations. Leasehold improvements are amortized over the shorter of the estimated useful life of the improvement or the remaining term of the lease.

The Company periodically evaluates the recoverability of its fixed assets and other long-lived assets whenever events or changes in circumstances indicate that an event of impairment may have occurred. This periodic review may result in an adjustment of estimated depreciable lives or asset impairment. When indicators of impairment are present, the carrying values of the asset are evaluated in relation to the assets operating performance and future undiscounted cash flows of the underlying assets. If the future undiscounted cash flows are less than their book value, an impairment may exist. The impairment is measured as the difference between the book value and the fair value of the underlying asset. Fair values are based on estimates of the market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk.

Accounting for Stock-Based Compensation

Stock-based compensation cost is generally recognized ratably over the requisite service period. The Company uses the Black-Scholes option pricing model for determining the fair value of its stock options and amortizes its stock-based compensation expense using the straight-line method. The Black-Scholes model requires certain assumptions that involve judgment. Such assumptions are the expected share price volatility, expected life of options, expected annual dividend yield, and risk-free interest rate (See Note 3 — Stock-Based Compensation).

Net Income (Loss) per Common Share

Basic and dilutive net income (loss) per common share were as follows:



	Years Ended December 31,
	2019			2018
Net income (loss) applicable to common stockholders	$	(3,773,014	)	$	23,605

Weighted average number of common shares outstanding, basic	968,116			710,457
Dilutive convertible preferred stock	—			678,100
Weighted average number of common shares outstanding, dilutive	968,116			1,388,557

Net income (loss) per common share applicable to common stockholders, basic	$	(3.90	)	$	0.03
Net income (loss) per common share applicable to common stockholders, diluted	$	(3.90	)	$	0.02

The following potentially dilutive weighted average number of common stock equivalents were excluded from the calculation of diluted net income (loss) per common share because their effect was anti-dilutive for each of the periods presented:



	Years Ended December 31,
	2019	2018
Options	38,936	44,199
Warrants	44,534	45,937
Convertible preferred stock	478,184	—
Total	561,654	90,136

Advertising and Promotional Costs

Advertising and promotional costs are expensed as incurred. Advertising and promotion expense were $1,652,171 and $5,766,982, in 2019 and 2018, respectively.

Accumulated Other Comprehensive Items

For 2019 and 2018, the Company had no components of other comprehensive income or loss other than net income (loss).

Segments

The Company operates in one segment for the sale of medical equipment and consumables. Substantially all of the Company’s assets, revenues, and expenses for 2019 and 2018 were located at or derived from operations in the United States. Revenues from sales outside the United States accounted for approximately 13% and 12% of total revenues in 2019 and 2018, respectively.

Risks and Uncertainties

The Company is subject to risks common to companies in the medical device industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, customers’ reimbursement from third-party payers, protection of proprietary technology, and compliance with regulations of the FDA, FTC and other governmental agencies.

Recently Issued or Adopted Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires that lessees recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. The Company adopted ASU 2016-02, using the modified retrospective method, upon its effective date of January 1, 2019. The impact of adoption was an increase to long-term assets and total liabilities of approximately $1.9 million as of January 1, 2019.

The following table summarizes the effects of adopting ASU 2016-02 on the Company's balance sheet as of December 31, 2019:



	As reported		Adjustments			Amounts under prior GAAP
Assets
Prepaid expenses and other current assets	$	652,919	$	20,910		$	673,829
Total current assets	$	5,430,814	$	20,910		$	5,451,724
Right of use asset	$	1,159,774	$	(1,159,774	)	$	—
Other long-term assets	$	29,650	$	33,645		$	63,295
Total assets	$	6,893,686	$	(1,105,219	)	$	5,788,467

Liabilities
Lease obligation - current	$	588,546	$	(188,545	)	$	400,001
Total current liabilities	$	3,446,778	$	(188,545	)	$	3,258,233
Lease obligation - net of current portion	$	916,674	$	(916,674	)	$	—
Total liabilities	$	4,363,452	$	(1,105,219	)	$	3,258,233

The following table summarizes the effects of adopting ASU 2016-02 on the Company's balance sheet as of December 31, 2018



	As reported		Adjustments			Amounts under prior GAAP
Assets
Prepaid expenses and other current assets	$	860,915	$	44,852		$	905,767
Total current assets	$	11,586,165	$	44,852		$	11,631,017
Right of use asset	$	1,968,062	$	(1,968,062	)	$	—
Other long-term assets	$	30,314	$	44,578		$	74,892
Total assets	$	13,991,880	$	(1,878,632	)	$	12,113,248

Liabilities
Lease obligation - current	$	577,460	$	(577,460	)	$	—
Total current liabilities	$	6,592,897	$	(577,460	)	$	6,015,437
Lease obligation - net of current portion	$	1,301,172	$	(1,301,172	)	$	—
Total liabilities	$	7,894,069	$	(1,878,632	)	$	6,015,437

Adoption of ASU 2016-02 had no impact on the Company's statements of operations, statements of changes in stockholders' equity and statements of cash flows.

In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), a comprehensive new revenue recognition standard that superseded nearly all existing revenue recognition guidance. We adopted this standard effective January 1, 2018, applying the modified retrospective method. Upon adoption, we discontinued revenue deferral under the sell-through model and commenced recording revenue upon delivery to distributors, net of estimated returns. The impact of adoption was a credit to accumulated deficit of $0.3 million as of January 1, 2018.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation

The Company's 2004 Stock Option and Incentive Plan was amended and restated most recently in 2019. At a Special Meeting of Stockholders held on November 12, 2019, the stockholders of the Company approved the Company’s Eleventh Amended and Restated 2004 Stock Option and Incentive Plan (the “2004 Stock Plan”), which, among other things, increased the number of shares of the Company’s common stock authorized for issuance thereunder by 327,000 shares. The 2004 Stock Plan, among other things, provides for granting of incentive and nonqualified stock option and stock bonus awards to officers, employees and outside consultants. Outstanding options under the 2004 Stock Plan generally vest over four years and terminate 10 years after the grant date, or earlier if the option holder is no longer an executive officer, employee, consultant, advisor or director, as applicable, of the Company. As of December 31, 2019, 439,890 shares of common stock were authorized for issuance under the 2004 Stock Plan, of which 24,500 shares had been issued, 164,980 shares were subject to outstanding options at a weighted average exercise price of $7.16 per share and 250,410 shares were available for future grant.

The Company's 2009 Non-Qualified Inducement Stock Plan (the “2009 Inducement Plan”) is intended to encourage and enable employees, including prospective employees, of the Company upon whose judgment, initiative, and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company. The 2009 Inducement Plan, among other things, provides for the granting of awards, including non-qualified stock options, restricted stock, and unrestricted stock. As of December 31, 2019, 1,250 shares of common stock were authorized for issuance and were available for future grant under the 2009 Inducement Plan.

The exercise price of stock options awarded under the 2004 Stock Plan and the 2009 Inducement Plan may not be less than the fair value of the common stock on the date of the option grant. For holders of more than 10% of the Company’s total combined voting power of all classes of stock, incentive stock options may not be granted at less than 110% of the fair value of the Company’s common stock at the date of grant and for a term not to exceed five years.

The Company's 2010 Employee Stock Purchase Plan was amended and restated most recently in 2018. The 2010 ESPP authorizes an annual increase on the first day of each of the Company’s fiscal years equal to the lesser of (i) 2,500 shares, (ii) 1 percent of the shares of common stock outstanding on the last day of the immediately preceding fiscal year, or (iii) such lesser number of shares as is determined by the Board. All of the Company’s full-time employees and certain part-time employees are eligible to participate in the 2010 ESPP. For part-time employees to be eligible, they must have customary employment of more than five months in any calendar year and more than 20 hours per week. Employees who, after exercising their rights to purchase shares under the 2010 ESPP, would own shares representing 5% or more of the voting power of the Company’s common stock, are ineligible to participate.

Under the 2010 ESPP, participating employees can authorize the Company to withhold up to 10% of their earnings during consecutive six-month payment periods for the purchase of the shares. At the conclusion of each period, participating employees can purchase shares at 85% of the lower of their fair value at the beginning or end of the period. The 2010 ESPP is regarded as a compensatory plan. For the years ended December 31, 2019 and 2018 the Company issued 4,331 and 2,280 shares of its common stock, respectively, under the 2010 ESPP. As of December 31, 2019, there were 10,946 remaining shares to be issued under the 2010 ESPP.

The Company uses the Black-Scholes option pricing model for determining the fair value of shares of common stock issued or to be issued under the 2010 ESPP. The following assumptions are used in determining fair value: The risk-free interest rate assumption is based on the United States Treasury’s constant maturity rate for a six month term (corresponding to the expected option term) on the date the option was granted. The expected dividend yield is zero because the Company does not currently pay dividends nor expects to do so during the expected option term. An expected term of six months is used based on the duration of each plan offering period. The volatility assumption is based on a consideration of stock price volatility over the most recent period of time corresponding to the expected term and is also based on expected future stock price volatility.

The weighted average grant-date fair value of stock options used in the calculation of stock-based compensation expense in the accompanying statement of operations for the years ended December 31, 2019 and 2018 is calculated using the following assumptions:



	Years Ended December 31,
	2019		2018
Risk-free interest rate	1.9%		2.2 - 3.0%
Expected dividend yield	—		—
Expected option term	10 years		3 - 5 years
Volatility	72.4	%	70.0	%

The risk-free interest rate assumption is based on the United States Treasury’s constant maturity rate for a three or five year term (corresponding to the expected option term) on the date the option was granted. The expected dividend yield is zero as the Company does not currently pay dividends nor expects to do so during the expected option term. The expected option term of three to five years is estimated based on an analysis of actual option exercises. The volatility assumption is based on daily historical volatility during the time period that corresponds to the expected option term and expected future stock price volatility. The pre-vesting forfeiture rate is based on the historical and projected average turnover rate of employees.

A summary of option activity for the year ended December 31, 2019 is presented below:



	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2018	49,410		$	40.84
Granted	150,000		4.58
Exercised	—		—
Forfeited	(34,420	)	38.69
Expired	(10	)	19,713.00
Outstanding at December 31, 2019	164,980		$	7.16	9.3	$	—
Vested or expected to vest at December 31, 2019	164,980		$	7.16	9.3	$	—
Exercisable at December 31, 2019	13,086		$	34.54	2.0	$	—

Expected to vest options are determined by applying the pre-vesting forfeiture rate to the total outstanding options. Aggregate intrinsic value represents the total pre-tax intrinsic value (the aggregate difference between the closing stock price of the Company’s common stock as of December 31, 2019, as applicable, and the exercise price for the in-the-money options) that would have been received by the option holders if all the in-the-money options had been exercised on December 31, 2019.

The weighted average per share grant-date fair values of options granted during 2019 and 2018 was $4.58 and $17.10, respectively.

The aggregate intrinsic value of options issued or exercised during 2019 and 2018 was $0.

Total unrecognized stock-based compensation costs related to non-vested stock options was $545,459, which related to 164,980 shares with a per share weighted fair value of $7.16 as of December 31, 2019. This unrecognized cost is expected to be recognized over a weighted average period of approximately 1.0 year.

Cash received from option exercises and purchases under the 2004 ESPP and the 2010 ESPP for 2019 and 2018, was $15,106 and $18,618, respectively. The Company issues new shares upon option exercises, purchases under the Company’s ESPPs, and vesting of restricted stock.

The Company recorded stock-based compensation expense of $190,331 and $446,077 for 2019 and 2018, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Current income tax expense (benefit) attributable to continuing operations was zero for the years ended December 31, 2019 and 2018.

The Company’s effective income tax rate differs from the statutory federal income tax rate as follows for the years ended December 31, 2019 and 2018.



	Years Ended December 31,
	2019		2018
Federal tax provision (benefit) rate	(21.0	)%	(21.0	)%
State tax provision, net of federal provision	19.9		(19.6	)
Permanent items	1.1		(315.0	)
Federal research and development credits	—		659.2
382 Limitation - NOL and tax credits	861.5		—
Change in statutory tax rate	—		—
Valuation allowance	(861.5	)	(303.6	)
Effective income tax rate	—		—

The Company’s deferred tax assets consist of the following:



	December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	1,592,993		$	31,239,750
Research and development credit carryforwards	—			2,599,358
Accrued expenses	96,030			965,191
Inventory reserve	306,855			—
Stock-based compensation	222,420			227,843
Other	(9,455		)	9,158
Total gross deferred tax assets	2,208,843			35,041,300
Valuation allowance	(2,208,843		)	(35,041,300		)
Net deferred tax assets	$	—		$	—

At December 31, 2019, the Company has federal and state net operating loss carryforwards (“NOL”) of $147.3 million and $50.9 million, respectively, as well as federal and state tax credits of $1.7 million and $0.9 million, respectively, which may be available to reduce future taxable income and related taxes. This amount includes tax benefits of $2.5 million and $75,000 attributable to NOL and tax credit carryforwards, respectively, that result from the exercise of employee stock options. The Company experienced an ownership change in 2019, which significantly reduced the tax benefits associated with these carryforwards under Internal Revenue Code Sections 382 and 383. The federal NOLs, the state NOLs, and the federal and state research and development credits each begin to expire in 2020.

In accordance with the provisions of the Income Taxes topic of the Codification, the Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which are comprised principally of net operating losses. Management has determined that it is more likely than not that the Company will not recognize the benefits of federal and state deferred tax assets and, as a result, a valuation allowance of $2.2 million and $35.0 million has been established at December 31, 2019 and 2018, respectively. The Company experienced a change in control during 2019. Accordingly, utilization of their respective consolidated and/ or separately computed NOL's and/ or tax credit carryforwards is subject to an annual limitation for federal tax purposes under Internal Revenue Code Sections 382 and 383. Due to this change in control, the Company estimates that approximately $143,300,000 of federal NOL's and/or tax credit carryforwards are effectively eliminated according to the Internal Revenue Code Sections 382 and 383 limitations. A large portion of state NOLs and/ or tax credit carry forwards are also eliminated. As a result of these eliminations, the Company's federal net operating loss and credit carryforwards are reduced to approximately $5,700,000 and $0 respectively, before valuation allowance. State credit carryforwards are reduced to zero. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. There are currently no pending income tax examinations. The Company’s tax years are still open under statute from December 31, 2016 to the present. Earlier years may be examined to the extent that tax credit or net operating loss carryforwards are used in future periods. The Company’s policy is to record interest and penalties related to income taxes as part of its income tax provision.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Operating Leases

The Company's lease on its Woburn, Massachusetts manufacturing facilities (the “Woburn Lease”) extends through September 2025 at a monthly base rent of $13,846 and with a 5-year extension option. In September 2014, the Company entered into a 7-year operating lease agreement with one 5-year extension option for its corporate office and product development activities in Waltham, Massachusetts (the “Waltham Lease”). The term of the Waltham Lease commenced on February 20, 2015 and includes fixed payment obligations that escalate over the initial lease term. Average monthly base rent under the 7-year lease is approximately $41,074. During 2019 the Company consolidated its operations within the Woburn facility and is offering the Waltham facility for sublet. At December 31, 2019, the Company had an impairment charge of $400,000 that reduced the right of use asset for idle facility costs.

8. Commitments and Contingencies - (continued)

The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of December 31, 2019:



2020	$	641,193
2021	653,164
2022	247,347
2023	165,785
2024	165,785
2025	117,431
Total minimum lease payments	$	1,990,705

Weighted-average discount rate, 14.7%	$	485,485
Lease obligation, current portion	588,546
Lease obligation, net of current portion	916,674
	$	1,990,705

Total recorded rent expense was $664,098 and $627,732, for 2019 and 2018, respectively. The Company records rent expense on its facility leases on a straight-line basis over the lease term. Weighted average remaining operating lease term was 3.5 years as of December 31, 2019.

Other Contingencies

As previously disclosed, in 2017 we received a Civil Investigative Demand (CID) from the FTC. The CID requested information in connection with an FTC review for compliance of our representations about Quell with Sections 5 and 12 of the FTC Act. During 2017, 2018 and 2019, we responded to requests for information by FTC. We met with FTC on multiple occasions in 2019 to discuss our responses. Currently, we are actively engaged with FTC to achieve resolution of this matter. This would include a consent order that, among other provisions, would prohibit us from making certain claims in our advertising about Quell, and a monetary judgment that would be payable to the FTC. Final resolution of this matter is uncertain, and terms related to potential resolution cannot be reasonably estimated at this time.

Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis for the periods presented and indicates the fair value hierarchy of the valuation techniques it utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates, and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.



	December 31, 2019		Fair Value Measurements at December 31, 2019 Using
	December 31, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	698,807	$	698,807	$	—	$	—
Total	$	698,807	$	698,807	$	—	$	—



	December 31, 2018		Fair Value Measurements at December 31, 2018 Using
	December 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	4,284,928	$	4,284,928	$	—	$	—
Total	$	4,284,928	$	4,284,928	$	—	$	—

- 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.

+ References + Details

Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Preferred stock and convertible preferred stock consist of the following:



	December 31,
	2019		2018
Preferred stock, $0.001 par value; 5,000,000 shares authorized at December 31, 2019 and 2018; no shares issued and outstanding at December 31, 2019 and 2018	$	—	$	—
Series B convertible preferred stock, $0.001 par value, 147,000 shares designated at December 31, 2019 and 2018, and 200 shares issued and outstanding at December 31, 2019 and 2018, respectively	1		1
Series D convertible preferred stock, $0.001 par value, 21,300 shares designated at December 31, 2019 and 2018, and zero and 14,052.93 shares issued and outstanding at December 31, 2019 and 2018, respectively	—		14
Series E convertible preferred stock, $0.001 par value, 7,000 designated at December 31, 2019 and 2018, and zero and 3,260.70 shares issued and outstanding at December 31, 2019 and 2018, respectively	—		3
Series F convertible preferred stock, $0.001 par value, 10,621 shares designated at December 31, 2019 and 2018, and no shares issued and outstanding at December 31, 2019 and 2018, respectively	—		—

Preferred stock activity

As of December 31, 2019, 200.00 shares of Series B Preferred Stock remained outstanding. In 2019, 14,052.93 shares of the Series D Preferred Stock were converted into a total of 534,333 shares of Common Stock. As of December 31, 2019, zero shares of Series D Preferred Stock remained outstanding. In 2019, 3,260.70 shares of the Series F Preferred Stock were converted into a total of 123,981 shares of Common Stock. As of December 31, 2019, zero shares of Series E Preferred Stock remained outstanding. As of December 31, 2019, zero shares of Series F Preferred Stock remained outstanding.

In 2018, 300.00 shares of the Series B Preferred Stock were converted into a total of 93 shares of Common Stock. As of December 31, 2018, 200.00 shares of Series B Preferred Stock remained outstanding. In 2018, 3,739.3 shares of the Series E Preferred Stock were converted into a total of 142,178 shares of Common Stock. As of December 31, 2018, 3,260.70 shares of Series E Preferred Stock remained outstanding. In 2018, 7,927.05 shares of the Series F Preferred Stock were converted into a total of 301,409 shares of Common Stock. As of December 31, 2018, zero shares of Series F Preferred Stock remained outstanding.

Other equity activity

In 2018, the Company issued shares of fully vested common stock in partial settlement of management incentive compensation. The 2018 issuance totaled 21,479 shares with a value of $294,264 reflecting the $13.70 closing price of the Company’s common stock as reported on the Nasdaq Capital Market on April 12, 2018.

As of December 31, 2019, the Company had 25,000,000 shares of common stock authorized and 1,400,674 shares issued and outstanding. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are not entitled to receive dividends unless declared by the Board of Directors.

At December 31, 2019, the Company has reserved authorized shares of common stock for future issuance as follows:




Warrants	41,627
Outstanding stock options	164,980
Possible future issuance under inducement plan	1,250
Possible future issuance under stock option plans	250,410
Possible future issuance under employee stock purchase plan	10,946
Total	469,213

On November 18, 2019, the Company effected a 1-for-10 reverse stock split of its Common Stock, or the Reverse Stock Split. The par value and other terms of the common stock were not effected by the Reverse Stock Split. The Company’s shares outstanding immediately prior to the split totaled 9,781,755, which were subsequently adjusted to 978,158 shares outstanding. No fractional shares will be issued in connection with the reverse stock split. Stockholders who otherwise would be entitled to receive fractional shares will receive payment in cash in lieu of any such resulting fractional shares of common stock as the post-reverse split amounts of common stock will be rounded down to the nearest full share. Share, per share, and stock option amounts for all periods presented within the financial statements contained in the Annual Report on Form 10-K have been retroactively adjusted to reflect the Reverse Stock Split.

Reverse Stock Split

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Reverse Stock Split

Stockholders’ Equity

Preferred stock and convertible preferred stock consist of the following:



	December 31,
	2019		2018
Preferred stock, $0.001 par value; 5,000,000 shares authorized at December 31, 2019 and 2018; no shares issued and outstanding at December 31, 2019 and 2018	$	—	$	—
Series B convertible preferred stock, $0.001 par value, 147,000 shares designated at December 31, 2019 and 2018, and 200 shares issued and outstanding at December 31, 2019 and 2018, respectively	1		1
Series D convertible preferred stock, $0.001 par value, 21,300 shares designated at December 31, 2019 and 2018, and zero and 14,052.93 shares issued and outstanding at December 31, 2019 and 2018, respectively	—		14
Series E convertible preferred stock, $0.001 par value, 7,000 designated at December 31, 2019 and 2018, and zero and 3,260.70 shares issued and outstanding at December 31, 2019 and 2018, respectively	—		3
Series F convertible preferred stock, $0.001 par value, 10,621 shares designated at December 31, 2019 and 2018, and no shares issued and outstanding at December 31, 2019 and 2018, respectively	—		—

Preferred stock activity

Other equity activity

At December 31, 2019, the Company has reserved authorized shares of common stock for future issuance as follows:




Warrants	41,627
Outstanding stock options	164,980
Possible future issuance under inducement plan	1,250
Possible future issuance under stock option plans	250,410
Possible future issuance under employee stock purchase plan	10,946
Total	469,213

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Accounting Policies [Abstract]

Use of Estimates and Assumptions

Cash and Cash Equivalents

Concentrations of Credit Risk

Research and Development

Collaborative Arrangement, Accounting Policy [Policy Text Block]

Collaboration income

Product Warranty Costs

Fixed Assets and Long-Lived Assets

Accounting for Stock-Based Compensation

Net Loss per Common Share

Net Income (Loss) per Common Share

Basic and dilutive net income (loss) per common share were as follows:



	Years Ended December 31,
	2019			2018
Net income (loss) applicable to common stockholders	$	(3,773,014	)	$	23,605

Weighted average number of common shares outstanding, basic	968,116			710,457
Dilutive convertible preferred stock	—			678,100
Weighted average number of common shares outstanding, dilutive	968,116			1,388,557

Net income (loss) per common share applicable to common stockholders, basic	$	(3.90	)	$	0.03
Net income (loss) per common share applicable to common stockholders, diluted	$	(3.90	)	$	0.02



	Years Ended December 31,
	2019	2018
Options	38,936	44,199
Warrants	44,534	45,937
Convertible preferred stock	478,184	—
Total	561,654	90,136

Advertising and Promotional Costs

Advertising and promotional costs are expensed as incurred. Advertising and promotion expense were $1,652,171 and $5,766,982, in 2019 and 2018, respectively.

Accumulated Other Comprehensive Items

For 2019 and 2018, the Company had no components of other comprehensive income or loss other than net income (loss).

Segments

Risks and Uncertainties

Recently Issued or Adopted Accounting Pronouncements

The following table summarizes the effects of adopting ASU 2016-02 on the Company's balance sheet as of December 31, 2019:



	As reported		Adjustments			Amounts under prior GAAP
Assets
Prepaid expenses and other current assets	$	652,919	$	20,910		$	673,829
Total current assets	$	5,430,814	$	20,910		$	5,451,724
Right of use asset	$	1,159,774	$	(1,159,774	)	$	—
Other long-term assets	$	29,650	$	33,645		$	63,295
Total assets	$	6,893,686	$	(1,105,219	)	$	5,788,467

Liabilities
Lease obligation - current	$	588,546	$	(188,545	)	$	400,001
Total current liabilities	$	3,446,778	$	(188,545	)	$	3,258,233
Lease obligation - net of current portion	$	916,674	$	(916,674	)	$	—
Total liabilities	$	4,363,452	$	(1,105,219	)	$	3,258,233

The following table summarizes the effects of adopting ASU 2016-02 on the Company's balance sheet as of December 31, 2018



	As reported		Adjustments			Amounts under prior GAAP
Assets
Prepaid expenses and other current assets	$	860,915	$	44,852		$	905,767
Total current assets	$	11,586,165	$	44,852		$	11,631,017
Right of use asset	$	1,968,062	$	(1,968,062	)	$	—
Other long-term assets	$	30,314	$	44,578		$	74,892
Total assets	$	13,991,880	$	(1,878,632	)	$	12,113,248

Liabilities
Lease obligation - current	$	577,460	$	(577,460	)	$	—
Total current liabilities	$	6,592,897	$	(577,460	)	$	6,015,437

Retirement Plan	12 Months Ended
Retirement Plan	Dec. 31, 2019
Retirement Benefits [Abstract]
Retirement Plan	Retirement Plan The Company has established a 401(k) defined contribution savings plan for its employees who meet certain service period and age requirements. Contributions are permitted up to the maximum allowed under the Internal Revenue Code of each covered employee’s salary. The savings plan permits the Company to contribute at its discretion. In 2019 and 2018 the Company made no contributions to the plan.

Credit Facility	12 Months Ended
Credit Facility	Dec. 31, 2019
Debt Disclosure [Abstract]
Credit Facility	Credit Facility The Company is party to a Loan and Security Agreement, or the Credit Facility, with a bank. As of December 31, 2019, the Credit Facility permitted the Company to borrow up to $2.5 million on a revolving basis. The Credit Facility was subsequently amended, most recently on January 23, 2020 and extended until April 30, 2020. The facility was lowered to $250,000 and secured by a cash pledge in the same amount. 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 collateralized by the Company’s cash, accounts receivable, inventory, and equipment. The Credit Facility also includes traditional lending and reporting covenants. These include certain financial covenants applicable to liquidity that are to be maintained by the Company. As of December 31, 2019, the Company was in compliance with these covenants and had not borrowed any funds under the Credit Facility. However, $226,731 of the amount under the Credit Facility is restricted to support letters of credit issued in favor of the landlords of the Company’s facilities. Consequently, the amount available for borrowing under the Credit Facility as of December 31, 2019 was approximately $2.3 million.

Management Retention and Incentive Plan	12 Months Ended
Management Retention and Incentive Plan	Dec. 31, 2019
Retirement Benefits [Abstract]
Management Retention and Incentive Plan	Management Retention and Incentive Plan Under the Company’s Management Retention and Incentive Plan (the “Plan”), a portion of the consideration payable upon a change in control transaction, as defined in the Plan and its amendments, would be paid in cash to certain executive officers and key employees and recorded as compensation expense within the Statement of Operations during the period in which the change of control transaction occurs.