Annual report pursuant to Section 13 and 15(d)

QUARTERLY FINANCIAL STATEMENTS (UNAUDITED) (Details 3)

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QUARTERLY FINANCIAL STATEMENTS (UNAUDITED) (Details 3) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss $ (18,361,000) $ (53,478,000) $ (54,842,000) $ (72,587,000)
Adjustments to reconcile net loss to net cash flows used in operating activities        
Depreciation and amortization   54,000 73,000 61,000
Impairment loss on long-term investment   524,000 515,000 0
Amortization of discount of notes payable and convertible notes payable   21,875,000 23,781,000 18,234,000
Foreign exchange adjustments on convertible notes and notes payable   (207,000) (115,000) (297,000)
Net losses on investment in marketable securities   21,718,000 21,432,000 43,977,000
Loss on equity method investment (36,000) 413,000 414,000 97,000
Loss on debt extinguishment 438,000 438,000 438,000 2,702,000
Share-based compensation and fair value of replacement equity award   3,593,000 3,805,000 4,545,000
Notes conversion costs 3,341,000 3,341,000 3,341,000  
Change in fair value of warrant derivative liabilities (3,576,000) (3,492,000) (3,545,000) (4,476,000)
Change in fair value of embedded conversion option (131,000) (131,000) (131,000)  
Net changes in operating assets and liabilities        
Accounts receivable   (193,000) (361,000) (1,761,000)
Inventories   (2,787,000) (3,267,000) (4,079,000)
Prepaid expenses and other current assets   (1,025,000) (720,000) (332,000)
Other non-current assets   (4,150,000) (4,364,000) (241,000)
Accounts payable and accrued expenses   5,966,000 6,527,000 3,572,000
Deferred revenue   500,000    
Deferred rent   (287,000) (317,000) 245,000
Other current liabilities   828,000 426,000 5,312,000
Other long-term liabilities   2,363,000 2,451,000 (630,000)
Net cash flows used in operating activities   (4,137,000) (4,523,000) (5,634,000)
CASH FLOWS FROM INVESTING ACTIVITIES        
Cash paid in connection with the Merger   (1,641,000) (1,645,000)  
Purchases of property and equipment   (55,000) (60,000) (94,000)
Proceeds from sale of marketable securities   221,000 221,000 6,439,000
Net cash flows used in investing activities   (1,475,000) (1,484,000) (7,440,000)
CASH FLOWS FROM FINANCING ACTIVITIES        
Payments of convertible notes   (3,368,000) (5,348,000) (20,000,000)
Proceeds from exercise of warrants   186,000 186,000 111,000
Proceeds from issuance of common stock   6,210,000 8,589,000 1,275,000
Net cash flows provided by (used in) financing activities   3,028,000 3,884,000 (5,577,000)
Effect of exchange rate changes on cash   5,000 (13,000)  
Net decrease in cash and cash equivalents   (2,579,000) (2,136,000) (18,651,000)
Cash, cash equivalent, beginning of period   3,905,000 3,905,000 22,556,000
Cash, cash equivalents, end of period 1,326,000 1,326,000 1,769,000 3,905,000
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES        
Interest paid   1,239,000 1,543,000 2,178,000
Income taxes paid   242,000 227,000 3,000
Warrant liabilities reclassified to equity   6,337,000 6,337,000  
Conversion of convertible notes and notes payable to common stock   33,777,000 33,777,000  
Conversion of accrued interest payable to common stock   2,381,000 5,722,000  
Initial recognition of right-of-use lease asset   2,922,000 2,922,000  
Previously Reported [Member]        
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss (26,083,000) (59,563,000)   (58,044,000)
Adjustments to reconcile net loss to net cash flows used in operating activities        
Depreciation and amortization   54,000   61,000
Impairment loss on long-term investment   524,000    
Amortization of discount of notes payable and convertible notes payable   19,479,000   18,263,000
Foreign exchange adjustments on convertible notes and notes payable   49,000   53,000
Net losses on investment in marketable securities   21,718,000   43,977,000
Loss on equity method investment   0    
Loss on debt extinguishment 6,427,000 6,427,000   3,245,000
Share-based compensation and fair value of replacement equity award   3,541,000   4,597,000
Notes conversion costs 3,906,000 3,906,000    
Change in fair value of warrant derivative liabilities (424,000) (623,000)   (20,674,000)
Change in fair value of embedded conversion option (342,000) (342,000)   (466,000)
Net changes in operating assets and liabilities        
Accounts receivable   (548,000)   (1,324,000)
Inventories   (2,787,000)   (4,079,000)
Prepaid expenses and other current assets   (426,000)   (431,000)
Other non-current assets   (4,150,000)   (241,000)
Accounts payable and accrued expenses   4,857,000   4,631,000
Deferred revenue   500,000    
Deferred rent   (287,000)   245,000
Other current liabilities   230,000   5,174,000
Other long-term liabilities   2,363,000   (630,000)
Net cash flows used in operating activities   (5,078,000)   (5,653,000)
CASH FLOWS FROM INVESTING ACTIVITIES        
Cash paid in connection with the Merger   (1,641,000)    
Purchases of property and equipment   (55,000)   (94,000)
Proceeds from sale of marketable securities   221,000   6,439,000
Net cash flows used in investing activities   (1,475,000)   5,876,000
CASH FLOWS FROM FINANCING ACTIVITIES        
Payments of convertible notes   (3,368,000)   (20,000,000)
Proceeds from exercise of warrants   186,000   111,000
Proceeds from issuance of common stock   6,210,000   1,275,000
Net cash flows provided by (used in) financing activities   3,028,000   (5,700,000)
Effect of exchange rate changes on cash   (8,000)    
Net decrease in cash and cash equivalents   (3,533,000)   (5,477,000)
Cash, cash equivalent, beginning of period   17,079,000 17,079,000 22,556,000
Cash, cash equivalents, end of period 13,546,000 13,546,000   17,079,000
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES        
Interest paid   1,239,000   2,178,000
Income taxes paid   242,000   3,000
Warrant liabilities reclassified to equity   776,000    
Conversion of convertible notes and notes payable to common stock   33,777,000    
Conversion of accrued interest payable to common stock   2,381,000    
Adjustments [Member]        
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss 7,722,000 6,085,000   (14,543,000)
Adjustments to reconcile net loss to net cash flows used in operating activities        
Amortization of discount of notes payable and convertible notes payable   2,396,000   (29,000) [1]
Foreign exchange adjustments on convertible notes and notes payable   (256,000)   (350,000)
Loss on equity method investment (36,000) [2] 413,000 [3]   97,000 [4]
Loss on debt extinguishment (5,989,000) [5],[6] (5,989,000) [7],[8]   (543,000) [1],[9]
Share-based compensation and fair value of replacement equity award   52,000   (52,000) [1]
Notes conversion costs (565,000) [5] (565,000) [7]    
Change in fair value of warrant derivative liabilities (3,152,000) [5],[6] (2,869,000) [7],[8]   16,198,000 [10],[11]
Change in fair value of embedded conversion option 211,000 [6] 211,000 [8]   466,000 [1],[9]
Net changes in operating assets and liabilities        
Accounts receivable   355,000   (437,000) [1]
Prepaid expenses and other current assets   (599,000)   99,000 [1]
Accounts payable and accrued expenses   1,109,000   (1,059,000) [1]
Other current liabilities   598,000   138,000 [1]
Net cash flows used in operating activities   941,000   19,000
CASH FLOWS FROM INVESTING ACTIVITIES        
Net cash flows used in investing activities       (13,316,000)
CASH FLOWS FROM FINANCING ACTIVITIES        
Net cash flows provided by (used in) financing activities       123,000
Effect of exchange rate changes on cash   13,000    
Net decrease in cash and cash equivalents   954,000   (13,174,000)
Cash, cash equivalent, beginning of period   (13,174,000) $ (13,174,000)  
Cash, cash equivalents, end of period $ (12,220,000) (12,220,000)   $ (13,174,000)
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES        
Warrant liabilities reclassified to equity   5,561,000    
Initial recognition of right-of-use lease asset   $ 2,922,000    
[1] Correction of unpaid deferred financing cost included in proceeds from convertible notes payable issued, net of issuance cost and discount resulted in a net increase to cash flow from financing activities and a net decrease to cash flow provided by operating activities of $171,000.
[2] EJ Holdings adjustments: The correction of this misstatement resulted in increases of $125,000 in general and administrative expense, $36,000 in loss on equity method investment and an increase in $35,000 in interest and other income (loss).
[3] EJ Holdings adjustments: The correction of this misstatement resulted in a decrease of $930,000 in general and administrative expense, and increases of $36,000 in loss on equity method investment and $102,000 in interest income.
[4] EJ Holdings adjustments: The correction of this misstatement resulted in a decrease of $211,000 in general and administrative expense, an increase of $97,000 in loss on equity method investment and an increase in $32,000 in interest income.
[5] Corrections to other misstatement were as follows: (i) period adjustment of variable consideration resulted in a decrease of $324,000 in revenue, net; (ii) reclassification of shipping cost and royalty expense to cost of sales resulted in an increase of $71,000 in cost of sales and decreases of $11,000 and $60,000 in selling cost and general and administrative expense, respectively; (iii) correction relating to stock modification accounting resulted in an increase of $52,000 in general and administrative expense; (iv) correction relating to accounting for debt modification resulted in a decrease of $320,000 in loss on debt extinguishment; and (v) correction relating to the GPB warrant classification resulted in an increase of $685,000 in change in fair value of warrant derivative liabilities.
[6] Senior secured debentures adjustments: The correction of this misstatement resulted in decreases of $6.3 million in loss on debt extinguishment and $211,000 in change in fair value of embedded conversion option and increases of $2.4 million in change in fair value of warrant derivative liabilities and $1.4 million in interest expenses.
[7] Corrections to other misstatement were as follows: (i) period adjustment of variable consideration resulted in decreases of $1.3 million in revenue, net and $1,000 income tax provision (ii) reclassification of shipping cost and royalty expense to cost of sales resulted in an increase of $199,000 in cost of sales and decreases of $29,000 and $170,000 in selling cost and general and administrative expense, respectively; (iii) correction relating to stock modification accounting resulted in an increase of $52,000 in general and administrative expense; (iv) correction relating to accounting for debt modification resulted in an increase of $1.3 million in interest expenses and a decrease of $320,000 in loss on debt extinguishment; and (v) correction relating to GPB warrant classification resulted in an increase of $685,000 in change in fair value of warrant derivative liabilities.
[8] Senior secured debentures adjustments: The correction of this misstatement resulted in decreases of $6.3 million in loss on debt extinguishment and $211,000 in change in fair value of embedded conversion option as well as in increases of $2.1 million in change in fair value of warrant derivative liabilities and $1.0 million in interest expenses.
[9] Corrections of other misstatement were as follows: (i) period adjustment of variable consideration resulted in increases of $1.4 million in revenue, net and $33,000 in income tax provision; (ii) reclassification of shipping cost and royalty expense to cost of sales resulted in an increase of $229,000 in cost of sales and decreases of $80,000 and $141,000 in selling expense and general and administrative expense, respectively; (iii) correction of stock modification accounting resulted in a decrease of $52,000 in general and administrative expense; and (iv) correction of accounting treatment for conversion feature resulted in an increase of $249,000 in interest expense and decreases of $543,000 and $466,000 in loss on debt extinguishment and change in fair value of embedded conversion option, respectively.
[10] Cashless warrant adjustments: The correction of this misstatement resulted in a decrease of $18.3 million in change in fair value of warrant derivative liabilities.
[11] Warrant adjustments: The correction of this misstatement resulted in an increase of $2.1 million in change in fair value of warrant derivative liabilities and a decrease of $278,000 in interest expense.