Annual report pursuant to Section 13 and 15(d)

QUARTERLY FINANCIAL STATEMENTS (UNAUDITED) (Details 2)

v3.20.4
QUARTERLY FINANCIAL STATEMENTS (UNAUDITED) (Details 2) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Quarterly Financial Data [Line Items]        
REVENUES, NET $ 5,760 $ 15,960 $ 22,752 $ 16,459
COST OF GOODS SOLD 248 771 1,094 993
GROSS PROFIT 5,512 15,189 21,658 15,466
OPERATING EXPENSES        
Research and development 725 1,778 2,183 1,723
Selling 1,778 5,148 6,975 4,733
General and administrative 7,056 13,475 17,012 17,464
Total operating expenses 9,559 20,401 26,170 23,920
LOSS FROM OPERATIONS (4,047) (5,212) (4,512) (8,454)
OTHER INCOME (EXPENSE)        
Loss on debt extinguishment (438) (438) (438) (2,702)
Change in fair value of warrant derivative liabilities 3,576 3,492 3,545 4,476
Change in fair value of embedded conversion option 131 131 131  
Net losses on investment in marketable securities and long-term investment (5,248) (22,242) (21,947) (43,977)
Net losses on equity method investment 36 (413) (414) (97)
Miscellaneous reverse merger costs (309) (309) (309)  
Notes conversion costs (3,341) (3,341) (3,341)  
Interest and other income (loss) 18 248   1,002
Interest expense (8,714) (25,153) (27,625) (22,796)
Total other expense (14,289) (48,025) (50,166) (64,094)
LOSS BEFORE INCOME TAXES (18,336) (53,237) (54,678) (72,548)
INCOME TAXES 25 241 164 39
NET LOSS (18,361) (53,478) (54,842) (72,587)
NET LOSS ATTRIBUTABLE TO THE COMPANY (18,361) (53,478) (54,842) (72,587)
COMPONENTS OF OTHER COMPREHENSIVE INCOME (LOSS)        
Foreign currency translation adjustments 5 18 (10) 16
Other comprehensive income (loss) 5 18 (10) 16
COMPREHENSIVE LOSS (18,356) (53,460)   (72,571)
Amounts attributable to noncontrolling interest:        
COMPREHENSIVE LOSS $ (18,356) $ (53,460) $ (54,852) $ (72,571)
NET LOSS PER COMMON SHARE - BASIC and DILUTED $ (0.40) $ (1.32) $ (1.30) $ (1.97)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING 45,986,629 40,443,124 42,259,460 36,857,995
Previously Reported [Member]        
Quarterly Financial Data [Line Items]        
REVENUES, NET $ 6,084 $ 17,260   $ 15,077
COST OF GOODS SOLD 178 573   764
GROSS PROFIT 5,906 16,687   14,313
OPERATING EXPENSES        
Research and development 725 1,778   1,723
Selling 1,789 5,177   4,813
General and administrative 6,991 14,523   17,877
Total operating expenses 9,505 21,478   24,413
LOSS FROM OPERATIONS (3,599) (4,791)   (10,100)
OTHER INCOME (EXPENSE)        
Loss on debt extinguishment (6,427) (6,427)   (3,245)
Change in fair value of warrant derivative liabilities 424 623   20,674
Change in fair value of embedded conversion option 342 342   466
Net losses on investment in marketable securities and long-term investment (5,248) (22,242)    
Net losses on equity method investment   0    
Miscellaneous reverse merger costs (309) (309)    
Notes conversion costs (3,906) (3,906)    
Interest and other income (loss) (17) 146   969
Interest expense (7,318) (22,757)   (22,825)
Total other expense (22,459) (54,530)   (47,938)
LOSS BEFORE INCOME TAXES (26,058) (59,321)   (58,038)
INCOME TAXES 25 242   6
NET LOSS (26,083) (59,563)   (58,044)
Net loss attributable to noncontrolling interest (54) 620   146
NET LOSS ATTRIBUTABLE TO THE COMPANY (26,137) (58,943)   (57,898)
COMPONENTS OF OTHER COMPREHENSIVE INCOME (LOSS)        
Foreign currency translation adjustments 11 10   17
Other comprehensive income (loss) 11 10   17
COMPREHENSIVE LOSS (26,072) (59,553)   (58,027)
Amounts attributable to noncontrolling interest:        
Net loss attributable to noncontrolling interest (54) 620   146
Foreign currency translation adjustments (6) 8    
Comprehensive loss attributable to noncontrolling interest (60) 628    
COMPREHENSIVE LOSS $ (26,132) $ (58,925)   $ (57,881)
NET LOSS PER COMMON SHARE - BASIC and DILUTED $ (0.57) $ (1.46)   $ (1.57)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING 46,020,507 40,474,847   36,857,995
Adjustments [Member]        
Quarterly Financial Data [Line Items]        
REVENUES, NET $ (324) [1] $ (1,300) [2]   $ 1,382 [3]
COST OF GOODS SOLD 70 [1] 198 [2]   229 [3]
GROSS PROFIT (394) (1,498)   1,153
OPERATING EXPENSES        
Selling (11) (29)   (80) [3]
General and administrative 65 [1],[4] (1,048) [2],[5]   (413) [3],[6]
Total operating expenses 54 (1,077)   (493)
LOSS FROM OPERATIONS (448) (421)   1,646
OTHER INCOME (EXPENSE)        
Loss on debt extinguishment 5,989 [1],[7] 5,989 [2],[8]   543 [3],[9]
Change in fair value of warrant derivative liabilities 3,152 [1],[7] 2,869 [2],[8]   (16,198) [10],[11]
Change in fair value of embedded conversion option (211) [7] (211) [8]   (466) [3],[9]
Net losses on equity method investment 36 [4] (413) [5]   (97) [6]
Notes conversion costs 565 [1] 565 [2]    
Interest and other income (loss) 35 [4] 102 [5]   33 [6]
Interest expense (1,396) [7] (2,396) [2],[8]   29 [3],[11]
Total other expense 8,170 6,505   (16,156)
LOSS BEFORE INCOME TAXES 7,722 6,084   (14,510)
INCOME TAXES   (1) [2]   33 [3]
NET LOSS 7,722 6,085   (14,543)
Net loss attributable to noncontrolling interest 54 [4] (620)   (146) [6]
NET LOSS ATTRIBUTABLE TO THE COMPANY 7,776 5,465   (14,689)
COMPONENTS OF OTHER COMPREHENSIVE INCOME (LOSS)        
Foreign currency translation adjustments (6) 8   (1) [6]
Other comprehensive income (loss) (6) 8   (1)
COMPREHENSIVE LOSS 7,716 6,093   (14,544)
Amounts attributable to noncontrolling interest:        
Net loss attributable to noncontrolling interest 54 [4] (620)   (146) [6]
Foreign currency translation adjustments 6 (8)    
Comprehensive loss attributable to noncontrolling interest 60 (628)    
COMPREHENSIVE LOSS $ 7,776 $ 5,465   $ (14,690)
NET LOSS PER COMMON SHARE - BASIC and DILUTED $ 0.17 $ 0.14   $ (0.40)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING 45,986,629 40,443,124   36,857,995
[1] 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.
[2] 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.
[3] 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.
[4] 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).
[5] 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.
[6] 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.
[7] 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.
[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] 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.
[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.