|
Delaware
|
| |
001-36305
|
| |
26-1367393
|
|
|
(State or Other Jurisdiction
of Incorporation or Organization) |
| |
(Commission
File Number) |
| |
(I.R.S. Employer
Identification No.) |
|
|
Title of each class
|
| |
Name of each exchange on which registered
|
|
|
Common Stock, $0.001 par value
|
| |
OTCQB
|
|
| Large accelerated filer | | | ☐ | | | Accelerated filer | | | ☒ | |
| Non-accelerated filer | | | ☐ | | | Smaller reporting company | | | ☒ | |
| | | | | | | Emerging growth company | | | ☐ | |
| | |
Page
|
| |||
PART I
|
| | | | | | |
| | | | 1 | | | |
| | | | 13 | | | |
| | | | 29 | | | |
| | | | 29 | | | |
| | | | 29 | | | |
| | | | 29 | | | |
PART II
|
| | | | | | |
| | | | 30 | | | |
| | | | 31 | | | |
| | | | 32 | | | |
| | | | 36 | | | |
| | | | 36 | | | |
| | | | 36 | | | |
| | | | 37 | | | |
| | | | 39 | | | |
PART III
|
| | | | | | |
| | | | 40 | | | |
| | | | 43 | | | |
| | | | 47 | | | |
| | | | 49 | | | |
| | | | 50 | | | |
PART IV
|
| | | | | | |
| | | | 51 | | | |
| | | | 52 | | | |
SIGNATURES | | | | | | | |
| | |
High
|
| |
Low
|
| ||||||
Fiscal Year 2019 | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 43.99 | | | | | $ | 32.00 | | |
Second Quarter
|
| | | $ | 49.00 | | | | | $ | 34.07 | | |
Third Quarter
|
| | | $ | 54.50 | | | | | $ | 40.00 | | |
Fourth Quarter
|
| | | $ | 50.00 | | | | | $ | 35.26 | | |
| | |
High
|
| |
Low
|
| ||||||
Fiscal Year 2018 | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 9.60 | | | | | $ | 6.45 | | |
Second Quarter
|
| | | $ | 15.99 | | | | | $ | 7.72 | | |
Third Quarter
|
| | | $ | 36.00 | | | | | $ | 14.80 | | |
Fourth Quarter
|
| | | $ | 40.00 | | | | | $ | 25.50 | | |
Name
|
| |
Age
|
| |
Position
|
| |
Director Since
|
| |
Term
Expires |
|
Douglas Murphy-Chutorian, M.D. | | |
65
|
| | Chief Executive Officer and Director | | | September 2012 | | | 2021 | |
Andrew B. Weinstein | | |
55
|
| | Senior Vice President, Finance and Accounting | | | N/A | | | N/A | |
Daniel E. Conger | | |
43
|
| | Vice President, Finance | | | N/A | | | N/A | |
Arthur “Abbie” Leibowitz, M.D., F.A.A.P.
|
| |
73
|
| | Director | | | June 2014 | | | 2020 | |
Wayne T. Pan, M.D., Ph.D. | | |
56
|
| | Director | | | May 2014 | | | 2022 | |
Name and Principal Position
|
| |
Fiscal
Year |
| |
Salary
($) |
| |
Bonus
($) |
| |
Option
Award(s) ($)(1) |
| |
Non-Equity
Incentive Plan Compensation ($)(2) |
| |
All Other
Compensation ($)(3) |
| |
Total
($) |
| |||||||||||||||||||||
Douglas Murphy-Chutorian, M.D.,
director and chief executive officer |
| | | | 2019 | | | | | $ | 400,000 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 744,708 | | | | | $ | 25,545 | | | | | $ | 1,170,253 | | |
| | | 2018 | | | | | $ | 367,500 | | | | | $ | 0 | | | | | $ | 746,250 | | | | | $ | 448,642 | | | | | $ | 15,975 | | | | | $ | 1,578,367 | | | ||
Andrew B. Weinstein
senior vice president, finance and accounting |
| | | | 2019 | | | | | $ | 265,625 | | | | | $ | 55,000 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 1,686 | | | | | $ | 322,311 | | |
| | | 2018 | | | | | $ | 230,000 | | | | | $ | 46,000 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 979 | | | | | $ | 276,979 | | | ||
Daniel E. Conger,
vice president, finance |
| | | | 2019 | | | | | $ | 200,000 | | | | | $ | 40,000 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 23,058 | | | | | $ | 263,058 | | |
| | | 2018 | | | | | $ | 200,000 | | | | | $ | 40,000 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 22,024 | | | | | $ | 262,024 | | |
Name
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Option Exercise
Price ($) |
| |
Option
Expiration Date |
| ||||||||||||
Douglas Murphy-Chutorian(1)
|
| | | | 20,000 | | | | | | 0 | | | | | $ | 0.52 | | | | | | 11/21/2022 | | |
Douglas Murphy-Chutorian(1)
|
| | | | 85,000 | | | | | | 0 | | | | | $ | 2.10 | | | | | | 11/08/2024 | | |
Douglas Murphy-Chutorian(1)
|
| | | | 75,000 | | | | | | 0 | | | | | $ | 1.96 | | | | | | 12/31/2024 | | |
Douglas Murphy-Chutorian(1)
|
| | | | 180,000 | | | | | | 0 | | | | | $ | 3.44 | | | | | | 07/20/2025 | | |
Douglas Murphy-Chutorian(1)
|
| | | | 60,000 | | | | | | 0 | | | | | $ | 2.59 | | | | | | 12/31/2025 | | |
Douglas Murphy-Chutorian(2)
|
| | | | 122,569 | | | | | | 2,431 | | | | | $ | 2.23 | | | | | | 02/17/2026 | | |
Douglas Murphy-Chutorian(2)
|
| | | | 93,316 | | | | | | 31,684 | | | | | $ | 1.72 | | | | | | 01/19/2027 | | |
Douglas Murphy-Chutorian(2)
|
| | | | 63,281 | | | | | | 61,719 | | | | | $ | 8.00 | | | | | | 12/31/2027 | | |
Andrew B. Weinstein(2)
|
| | | | 21,271 | | | | | | 8,729 | | | | | $ | 3.15 | | | | | | 03/14/2027 | | |
Daniel E. Conger(1)
|
| | | | 10,000 | | | | | | 0 | | | | | $ | 3.44 | | | | | | 07/20/2025 | | |
Daniel E. Conger(1)
|
| | | | 3,000 | | | | | | 0 | | | | | $ | 2.59 | | | | | | 12/31/2025 | | |
Name
|
| |
Fees Earned or
Paid in Cash ($) |
| |
Total
($) |
| ||||||
Arthur “Abbie” Leibowitz, M.D., F.A.A.P.
|
| | | $ | 67,500 | | | | | $ | 67,500 | | |
Wayne T. Pan, M.D., Ph.D.
|
| | | $ | 70,500 | | | | | $ | 70,500 | | |
Name and Address of Beneficial Owner
|
| |
Number of Shares
Beneficially Owned |
| |
Percentage of Shares
Beneficially Owned |
| ||||||
5% Stockholders: | | | | | | | | | | | | | |
William H.C. Chang(1)
|
| | | | 1,292,323 | | | | | | 19.8% | | |
Park West Asset Management, LLC(2)
|
| | | | 600,000 | | | | | | 9.2% | | |
Eric Semler
|
| | | | 568,221 | | | | | | 8.7% | | |
Executive Officers and Directors: | | | | | | | | | | | | | |
Dr. Arthur N. Leibowitz(3)
|
| | | | 50,000 | | | | | | * | | |
Dr. Douglas Murphy-Chutorian(4)
|
| | | | 862,877 | | | | | | 11.8% | | |
Dr. Wayne T. Pan(5)
|
| | | | 52,474 | | | | | | * | | |
Andrew B. Weinstein(6)
|
| | | | 23,771 | | | | | | * | | |
Daniel E. Conger(7)
|
| | | | 13,000 | | | | | | * | | |
All directors and officers as a group (5 persons)
|
| | | | 1,002,122 | | | | | | 13.4% | | |
Plan Category
|
| |
Number of Securities to
be Issued Upon Exercise of Outstanding Options, Warrants and Rights (#) |
| |
Weighted Average
Exercise Price of Outstanding Options, Warrants and Rights ($) |
| |
Number of Securities
Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (#) |
| |||||||||
| | |
(a)
|
| |
(b)
|
| |
(c)
|
| |||||||||
Equity Compensation Plans Approved by Securityholders:
|
| | | | | | | | | | | | | | | | | | |
2014 Stock Incentive Plan
|
| | | | 1,468,582 | | | | | | 3.30 | | | | | | 997,163(1) | | |
2007 Key Person Stock Option Plan
|
| | | | 113,000 | | | | | | 1.58 | | | | | | 0 | | |
Total | | | | | 1,581,582 | | | | | | 3.23 | | | | | | 997,163 | | |
| | |
Year Ended December 31,
|
| |||||||||
Fee Type
|
| |
2019
|
| |
2018
|
| ||||||
Audit Fees
|
| | | $ | 402,000 | | | | | $ | 200,650 | | |
Audit-Related Fees
|
| | | | 0 | | | | | | 0 | | |
Tax Fees
|
| | | | 27,000 | | | | | | 0 | | |
Total
|
| | | $ | 429,000 | | | | | $ | 200,650 | | |
| | |
Page
|
| |||
Financial Statements: | | | | | | | |
| | | | F-2 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
| | | | F-9 | | |
| | |
As of December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 7,741 | | | | | $ | 3,284 | | |
Trade accounts receivable, net of allowance for doubtful accounts of $36 and $52 respectively
|
| | | | 3,486 | | | | | | 2,801 | | |
Prepaid expenses and other current assets
|
| | | | 216 | | | | | | 153 | | |
Total current assets
|
| | | | 11,443 | | | | | | 6,238 | | |
Assets for lease, net
|
| | | | 2,079 | | | | | | 1,243 | | |
Property and equipment, net
|
| | | | 249 | | | | | | 223 | | |
Long-term deposits
|
| | | | 15 | | | | | | 15 | | |
Long-term deferred tax assets
|
| | | | 4,501 | | | | | | — | | |
Total assets
|
| | | $ | 18,287 | | | | | $ | 7,719 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 338 | | | | | $ | 280 | | |
Accrued expenses
|
| | | | 3,914 | | | | | | 2,797 | | |
Deferred revenue
|
| | | | 955 | | | | | | 435 | | |
Total current liabilities
|
| | | | 5,207 | | | | | | 3,512 | | |
Long-term liabilities: | | | | | | | | | | | | | |
Other long-term liabilities
|
| | | | 7 | | | | | | 11 | | |
Total long-term liabilities
|
| | | | 7 | | | | | | 11 | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock, $0.001 par value; 50,000,000 shares authorized; 6,556,221,
and 6,349,985 shares issued, and 6,531,221 and 6,324,985 shares outstanding (treasury shares of 25,000 and 25,000, respectively) |
| | | | 7 | | | | | | 6 | | |
Additional paid-in capital
|
| | | | 19,400 | | | | | | 25,608 | | |
Accumulated deficit
|
| | | | (6,334) | | | | | | (21,418) | | |
Total stockholders’ equity
|
| | | | 13,073 | | | | | | 4,196 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 18,287 | | | | | $ | 7,719 | | |
| | |
For the years ended December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Revenues
|
| | | $ | 32,767 | | | | | $ | 21,491 | | |
Operating expenses: | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 3,661 | | | | | | 2,703 | | |
Engineering and product development
|
| | | | 2,479 | | | | | | 2,085 | | |
Sales and marketing
|
| | | | 8,965 | | | | | | 7,202 | | |
General and administrative
|
| | | | 6,954 | | | | | | 4,159 | | |
Total operating expenses
|
| | | | 22,059 | | | | | | 16,149 | | |
Income from operations
|
| | | | 10,708 | | | | | | 5,342 | | |
Interest income (expense)
|
| | | | 2 | | | | | | (59) | | |
Related party interest expense
|
| | | | — | | | | | | (239) | | |
Other expense
|
| | | | (9) | | | | | | (4) | | |
Other expense
|
| | | | (7) | | | | | | (302) | | |
Pre-tax net income
|
| | | | 10,701 | | | | | | 5,040 | | |
Income tax (benefit) provision
|
| | | | (4,383) | | | | | | 26 | | |
Net income
|
| | | $ | 15,084 | | | | | $ | 5,014 | | |
Net income per share, basic
|
| | | $ | 2.34 | | | | | $ | 0.82 | | |
Weighted average number of shares used in computing basic income per share
|
| | | | 6,440,724 | | | | | | 6,079,326 | | |
Net income per share, diluted
|
| | | $ | 1.88 | | | | | $ | 0.66 | | |
Weighted average number of shares used in computing diluted income per share
|
| | | | 8,029,909 | | | | | | 7,629,523 | | |
| | |
Common Stock
|
| |
Treasury Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total Stockholder’s
Equity/(Deficit) |
| |||||||||||||||||||||||||||
| | |
Shares Issued
|
| |
Common Stock
Amount |
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance at December 31, 2017
|
| | | | 5,902,244 | | | | | $ | 6 | | | | | | (25,000) | | | | |
$
|
—
|
| | | | $ | 23,843 | | | | | $ | (26,432) | | | | | $ | (2,583) | | |
Issuance of shares to settle related party loan
|
| | | | 12,943 | | | | | | — | | | | | | — | | | | | | — | | | | | | 294 | | | | | | — | | | | | | 294 | | |
Warrant exercises
|
| | | | 212,517 | | | | | | — | | | | | | — | | | | | | — | | | | | | 414 | | | | | | — | | | | | | 414 | | |
Stock option exercises
|
| | | | 222,281 | | | | | | — | | | | | | — | | | | | | — | | | | | | 456 | | | | | | — | | | | | | 456 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 601 | | | | | | — | | | | | | 601 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,014 | | | | | | 5,014 | | |
Balance at December 31, 2018
|
| | | | 6,349,985 | | | | | $ | 6 | | | | | | (25,000) | | | | | $ | — | | | | | $ | 25,608 | | | | | $ | (21,418) | | | | | $ | 4,196 | | |
Warrant repurchases
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,633) | | | | | | — | | | | | | (6,633) | | |
Warrant exercises
|
| | | | 36,197 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock option exercises
|
| | | | 170,039 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 60 | | | | | | — | | | | | | 61 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 365 | | | | | | — | | | | | | 365 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,084 | | | | | | 15,084 | | |
Balance at December 31, 2019
|
| | | | 6,556,221 | | | | | $ | 7 | | | | | | (25,000) | | | | | $ | — | | | | | $ | 19,400 | | | | | $ | (6,334) | | | | | $ | 13,073 | | |
|
| | |
For the years ended December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net income
|
| | | $ | 15,084 | | | | | $ | 5,014 | | |
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
|
| | | | | | | | | | | | |
Amortization of debt discount
|
| | | | — | | | | | | 22 | | |
Accretion of non-cash interest
|
| | | | — | | | | | | 231 | | |
Depreciation
|
| | | | 632 | | | | | | 503 | | |
Deferred tax benefit
|
| | | | (4,501) | | | | | | — | | |
Loss on disposal of assets for lease
|
| | | | 206 | | | | | | 200 | | |
Allowance for doubtful accounts
|
| | | | 48 | | | | | | 46 | | |
Stock-based compensation expense
|
| | | | 365 | | | | | | 601 | | |
Changes in Operating Assets and Liabilities:
|
| | | | | | | | | | | | |
Trade accounts receivable
|
| | | | (734) | | | | | | (1,503) | | |
Prepaid expenses and other current assets
|
| | | | (63) | | | | | | (42) | | |
Accounts payable
|
| | | | 58 | | | | | | (208) | | |
Accrued expenses
|
| | | | 1,113 | | | | | | (71) | | |
Deferred revenue
|
| | | | 520 | | | | | | (96) | | |
Net Cash Provided by Operating Activities
|
| | | | 12,728 | | | | | | 4,697 | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Additions to property and equipment
|
| | | | (174) | | | | | | (138) | | |
Proceeds from sale of property and equipment
|
| | | | — | | | | | | 1 | | |
Purchase of assets for lease
|
| | | | (1,524) | | | | | | (706) | | |
Net Cash Used in Investing Activities
|
| | | | (1,698) | | | | | | (843) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Repurchase of warrants
|
| | | | (6,633) | | | | | | — | | |
Proceeds from exercise of warrants
|
| | | | — | | | | | | 414 | | |
Proceeds from exercise of stock options
|
| | | | 60 | | | | | | 456 | | |
Payments of loans payable
|
| | | | — | | | | | | (2,897) | | |
Net Cash Used in Financing Activities
|
| | | | (6,573) | | | | | | (2,027) | | |
INCREASE IN CASH
|
| | | | 4,457 | | | | | | 1,827 | | |
CASH, BEGINNING OF PERIOD
|
| | | | 3,284 | | | | | | 1,457 | | |
CASH, END OF PERIOD
|
| | | $ | 7,741 | | | | | $ | 3,284 | | |
Cash paid for interest
|
| | | $ | — | | | | | $ | 575 | | |
Cash paid for taxes
|
| | | $ | 123 | | | | | $ | 18 | | |
Supplemental disclosure of noncash financing activity: | | | | | | | | | | | | | |
Issuance of shares to settle related party loan
|
| | | $ | — | | | | | $ | 294 | | |
Category Name
|
| |
Description
|
|
Machinery & Equipment | | | Manufacturing, R&D, or other non-office equipment | |
Computer Equipment & Software | | | Software, computers, monitors, printers and other related equipment. | |
Furniture & Fixtures | | | Office equipment and furniture owned by the company | |
Account Name
|
| |
Useful Life
|
|
Machinery & Equipment | | | Five years | |
Computer Equipment & Software | | | Three years | |
Furniture & Fixtures | | | Five years | |
| | |
As of December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Assets for lease
|
| | | $ | 3,374 | | | | | $ | 2,218 | | |
Less: accumulated depreciation
|
| | | | (1,295) | | | | | | (975) | | |
Assets for lease, net
|
| | | $ | 2,079 | | | | | $ | 1,243 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Capital assets
|
| | | $ | 636 | | | | | $ | 457 | | |
Less: accumulated depreciation
|
| | | | (387) | | | | | | (234) | | |
Capital assets, net
|
| | | $ | 249 | | | | | $ | 223 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Compensation
|
| | | $ | 2,803 | | | | | $ | 2,442 | | |
Accrued Taxes
|
| | | | 66 | | | | | | 81 | | |
Miscellaneous Accruals
|
| | | | 1,045 | | | | | | 354 | | |
Total Accrued Expenses
|
| | | $ | 3,914 | | | | | $ | 2,797 | | |
| | |
Year ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Common stock warrants
|
| | | | 76,875 | | | | | | 276,214 | | |
Stock options
|
| | | | 1,581,582 | | | | | | 1,761,447 | | |
Total
|
| | | | 1,658,457 | | | | | | 2,037,661 | | |
| | |
Options Outstanding
|
| |||||||||||||||||||||
| | |
Number of
Stock Options Outstanding |
| |
Weighted
Average Exercise Price |
| |
Weighted
Average Remaining Contractual Term (In Years) |
| |
Aggregate
Intrinsic Value (In Thousands) |
| ||||||||||||
Balance, December 31, 2017
|
| | | | 1,855,138 | | | | | $ | 2.69 | | | | | | 7.48 | | | | | $ | 9,850 | | |
Options granted
|
| | | | 135,000 | | | | | | 8.00 | | | | | | | | | | | | | | |
Options exercised
|
| | | | (222,281) | | | | | | 2.05 | | | | | | | | | | | | | | |
Options forfeited/cancelled
|
| | | | (6,410) | | | | | | 3.44 | | | | | | | | | | | | | | |
Balance, December 31, 2018
|
| | | | 1,761,447 | | | | | $ | 3.18 | | | | | | 6.84 | | | | | $ | 55,000 | | |
Options exercised
|
| | | | (179,865) | | | | | | 2.72 | | | | | | | | | | | | | | |
Balance, December 31, 2019
|
| | | | 1,581,582 | | | | | $ | 3.23 | | | | | | 5.86 | | | | | $ | 70,827 | | |
Exercisable as of December 31, 2018
|
| | | | 1,481,591 | | | | | $ | 2.83 | | | | | | 6.57 | | | | | $ | 46,780 | | |
Exercisable as of December 31, 2019
|
| | | | 1,477,020 | | | | | $ | 3.06 | | | | | | 5.73 | | | | | $ | 66,389 | | |
| | |
Year ended
December 31, 2018 |
| |||
Expected term (in years)
|
| | | | 5 | | |
Risk-free interest rate
|
| | | | 2.2% | | |
Expected volatility
|
| | | | 99.0% | | |
Expected dividend rate
|
| | | | 0% | | |
| | |
Year ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Cost of Revenues
|
| | | $ | 1 | | | | | $ | 2 | | |
Engineering and Product Development
|
| | | | 16 | | | | | | 36 | | |
Sales and Marketing
|
| | | | 46 | | | | | | 92 | | |
General and Administrative
|
| | | | 302 | | | | | | 471 | | |
Total
|
| | | $ | 365 | | | | | $ | 601 | | |
|
| | |
2019
|
| |
2018
|
| ||||||
Current tax provision: | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | 118 | | | | | | 26 | | |
Subtotal current tax expense
|
| | | | 118 | | | | | | 26 | | |
Deferred tax provision: | | | | | | | | | | | | | |
Federal
|
| | | | (3,645) | | | | | | — | | |
State
|
| | | | (856) | | | | | | — | | |
Subtotal deferred tax (benefit)
|
| | | | (4,501) | | | | | | — | | |
Total income tax (benefit) expense
|
| | | $ | (4,383) | | | | | $ | 26 | | |
| | |
2019
|
| |
2018
|
| ||||||
Federal statutory rate
|
| | | | 21.00% | | | | | | 21.00% | | |
State income tax rate, net of federal benefit
|
| | | | 1.83% | | | | | | 0.95% | | |
Change in valuation allowance
|
| | | | (49.89)% | | | | | | (2.28)% | | |
Stock-based compensation
|
| | | | (13.12)% | | | | | | (13.61)% | | |
Permanent Items
|
| | | | 0.40% | | | | | | 0.42% | | |
Other
|
| | | | (1.18)% | | | | | | (5.97)% | | |
Effective income tax rate
|
| | | | (40.96)% | | | | | | 0.51% | | |
| | |
2019
|
| |
2018
|
| ||||||
Net operating loss carryforwards
|
| | | | 2,646 | | | | | | 3,864 | | |
Deferred revenue
|
| | | | 233 | | | | | | 106 | | |
Depreciation and amortization
|
| | | | 14 | | | | | | 45 | | |
Stock based compensation
|
| | | | 751 | | | | | | 670 | | |
Accrual and reserves
|
| | | | 145 | | | | | | 119 | | |
Research and development credits, net of tax reserve
|
| | | | 711 | | | | | | 533 | | |
Other
|
| | | | 1 | | | | |
|