View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2016	Apr. 29, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Semler Scientific, Inc.
Entity Central Index Key	0001554859
Trading Symbol	smlr
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,123,568
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenue	$ 1,501	$ 1,202
Operating expenses:
Cost of revenue	417	241
Engineering and product development	270	309
Sales and marketing	974	1,207
General and administrative	772	793
Total operating expenses	2,433	2,550
Loss from operations	(932)	(1,348)
Interest expense, net	(74)	(24)
Net loss	$ (1,006)	$ (1,372)
Net loss per share, basic and diluted (in dollars per share)	$ (0.20)	$ (0.29)
Weighted average number of shares used in computing basic and diluted loss per share (in shares)	5,123,568	4,763,573

Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current Assets:
Cash	$ 1,441	$ 405
Trade accounts receivable, net of allowance for doubtful accounts of $116 and $183, respectively	599	1,278
Prepaid expenses and other current assets	132	69
Total current assets	2,172	1,752
Assets for lease, net	760	830
Property and equipment, net	473	497
Long-term deposits	20
Total assets	3,425	3,079
Current liabilities:
Accounts payable	390	839
Accrued expenses	1,800	2,317
Deferred revenue	933	952
Total current liabilities	3,123	4,108
Long-term liabilities:
Deferred rent	38	43
Accrued Interest Expense	37
Loan Payable net of debt discount of $312 and $0, respectively	1,888
Total long-term liabilities	1,963	43
Stockholders' deficit:
Common stock, $0.001 par value; 50,000,000 shares authorized; 5,148,568 and 5,148,568 shares issued, and 5,123,568 and 5,123,568 outstanding (net of treasury shares of 25,000 and 25,000), respectively	5	5
Additional paid-in capital	21,708	21,291
Accumulated deficit	(23,374)	(22,368)
Total stockholders' deficit	(1,661)	(1,072)
Total liabilities and stockholders' deficit	$ 3,425	$ 3,079

Condensed Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts on trade accounts receivable (in dollars)	$ 116	$ 183
Loan Payable net of debt discount (in dollars)	$ 312	$ 0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	5,148,568	5,148,568
Common stock, shares outstanding	5,123,568	5,123,568
Treasury stock, shares	25,000	25,000

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,006)	$ (1,372)
Reconciliation of Net Loss to Net Cash Used in Operating Activities:
Amortization of debt discount and deferred financing costs	36	18
Depreciation	110	59
Loss on disposal of assets for lease	55	25
Allowance for doubtful accounts	(6)	51
Stock-based compensation expense	69	33
Changes in Operating Assets and Liabilities:
Trade accounts receivable	685	(52)
Prepaid expenses and other current assets	(83)	(9)
Accounts payable	(449)
Accrued expenses	(485)	(137)
Deferred revenue	(19)	(119)
Net Cash Used in Operating Activities	(1,093)	(1,503)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment	(6)	(19)
Purchase of assets for lease	(65)	(71)
Net Cash Used in Investing Activities	(71)	(90)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock		498
Proceeds from loans payable	2,200
Net Cash Provided by Financing Activities	2,200	498
INCREASE (DECREASE) IN CASH	1,036	(1,095)
CASH, BEGINNING OF PERIOD	405	4,156
CASH, END OF PERIOD	1,441	3,061
Cash paid for interest		$ 8
Supplemental Disclosure of noncash financing activity:
Fair value of warrants issued to lenders	$ 349

Basis of Presentation

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation

1.	Basis of Presentation

Semler Scientific, Inc., a Delaware corporation (“Semler” or “the Company”), prepared the unaudited interim financial statements included in this report in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in the Company’s annual report on Form 10-K filed with the SEC on February 26, 2016 (the “Annual Report”). The balance sheet as of December 31, 2015 included in this report has been derived from the audited financial statements included in the Annual Report. In the opinion of management, these financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for any future period, including the full year. Items in prior period financial statements have been adjusted to conform with the current period presentation.

Going Concern

3 Months Ended

Mar. 31, 2016

Going Concern [Abstract]

Going Concern

2.	Going Concern

The Company has incurred recurring losses since inception and expects to continue to incur losses as a result of costs and expenses related to the Company’s marketing and other promotional activities, research and continued development of its product. As of March 31, 2016, the Company has negative working capital of $951, cash of $1,441 and stockholders’ deficit of $1,661. The Company’s principal sources of cash have included the issuance of equity securities, borrowings under loan agreements, revenue from leasing its product and providing testing services. To increase revenue, the Company’s operating expenses will continue to grow and, as a result, the Company will need to generate significant additional revenue to achieve profitability.

The Company’s financial statements as of and for the three months ended March 31, 2016 have been prepared under the assumption that the Company will continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to obtain additional equity or debt financing, attain further operating efficiencies and, ultimately, to generate additional revenue. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company can give no assurances that additional capital that the Company is able to obtain, if any, will be sufficient to meet the Company’s needs. If the Company is unable to raise additional capital or increase revenue from leasing its product and providing testing services within the next twelve months to continue to fund operations at its current cash expenditure levels, the Company’s operations will need to be curtailed. The foregoing conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Assets for lease, net

3 Months Ended

Mar. 31, 2016

Leases, Capital [Abstract]

Assets for lease, net

3.	Assets for Lease, net

Assets for lease consist of the following:

	March 31, 2016			December 31, 2015

Assets for lease	$	1,261		$	1,280
Less: Accumulated Depreciation		(501	)		(450	)
Assets for lease, net	$	760		$	830

Depreciation expense amounted to $80 and $57 for the three months ended March 31, 2016 and March 31, 2015, respectively. Reduction to accumulated depreciation for returned items was $29 and $14 for the three months ended March 31, 2016 and March 31, 2015, respectively.

Property and Equipment, net

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment, net

4.	Property and Equipment, net

Property and equipment, net consists of the following:

	March 31, 2016			December 31, 2015

Property and equipment	$	548		$	542
Less: accumulated depreciation		(75	)		(45	)
Property and equipment, net	$	473		$	497

Depreciation expense amounted to $30 and $2 for the three months ended March 31, 2016 and 2015, respectively.

Accrued Expenses

3 Months Ended

Mar. 31, 2016

Accrued Liabilities, Current [Abstract]

Accrued expenses

5.	Accrued Expenses

Accrued expenses consist of the following:

	March 31, 2016		December 31, 2015

Offering Costs	$	227	$	227
Compensation		1,135		1,093
Miscellaneous Accruals		438		997
Total Accrued Expenses	$	1,800	$	2,317

The accumulated offering costs that were accrued pertain to consulting fees associated with securing equity financing for the Company prior to the initial public offering. Prior to becoming Chief Executive Officer (“CEO”), the Company’s current CEO performed consulting services for the Company, which included managing finance, sales, marketing, operational and strategic planning for our company, as well as assistance and strategic guidance in securing financing. The Company has agreed to a payment date of December 31, 2016 for these fees.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

6.	Commitments and Contingencies

Facilities Leases

For the three months ended March 31, 2016, the Company recognized $15 in facilities lease expense. For the three months ended March 31, 2015, the Company recognized $32 in facilities lease expense.

On September 23, 2014, the Company entered into a 36 month lease agreement for office space for the sales and marketing team located in Menlo Park, CA. The lease term commenced February 1, 2015 and is effective through January 31, 2018. Payments required under the terms of the lease are $17.0 per month from February 2015 to January 2016, $17.5 per month from February 2016 to January 2017, and $18.0 per month from February 2017 to January 2018. The Company anticipates total future lease payments of $157.2 for the year ended December 31, 2016; $215.4 for the year ended December 31, 2017; and $18.0 for the year ended December 31, 2018. On July 15, 2015, the Company entered into a 30-month sublease agreement for the Menlo Park office space, which commenced August 1, 2015 and is effective through the term of the lease, January 31, 2018. Payments required to the Company under the terms of the sublease are $15.5 per month from August 2015 to July 2016, $16.0 per month from August 2016 to July 2017, and $16.5 per month from August 2017 to January 2018. The Company anticipates receipt of total future sublease payments of $142.0 for the year ended December 31, 2016; $194.4 for the year ended December 31, 2017; and $16.5 for the year ended December 31, 2018.

Equipment Leases and Loans Payable

On September 30, 2014, the Company entered into a revolving line of credit with First Republic Bank. Pursuant to the line of credit agreement, the Company could borrow up to $2,000 for a 12-month term at a variable annual interest rate based on First Republic’s Prime less a spread of 2.0% p.a. The initial interest rate was 1.25% p.a. Under the line of credit agreement, the Company made monthly payments consisting of $2 of interest, and an annual payment consisting of $2,002 principal plus any accrued interest. The line of credit agreement provided for customary events of default. This line of credit was secured by a $2,100 collateral cash account in the Company’s name at First Republic. The line of credit was retired and the collateral cash account was closed in September 2015.

On January 15, 2016, the Company entered into a loan agreement with the Chang Family Trust, for which William H.C. Chang, a significant stockholder, is co-trustee. Pursuant to the loan agreement, the Company obtained a $1,000 unsecured loan for a 24-month term at a fixed interest rate of 10% p.a. Under the loan agreement, the Company will pay $1,000 of principal plus all accrued and unpaid interest at maturity. The Company may prepay the notes at any time prior to maturity without penalty. The notes must be repaid prior to maturity in the event of default, and the Company agreed not to incur additional indebtedness in excess of $50 without the lender’s prior consent, which is not to be unreasonably withheld. In connection therewith, the Company issued the Chang Family Trust a two-year warrant to purchase 114,286 shares of common stock at an exercise price of $1.75 per share. The warrants may not be exercised absent receipt of stockholder approval if after such exercise the holder would be the beneficial owner of more than 19.99% of the Company’s common stock. The relative fair value of this warrant was recorded as a debt discount on the Company’s balance sheet and partially offsets the total balance due for loans payable. As of the date of this filing, the Company is in compliance with all terms of this loan.

On January 21, 2016, the Company entered into a loan agreement with the Chang Family Trust, for which William H.C. Chang, a significant stockholder, is co-trustee. Pursuant to the loan agreement, the Company obtained a $500 unsecured loan for a 24-month term at a fixed interest rate of 5% p.a. Under the loan agreement, the Company will pay $500 of principal plus all accrued and unpaid interest at maturity. The Company may prepay the notes at any time prior to maturity without penalty. The notes must be repaid prior to maturity in the event of default, and the Company agreed not to incur additional indebtedness in excess of $50 without the lender’s prior consent, which is not to be unreasonably withheld. In connection therewith, the Company issued the Chang Family Trust a two-year warrant to purchase 114,286 shares of common stock at an exercise price of $1.75 per share. The warrants may not be exercised absent receipt of stockholder approval if after such exercise the holder would be the beneficial owner of more than 19.99% of the Company’s common stock. The relative fair value of this warrant was recorded as a debt discount on the Company’s balance sheet and partially offsets the total balance due for loans payable. As of the date of this filing, the Company is in compliance with all terms of this loan.

On March 31, 2016, the Company entered into a loan agreement with an accredited investor. Pursuant to the loan agreement, the Company obtained a $700 unsecured loan for a 24-month term at a fixed interest rate of 10% p.a. Under the loan agreement, the Company will pay $700 of principal plus all accrued but unpaid interest at maturity. The notes may be prepaid at any time prior to maturity without penalty. The notes must be repaid prior to maturity in the event of default. In connection therewith, the Company issued the accredited investor a two-year warrant to purchase 79,459 shares of common stock at an exercise price of $1.85 per share. The warrants may not be exercised absent receipt of stockholder approval if after such exercise the holder would be the beneficial owner of more than 4.99% of the Company’s common stock. The relative fair value of this warrant was recorded as a debt discount on the Company’s balance sheet and partially offsets the total balance due for loans payable. As of the date of this filing, the Company is in compliance with all terms of this loan.

The Company uses the Black-Scholes pricing model to determine the relative fair market value of warrants. The relative fair market value of each warrant is estimated on the date of grant. The relative fair value of the warrants granted is estimated on the date of grant using the Black-Scholes pricing model and the following assumptions for the periods presented:

	Three months ended March 31,
	2016
Expected term (in years)		2
Risk-free interest rate		0.76 - 0.88	%
Expected volatility		79.0 – 98.6	%
Expected dividend rate.		0	%

The assumptions are based on the following for each of the years presented:

Valuation Method — The Company estimates the relative fair value of warrants using the Black-Scholes pricing model.

Expected Term — The Company estimates the expected term consistent with the simplified method identified by the SEC. The Company elected to use the simplified method because of its limited history of warrant exercise activity and its warrants meet the criteria of the “plain-vanilla” as defined by the SEC. The simplified method calculates the expected term as the average of the vesting and contractual terms of the award.

Volatility — Because the Company has limited trading history by which to determine the volatility of its own common stock price, the expected volatility being used is derived from the historical stock volatilities of a representative industry peer group of comparable publicly listed companies over a period approximately equal to the expected term of the warrants.

Risk-free Interest Rate — The risk-free interest rate is based on median U.S. Treasury zero coupon issues with remaining terms similar to the expected term on the warrants.

Expected Dividend — The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and therefore, used an expected dividend yield of zero in the valuation model.

For the three months ended March 31, 2016 and 2015 interest expense was $74 and 24, respectively. Of this total interest expense, the portion related to amortization of debt discount and deferred financing fees was $36 and $18, respectively.

Indemnification Obligations

The Company enters into agreements with customers, partners, lenders, consultants, lessors, contractors, sales representatives and parties to certain transactions in the ordinary course of the Company’s business. These agreements may require the Company to indemnify the other party against third party claims alleging that its product infringes a patent or copyright. Certain of these agreements require the Company to indemnify the other party against losses arising from: a breach of representations or covenants, claims relating to property damage, personal injury or acts or omissions of the Company, its employees, agents or representatives. The Company has also agreed to indemnify the directors and certain of the officers and employees in accordance with the by-laws of the Company. These indemnification provisions will vary based upon the nature and terms of the agreements. In many cases, these indemnification provisions do not contain limits on the Company’s liability, and the occurrence of contingent events that will trigger payment under these indemnities is difficult to predict. As a result, the Company cannot estimate its potential liability under these indemnities. The Company believes that the likelihood of conditions arising that would trigger these indemnities is remote and, historically, the Company had not made any significant payment under such indemnification provisions. Accordingly, the Company has not recorded any liabilities relating to these agreements. In certain cases, the Company has recourse against third parties with respect to the aforesaid indemnities, and the Company believes it maintains adequate levels of insurance coverage to protect the Company with respect to potential claims arising from such agreements.

Net Loss Per Common Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Net Loss Per Common Share

7.	Net Loss Per Common Share

Because the Company was in a loss position for each of the periods presented, diluted net loss per share is the same as basic net loss per share for each period as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have been anti-dilutive:

	Three months ended March 31,
	2016		2015
Weighted average shares outstanding:
Common stock warrants		573,111		359,714
Options		1,984,578		717,548
Total		2,557,689		1,077,262

Stock Option Plan

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Option Plan

8.	Stock Option Plan

The Company’s stock-based compensation program is designed to attract and retain employees while also aligning employees' interests with the interests of its stockholders. Stock options have been granted to employees under the stockholder-approved 2007 Key Person Stock Option Plan (“2007 Plan”) or the stockholder-approved 2014 Stock Incentive Plan (“2014 Plan”). Stockholder approval of the 2014 Plan became effective in September 2014. The 2014 Plan originally provided that the aggregate number of shares of common stock that may be issued pursuant to awards granted under the 2014 Plan may not exceed 450,000 shares (the “Share Reserve”), however in October 2015, the stockholders approved a 1,500,000 increase to the Share Reserve. In addition, the Share Reserve automatically increases on January 1st of each year, for a period of not more than 10 years, beginning on January 1st of the year following the year in which the 2014 Plan became effective and ending on (and including) January 1, 2024, in an amount equal to 4% of the total number of shares of common stock outstanding on December 31st of the preceding calendar year. The Company’s Board of Directors may act prior to January 1st of a given year to provide that there will be no January 1st increase in the Share Reserve for such year or that the increase in the Share Reserve for such year will be a lesser number of shares of common stock than would otherwise occur. On January 1, 2015, the Share Reserve increased by 188,640 shares due to the automatic 4% increase. On January 1, 2016, the Share Reserve increased by 204,943 shares due to the automatic 4% increase. The Share Reserve is currently 2,343,583 shares for the year ending December 31, 2016.

In light of stockholder approval of the 2014 Plan, the Company no longer grants equity awards under the 2007 Plan. As of March 31, 2016, 0 shares of an aggregate total of 407,500 shares were available for future stock-based compensation grants under the 2007 Plan and 666,121 shares of an aggregate total of 2,343,583 shares were available for future stock-based compensation grants under the 2014 Plan.

Aggregate intrinsic value represents the difference between the closing market value as of March 31, 2016 of the underlying common stock and the exercise price of outstanding, in-the-money options. A summary of the Company’s stock option activity and related information for the three months ended March 31, 2016 is as follows:

	Options Outstanding
	Number of Stock Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)		Aggregate Intrinsic Value (in thousands)
Balance, January 1, 2016		1,909,911	$	2.58		8.56	$	813
Options granted		160,000		2.23
Options exercised		-		-
Options forfeited/canceled		-		-
Balance, March 31, 2016		2,069,911	$	2.58		8.43	$	515
Exercisable as of March 31, 2016		1,518,909	$	2.61		8.11	$	510

The total compensation cost related to unvested stock option awards not yet recognized was $921 as of March 31, 2016. The weighted average period over which the total unrecognized compensation cost related to these unvested stock awards will be recognized is 3.08 years. The estimated grant date fair value of option shares vested during the quarters ended March 31, 2016 and 2015 was $69 and $33, respectively. The weighted average grant date fair value of options granted during the quarters ended March 31, 2016 and 2015 was $1.43 per share and $1.38 per share, respectively, or an aggregate grant date fair value of $229 and $104, respectively.

On February 18, 2016 the Compensation Committee of the Company’s Board of Directors granted, and the full Board ratified, an option to acquire an aggregate of 125,000 shares under the 2014 Plan to the Company’s CEO. This option vests 25% on the one-year anniversary of the grant date and monthly thereafter for 36 months, such that the option is vested in full on the four-year anniversary of the grant date. On February 18, 2016 the Company’s Compensation Committee granted, and the full Board ratified, options to the each then-seated non-employee Director to acquire 5,000 shares, for an aggregate of 35,000 shares, under the 2014 Plan. These options vest on the one-year anniversary of their grant date.

Determining the Fair Value of Stock Options

The Company uses the Black-Scholes pricing model to determine the fair value of stock options. The fair value of each option grant is estimated on the date of the grant. The fair value of the options granted is estimated on the date of grant using the Black-Scholes pricing model and the following assumptions for the periods presented:

	Three months ended March 31,
	2016			2015
Expected term (in years)		5			5
Risk-free interest rate		1.21	%		1.61	%
Expected volatility		80.4	%		82.5	%
Expected dividend rate.		0	%		0	%

The assumptions are based on the following for each of the years presented:

Valuation Method — The Company estimates the fair value of its stock options using the Black-Scholes option pricing model.

Expected Term — The Company estimates the expected term consistent with the simplified method identified by the SEC. The Company elected to use the simplified method because of its limited history of stock option exercise activity and its stock options meet the criteria of the “plain-vanilla” options as defined by the SEC. The simplified method calculates the expected term as the average of the vesting and contractual terms of the award.

Risk-free Interest Rate — The risk-free interest rate is based on median U.S. Treasury zero coupon issues with remaining terms similar to the expected term on the options.

Forfeiture — The Company estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. If the Company’s actual forfeiture rate is materially different from its estimate, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period.

The Company has recorded an expense of $69 and $33 as it relates to stock-based compensation for the three months ended March 31, 2016 and 2015, respectively, which was allocated as follows based on the role and responsibility of the recipient in the Company:

	Three months ended March 31,
	2016		2015
Cost of Revenue	$	1	$	1
Engineering and Product Development		13		2
Sales and Marketing		25		15
General and Administrative		30		15
Total	$	69	$	33

Subsequent Events

3 Months Ended

Mar. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

9.	Subsequent Events

On April 5, 2016, the Company entered into a loan agreement with an accredited investor. Pursuant to the loan agreement, the Company obtained a $160 unsecured loan for a 24-month term that had a fixed interest rate of 10% p.a., with all principal and accrued but unpaid interest payable at maturity. The notes may be prepaid at any time prior to maturity without penalty. The notes must be repaid prior to maturity in the event of default. In connection therewith, the Company issued the accredited investor a two-year warrant to purchase 18,162 shares of common stock at an exercise price of $1.85 per share associated with this loan. The warrants may not be exercised absent receipt of stockholder approval if after such exercise the holder would be the beneficial owner of more than 4.99% of the Company’s common stock. As of the date of this filing, the Company is in compliance with all terms of this loan.

Summary of Significant Accounting Policies and Estimates (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Assets for lease, net (Tables)

3 Months Ended

Mar. 31, 2016

Leases, Capital [Abstract]

Schedule of assets for lease

	March 31, 2016			December 31, 2015

Assets for lease	$	1,261		$	1,280
Less: Accumulated Depreciation		(501	)		(450	)
Assets for lease, net	$	760		$	830

Property and Equipment, net (Tables)

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Schedule of capital assets

	March 31, 2016			December 31, 2015

Property and equipment	$	548		$	542
Less: accumulated depreciation		(75	)		(45	)
Property and equipment, net	$	473		$	497

Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2016

Accrued Liabilities, Current [Abstract]

Schedule of accrued expenses

	March 31, 2016		December 31, 2015

Offering Costs	$	227	$	227
Compensation		1,135		1,093
Miscellaneous Accruals		438		997
Total Accrued Expenses	$	1,800	$	2,317

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of relative fair value of the warrants granted using the Black-Scholes pricing model

	Three months ended March 31,
	2016
Expected term (in years)		2
Risk-free interest rate		0.76 - 0.88	%
Expected volatility		79.0 – 98.6	%
Expected dividend rate.		0	%

Net Loss Per Common Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Schedule of common stock equivalents excluded from the computation of diluted net loss per share

	Three months ended March 31,
	2016		2015
Weighted average shares outstanding:
Common stock warrants		573,111		359,714
Options		1,984,578		717,548
Total		2,557,689		1,077,262

Stock Option Plan (Tables)

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of summary of stock-based compensation activity

	Options Outstanding
	Number of Stock Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)		Aggregate Intrinsic Value (in thousands)
Balance, January 1, 2016		1,909,911	$	2.58		8.56	$	813
Options granted		160,000		2.23
Options exercised		-		-
Options forfeited/canceled		-		-
Balance, March 31, 2016		2,069,911	$	2.58		8.43	$	515
Exercisable as of March 31, 2016		1,518,909	$	2.61		8.11	$	510

Schedule of weighted-average Black-Scholes fair value assumptions

	Three months ended March 31,
	2016			2015
Expected term (in years)		5			5
Risk-free interest rate		1.21	%		1.61	%
Expected volatility		80.4	%		82.5	%
Expected dividend rate.		0	%		0	%

Schedule of stock-based compensation based on the role and responsibility of the recipient in the Company

	Three months ended March 31,
	2016		2015
Cost of Revenue	$	1	$	1
Engineering and Product Development		13		2
Sales and Marketing		25		15
General and Administrative		30		15
Total	$	69	$	33

Going Concern (Detail Textuals) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Going Concern [Abstract]
Working capital	$ (951)
Cash	1,441	$ 405	$ 3,061	$ 4,156
Stockholders equity	$ (1,661)	$ (1,072)

Assets for lease, net - Summary of assets for lease (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Leases, Capital [Abstract]
Assets for lease	$ 1,261	$ 1,280
Less: Accumulated Depreciation	(501)	(450)
Assets for lease, net	$ 760	$ 830

Assets for lease, net (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Leases, Capital [Abstract]
Depreciation expense	$ 80	$ 57
Reduction to accumulated depreciation for returned items	$ 29	$ 14

Property and Equipment, net (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Capital assets	$ 548	$ 542
Less: accumulated depreciation	(75)	(45)
Capital assets, net	$ 473	$ 497

Property and Equipment, net (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 30	$ 2

Accrued Expenses - Summary of accrued expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accrued Liabilities, Current [Abstract]
Offering Costs	$ 227	$ 227
Compensation	1,135	1,093
Miscellaneous Accruals	438	997
Total Accrued Expenses	$ 1,800	$ 2,317

Commitments and Contingencies (Details)	3 Months Ended
Commitments and Contingencies (Details)	Mar. 31, 2016
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected term (in years)	2 years
Expected dividend rate	0.00%
Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	0.76%
Expected volatility	79.00%
Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Risk-free interest rate	0.88%
Expected volatility	98.60%

Commitments and Contingencies (Detail Textuals) - USD ($)		1 Months Ended	3 Months Ended
	Jul. 15, 2015	Sep. 23, 2014	Mar. 31, 2016	Mar. 31, 2015
Property Subject to or Available for Operating Lease [Line Items]
Facilities lease expense			$ 15,000	$ 32,000
Lease Agreement
Property Subject to or Available for Operating Lease [Line Items]
Term specified for lease agreement		36 months
Future lease payments for December 31, 2016			157,200
Future lease payments for December 31, 2017			215,400
Future lease payments for December 31, 2018			18,000
Sub Lease Agreement
Property Subject to or Available for Operating Lease [Line Items]
Term specified for lease agreement	30 months
Future lease payments for December 31, 2016			142,000
Future lease payments for December 31, 2017			194,400
Future lease payments for December 31, 2018			16,500
Lease term from February 2015 to January 2016 \| Lease Agreement
Property Subject to or Available for Operating Lease [Line Items]
Payments required per month under terms of lease agreement			17,000
Lease term from February 2016 to January 2017 \| Lease Agreement
Property Subject to or Available for Operating Lease [Line Items]
Payments required per month under terms of lease agreement			17,500
Lease term from February 2017 to January 2018 \| Lease Agreement
Property Subject to or Available for Operating Lease [Line Items]
Payments required per month under terms of lease agreement			18,000
Lease term from August 2015 to July 2016 \| Sub Lease Agreement
Property Subject to or Available for Operating Lease [Line Items]
Payments required per month under terms of lease agreement			15,500
Lease term from August 2016 to July 2017 \| Sub Lease Agreement
Property Subject to or Available for Operating Lease [Line Items]
Payments required per month under terms of lease agreement			16,000
Lease term from August 2017 to July 2018 \| Sub Lease Agreement
Property Subject to or Available for Operating Lease [Line Items]
Payments required per month under terms of lease agreement			$ 16,500

Commitments and Contingencies (Detail Textuals 1) - Secured Debt - Line Of Credit Agreement - First Republic Bank - Revolving Credit Facility $ in Thousands	1 Months Ended
	Sep. 30, 2014 USD ($)
Commitments And Contingencies [Line Items]
Maximum limit of borrowing	$ 2,000
Term of secured loan	12 months
Annual variable interest rate	2.00%
Description of interest rates	prime rate
Annual fixed interest rate	1.25%
Monthly interest payment	$ 2
Monthly principal plus accrued interest payment	$ 2,002
Frequency of payment	Monthly
Restricted cash	$ 2,100

Commitments and Contingencies (Detail Textuals 2) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended
	Jan. 15, 2016	Jan. 21, 2016	Mar. 31, 2016	Mar. 31, 2015
Commitments And Contingencies [Line Items]
Interest Expense, Debt			$ 74	$ 24
Deferred Costs			36	$ 18
Unsecured Debt \| Fixed rate of interest 10%
Commitments And Contingencies [Line Items]
Unsecured loan	$ 1,000
Term of secured loan	24 months
Unsecured loan rate of interest	10.00%
Unsecured loan principal and interest payment	$ 1,000
Additional indebtedness limit	$ 50
Number of warrant issued to purchase common stock	114,286
Exercise price per warrants	$ 1.75
Term of warrant	2 years
Minimum percentage holding required by holder to retain exercising rights	more than 19.99%
Unsecured Debt \| Fixed rate of interest 10% \| Accredited investor
Commitments And Contingencies [Line Items]
Unsecured loan			$ 700
Term of secured loan			24 months
Unsecured loan rate of interest			10.00%
Unsecured loan principal and interest payment			$ 700
Number of warrant issued to purchase common stock			79,459
Exercise price per warrants			$ 1.85
Term of warrant			2 years
Minimum percentage holding required by holder to retain exercising rights			more than 4.99%
Unsecured Debt \| Fixed rate of interest 5%
Commitments And Contingencies [Line Items]
Unsecured loan		$ 500
Term of secured loan		24 months
Unsecured loan rate of interest		5.00%
Unsecured loan principal and interest payment		$ 500
Additional indebtedness limit		$ 50
Number of warrant issued to purchase common stock		114,286
Exercise price per warrants		$ 1.75
Term of warrant		2 years
Minimum percentage holding required by holder to retain exercising rights		more than 19.99%

Net Loss Per Common Share (Details) - shares	3 Months Ended
Net Loss Per Common Share (Details) - shares	Mar. 31, 2016	Mar. 31, 2015
Weighted average shares outstanding:
Total	2,557,689	1,077,262
Common stock warrants
Weighted average shares outstanding:
Total	573,111	359,714
Options
Weighted average shares outstanding:
Total	1,984,578	717,548

Stock Option Plan - Summary of stock-based compensation activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Number of Stock Options Outstanding
Balance, January 1, 2016	1,909,911
Granted	160,000
Exercised
Forfeited/Cancelled
Balance, March 31, 2016	2,069,911	1,909,911
Exercisable	1,518,909
Weighted Average Exercise Price
Balance	$ 2.58
Granted	2.23
Exercised
Forfeited/Cancelled
Balance	2.58	$ 2.58
Exercisable	$ 2.61
Weighted Average Remaining Contractual Term, Options Outstanding (in years)	8 years 5 months 5 days	8 years 6 months 22 days
Weighted Average Remaining Contractual Term, Options Exercisable (in years)	8 years 1 month 10 days
Aggregate Intrinsic Value, Options Outstanding	$ 515	$ 813
Aggregate Intrinsic Value, Options Exercisable	$ 510

Stock Option Plan - Weighted-average Black-Scholes fair value assumptions (Details 1)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years	5 years
Risk free interest rate	1.21%	1.61%
Expected volatility	80.40%	82.50%
Expected dividend rate	0.00%	0.00%

Stock Option Plan - Stock-based compensation (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 69	$ 33
Cost of Revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1	1
Engineering and Product Development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	13	2
Sales and Marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	25	15
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 30	$ 15

Stock Option Plan (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended
	Jan. 31, 2016	Oct. 31, 2015	Jan. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares in reserve				2,343,583
Total unrecognized compensation cost related to non-vested awards				$ 921
Weighted average period of unvested stock awards				3 years 29 days
Total estimated grant date fair value of options vested				$ 69	$ 33
Weighted average grant date fair value of options granted				$ 1.43	$ 1.38
Aggregate grant date fair value				$ 229	$ 104
2007 Key Person Stock Option Plan \| Employee stock option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options vested				0
Aggregate number of shares				407,500
2014 Stock Incentive Plan \| Employee stock option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares reserve increase	4.00%	4.00%	4.00%
Number of shares in reserve				450,000
Aggregate number of shares				666,121
Additional authorized shares	204,943	1,500,000	188,640
Maximum term of stock option grants		10 years

Stock Option Plan (Detail Textuals 1) - USD ($) $ in Thousands	1 Months Ended				3 Months Ended
	Feb. 18, 2016	Jan. 31, 2016	Oct. 31, 2015	Jan. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense					$ 69	$ 33
Number of stock option forfeited
2014 Stock Incentive Plan \| Employee stock option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares					666,121
Additional authorized shares		204,943	1,500,000	188,640
2014 Stock Incentive Plan \| Employee stock option \| Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares					125,000
Percentage of options vested and exercisable					25.00%
Vesting period of option					36 months
2014 Stock Incentive Plan \| Employee stock option \| Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares	35,000
Number of stock option forfeited	5,000

Subsequent Events (Detail Textuals) - Subsequent event - Unsecured Debt - Accredited investor $ / shares in Units, $ in Thousands	Apr. 05, 2016 USD ($) $ / shares shares
Subsequent Event [Line Items]
Unsecured Debt \| $	$ 160
Term of secured loan	24 months
Unsecured loan rate of interest	10.00%
Term of warrant	2 years
Number of warrant issued to purchase common stock \| shares	18,162
Exercise price per warrants \| $ / shares	$ 1.85
Minimum percentage holding required by holder to retain exercising rights	more than 4.99%