View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 30, 2019
Document And Entity Information
Entity Registrant Name	Stereotaxis, Inc.
Entity Central Index Key	0001289340
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		59,321,209
Trading Symbol	STXS
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

Balance Sheets - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 9,040,816	$ 10,796,072
Accounts receivable, net of allowance of $458,701 and $398,847 in 2019 and 2018, respectively	5,239,470	5,021,111
Inventories, net	1,309,134	1,191,666
Prepaid expenses and other current assets	774,014	963,700
Total current assets	16,363,434	17,972,549
Property and equipment, net	328,614	343,693
Operating lease right-of-use assets	5,580,457
Other assets	170,088	198,365
Total assets	22,442,593	18,514,607
Current liabilities:
Accounts payable	2,383,230	1,726,360
Accrued liabilities	2,273,687	2,642,481
Deferred revenue	5,645,815	5,825,536
Current portion of operating lease liabilities	2,159,944
Total current liabilities	12,462,676	10,194,377
Long-term deferred revenue	404,607	407,151
Operating lease liabilities	3,433,430
Other liabilities	813,641	641,461
Total liabilities	17,114,354	11,242,989
Convertible preferred stock:
Convertible preferred stock, par value $0.001; 10,000,000 shares authorized, 23,880 and 23,900 shares outstanding at 2019 and 2018	5,955,354	5,960,475
Stockholders' equity (deficit):
Common stock, par value $0.001; 300,000,000 shares authorized, 59,308,237 and 59,058,297 shares issued at 2019 and 2018, respectively	59,308	59,058
Additional paid in capital	478,363,886	478,179,574
Treasury stock, 4,015 shares at 2019 and 2018	(205,999)	(205,999)
Accumulated deficit	(478,844,310)	(476,721,490)
Total stockholders' equity (deficit)	(627,115)	1,311,143
Total liabilities and stockholders' equity (deficit)	$ 22,442,593	$ 18,514,607

Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 458,701	$ 398,847
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares outstanding	23,880	23,900
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	59,308,237	59,058,297
Treasury stock, shares	4,015	4,015

Statements of Operations (Unaudited) - USD ($)	3 Months Ended
Statements of Operations (Unaudited) - USD ($)	Mar. 31, 2019	Mar. 31, 2018
Revenue:
Sublease	$ 241,065
Total revenue	7,009,875	6,971,632
Cost of revenue:
Sublease	246,530
Total cost of revenue	1,412,053	1,265,347
Gross margin	5,597,822	5,706,285
Operating expenses:
Research and development	2,959,219	1,962,626
Sales and marketing	3,309,829	3,634,997
General and administrative	1,468,160	1,239,179
Total operating expenses	7,737,208	6,836,802
Operating loss	(2,139,386)	(1,130,517)
Other income		2,590,361
Interest income (expense)	16,566	(24,615)
Net income (loss)	(2,122,820)	1,435,229
Cumulative dividend on convertible preferred stock	(353,510)	(353,589)
Net income attributable to convertible preferred stock		(610,280)
Earnings (loss) attributable to common stockholders	$ (2,476,330)	$ 471,360
Net income (loss) per share attributable to common stockholders:
Basic	$ (0.04)	$ 0.02
Diluted	$ (0.04)	$ 0.01
Weighted average number of common shares and equivalents:
Basic	59,196,652	30,957,648
Diluted	59,196,652	33,122,598
Systems [Member]
Revenue:
Total revenue	$ 58,051	$ 17,275
Cost of revenue:
Total cost of revenue	51,163	203,602
Disposables, Service and Accessories [Member]
Revenue:
Total revenue	6,710,759	6,954,357
Cost of revenue:
Total cost of revenue	$ 1,114,360	$ 1,061,745

Statements of Convertible Preferred Stock and Stockholders' Equity (Unaudited) - USD ($)

Convertible Preferred Stock [Member]

Common Stock [Member]

Additional Paid-In Capital [Member]

Treasury Stock [Member]

Accumulated Deficit [Member]

Total

Beginning Balance at Dec. 31, 2017

$ 5,960,475

$ 22,806

$ 450,748,403

$ (205,999)

$ (477,132,808)

$ (26,567,598)

Beginning Balance, Shares at Dec. 31, 2017

23,900

22,805,731

Issuance of common stock and warrants

$ 35,792

26,893,991

26,929,783

Issuance of common stock and warrants, Shares

35,791,927

Share-based compensation

$ 286

$ 216,388

216,674

Share-based compensation, shares

285,662

Components of net income (loss)

$ 1,435,228

1,435,229

Employee stock purchase plan

$ 17

13,514

13,531

Employee stock purchase plan, Shares

17,806

Cumulative catchup for adoption of ASC 606

$ 294,562

^[1]

294,562

^[1]

Ending Balance at Mar. 31, 2018

$ 5,960,475

$ 58,901

477,872,296

(205,999)

(475,403,018)

2,322,180

Ending Balance, Shares at Mar. 31, 2018

23,900

58,901,126

Beginning Balance at Dec. 31, 2018

$ 5,960,475

$ 59,058

478,179,574

$ (205,999)

$ (476,721,490)

$ 1,311,143

Beginning Balance, Shares at Dec. 31, 2018

23,900

59,058,297

Issuance of common stock and warrants

$ 33

$ 16,390

$ 16,423

Issuance of common stock and warrants, Shares

33,087

Share-based compensation

$ 167

$ 147,787

$ 147,954

Share-based compensation, shares

166,962

Components of net income (loss)

$ (2,122,820)

Employee stock purchase plan

$ 15

$ 15,049

$ 15,064

Employee stock purchase plan, Shares

14,625

Preferred stock conversion

$ (5,121)

$ 35

$ 5,086

$ 5,121

Preferred stock conversion, shares

(20)

35,266

Ending Balance at Mar. 31, 2019

$ 5,955,354

$ 59,308

$ 478,363,886

$ (205,999)

$ (478,844,310)

$ (627,115)

Ending Balance, Shares at Mar. 31, 2019

23,880

59,308,237

[1]	Represents the adjustments related to the adoption of new accounting standards. See Note 2 for details.

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
Statements of Cash Flows (Unaudited) - USD ($)	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities
Net income (loss)	$ (2,122,820)	$ 1,435,229
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation	24,912	140,465
Amortization of intangibles		16,497
Amortization of deferred finance costs		24,657
Amortization of right-of-use asset	567,857
Share-based compensation	147,923	216,586
Adjustment of warrants		(2,590,361)
Changes in operating assets and liabilities:
Accounts receivable	(218,359)	(2,350,333)
Inventories	(117,468)	(299,603)
Prepaid expenses and other current assets	189,686	97,206
Other assets	41,194	(57,059)
Accounts payable	656,870	165,322
Accrued liabilities	(368,794)	(247,570)
Deferred revenue	(182,265)	1,382,082
Operating lease liability	(567,857)
Other liabilities	172,180	45,497
Net cash used in operating activities	(1,776,941)	(2,021,385)
Cash flows from investing activities
Purchase of fixed assets	(9,833)	(9,990)
Net cash used in investing activities	(9,833)	(9,990)
Cash flows from financing activities
Proceeds from issuance of stock, net of issuance costs	31,518	13,622
Proceeds from warrant exercise		9,945,164
Net cash provided by financing activities	31,518	9,958,786
Net increase (decrease) in cash and cash equivalents	(1,755,256)	7,927,411
Cash and cash equivalents at beginning of period	10,796,072	3,686,302
Cash and cash equivalents at end of period	$ 9,040,816	$ 11,613,713

Description of Business

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

1. Description of Business

Stereotaxis designs, manufactures and markets an advanced remote robotic navigation system for use in a hospital’s interventional surgical suite, or “interventional lab”, that we believe revolutionizes the treatment of arrhythmias and coronary artery disease by enabling enhanced safety, efficiency, and efficacy for catheter-based, or interventional, procedures. Our products include the Genesis Robotic Magnetic Navigation System (“Genesis system”), the Niobe ES Robotic Magnetic Navigation System (“Niobe ES system”), Odyssey Information Management Solution (“Odyssey Solution”), the Vdrive Robotic Navigation System (“Vdrive system”), Stereotaxis Imaging Model S x-ray system, and related devices.

The Genesis and Niobe systems are designed to enable physicians to complete more complex interventional procedures by providing image-guided delivery of catheters and guidewires through the blood vessels and chambers of the heart to treatment sites. This is achieved using externally applied magnetic fields that govern the motion of the working tip of the catheter or guidewire, resulting in improved navigation, efficient procedures, and reduced x-ray exposure. As of March 31, 2019, the Company had an installed base of 126 Niobe ES systems.

In addition to the robotic magnetic navigation systems and their components, Stereotaxis also has developed the Odyssey Solution, which consolidates all lab information enabling doctors to focus on the patient for optimal procedure efficiency. The system also features a remote viewing and recording capability called Odyssey Cinema, which is an innovative solution delivering synchronized content for optimized workflow, advanced care, and improved productivity. This tool includes an archiving capability that allows clinicians to store and replay entire procedures or segments of procedures. This information can be accessed from locations throughout the hospital local area network and over the global Odyssey Network providing physicians with a tool for clinical collaboration, remote consultation, and training.

Our Vdrive system provides navigation and stability for diagnostic and therapeutic devices designed to improve interventional procedures. The Vdrive system complements the robotic magnetic navigation systems’ control of therapeutic catheters for fully remote procedures and enables single-operator workflow and is sold as two options, the Vdrive system and the Vdrive Duo system. In addition to the Vdrive system and the Vdrive Duo system, we also manufacture and market various disposable components which can be manipulated by these systems.

We promote our full suite of products in a typical hospital implementation, subject to regulatory approvals or clearances. This implementation requires a hospital to agree to an upfront capital payment and recurring payments. The upfront capital payment typically includes equipment and installation charges. The recurring payments typically include disposable costs for each procedure, equipment service costs beyond warranty period, and ongoing software updates. In hospitals where our full suite of products has not been implemented, equipment upgrade or expansion can be implemented upon purchasing of the necessary upgrade or expansion.

The Niobe System, Odyssey Workstation, Cardiodrive, and various disposable interventional devices have received regulatory clearance in the U.S., Europe, Canada, China, Japan and various other countries. We have received the regulatory clearance, licensing and/or CE Mark approvals that allow us to market the Vdrive and Vdrive Duo systems with the V-CAS, V-Loop and V-Sono devices in the U.S., Canada and Europe. The Genesis system and the V-CAS Deflect catheter advancement system have been CE Marked for sale in the Europe. Stereotaxis Imaging Model S is CE marked and FDA cleared.

We have strategic relationships with technology leaders in the global interventional market. Through these strategic relationships we provide compatibility between our robotic magnetic system and digital imaging and 3D catheter location sensing technology, as well as disposable interventional devices, in order to continue to develop new solutions in the interventional lab. The maintenance of these strategic relationships, or the establishment of equivalent alternatives, is critical to our commercialization efforts. The commercial availability of currently compatible digital imaging fluoroscopy systems is unlikely to continue and efforts are being made to ensure the availability of integrated next generation systems and/or equivalent alternatives; however, we cannot provide assurance as to the timeline of the ongoing availability of such compatible systems or our ability to obtain equivalent alternatives on competitive terms or at all.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited financial statements of Stereotaxis, Inc. have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all the disclosures required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, they include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. Operating results for the three month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ended December 31, 2019 or for future operating periods.

These interim financial statements and the related notes should be read in conjunction with the annual financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the Securities and Exchange Commission (SEC) on March 15, 2019.

Going Concern, Liquidity and Management’s Plan

The Company believes the cash on hand at March 31, 2019 will be sufficient to meet its obligations as they become due in the ordinary course of business for at least 12 months following the date these financial statements are issued. The Company has sustained operating losses throughout its corporate history and expects that its 2019 expenses will exceed its 2019 gross margin. The Company expects to continue to incur operating losses and negative cash flows until revenues reach a level sufficient to support ongoing operations or expense reductions are in place. The Company’s liquidity needs will be largely determined by the success of clinical adoption within the installed base of robotic magnetic navigation systems as well as by new placements of capital systems. The Company also may consider raising cash through capital transactions, which could include either debt or equity financing.

Financial Instruments

Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying value of such amounts reported at the applicable balance sheet dates approximates fair value.

The Company measures certain financial assets and liabilities at fair value on a recurring basis. General accounting principles for fair value measurement established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”).

Revenue and Costs of Revenue

The Company adopted Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers, on January 1, 2018.

We generate revenue from initial capital sales of systems as well as recurring revenue from the sale of our proprietary disposable devices, from royalties paid to the Company on the sale by Biosense Webster of co-developed catheters, and from other recurring revenue including ongoing software updates and service contracts.

We account for a contract with a customer when there is a legally enforceable contract between the Company and the customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We record our revenue based on consideration specified in the contract with each customer, net of any taxes collected from customers that are remitted to government authorities.

For contracts containing multiple products and services the Company accounts for individual products and services as separate performance obligations if they are distinct, which is if a product or service is separately identifiable from other items in the bundled package, and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The Company recognizes revenues as the performance obligations are satisfied by transferring control of the product or service to a customer.

For multiple-element arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling price considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services and market conditions. The Company regularly reviews standalone selling prices and updates these estimates as necessary.

Systems:

Contracts related to the sale of systems typically contain separate obligations for the delivery of system(s), installation and an implied obligation to provide software enhancements if and when available for one year following installation. Revenue is recognized when the Company transfers control to the customer, which is generally at the point when acceptance occurs that indicates customer acknowledgment of delivery or installation, depending on the terms of the arrangement. Revenue from the implied obligation to deliver software enhancements if and when available is recognized ratably over the first year following installation of the system as the customer receives the right to software updates throughout the period and is included in Other Recurring Revenue. The Company’s system contracts generally do not provide a right of return. Systems are generally covered by a one-year assurance type warranty; warranty costs were not material for the periods presented. Revenue from system delivery and installation represented less than 1% of revenue for the three months ended March 31, 2019 and 2018.

Disposables:

Revenue from sales of disposable products is recognized when control is transferred to the customers, which generally occurs at the time of shipment, but can also occur at the time of delivery depending on the customer arrangement. Disposable products are covered by an assurance type warranty that provides for the return of defective products. Warranty costs were not material for the periods presented. Disposable revenue represented 36% and 37% of revenue for the three months ended March 31, 2019 and 2018, respectively.

Royalty:

The Company is entitled to royalty payments from Biosense Webster, payable quarterly based on net revenues from sales of the co-developed catheters. Royalty revenue from the co-developed catheters represented 11% and 10% of revenue for the three months ended March 31, 2019 and 2018.

Other Recurring Revenue:

Other recurring revenue includes revenue from product maintenance plans, other post warranty maintenance, and the implied obligation to provide software enhancements if and when available for one year following installation. Revenue from services and software enhancements is deferred and amortized over the service or update period, which is typically one year. Revenue related to services performed on a time-and-materials basis is recognized when performed. Other recurring revenue represented 50% and 53% of revenue for the three months ended March 31, 2019 and 2018, respectively.

Sublease Revenue:

The adoption of new lease accounting guidance as of January 1, 2019 requires the Company to record sublease income as revenue beginning with three months ended March 31, 2019. Sublease revenue represented 3% and 0% of revenue for the three months ended March 31, 2019 and 2018, respectively.

	Three Months Ended March 31,
	2019		2018
Systems	$	58,051	$	17,275
Disposables, service and accessories		6,710,759		6,954,357
Sublease		241,065		—
Total revenue	$	7,009,875	$	6,971,632

Transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which the revenue has not yet been recognized. A significant portion of this amount relates to the Company’s systems contracts and obligations that will be recognized as revenue in future periods. These obligations are generally satisfied within two years after contract inception but may occasionally extend longer. Transaction price representing revenue to be earned on remaining performance obligations on system contracts was approximately $2.7 million as of March 31, 2019. Performance obligations arising from contracts for disposables, royalty and service are generally expected to be satisfied within one year after entering into the contract.

The following information summarizes the Company’s contract assets and liabilities:

	March 31, 2019			December 31, 2018
Contract Assets - Unbilled Receivables	$	268,711		$	251,867

Customer deposits		428,595			487,086
Product shipped, revenue deferred		645,199			645,199
Deferred service and license fees		4,976,628			5,100,402
Total deferred revenue		6,050,422			6,232,687
Less: Long-term deferred revenue		(404,607	)		(407,151	)
Total current deferred revenue	$	5,645,815		$	5,825,536

The Company invoices its customers based on the billing schedules in its sales arrangements. Contract assets primarily represent the difference between the revenue that was earned but not billed on service contracts and revenue from system contracts that was recognized based on the relative selling price of the related performance obligations and the contractual billing terms in the arrangements. Deferred revenue is primarily related to service contracts, for which the service fees are billed up-front, generally quarterly or annually, and for amounts billed in advance for system contracts for which some performance obligations remain outstanding. For service contracts, the associated deferred revenue is generally recognized ratably over the service period. For system contracts, the associated deferred revenue is recognized when the remaining performance obligations are satisfied. The Company did not have any impairment losses on its contract assets for the periods presented.

Revenue recognized for the three months ended March 31, 2019 and 2018, that was included in the deferred revenue balance at the beginning of each reporting period was $2.9 million and $2.7 million respectively.

Assets Recognized from the Costs to Obtain a Contract with a Customer

The Company has determined that sales incentive programs for the Company’s sales team meet the requirements to be capitalized as the Company expects to generate future economic benefits from the related revenue generating contracts after the initial capital sales transaction. The costs capitalized as contract acquisition costs included in prepaid expenses and other assets, in the Company’s balance sheet was $0.3 million as of March 31, 2019. The Company did not incur any impairment losses during any of the periods presented.

Costs of systems revenue include direct product costs, installation labor and other costs, estimated warranty costs, and initial training and product maintenance costs. These costs are recorded at the time of sale. Costs of disposable revenue include direct product costs and estimated warranty costs and are recorded at the time of sale. Cost of revenue from services and license fees are recorded when incurred.

Share-Based Compensation

The Company accounts for its grants of stock options, stock appreciation rights, restricted shares, and restricted stock units and for its employee stock purchase plan in accordance with the provisions of general accounting principles for share-based payments. These accounting principles require the determination of the fair value of the share-based compensation at the grant date and the recognition of the related expense over the period in which the share-based compensation vests.

The Company utilizes the Black-Scholes valuation model to determine the fair value of stock options and stock appreciation rights at the date of grant. The resulting compensation expense is recognized over the requisite service period, which is generally four years. Restricted shares and units granted to employees are valued at the fair market value at the date of grant. The Company amortizes the fair market value to expense over the service period. If the shares are subject to performance objectives, the resulting compensation expense is amortized over the anticipated vesting period and is subject to adjustment based on the actual achievement of objectives.

Net Income (Loss) per Common Share (“EPS”)

Basic net income (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the number of common shares outstanding during the period. In periods where there is net income, we apply the two-class method to calculate basic and diluted net income (loss) per share of common stock, as our Convertible Preferred Stock is a participating security. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. In periods where there is a net loss, the two-class method of computing earnings per share does not apply as our Convertible Preferred Stock does not contractually participate in our losses. We compute diluted net income (loss) per common share using net income (loss) as the “control number” in determining whether potential common shares are dilutive, after giving consideration to all potentially dilutive common shares, including stock options, warrants, unvested restricted stock units outstanding during the period and potential issuance of stock upon the conversion of our Convertible Preferred Stock issued and outstanding during the period, except where the effect of such securities would be antidilutive.

The following table sets forth the computation of basic and diluted EPS:

	Three months ended March 31,
	2019			2018
Net income (loss)	$	(2,122,820	)	$	1,435,229
Cumulative dividend on convertible preferred stock		(353,510	)		(353,589	)
Net loss attributable to convertible preferred stock		—			(610,280	)
Net income (loss) attributable to common stockholders	$	(2,476,330	)	$	471,360

Share used for basic EPS-weighted average shares		59,196,652			30,957,648
Restricted Stock Units		—			292,891
Warrants		—			1,872,059
Weighted average number of common shares and equivalents:		59,196,652			33,122,598
Basic EPS	$	(0.04	)	$	0.02
Diluted EPS	$	(0.04	)	$	0.01

The Company did not include any portion of unearned restricted stock units, outstanding options, stock appreciation rights, or warrants in the calculation of diluted loss per common share for the three months ended March 31, 2019 because all such securities are anti-dilutive. The following potential common shares were excluded from diluted EPS for the three months ended March 31, 2018 as they were antidilutive: 1,236,445 stock options and stock appreciation rights, 280,560 restricted stock units, and 1,077,255 warrants. The Company had no unearned restricted shares during either period.

As of March 31, 2019, the Company had 2,131,513 shares of common stock issuable upon the exercise of outstanding options and stock appreciation rights at a weighted average exercise price of $2.32 per share, 1,107,689 shares of common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $0.70 per share, 42,252,248 shares of common stock issuable upon the conversion of Series A Convertible Preferred Stock and accumulated dividends, and 688,687 shares of unvested restricted share units.

Recently Issued Accounting Pronouncements

Effective January 1, 2019, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), and all subsequent ASUs that modified Topic 842, which sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less are accounted for similar to previous guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to previous guidance for sales-type leases, direct financing leases and operating leases. Accounting Standards Codification (“ASC 842”) supersedes the previous lease standard, ASC 840 Leases. The Company adopted ASU 2016-02 using the alternative modified transition method. Under this method, the cumulative-effect adjustment to the opening balance of retained earnings is recognized on the date of adoption with prior periods not restated. There was no cumulative-effect adjustment recorded on January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification, and initial direct costs. In addition, the new standard provides practical expedients for an entity’s ongoing accounting. The Company elected the practical expedients for ongoing accounting of (1) the election for certain classes of underlying asset to not separate non-lease components from lease components and (2) the election for short-term lease recognition exemption for all leases that qualify. For the Company, as a lessee, the primary impact of adopting ASC 842 was the balance sheet recognition of the right-of-use asset and lease liability for the operating leases. Under the new standard, as a lessor, the Company will record the sublease proceeds as Sublease Revenue and the related cost as Sublease Cost of Goods Sold. See Note 6 for additional details.

Inventories

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Inventories

3. Inventories

Inventories consist of the following:

	March 31, 2019			December 31, 2018

Raw materials	$	2,657,958		$	2,686,870
Work in process		133,218			2,594
Finished goods		2,944,522			2,963,013
Reserve for obsolescence		(4,426,564	)		(4,460,811	)
Total inventory	$	1,309,134		$	1,191,666

Prepaid Expenses and Other Assets

3 Months Ended

Mar. 31, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses and Other Assets

4. Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist of the following:

	March 31, 2019			December 31, 2018

Prepaid expenses	$	434,560		$	401,972
Prepaid commissions		271,664			304,585
Deposits		237,878			455,508
Total prepaid expenses and other assets		944,102			1,162,065
Less: Noncurrent prepaid expenses and other assets		(170,088	)		(198,365	)
Total current prepaid expenses and other assets	$	774,014		$	963,700

Property and Equipment

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

5. Property and Equipment

Property and equipment consist of the following:

	March 31, 2019			December 31, 2018

Equipment	$	6,841,498		$	6,831,665
Leasehold improvements		2,592,339			2,592,339
		9,433,837			9,424,004
Less: Accumulated depreciation		(9,105,223	)		(9,080,311	)
Net property and equipment	$	328,614		$	343,693

Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

6. Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. The Company determines if an arrangement contains a lease at inception. For the Company, Accounting Standards Codification (“ASC 842”) primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee.

The Company leases its facilities under operating leases, which were previously not recognized on the Company’s balance sheets. With the adoption of ASC 842, operating lease agreements are required to be recognized on the balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Many of our leases include both lease (i.e., fixed payments including rent, taxes, and insurance costs) and non-lease components (i.e., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. A portion of our principal executive office is subleased to a third party through 2021. The sublease does not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. In addition, the sublease does not contain contingent rent provisions nor are there options to extend or terminate the sublease.

The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less) on the balance sheet.

The calculated amounts of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of the minimum lease payments. ASC 842 requires the use of the discount rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception. At March 31, 2019, the weighted average discount rate for operating leases was 9.0% and the weighted average remaining lease term for operating lease term is 2.75 years.

The following table represents lease costs and other lease information.

	Three Months Ended
	March 31, 2019

Operating lease cost	$	585,586
Short-term lease cost		19,809
Sublease income		(241,065	)
Total lease cost	$	364,330

Cash paid within operating cash flows	$	615,266

The initial recognition of the right of use assets was $6.2 million. Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment which are paid based on actual costs incurred.

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2019, excluding sublease income, were as follows:

	March 31, 2019

2019	$	1,717,837
2020		2,339,810
2021		2,382,661
2022 and thereafter		-
Total lease payments	$	6,440,308
Less: Interest		(846,934	)
Present value of lease liabilities	$	5,593,374

The undiscounted future cash flows to be received under the sublease are $0.7 million in 2019, $1.0 million in 2020 and $1.0 million in 2021.

Accrued Liabilities

3 Months Ended

Mar. 31, 2019

Payables and Accruals [Abstract]

Accrued Liabilities

7. Accrued Liabilities

Accrued liabilities consist of the following:

	March 31, 2019			December 31, 2018

Accrued salaries, bonus, and benefits	$	1,182,958		$	1,491,844
Accrued licenses and maintenance fees		483,879			576,598
Accrued warranties		136,946			149,464
Accrued taxes		188,074			251,988
Accrued professional services		765,948			430,088
Other		329,523			383,960
Total accrued liabilities		3,087,328			3,283,942
Less: Long term accrued liabilities		(813,641	)		(641,461	)
Total current accrued liabilities	$	2,273,687		$	2,642,481

Long-Term Debt and Credit Facilities

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt and Credit Facilities

8. Long-Term Debt and Credit Facilities

The Company had a working capital line of credit with its primary lender, Silicon Valley Bank, since 2004. The working capital line of credit matured on April 25, 2019. The revolving line of credit was secured by substantially all of the Company’s assets. The maximum available under the line was $5.0 million subject to the value of collateralized assets and the interest rate was equal to the prime rate subject to a floor of 4.5%. The Company was required under the revolving line of credit to maintain its primary operating account and the majority of its cash and investment balances in accounts with its primary lender.

As of March 31, 2019, the Company had no outstanding balance under the revolving line of credit. Draws on the line of credit were made based on the borrowing capacity one week in arrears. As of March 31, 2019, the Company had a borrowing capacity of $3.3 million based on the Company’s collateralized assets. The Company’s total liquidity as of March 31, 2019, was $12.3 million which included cash and cash equivalents of $9.0 million.

Convertible Preferred Stock and Stockholders' Equity

3 Months Ended

Mar. 31, 2019

Stockholders' Equity Note [Abstract]

Convertible Preferred Stock and Stockholders' Equity

9. Convertible Preferred Stock and Stockholders’ Equity

The holders of common stock are entitled to one vote for each share held and to receive dividends whenever funds are legally available and when declared by the Board of Directors subject to the rights of holders of all classes of stock having priority rights as dividends and the conditions of the revolving line of credit agreement. No dividends have been declared or paid as of March 31, 2019.

Convertible Preferred Stock and Warrants

In September 2016, the Company issued 24,000 shares of Series A Convertible Preferred Stock, par value $0.001 with a stated value of $1,000 per share which are convertible into shares of the Company’s common stock at an initial conversion rate of $0.65 per share and (ii) warrants to purchase an aggregate of 36,923,078 shares of common stock. The convertible preferred shares are entitled to vote on an as-converted basis with the common stock, subject to specified beneficial ownership issuance limitations. The convertible preferred shares bear dividends at a rate of six percent (6%) per annum, which are cumulative and accrue daily from the date of issuance on the $1,000 stated value. Such dividends will not be paid in cash except in connection with any liquidation, dissolution or winding up of the Company or any redemption of the convertible preferred shares. Each holder of convertible preferred shares has the right to require us to redeem such holder’s convertible preferred shares upon the occurrence of specified events, which include certain business combinations, the sale of all or substantially all of the Company’s assets, or the sale of more than 50% of the outstanding shares of the Company’s common stock. In addition, the Company has the right to redeem the convertible preferred shares in the event of a defined change of control. The convertible preferred shares rank senior to our common stock as to distributions and payments upon the liquidation, dissolution, and winding up of the Company. Since the convertible preferred shares are subject to conditions for redemption that are outside the Company’s control, the convertible preferred shares are presently reported in the mezzanine section of the balance sheet.

The warrants issued in conjunction with the convertible preferred stock (the “SPA Warrants”) have an exercise price equal to $0.70 per share subject to adjustments as provided under the terms of the warrants. The warrants are exercisable through September 29, 2021, subject to specified beneficial ownership issuance limitations. The warrants were originally puttable upon the occurrence of certain events outside of the Company’s control, and were classified as liabilities under Accounting Standards Codification (“ASC”) Topic 480-10. The calculated fair value of the warrants was periodically re-measured with any changes in value recognized in “Other income (expense)” in the Statements of Operations.

The warrants were modified on February 28, 2018 to allow for a reduction in the exercise price from $0.70 per share to $0.28 per share for a period between March 1, 2018 and March 5, 2018. Any holder who exercised warrants at the reduced strike price was required to enter into a lock-up agreement with the Company agreeing not to sell the warrants or the common shares received upon exercise of the warrants for a period of 18 months following March 12, 2018. Additionally, the beneficial ownership limitation related to the warrants was modified and the right of holders to require the Company to redeem their SPA Warrants in exchange for cash in certain circumstances was eliminated. Following these modifications, the warrants were no longer subject to liability accounting and were reclassified to equity. During the restricted exercise period, Stereotaxis received exercise notices for 35,791,927 warrants and received an aggregate of $10.0 million in cash from the warrant exercise. As a result of these transactions, total stockholders’ equity increased by $27 million and common shares outstanding increased by 35,791,927 shares. The Consent and Amendment and the Amended and Restated Form of Warrants are available in a Form 8-K filed with the Securities and Exchange Commission on March 6, 2018.

Stock Award Plans

The Company has various stock plans that permit the Company to provide incentives to employees and directors of the Company in the form of equity compensation. In July 2012, the Compensation Committee of the Board of Directors adopted the 2012 Stock Incentive Plan (the “Plan”) which was subsequently approved by the Company’s shareholders. This plan replaced the 2002 Stock Incentive Plan which expired on March 25, 2012.

On June 5, 2013, June 10, 2014, May 24, 2016, and May 23, 2017, the shareholders approved amendments to the Plan, which were previously approved and adopted by the Compensation Committee of the Board of Directors of the Company. Under each of the amendments on June 5, 2013 and June 10, 2014, the number of shares authorized for issuance under the Plan was increased by one million shares. The amendment on May 24, 2016 increased the number of shares authorized for issuance under the Plan by 1.5 million shares, and the amendment on May 23, 2017 increased the number of shares authorized for issuance under the Plan by 4.0 million shares. At March 31, 2019, the Company had 3,246,524 remaining shares of the Company’s common stock to provide for current and future grants under its various equity plans.

At March 31, 2019, the total compensation cost related to options, stock appreciation rights, and non-vested stock granted to employees under the Company’s stock award plans but not yet recognized was approximately $2.2 million. This cost will be amortized over a period of up to four years over the underlying estimated service periods and will be adjusted for subsequent changes in actual forfeitures and anticipated vesting periods.

A summary of the option and stock appreciation rights activity for the three month period ended March 31, 2019 is as follows:

	Number of Options/SARs			Range of Exercise Price		Weighted Average Exercise Price per Share

Outstanding, December 31, 2018		1,165,086			$0.74 - $43.90	$	2.54
Granted		982,000			$2.03	$	2.03
Exercised		(9,625	)		$0.74 - $0.83	$	0.74
Forfeited		(5,948	)		$0.74 - $4.04	$	1.59
Outstanding, March 31, 2019		2,131,513			$0.74 - $43.90	$	2.32

A summary of the restricted stock unit activity for the three month period ended March 31, 2019 is as follows:

	Number of Restricted Stock Units			Weighted Average Grant Date Fair Value per Unit

Outstanding, December 31, 2018		647,649		$	0.83
Granted		210,000		$	1.19
Vested		(166,962	)	$	1.12
Forfeited		(2,000	)	$	0.72
Outstanding, March 31, 2019		688,687		$	0.87

Product Warranty Provisions

3 Months Ended

Mar. 31, 2019

Product Warranties Disclosures [Abstract]

Product Warranty Provisions

10. Product Warranty Provisions

The Company’s standard policy is to warrant all capital systems against defects in material or workmanship for one year following installation. The Company’s estimate of costs to service the warranty obligations is based on historical experience and current product performance trends. A regular review of warranty obligations is performed to determine the adequacy of the reserve and adjustments are made to the estimated warranty liability as appropriate.

Accrued warranty, which is included in other accrued liabilities, consists of the following:

	March 31, 2019			December 31, 2018
Warranty accrual, beginning of the fiscal period	$	149,464		$	164,365
Accrual adjustment for product warranty		17,135			34,253
Payments made		(29,653	)		(49,154	)
Warranty accrual, end of the fiscal period	$	136,946		$	149,464

Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

The Company at times becomes a party to claims in the ordinary course of business. Management believes that the ultimate resolution of pending or threatened proceedings will not have a material effect on the financial position, results of operations or liquidity of the Company.

Subsequent Events

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

12. Subsequent Events

None.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Going Concern, Liquidity and Management's Plan

Going Concern, Liquidity and Management’s Plan

Financial Instruments

Financial Instruments

Revenue and Costs of Revenue

Revenue and Costs of Revenue

The Company adopted Accounting Standards Codification Topic 606 (“ASC 606”), Revenue from Contracts with Customers, on January 1, 2018.

Systems:

Disposables:

Royalty:

Other Recurring Revenue:

Sublease Revenue:

	Three Months Ended March 31,
	2019		2018
Systems	$	58,051	$	17,275
Disposables, service and accessories		6,710,759		6,954,357
Sublease		241,065		—
Total revenue	$	7,009,875	$	6,971,632

The following information summarizes the Company’s contract assets and liabilities:

	March 31, 2019			December 31, 2018
Contract Assets - Unbilled Receivables	$	268,711		$	251,867

Customer deposits		428,595			487,086
Product shipped, revenue deferred		645,199			645,199
Deferred service and license fees		4,976,628			5,100,402
Total deferred revenue		6,050,422			6,232,687
Less: Long-term deferred revenue		(404,607	)		(407,151	)
Total current deferred revenue	$	5,645,815		$	5,825,536

Assets Recognized from the Costs to Obtain a Contract with a Customer

Assets Recognized from the Costs to Obtain a Contract with a Customer

Share-Based Compensation

Share-Based Compensation

Net Income (Loss) Per Common Share ("EPS")

Net Income (Loss) per Common Share (“EPS”)

The following table sets forth the computation of basic and diluted EPS:

	Three months ended March 31,
	2019			2018
Net income (loss)	$	(2,122,820	)	$	1,435,229
Cumulative dividend on convertible preferred stock		(353,510	)		(353,589	)
Net loss attributable to convertible preferred stock		—			(610,280	)
Net income (loss) attributable to common stockholders	$	(2,476,330	)	$	471,360

Share used for basic EPS-weighted average shares		59,196,652			30,957,648
Restricted Stock Units		—			292,891
Warrants		—			1,872,059
Weighted average number of common shares and equivalents:		59,196,652			33,122,598
Basic EPS	$	(0.04	)	$	0.02
Diluted EPS	$	(0.04	)	$	0.01

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Schedule of Revenue Disaggregated by Type

	Three Months Ended March 31,
	2019		2018
Systems	$	58,051	$	17,275
Disposables, service and accessories		6,710,759		6,954,357
Sublease		241,065		—
Total revenue	$	7,009,875	$	6,971,632

Summary of Contract Assets and Liabilities

The following information summarizes the Company’s contract assets and liabilities:

	March 31, 2019			December 31, 2018
Contract Assets - Unbilled Receivables	$	268,711		$	251,867

Customer deposits		428,595			487,086
Product shipped, revenue deferred		645,199			645,199
Deferred service and license fees		4,976,628			5,100,402
Total deferred revenue		6,050,422			6,232,687
Less: Long-term deferred revenue		(404,607	)		(407,151	)
Total current deferred revenue	$	5,645,815		$	5,825,536

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted EPS:

	Three months ended March 31,
	2019			2018
Net income (loss)	$	(2,122,820	)	$	1,435,229
Cumulative dividend on convertible preferred stock		(353,510	)		(353,589	)
Net loss attributable to convertible preferred stock		—			(610,280	)
Net income (loss) attributable to common stockholders	$	(2,476,330	)	$	471,360

Share used for basic EPS-weighted average shares		59,196,652			30,957,648
Restricted Stock Units		—			292,891
Warrants		—			1,872,059
Weighted average number of common shares and equivalents:		59,196,652			33,122,598
Basic EPS	$	(0.04	)	$	0.02
Diluted EPS	$	(0.04	)	$	0.01

Inventories (Tables)

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of the following:

	March 31, 2019			December 31, 2018

Raw materials	$	2,657,958		$	2,686,870
Work in process		133,218			2,594
Finished goods		2,944,522			2,963,013
Reserve for obsolescence		(4,426,564	)		(4,460,811	)
Total inventory	$	1,309,134		$	1,191,666

Prepaid Expenses and Other Assets (Tables)

3 Months Ended

Mar. 31, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist of the following:

	March 31, 2019			December 31, 2018

Prepaid expenses	$	434,560		$	401,972
Prepaid commissions		271,664			304,585
Deposits		237,878			455,508
Total prepaid expenses and other assets		944,102			1,162,065
Less: Noncurrent prepaid expenses and other assets		(170,088	)		(198,365	)
Total current prepaid expenses and other assets	$	774,014		$	963,700

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consist of the following:

	March 31, 2019			December 31, 2018

Equipment	$	6,841,498		$	6,831,665
Leasehold improvements		2,592,339			2,592,339
		9,433,837			9,424,004
Less: Accumulated depreciation		(9,105,223	)		(9,080,311	)
Net property and equipment	$	328,614		$	343,693

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Schedule of Lease Costs and Other Lease Information

The following table represents lease costs and other lease information.

	Three Months Ended
	March 31, 2019

Operating lease cost	$	585,586
Short-term lease cost		19,809
Sublease income		(241,065	)
Total lease cost	$	364,330

Cash paid within operating cash flows	$	615,266

Schedule of Future Minimum Operating Lease Payments

Future minimum payments for operating leases with initial or remaining terms of one year or more as of March 31, 2019, excluding sublease income, were as follows:

	March 31, 2019

2019	$	1,717,837
2020		2,339,810
2021		2,382,661
2022 and thereafter		-
Total lease payments	$	6,440,308
Less: Interest		(846,934	)
Present value of lease liabilities	$	5,593,374

Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consist of the following:

	March 31, 2019			December 31, 2018

Accrued salaries, bonus, and benefits	$	1,182,958		$	1,491,844
Accrued licenses and maintenance fees		483,879			576,598
Accrued warranties		136,946			149,464
Accrued taxes		188,074			251,988
Accrued professional services		765,948			430,088
Other		329,523			383,960
Total accrued liabilities		3,087,328			3,283,942
Less: Long term accrued liabilities		(813,641	)		(641,461	)
Total current accrued liabilities	$	2,273,687		$	2,642,481

Convertible Preferred Stock and Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2019

Stockholders' Equity Note [Abstract]

Summary of Option and Stock Appreciation Rights Activity

A summary of the option and stock appreciation rights activity for the three month period ended March 31, 2019 is as follows:

	Number of Options/SARs			Range of Exercise Price		Weighted Average Exercise Price per Share

Outstanding, December 31, 2018		1,165,086			$0.74 - $43.90	$	2.54
Granted		982,000			$2.03	$	2.03
Exercised		(9,625	)		$0.74 - $0.83	$	0.74
Forfeited		(5,948	)		$0.74 - $4.04	$	1.59
Outstanding, March 31, 2019		2,131,513			$0.74 - $43.90	$	2.32

Summary of Restricted Stock Unit Activity

A summary of the restricted stock unit activity for the three month period ended March 31, 2019 is as follows:

	Number of Restricted Stock Units			Weighted Average Grant Date Fair Value per Unit

Outstanding, December 31, 2018		647,649		$	0.83
Granted		210,000		$	1.19
Vested		(166,962	)	$	1.12
Forfeited		(2,000	)	$	0.72
Outstanding, March 31, 2019		688,687		$	0.87

Product Warranty Provisions (Tables)

3 Months Ended

Mar. 31, 2019

Product Warranties Disclosures [Abstract]

Schedule of Accrued Warranty

Accrued warranty, which is included in other accrued liabilities, consists of the following:

	March 31, 2019			December 31, 2018
Warranty accrual, beginning of the fiscal period	$	149,464		$	164,365
Accrual adjustment for product warranty		17,135			34,253
Payments made		(29,653	)		(49,154	)
Warranty accrual, end of the fiscal period	$	136,946		$	149,464

Description of Business (Details Narrative)	Mar. 31, 2019 Integer
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Installed base	126

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Remaining performance obligation	$ 2,700,000
Revenue recognized	2,900,000	$ 2,700,000
Capitalized contract acquisition costs	$ 300,000
Share-based compensation, requisite service period	4 years
Options and stock appreciation rights	2,131,513		1,165,086
Weighted average exercise price	$ 2.32		$ 2.54
Exercise price of warrants	$ 0.70
Series A Convertible Preferred Stock [Member]
Options and stock appreciation rights	42,252,248
Warrant [Member]
Common stock issuable upon exercise, warrants	1,107,689
Exercise price of warrants	$ 0.70
Stock Options and Stock Appreciation Rights [Member]
Options and stock appreciation rights	2,131,513
Weighted average exercise price	$ 2.32
Restricted Stock Units [Member]
Unvested restricted shares	688,687		647,649
Stock Options and Stock Appreciation Rights [Member]
Potential common shares excluded from diluted earning per share		1,236,445
Restricted Stock Units [Member]
Potential common shares excluded from diluted earning per share		280,560
Warrant [Member]
Potential common shares excluded from diluted earning per share		1,077,255
Revenue from System Delivery and Installation [Member]
Revenues percentage	1.00%	1.00%
Disposable Revenue [Member]
Revenues percentage	36.00%	37.00%
Royalty Revenue [Member]
Revenues percentage	11.00%	10.00%
Other Recurring Revenue [Member]
Revenues percentage	50.00%	53.00%
Sublease Revenue [Member]
Revenues percentage	3.00%	0.00%

Summary of Significant Accounting Policies - Schedule of Revenue Disaggregated by Type (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Total revenue	$ 7,009,875	$ 6,971,632
Sublease	241,065
Systems [Member]
Total revenue	58,051	17,275
Disposables, Service and Accessories [Member]
Total revenue	$ 6,710,759	$ 6,954,357

Summary of Significant Accounting Policies - Summary of Contract Assets and Liabilities (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Total deferred revenue	$ 6,050,422	$ 6,232,687
Less: Long-term deferred revenue	(404,607)	(407,151)
Total current deferred revenue	5,645,815	5,825,536
Contract Assets - Unbilled Receivables [Member]
Total deferred revenue	268,711	251,867
Customer Deposits [Member]
Total deferred revenue	428,595	487,086
Product Shipped, Revenue Deferred [Member]
Total deferred revenue	645,199	645,199
Deferred Service and License Fees [Member]
Total deferred revenue	$ 4,976,628	$ 5,100,402

Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accounting Policies [Abstract]
Net income (loss)	$ (2,122,820)	$ 1,435,229
Cumulative dividend on convertible preferred stock	(353,510)	(353,589)
Net loss attributable to convertible preferred stock		610,280
Net income (loss) attributable to common stockholders	$ (2,476,330)	$ 471,360
Share used for basic EPS-weighted average shares	59,196,652	30,957,648
Restricted Stock Units		292,891
Warrants		1,872,059
Weighted average number of common shares and equivalents:	59,196,652	33,122,598
Basic EPS	$ (0.04)	$ 0.02
Diluted EPS	$ (0.04)	$ 0.01

Inventories - Schedule of Inventories (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 2,657,958	$ 2,686,870
Work in process	133,218	2,594
Finished goods	2,944,522	2,963,013
Reserve for obsolescence	(4,426,564)	(4,460,811)
Total inventory	$ 1,309,134	$ 1,191,666

Prepaid Expenses and Other Assets - Schedule of Prepaid Expenses and Other Assets (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 434,560	$ 401,972
Prepaid commissions	271,664	304,585
Deposits	237,878	455,508
Total prepaid expenses and other assets	944,102	1,162,065
Less: Noncurrent prepaid expenses and other assets	(170,088)	(198,365)
Total current prepaid expenses and other assets	$ 774,014	$ 963,700

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Gross property and equipment	$ 9,433,837	$ 9,424,004
Less: Accumulated depreciation	(9,105,223)	(9,080,311)
Net property and equipment	328,614	343,693
Equipment [Member]
Gross property and equipment	6,841,498	6,831,665
Leasehold Improvements [Member]
Gross property and equipment	$ 2,592,339	$ 2,592,339

Leases (Details Narrative) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Weighted average discount rate for operating leases	9.00%
Weighted average remaining lease term for operating lease term	2 years 9 months
Right of use assets	$ 5,580,457
Undiscounted future cash flows to be received under the sublease 2019	700,000
undiscounted future cash flows to be received under the sublease 2020	1,000,000
undiscounted future cash flows to be received under the sublease 2021	$ 1,000,000

Leases - Schedule of Lease Costs and Other Lease Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Leases [Abstract]
Operating lease cost	$ 585,586
Short-term lease cost	19,809
Sublease income	(241,065)
Total lease cost	364,330
Cash paid within operating cash flows	$ 615,266

Leases - Schedule of Future Minimum Operating Lease Payments (Details)	Mar. 31, 2019 USD ($)
Leases [Abstract]
2019	$ 1,717,837
2020	2,339,810
2021	2,382,661
2022 and thereafter
Total lease payments	6,440,308
Less: Interest	(846,934)
Present value of lease liabilities	$ 5,593,374

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued salaries, bonus, and benefits	$ 1,182,958	$ 1,491,844
Accrued licenses and maintenance fees	483,879	576,598
Accrued warranties	136,946	149,464	$ 164,365
Accrued taxes	188,074	251,988
Accrued professional services	765,948	430,088
Other	329,523	383,960
Total accrued liabilities	3,087,328	3,283,942
Less: Long term accrued liabilities	(813,641)	(641,461)
Total current accrued liabilities	$ 2,273,687	$ 2,642,481

Long-Term Debt and Credit Facilities (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total liquidity	$ 12,300,000
Cash and cash equivalents	9,040,816	$ 10,796,072
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity
Line of credit facility, current borrowing capacity	3,300,000
Revolving Credit Facility [Member] \| Primary Lender [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 5,000,000
Revolving Credit Facility [Member] \| Prime Rate [Member] \| Primary Lender [Member]
Debt Instrument [Line Items]
Line of credit maturity date	Apr. 25, 2019
Line of credit interest rate	4.50%

Convertible Preferred Stock and Stockholders' Equity (Details Narrative)						1 Months Ended	3 Months Ended
	Mar. 05, 2018 USD ($) $ / shares shares	May 23, 2017 shares	May 24, 2016 shares	Jun. 10, 2014 shares	Jun. 05, 2013 shares	Sep. 30, 2016 $ / shares shares	Mar. 31, 2019 USD ($) Integer $ / shares shares	Mar. 31, 2018 USD ($)	Dec. 31, 2018 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stockholders votes \| Integer							1
Dividends declared \| $
Dividends paid \| $
Preferred stock, stated value							$ 0.001		$ 0.001
Exercise price of warrants							$ 0.70
Warrants exercisable date							Sep. 29, 2021
Proceeds from warrant exercise \| $								$ 9,945,164
Increased in stockholders' equity \| $	$ 27,000,000
Increased in common shares outstanding \| shares	35,791,927
Remaining shares available for issuance \| shares							3,246,524
Total compensation cost not yet recognized \| $							$ 2,200,000
Weighted average amortization period of total compensation cost not yet recognized							4 years
2012 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares authorized for issuance under the plan \| shares		4,000,000	1,500,000	1,000,000	1,000,000
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants							$ 0.70
Number of restricted warrants exercise \| shares	35,791,927
Proceeds from warrant exercise \| $	$ 10,000,000
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants	$ 0.70
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants	$ 0.28
Series A Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of preferred stock issued \| shares						24,000
Preferred stock, par value						$ 0.001
Preferred stock, stated value						1,000
Preferred stock, conversion price						$ 0.65
Common stock issuable from warrants \| shares						36,923,078
Preferred stock dividend rate						6.00%
Preferred stock redemption, triggering event, percent of common stock sold threshold						50.00%

Convertible Preferred Stock and Stockholders' Equity - Summary of Option and Stock Appreciation Rights Activity (Details)	3 Months Ended
	Mar. 31, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options/SARs, Outstanding, Beginning Balance \| shares	1,165,086
Number of Options/SARs, Granted \| shares	982,000
Number of Options/SARs, Exercised \| shares	(9,625)
Number of Options/SARs, Forfeited \| shares	(5,948)
Number of Options/SARs, Outstanding, Ending Balance \| shares	2,131,513
Weighted Average Exercise Price per Share, Outstanding, Beginning Balance	$ 2.54
Weighted Average Exercise Price per Share, Granted	2.03
Weighted Average Exercise Price per Share, Exercised	0.74
Weighted Average Exercise Price per Share, Forfeited	1.59
Weighted Average Exercise Price per Share, Outstanding, Ending Balance	2.32
Range One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Price, Lower Limit	0.74
Range of Exercise Price, Upper Limit	43.90
Range Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Price, Upper Limit	2.03
Range Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Price, Lower Limit	0.74
Range of Exercise Price, Upper Limit	0.83
Range Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Price, Lower Limit	0.74
Range of Exercise Price, Upper Limit	4.04
Range Five [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Price, Lower Limit	0.74
Range of Exercise Price, Upper Limit	$ 43.90

Convertible Preferred Stock and Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units [Member]	3 Months Ended
	Mar. 31, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted Stock Units, Outstanding, December 31, 2018 \| shares	647,649
Number of Restricted Stock Units, Granted \| shares	210,000
Number of Restricted Stock Units, Vested \| shares	(166,962)
Number of Restricted Stock Units, Forfeited \| shares	(2,000)
Number of Restricted Stock Units, Outstanding, March 31, 2019 \| shares	688,687
Weighted Average Grant Date Fair Value per Unit, Outstanding, December 31, 2018 \| $ / shares	$ 0.83
Weighted Average Grant Date Fair Value per Unit, Granted \| $ / shares	1.19
Weighted Average Grant Date Fair Value per Unit, Vested \| $ / shares	1.12
Weighted Average Grant Date Fair Value per Unit, Forfeited \| $ / shares	0.72
Weighted Average Grant Date Fair Value per Unit, Outstanding, March 31, 2019 \| $ / shares	$ 0.87

Product Warranty Provisions (Details Narrative)	3 Months Ended
Product Warranty Provisions (Details Narrative)	Mar. 31, 2019
Product Warranties Disclosures [Abstract]
Standard product warranty coverage term	1 year

Product Warranty Provisions - Schedule of Accrued Warranty (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Product Warranties Disclosures [Abstract]
Warranty accrual, beginning of the fiscal period	$ 149,464	$ 164,365
Accrual adjustment for product warranty	17,135	34,253
Payments made	(29,653)	(49,154)
Warranty accrual, end of the fiscal period	$ 136,946	$ 149,464