Quarterly report pursuant to Section 13 or 15(d)

Prepaid Expenses, Other Current Assets and Accrued Expenses

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Prepaid Expenses, Other Current Assets and Accrued Expenses
3 Months Ended
Mar. 31, 2016
Prepaid Expenses, Other Current Assets and Accrued Expenses [Abstract]  
PREPAID EXPENSES, OTHER CURRENT ASSETS AND ACCRUED EXPENSES

NOTE 7 - PREPAID EXPENSES, OTHER CURRENT ASSETS AND ACCRUED EXPENSES

 

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of various payments that the Company has made in advance for goods or services to be received in the future. Prepaid expenses and other current assets at March 31, 2016 and December 31, 2015 consisted of the following:

 

(In thousand $)   March 31,
2016
    December 31,
2015
 
Prepaid insurance   $ 82     $ 32  
Prepaid inventory purchases     250       250  
Deferred Charges(1)     15       217  
Other     13       24  
Total prepaid expenses and other current assets   $ 360     $ 523  

  

(1) Deferred charges at March 31, 2016 includes $15 related to the cost of inventory shipped to Cenegenics in May 2015 where revenue was deferred until payment of the commensurate sale is received. Deferred charges at December 31, 2015 includes $153 related to the cost of inventory shipped to Cenegenics in May 2015 and deferred financing costs of $65 related to the Financing. The Financing costs were reclassified to additional paid-in capital during the first quarter of 2016, upon consummation of the first tranche of the Financing.

 

Accrued Expenses

Accrued expenses consist of estimated future payments that relate to the current and prior accounting periods. Management reviews these estimates regularly to determine their reasonableness. Accrued expenses at March 31, 2016 and December 31, 2015 consisted of the following:

 

(In thousand $)   March 31,
2016
    December 31,
2015
 
Advertising and promotional expense payable   $ 201     $ 171  
Audit fees payable     29       64  
Deferred rent     45       47  
Deferred revenue(1)     22       228  
Research & development     30       30  
Accrued interest expense     24       13  
Accrued salaries & bonuses     3       151  
Consulting fees payable     5       2  
Other accrued expenses     20       11  
Total accrued expenses   $ 379     $ 717  

  

(1) Deferred revenue represents revenue to be recognized in connection with inventory shipped to Cenegenics in May 2015. The shipment was made under a settlement agreement with Cenegenics that included extended payment terms. Accordingly the Company has deferred the revenue until cash is collected from the customer.