☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 02-0377419 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
98 Spit Brook Road, Suite 100, Nashua, New Hampshire | 03062 | |
(Address of principal executive offices) | (Zip Code) |
Title of Class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, | ICAD | The NASDAQ Stock Market LLC |
Large Accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
Twelve months ended December 31, | ||||||||||||||||
2020 | 2019 | $ Change | % Change | |||||||||||||
Detection revenue | ||||||||||||||||
Product revenue | $ | 16,291 | $ | 16,788 | $ | (497 | ) | (3.0 | )% | |||||||
Service revenue | 5,706 | 5,531 | 175 | 3.2 | % | |||||||||||
Subtotal | 21,997 | 22,319 | (322 | ) | (1.4 | )% | ||||||||||
Therapy revenue | ||||||||||||||||
Product revenue | 2,612 | 2,979 | (367 | ) | (12.3 | )% | ||||||||||
Service revenue | 5,089 | 6,042 | (953 | ) | (15.8 | )% | ||||||||||
Subtotal | 7,701 | 9,021 | (1,320 | ) | (14.6 | )% | ||||||||||
Total revenue | $ | 29,698 | $ | 31,340 | $ | (1,642 | ) | (5.2 | )% | |||||||
Twelve months ended December 31, | ||||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||||
Products | $ | 5,000 | $ | 3,278 | $ | 1,722 | 52.5 | % | ||||||||
Service and supplies | 2,965 | 3,438 | (473 | ) | (13.8 | )% | ||||||||||
Amortization and depreciation | 379 | 397 | (18 | ) | 100.0 | % | ||||||||||
Total cost of revenue | $ | 8,344 | $ | 7,113 | $ | 1,231 | 17.3 | % | ||||||||
Gross profit | $ | 21,354 | $ | 24,227 | $ | (2,873 | ) | (11.9 | )% | |||||||
profit % | 71.9 | % | 77.3 | % | ||||||||||||
For the year ended December 31, | ||||||||||||||||
2020 | 2019 | Change | % Change | |||||||||||||
Detection gross profit | $ | 17,856 | $ | 18,627 | $ | (771 | ) | (4.1 | )% | |||||||
Therapy gross profit | 3,498 | 5,600 | (2,102 | ) | (37.5 | )% | ||||||||||
Gross profit | $ | 21,354 | $ | 24,227 | $ | (2,873 | ) | (11.9 | )% | |||||||
Year ended December 31, | ||||||||||||||||
2020 | 2019 | Change | Change % | |||||||||||||
Operating expenses: | ||||||||||||||||
Engineering and product development | $ | 8,114 | $ | 9,271 | $ | (1,157 | ) | (12.5 | )% | |||||||
Marketing and sales | 13,312 | 13,634 | (322 | ) | (2.4 | )% | ||||||||||
General and administrative | 9,117 | 7,443 | 1,674 | 22.5 | % | |||||||||||
Amortization and depreciation | 199 | 276 | (77 | ) | (27.9 | )% | ||||||||||
Total operating expenses | $ | 30,742 | $ | 30,624 | $ | 118 | 0.4 | % | ||||||||
Year ended December 31, | ||||||||||||||||
2020 | 2019 | Change | Change% | |||||||||||||
Interest expense | $ | (476 | ) | $ | (784 | ) | $ | 308 | (39.3 | )% | ||||||
Interest income | 97 | 344 | (247 | ) | (71.8 | )% | ||||||||||
Loss on extinguishment of debt | (341 | ) | — | (341 | ) | 0.0 | % | |||||||||
Loss on fair value of debentures | (7,464 | ) | (6,671 | ) | (793 | ) | 11.9 | % | ||||||||
$ | (8,184 | ) | $ | (7,111 | ) | $ | (1,073 | ) | 15.1 | % | ||||||
Tax expense | $ | 38 | $ | 43 | $ | (5 | ) | (11.6 | )% |
Twelve months ended December 31, | ||||||||||||||||
2019 | 2018 | Change | % Change | |||||||||||||
Detection revenue | ||||||||||||||||
Product revenue | $ | 16,788 | $ | 10,783 | $ | 6,005 | 55.7 | % | ||||||||
Service revenue | 5,531 | 6,081 | (550 | ) | (9.0 | )% | ||||||||||
Subtotal | 22,319 | 16,864 | 5,455 | 32.3 | % | |||||||||||
Therapy revenue | ||||||||||||||||
Product revenue | 2,979 | 2,328 | 651 | 28.0 | % | |||||||||||
Service revenue | 6,042 | 6,429 | (387 | ) | (6.0 | )% | ||||||||||
Subtotal | 9,021 | 8,757 | 264 | 3.0 | % | |||||||||||
Total revenue | $ | 31,340 | $ | 25,621 | $ | 5,719 | 22.3 | % | ||||||||
Twelve months ended December 31, | ||||||||||||||||
2019 | 2018 | Change | % Change | |||||||||||||
Products | $ | 3,278 | $ | 2,161 | $ | 1,117 | 51.7 | % | ||||||||
Service and supplies | 3,438 | 3,627 | (189 | ) | (5.2 | )% | ||||||||||
Amortization and depreciation | 397 | 403 | (6 | ) | 100.0 | % | ||||||||||
Total cost of revenue | $ | 7,113 | $ | 6,191 | $ | 922 | 14.9 | % | ||||||||
Gross profit | $ | 24,227 | $ | 19,430 | $ | 4,797 | 24.7 | % | ||||||||
profit % | 77.3 | % | 75.8 | % |
For the year ended December 31, | ||||||||||||||||
2019 | 2018 | Change | % Change | |||||||||||||
Operating expenses: | ||||||||||||||||
Engineering and product development | $ | 9,271 | $ | 9,445 | $ | (174 | ) | (1.8 | )% | |||||||
Marketing and sales | 13,634 | 8,693 | 4,941 | 56.8 | % | |||||||||||
General and administrative | 7,443 | 9,117 | (1,674 | ) | (18.4 | )% | ||||||||||
Amortization and depreciation | 276 | 305 | (29 | ) | (9.5 | )% | ||||||||||
Total operating expenses | $ | 30,624 | $ | 27,560 | $ | 3,064 | 11.1 | % | ||||||||
For the year ended December 31, | ||||||||||||||||
2019 | 2018 | Change | Change % | |||||||||||||
Interest expense | $ | (784 | ) | $ | (504 | ) | (280 | ) | 55.6 | % | ||||||
Interest income | 344 | 110 | 234 | 212.7 | % | |||||||||||
Financing costs | — | (451 | ) | 451 | (100.0 | )% | ||||||||||
Loss on fair value of debentures | (6,671 | ) | — | (6,671 | ) | — | ||||||||||
$ | (7,111 | ) | $ | (845 | ) | $ | (6,266 | ) | 741.5 | % | ||||||
Income tax (benefit) expense | $ | 43 | $ | 42 | 1 | 2.4 | % |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Segment revenues: | ||||||||||||
Detection | $ | 21,997 | $ | 22,319 | $ | 16,864 | ||||||
Therapy | 7,701 | 9,021 | 8,757 | |||||||||
Total Revenue | $ | 29,698 | $ | 31,340 | $ | 25,621 | ||||||
Segment gross profit: | ||||||||||||
Detection | $ | 17,856 | $ | 18,627 | $ | 14,709 | ||||||
Therapy | 3,498 | 5,600 | 4,721 | |||||||||
Segment gross profit | $ | 21,354 | $ | 24,227 | $ | 19,430 | ||||||
Segment operating income (loss): | ||||||||||||
Detection | $ | 2,719 | $ | 2,564 | $ | 3,412 | ||||||
Therapy | (3,028 | ) | (1,476 | ) | (2,373 | ) | ||||||
Segment operating income (loss) | $ | (309 | ) | $ | 1,088 | $ | 1,039 | |||||
General administrative | $ | (9,079 | ) | $ | (7,486 | ) | $ | (9,169 | ) | |||
Interest expense | (476 | ) | (784 | ) | (504 | ) | ||||||
Financing costs | — | — | (451 | ) | ||||||||
Loss on extinguishment of debt | (341 | ) | ||||||||||
Other income | 97 | 345 | 110 | |||||||||
Fair value of convertible debentures | (7,464 | ) | (6,671 | ) | ||||||||
Loss before income tax | $ | (17,572 | ) | $ | (13,508 | ) | $ | (8,975 | ) | |||
Item 10. | Directors, Executive Officers and Corporate Governance . |
Name | Age | Principal Occupation or Employment | Director/Officer Since | |||
Michael Klein | 67 | Executive Chairman and Chief Executive Officer | 2018 | |||
Nathaniel Dalton | 54 | Director and Senior Advisor of Affiliated Manager’s Group, Inc. | 2020 | |||
Dr. Rakesh Patel | 48 | Chief Executive Officer of Precision Cancer Specialists Medical Group | 2018 | |||
Andy Sassine | 56 | Chief Financial Officer of Arcturus Therapeutics Holdings Inc. | 2015 | |||
Dr. Susan Wood | 58 | Chief Executive Officer of VIDA Diagnostics, Inc. | 2018 | |||
Stacey Stevens | 53 | President | 2006 | |||
R. Scott Areglado | 57 | Chief Financial Officer | 2018 | |||
Jonathan Go | 58 | Chief Technology Officer | 2019 |
Item 11. | Executive Compensation . |
Name and Principal Position | Year | Salary ($) | Option Awards (1) ($) | Non-Equity Incentive Plan Compensation (2) ($) | All Other Compensation ($) | Total ($) | ||||||||||||||||||
Michael Klein (3) | 2020 | 374,795 | 565,779 | 234,000 | 12,226 | 1,186,799 | ||||||||||||||||||
Chief Executive Officer | 2019 | 400,000 | — | 95,370 | — | 495,370 | ||||||||||||||||||
Jonathan Go | 2020 | 281,096 | 12,023 | 110,000 | 25,243 | 428,362 | ||||||||||||||||||
Chief Technology Officer | 2019 | 299,077 | 45,250 | 135,000 | 26,769 | 506,096 | ||||||||||||||||||
Stacey Stevens | 2020 | 302,647 | 14,563 | 150,000 | 32,180 | 499,227 | ||||||||||||||||||
President | 2019 | 318,500 | 44,250 | 163,519 | 32,800 | 559,069 |
(1) | The amounts included in the “Option Awards” column represent the grant date fair value of the stock option awards granted to the named executive officers, computed in accordance with ASC Topic 718. For a discussion of valuation assumptions, see Note 6 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 |
(2) | “Non-Equity Incentive Plan Compensation” column represent the grant date fair value of the stock option awards granted to the named executive officers, computed in accordance with ASC Topic 718. For a discussion of valuation assumptions, see Note 6 of our Annual Report on Form10-K |
(3) |
The Compensation Committee believes that compensation for the named executive officers should be based on our performance. Therefore, for current officers the Compensation Committee has developed variable compensation packages based largely on Company financial performance. The Compensation Committee also considers our industry and geographic location norms in determining the various elements and amounts of compensation for our named executive officers. Elements of Executive Compensation |
✓ | Consult an independent compensation consultant | × No tax × No guaranteed salary increases or bonuses × No excessive perquisites to NEOs × No pension plans or other post-employment benefit plans × No severance multipliers in excess of 2x pay × No hedging or pledging of Company stock × No option repricing without stockholder approval, or option backdating | ||
Stock ownership guidelines for executive officers and non-employee directors | ||||
✓ | ||||
Insider trading policy prohibits directors, senior executives and other employees from trading in Company stock during blackout periods and while in possession of material |
December 31, | December 31, | |||||||
Assets | 2020 | 2019 | ||||||
(in thousands except shares and per share data) | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 27,186 | $ | 15,313 | ||||
Trade accounts receivable, net of allowance for doubtful | ||||||||
accounts of $111 in 2020 and $136 in 2019 | 10,027 | 9,819 | ||||||
Inventory, net | 3,144 | 2,611 | ||||||
Prepaid expenses and other current assets | 1,945 | 1,453 | ||||||
Total current assets | 42,302 | 29,196 | ||||||
Property and equipment: | ||||||||
Equipment | 6,765 | 6,304 | ||||||
Leasehold improvements | 62 | 62 | ||||||
Furniture and fixtures | 319 | 319 | ||||||
Marketing assets | 376 | 376 | ||||||
7,522 | 7,061 | |||||||
Less accumulated depreciation and amortization | 6,778 | 6,510 | ||||||
Property and equipment, net | 744 | 551 | ||||||
Other assets: | ||||||||
Operating lease assets | 1,758 | 2,406 | ||||||
Other assets | 1,527 | 50 | ||||||
Intangible assets, net of accumulated amortization of $8,494 in 2020 and $8,186 in 2019 | 889 | 1,183 | ||||||
Goodwill | 8,362 | 8,362 | ||||||
Total other assets | 12,536 | 12,001 | ||||||
Total assets | $ | 55,582 | $ | 41,748 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,869 | $ | 1,990 | ||||
Accrued and other expenses | 7,039 | 6,590 | ||||||
Notes payable, current | — | 4,250 | ||||||
Lease payable, current | 726 | 758 | ||||||
Deferred revenue, current | 6,117 | 5,248 | ||||||
Total current liabilities | 16,751 | 18,836 | ||||||
Lease payable, long-term | 1,075 | 1,837 | ||||||
Deferred revenue, long-term | 267 | 356 | ||||||
Notes payable, long-term | 6,960 | 2,003 | ||||||
Convertible debentures payable to non-related parties, at fair value | — | 12,409 | ||||||
Convertible debentures payable to related parties, at fair value | — | 1,233 | ||||||
Deferred tax | 4 | 3 | ||||||
Total liabilities | 25,057 | 36,677 | ||||||
Commitments and contingencies (Note 9) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $ .01 par value: authorized 1,000,000 shares; NaN issued. | 0— | 0— | ||||||
Common stock, $ .01 par value: authorized 30,000,000 shares; issued 23,693,735 in 2020 and 19,546,151 in 2019. Outstanding 23,508,575 in 2020 and 19,360,320 in 2019. | 236 | 196 | ||||||
Additional paid-in capital | 273,639 | 230,615 | ||||||
Accumulated deficit | (241,935 | ) | (224,325 | ) | ||||
Treasury stock at cost, 185,831 shares in 2019 and 2018 | (1,415 | ) | (1,415 | ) | ||||
Total stockholders’ equity | 30,525 | 5,071 | ||||||
Total liabilities and stockholders’ equity | $ | 55,582 | $ | 41,748 | ||||
See accompanying notes to consolidated financial statements. |
For the Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
(in thousands except per share data) | ||||||||||||
Revenue: | ||||||||||||
Products | $ | 18,903 | $ | 19,767 | $ | 13,111 | ||||||
Service and supplies | 10,795 | 11,573 | 12,510 | |||||||||
Total revenue | 29,698 | 31,340 | 25,621 | |||||||||
Cost of Revenue: | ||||||||||||
Products | 5,000 | 3,278 | 2,161 | |||||||||
Service and supplies | 2,965 | 3,438 | 3,627 | |||||||||
Amortization and depreciation | 379 | 397 | 403 | |||||||||
Total cost of revenue | 8,344 | 7,113 | 6,191 | |||||||||
Gross profit | 21,354 | 24,227 | 19,430 | |||||||||
Operating expenses: | ||||||||||||
Engineering and product development | 8,114 | 9,271 | 9,445 | |||||||||
Marketing and sales | 13,312 | 13,634 | 8,693 | |||||||||
General and administrative | 9,117 | 7,443 | 9,117 | |||||||||
Amortization and depreciation | 199 | 276 | 305 | |||||||||
Total operating expenses | 30,742 | 30,624 | 27,560 | |||||||||
Loss from operations | (9,388 | ) | (6,397 | ) | (8,130 | ) | ||||||
Other expense | ||||||||||||
Interest expense | (476 | ) | (784 | ) | (504 | ) | ||||||
Interest income | 97 | 344 | 110 | |||||||||
Financing costs | — | — | (451 | ) | ||||||||
Loss on extinguishment of debt | (341 | ) | — | — | ||||||||
Loss on fair value of convertible debentures | (7,464 | ) | (6,671 | ) | — | |||||||
Other expense, net | (8,184 | ) | (7,111 | ) | (845 | ) | ||||||
Loss before income tax expense | (17,572 | ) | (13,508 | ) | (8,975 | ) | ||||||
Income tax expense | 38 | 43 | 42 | |||||||||
Net loss and comprehensive loss | $ | (17,610 | ) | $ | (13,551 | ) | $ | (9,017 | ) | |||
Net loss per share: | ||||||||||||
Basic | $ | (0.80 | ) | $ | (0.74 | ) | $ | (0.54 | ) | |||
Diluted | $ | (0.80 | ) | $ | (0.74 | ) | $ | (0.54 | ) | |||
Weighted average number of shares used in computing net loss per share: | ||||||||||||
Basic | 22,140 | 18,378 | 16,685 | |||||||||
Diluted | 22,140 | 18,378 | 16,685 | |||||||||
See accompanying notes to consolidated financial statements. |
Common Stock | Additional | |||||||||||||||||||||||
Number of | Paid-in | Accumulated | Treasury | Stockholders’ | ||||||||||||||||||||
Shares Issued | Par Value | Capital | Deficit | Stock | Equity | |||||||||||||||||||
Balance at December 31, 2017 | 16,711,512 | $ | 167 | $ | 217,389 | $ | (201,865 | ) | $ | (1,415 | ) | $ | 14,276 | |||||||||||
Cumulative impact from the adoption of ASC 606 (see Note 1) | — | — | — | 108 | — | 108 | ||||||||||||||||||
Issuance of common stock relative to vesting of restricted stock, net of 56,946 shares forfeited for tax obligations | 265,442 | 3 | (183 | ) | — | — | (180 | ) | ||||||||||||||||
Issuance of common stock pursuant to stock option plans | 89,556 | 1 | 203 | — | — | 204 | ||||||||||||||||||
Stock-based compensation | — | — | 1,505 | — | — | 1,505 | ||||||||||||||||||
Net loss | — | — | — | (9,017 | ) | — | (9,017 | ) | ||||||||||||||||
Balance at December 31, 2018 | 17,066,510 | $ | 171 | $ | 218,914 | $ | (210,774 | ) | $ | (1,415 | ) | $ | 6,896 | |||||||||||
Issuance of common stock relative to vesting of restricted stock, net of 29,887 shares forfeited for tax obligations | 167,843 | 2 | (198 | ) | — | — | (196 | ) | ||||||||||||||||
Issuance of common stock pursuant to stock option plans | 429,980 | 4 | 1,396 | — | — | 1,400 | ||||||||||||||||||
Issuance of common stock, net | 1,881,818 | 19 | 9,334 | — | — | 9,353 | ||||||||||||||||||
Stock-based compensation | — | — | 1,169 | — | — | 1,169 | ||||||||||||||||||
Net Loss | — | — | — | (13,551 | ) | — | (13,551 | ) | ||||||||||||||||
Balance at December 31, 2019 | 19,546,151 | $ | 196 | $ | 230,615 | $ | (224,325 | ) | $ | (1,415 | ) | $ | 5,071 | |||||||||||
Issuance of common stock relative to vesting of restricted stock, net of 20,247 shares forfeited for tax obligations | 97,830 | — | (225 | ) | — | — | (225 | ) | ||||||||||||||||
Issuance of common stock pursuant to stock option plans | 155,149 | 1 | 728 | — | — | 729 | ||||||||||||||||||
Issuance of common stock, net | 2,033,204 | 20 | 18,264 | — | — | 18,284 | ||||||||||||||||||
Issuance of common stock pursuant employee stock purchase plan | 42,606 | 1 | 267 | — | — | 268 | ||||||||||||||||||
Issuance of common stock upon conversion of debentures | 1,819,466 | 18 | 21,146 | — | — | 21,164 | ||||||||||||||||||
Stock-based compensation | — | — | 2,844 | — | — | 2,844 | ||||||||||||||||||
Net loss | — | — | — | (17,610 | ) | — | (17,610 | ) | ||||||||||||||||
Balance at December 31, 2020 | 23,694,406 | $ | 236 | $ | 273,639 | $ | (241,935 | ) | $ | (1,415 | ) | $ | 30,525 | |||||||||||
For the Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
(in thousands) | ||||||||||||
Cash flow from operating activities: | ||||||||||||
Net loss | $ | (17,610 | ) | $ | (13,551 | ) | $ | (9,017 | ) | |||
Adjustments to reconcile net loss to net cash used for operating activities: | ||||||||||||
Amortization | 309 | 377 | 383 | |||||||||
Depreciation | 268 | 297 | 325 | |||||||||
Bad debt provision | 94 | 62 | 225 | |||||||||
Stock-based compensation expense | 2,844 | 1,169 | 1,505 | |||||||||
Amortization of debt discount and debt costs | 78 | 149 | 170 | |||||||||
Loss on extinguishment of debt | 341 | — | — | |||||||||
Deferred tax | 1 | 1 | (12 | ) | ||||||||
Loss on disposal of assets | — | — | 12 | |||||||||
Change in fair value of convertible debentures | 7,464 | 6,671 | — | |||||||||
Changes in operating assets and liabilities, net of acquisition: | ||||||||||||
Accounts receivable | (302 | ) | (3,478 | ) | 2,003 | |||||||
Inventory | (533 | ) | (1,024 | ) | 536 | |||||||
Prepaid and other assets | (1,390 | ) | 294 | 172 | ||||||||
Accounts payable | 878 | 836 | (209 | ) | ||||||||
Accrued and other expenses | (207 | ) | 982 | 494 | ||||||||
Deferred revenue | 780 | 108 | (454 | ) | ||||||||
Total adjustments | 10,625 | 6,444 | 5,150 | |||||||||
Net cash used for operating activities | (6,985 | ) | (7,107 | ) | (3,867 | ) | ||||||
Cash flow used for investing activities: | ||||||||||||
Additions to patents, technology and other | (13 | ) | (10 | ) | (15 | ) | ||||||
Additions to property and equipment | (461 | ) | (296 | ) | (301 | ) | ||||||
Net cash provided by (used for) investing activities | (474 | ) | (306 | ) | (316 | ) | ||||||
Cash flow from financing activities: | ||||||||||||
Issuance of common stock for cash, net | 18,285 | 9,353 | — | |||||||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 266 | — | — | |||||||||
Issuance of common stock pursuant to stock option plans | 729 | 1,400 | 204 | |||||||||
Taxes paid related to restricted stock issuance | (225 | ) | (196 | ) | (180 | ) | ||||||
Proceeds from convertible debentures | — | — | 6,970 | |||||||||
Principal payments of capital lease obligations | — | (16 | ) | (13 | ) | |||||||
Proceeds from notes payable | 6,957 | — | — | |||||||||
Principal repayment of notes payable | (4,638 | ) | (2,000 | ) | — | |||||||
Debt issuance costs | (42 | ) | — | — | ||||||||
Proceeds from line of credit | 775 | 3,000 | — | |||||||||
Repayment line of credit | (2,775 | ) | (1,000 | ) | — | |||||||
Net cash provided by financing activities | 19,332 | 10,541 | 6,981 | |||||||||
Increase in cash and equivalents | 11,873 | 3,128 | 2,798 | |||||||||
Cash and equivalents, beginning of year | 15,313 | 12,185 | 9,387 | |||||||||
Cash and equivalents, end of year | $ | 27,186 | $ | 15,313 | $ | 12,185 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Interest paid | $ | 272 | $ | 643 | $ | 294 | ||||||
Taxes paid | $ | 38 | $ | 43 | $ | 51 | ||||||
Right-of-use | 69 | 3,105 | — | |||||||||
Issuance of common stock upon conversion of debentures | $ | 21,164 | — | — | ||||||||
2020 | 2019 | 2018 | ||||||||||
Balance at beginning of period | $ | 136 | $ | 177 | $ | 107 | ||||||
Additions charged to costs and expenses | 94 | 62 | 225 | |||||||||
Reductions | (119 | ) | (103 | ) | (155 | ) | ||||||
Balance at end of period | $ | 111 | $ | 136 | $ | 177 | ||||||
Inventory balances, net of reserves, were as follows: | ||||||||
December 31, | December 31, | |||||||
2020 | 2019 | |||||||
Raw materials | $ | 1,356 | $ | 1,265 | ||||
Work in process | 76 | 39 | ||||||
Finished Goods | 1,712 | 1,307 | ||||||
Inventory Net | $ | 3,144 | $ | 2,611 | ||||
Consolidated | ||||||||||||||||
reporting unit | Detection | Therapy | Total | |||||||||||||
Accumulated Goodwill | $ | 47,937 | $ | — | $ | — | $ | 47,937 | ||||||||
Accumulated impairment | (26,828 | ) | — | — | (26,828 | ) | ||||||||||
Fair value allocation | (21,109 | ) | 7,663 | 13,446 | — | |||||||||||
Acquisition of DermEbx and Radion | — | — | 6,154 | 6,154 | ||||||||||||
Acquisition measurement period adjustments | — | — | 116 | 116 | ||||||||||||
Acquisition of VuComp | — | 1,093 | — | 1,093 | ||||||||||||
Sale of MRI assets | — | (394 | ) | (394 | ) | |||||||||||
Impairment | — | — | (19,716 | ) | (19,716 | ) | ||||||||||
Prior to December 31, 2019 | — | 8,362 | — | 8,362 | ||||||||||||
Balance at December 31, 2020 | $ | — | $ | 8,362 | $ | — | $ | 8,362 | ||||||||
Weighted | ||||||||||||
average | ||||||||||||
2020 | 2019 | useful life | ||||||||||
Gross Carrying Amount | ||||||||||||
Patents and licenses | $ | 595 | $ | 581 | 5 years | |||||||
Technology | 8,257 | 8,257 | 10 years | |||||||||
Customer relationships | 272 | 272 | 7 years | |||||||||
Tradename | 259 | 259 | 10 years | |||||||||
Total amortizable intangible assets | 9,383 | 9,369 | ||||||||||
Accumulated Amortization | ||||||||||||
Patents and licenses | $ | 529 | $ | 520 | ||||||||
Technology | 7,571 | 7,299 | ||||||||||
Customer relationships | 135 | 108 | ||||||||||
Tradename | 259 | 259 | ||||||||||
Total accumulated amortization | 8,494 | 8,186 | ||||||||||
Total amortizable intangible assets, net | $ | 889 | $ | 1,183 | ||||||||
Estimated | ||||
For the years ended | amortization | |||
December 31: | expense | |||
2021 | 291 | |||
2022 | 207 | |||
2023 | 186 | |||
2024 | 103 | |||
2025 | 102 | |||
$ | 889 | |||
Year ended December 31, 2020 | ||||||||||||
Reportable Segments | ||||||||||||
Detection | Therapy | Total | ||||||||||
Major Goods/Service Lines | ||||||||||||
Products | $ | 16,291 | $ | 4,535 | $ | 20,826 | ||||||
Service contracts | 5,661 | 1,333 | 6,994 | |||||||||
Supply and source usage agreements | — | 1,804 | 1,804 | |||||||||
Professional services | — | 29 | 29 | |||||||||
Other | 45 | — | 45 | |||||||||
$ | 21,997 | $ | 7,701 | $ | 29,698 | |||||||
Timing of Revenue Recognition | ||||||||||||
Goods transferred at a point in time | $ | 16,332 | $ | 4,624 | $ | 20,956 | ||||||
Services transferred over time | 5,665 | 3,077 | 8,742 | |||||||||
$ | 21,997 | $ | 7,701 | $ | 29,698 | |||||||
Sales Channels | ||||||||||||
Direct sales force | $ | 13,809 | $ | 3,773 | $ | 17,582 | ||||||
OEM partners | 8,188 | — | 8,188 | |||||||||
Channel partners | — | 3,928 | 3,928 | |||||||||
$ | 21,997 | $ | 7,701 | $ | 29,698 | |||||||
Year ended December 31, 2019 | ||||||||||||
Reportable Segments | ||||||||||||
Detection | Therapy | Total | ||||||||||
Major Goods/Service Lines | ||||||||||||
Products | $ | 16,788 | $ | 4,957 | $ | 21,745 | ||||||
Service contracts | 5,370 | 1,814 | 7,184 | |||||||||
Supply and source usage agreements | — | 2,036 | 2,036 | |||||||||
Professional services | — | 153 | 153 | |||||||||
Other | 161 | 61 | 222 | |||||||||
$ | 22,319 | $ | 9,021 | $ | 31,340 | |||||||
Timing of Revenue Recognition | ||||||||||||
Goods transferred at a point in time | $ | 16,949 | $ | 5,391 | $ | 22,340 | ||||||
Services transferred over time | 5,370 | 3,630 | 9,000 | |||||||||
$ | 22,319 | $ | 9,021 | $ | 31,340 | |||||||
Sales Channels | ||||||||||||
Direct sales | $ | 11,968 | $ | 5,804 | $ | 17,772 | ||||||
OEM partners | 10,351 | — | 10,351 | |||||||||
Channel partners | — | 3,217 | 3,217 | |||||||||
$ | 22,319 | $ | 9,021 | $ | 31,340 | |||||||
Year ended December 31, 2018 | ||||||||||||
Reportable Segments | ||||||||||||
Detection | Therapy | Total | ||||||||||
Major Goods/Service Lines | ||||||||||||
Products | $ | 10,783 | $ | 4,393 | $ | 15,176 | ||||||
Service contracts | 5,311 | 1,450 | 6,761 | |||||||||
Supply and source usage agreements | — | 2,261 | 2,261 | |||||||||
Professional services | — | 264 | 264 | |||||||||
Other | 229 | 389 | 618 | |||||||||
$ | 16,323 | $ | 8,757 | $ | 25,080 | |||||||
Timing of Revenue Recognition | ||||||||||||
Goods transferred at a point in time | $ | 10,835 | $ | 4,676 | $ | 15,511 | ||||||
Services transferred over time | 5,488 | 4,081 | 9,569 | |||||||||
$ | 16,323 | $ | 8,757 | $ | 25,080 | |||||||
Sales Channels | ||||||||||||
Direct sales force | $ | 8,335 | $ | 7,554 | $ | 15,889 | ||||||
OEM partners | 7,988 | — | 7,988 | |||||||||
Channel partners | — | 1,203 | 1,203 | |||||||||
$ | 16,323 | $ | 8,757 | $ | 25,080 | |||||||
Total Revenue | ||||||||||||
Revenue from contracts with customers | $ | 16,323 | $ | 8,757 | $ | 25,080 | ||||||
Revenue from lease components | 541 | — | 541 | |||||||||
$ | 16,864 | $ | 8,757 | $ | 25,621 | |||||||
Balance at December 31, 2020 | Balance at December 31, 2019 | |||||||
Receivables, which are included in “Trade accounts receivable” | $ | 10,027 | $ | 9,819 | ||||
Current contract assets, which are included in “Prepaid and other assets” | 481 | 14 | ||||||
Non-current contract assets, which are included in “other assets” | 1,434 | 0 | ||||||
Contract liabilities, which are included in “Deferred revenue” | 6,384 | 5,604 |
Contract liabilities | December 31, 2020 | December 31, 2019 | ||||||
Short term | $ | 6,117 | $ | 5,248 | ||||
Long term | 267 | 356 | ||||||
Total | $ | 6,384 | $ | 5,604 | ||||
Year Ended December 31, 2020 | Year Ended December 31, 2019 | |||||||
Balance at beginning of period | $ | 5,604 | $ | 5,209 | ||||
Deferral of revenue | 11,212 | 11,005 | ||||||
Recognition of deferred revenue | (10,432 | ) | (10,610 | ) | ||||
Balance at end of period | $ | 6,384 | $ | 5,604 | ||||
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Balance at beginning of period | $ | 379 | $ | 282 | ||||
Deferral of costs to obtain a contract | 157 | 294 | ||||||
Recognition of costs to obtain a contract | (130 | ) | (197 | ) | ||||
Balance at end of period | $ | 406 | $ | 379 | ||||
2020 | 2019 | 2018 | ||||||||||
Beginning accrual balance | $ | 17 | $ | 12 | $ | 10 | ||||||
Warranty provision | 58 | 41 | 19 | |||||||||
Usage | (58 | ) | (36 | ) | (17 | ) | ||||||
Ending accrual balance | $ | 17 | $ | 17 | $ | 12 | ||||||
2020 | 2019 | 2018 | ||||||||||
Net loss available to common shareholders | $ | (17,610 | ) | $ | (13,551 | ) | $ | (9,017 | ) | |||
Basic shares used in the calculation of earnings per share | 22,140 | 18,378 | 16,685 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options | — | — | — | |||||||||
Restricted stock | — | — | — | |||||||||
Diluted shares used in the calculation of earnings per share | 22,140 | 18,378 | 16,685 | |||||||||
Net loss per share : | ||||||||||||
Basic | $ (0.80 | ) | $ (0.74 | ) | $ (0.54 | ) | ||||||
Diluted | $ (0.80 | ) | $ (0.74 | ) | $ (0.54 | ) |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Common stock options | 1,869,507 | 1,550,662 | 1,983,477 | |||||||||
Restricted Stock | 29,166 | 150,909 | 423,202 | |||||||||
Convertible Debentures | — | 1,742,500 | 1,742,500 | |||||||||
1,898,673 | 3,444,071 | 4,149,179 | ||||||||||
Name | Fees Earned or Paid in Cash ($) | Option Awards (1) ($) | Stock Awards ($) | Total ($) | ||||||||||||
Nathaniel Dalton | — | 193,551 | — | 193,551 | ||||||||||||
Dr. Rakesh Patel | — | 148,408 | — | 148,408 | ||||||||||||
Andy Sassine | — | 153,908 | — | 153,908 | ||||||||||||
Susan Wood | — | 153,033 | — | 153,033 |
1) | The amounts included in the “Option Awards” column represents the grant date fair value of the stock option awards to directors, computed in accordance with FASB ASC Topic 718. For a discussion of valuation assumptions, see Note 6 to our Consolidated financial statements on Form 10-K for the fiscal year ended December 31, 2020. Option awards for 2020 include awards to directors in lieu of cash compensation for 2020. |
* | Information with respect to the compensation of Michael Klein, an employee director, is set forth above in the Summary Compensation Table. |
Member | Chair | |||||||
Audit Committee | $ | 9,500 | $ | 19,000 | ||||
Compensation Committee | $ | 7,000 | $ | 14,000 | ||||
Nominating and Governance Committee | $ | 4,500 | $ | 9,000 | ||||
Strategy Committee | $ | 5,000 | $ | 10,000 | ||||
Lead Independent Director | $ | — | $ | 20,000 |
Fair Value Measurements as of December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 27,186 | 0— | 0— | $ | 27,186 | ||||||||||
Total Assets | $ | 27,186 | 0— | 0— | $ | 27,186 | ||||||||||
Liabilities | ||||||||||||||||
Convertible debentures | 0— | 0— | 0— | 0— | ||||||||||||
Total Liabilities | 0— | 0— | 0 | 0 | ||||||||||||
Fair Value Measurements as of December 31, 2019 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 15,313 | — | — | $ | 15,313 | ||||||||||
Total Assets | $ | 15,313 | — | — | $ | 15,313 | ||||||||||
Liabilities | ||||||||||||||||
Convertible debentures | — | — | $ | 13,642 | $ | 13,642 | ||||||||||
Total Liabilities | — | — | $ | 13,642 | $ | 13,642 | ||||||||||
Option Awards | Stock Awards | |||||||||||||||||||||||
Name | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares of Restricted Stock That Have Not Vested (#) (1) | Market Value of Shares or Units of Stock That Have Not Vested ($) (2) | ||||||||||||||||||
Michael Klein | 559,809 | — | 2.89 | 11/16/2028 | — | — | ||||||||||||||||||
36,667 | 73,333 | 8.77 | 01/13/2030 | — | — | |||||||||||||||||||
20,125 | — | 8.96 | 04/17/2030 | — | — | |||||||||||||||||||
31,890 | — | 12.84 | 05/07/2030 | — | — | |||||||||||||||||||
Stacey Stevens | 235 | — | 6.68 | 06/19/2024 | 9,166 | 120,991 | ||||||||||||||||||
25,000 | — | 9.00 | 02/05/2025 | — | — | |||||||||||||||||||
8,333 | 16,667 | 4.38 | 03/25/2029 | — | — | |||||||||||||||||||
23,175 | — | 12.84 | 05/07/2030 | — | — | |||||||||||||||||||
Jonathan Go | 20,000 | — | 5.75 | 3/29/2021 | — | — | ||||||||||||||||||
30,000 | — | 3.15 | 11/10/2021 | — | — | |||||||||||||||||||
20,000 | — | 2.90 | 2/7/2022 | — | — | |||||||||||||||||||
45,000 | — | 2.27 | 9/25/2022 | — | — | |||||||||||||||||||
10,000 | — | 6.68 | 6/19/2024 | — | — | |||||||||||||||||||
12,500 | — | 9.00 | 2/5/2025 | — | — | |||||||||||||||||||
8,333 | 16,667 | 4.37 | 1/15/2029 | — | — | |||||||||||||||||||
19,134 | — | 12.84 | 05/07/2030 | — | — |
Convertible Debentures | ||||
Balance, December 20, 2019 | $ | 13,642 | ||
Issuances | 0 | |||
Fair value adjustments | 7,522 | |||
Conversion | (21,164 | ) | ||
Balance, December 31, 2020 | $ | 0 | ||
December 31, 2020 (Western Alliance Bank) * | ||||
Principal Amount of Term Loan | $ | 7,000 | ||
Unamortized closing costs | (63 | ) | ||
Accrued Final Payment | 23 | |||
Amount Drawn on Line of Credit | — | |||
Carrying amount of Term Loan | 6,960 | |||
Less current portion of Term Loan | 0 | |||
Notes payable long-term portion | $ | 6,960 | ||
* No December 31, 2019 balance. Debt opened in 2020 |
December 31, 2019 (Silicon Valley Bank) * | ||||
Principal Amount of Term Loan | $ | 4,000 | ||
Unamortized closing costs | (40 | ) | ||
Accrued Final Payment | 293 | |||
Amount Drawn on Line of Credit | 2,000 | |||
Carrying amount of Term Loan | 6,253 | |||
Less current portion of Term Loan | (4,250 | ) | ||
Notes payable long-term portion | $ | 2,003 | ||
* No December 31, 2020 balance. Debt closed in 2020 |
Input | December 31, 2019 | February 21, 2020 | ||||||
Company’s stock price | $ | 7.77 | $ | 11.64 | ||||
Conversion price | 4.00 | 4.00 | ||||||
Remaining term (years) | 1.97 | 0.00 | ||||||
Equity volatility | 49.00 | % | N/A | |||||
Risk free rate | 1.57 | % | N/A | |||||
1 Probabilty of default event | 0.45 | % | N/A | |||||
1 Utilization of Forced Conversion (if available) | 100.00 | % | 100.00 | % | ||||
1 Exercise of Default Redemption (if available) | 100.00 | % | N/A | |||||
1 Effective discount rate | 18.52 | % | N/A | |||||
1 Represents a Level 3 unobservable input, as defined in Note 8 - Fair Value Measurements, below. |
Convertible Debentures | December 31, 2019 | February 21, 2020 | ||||||
Fair value, in accordance with fair value option | $ | 13,642 | $ | 21,164 | ||||
Principal value outstanding | $ | 6,970 | $ | 6,970 | ||||
Fiscal Year | Amount Due | |||
2021 | 1,238 | |||
2022 | 2,875 | |||
2023 | 2,735 | |||
2024 | 1,003 | |||
Total | $ | 7,851 | ||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Cash interest expense, notes payable | $ | 327 | $ | 274 | $ | 299 | ||||||
Cash interest expense, convertible debentures | 49 | 349 | 9 | |||||||||
Amortization of debt costs | 45 | 28 | 29 | |||||||||
Accrual of notes payable final payment | 55 | 131 | 163 | |||||||||
Interest expense capital lease | — | 2 | 4 | |||||||||
Total interest expense | $ | 476 | $ | 784 | $ | 504 | ||||||
2020 | 2019 | |||||||
Accrued salary and related expenses | $ | 3,654 | $ | 3,200 | ||||
Accrued accounts payable | 2,405 | 2,718 | ||||||
Accrued professional fees | 598 | 510 | ||||||
Other accrued expenses | 382 | 162 | ||||||
$ | 7,039 | $ | 6,590 | |||||
Year Ended December 31, | ||||||||||
Lease Cost | Classification | 2020 | 2019 | |||||||
Operating lease cost - Right of Use | Operating expenses | $ | 884 | $ | 804 | |||||
Operating lease cost - Variable Costs | Operating expenses | 165 | $ | 173 | ||||||
Finance lease costs | ||||||||||
Amortization of leased assets | Amortization and depreciation | 12 | 15 | |||||||
Interest on lease liabilities | Interest expense | 1 | 2 | |||||||
Total | $ | 1,062 | $ | 994 | ||||||
Other information related to leases was as follows (in thousands): | ||||||||||
2020 | 2019 | |||||||||
Cash paid for operating cash flows from operating leases | $ | 909 | $ | 840 | ||||||
Cash paid for operating cash flows from finance leases | 1 | 2 | ||||||||
Cash paid for financing cash flows from finance leases | 13 | 17 | ||||||||
2020 | 2019 | |||||||||
Weighted-average remaining lease term of operating leases (in years) | 2.21 | 3.12 | ||||||||
Weighted-average remaining lease term of finance leases (in years) | — | 1.00 | ||||||||
Weighted-average discount rate for operating leases | 5.6 | % | 5.6 | % | ||||||
Weighted-average discount rate for finance leases | 0 | 5.4 | % |
Year Ended December 31, 2020: | Operating Leases | |||
2021 | $ | 920 | ||
2022 | 899 | |||
2023 | 211 | |||
2024 | 5 | |||
Total lease payments | 2,035 | |||
Less: imputed interest | (234 | ) | ||
Total lease liabilities | 1,801 | |||
Less: current portion of lease liabilities | (726 | ) | ||
Long-term lease liabilities | $ | 1,075 | ||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | ||||||||||
Outstanding, December 31, 2018 | 1,983,477 | $ | 4.25 | |||||||||
Granted | 392,270 | $ | 5.81 | |||||||||
Exercised | (379,980 | ) | $ | 3.39 | ||||||||
Forfeited | (445,105 | ) | $ | 6.06 | ||||||||
Outstanding, December 31, 2019 | 1,550,662 | $ | 4.33 | 5.0 | ||||||||
Granted | 563,502 | $ | 10.09 | |||||||||
Exercised | (155,149 | ) | $ | 4.70 | ||||||||
Forfeited | (89,508 | ) | $ | 2.51 | ||||||||
Outstanding, December 31, 2020 | 1,869,507 | $ | 5.91 | 6.0 | ||||||||
Exercisable at December 31, 2018 | 1,296,439 | $ | 4.90 | |||||||||
Exercisable at December 31, 2019 | 881,461 | $ | 4.43 | |||||||||
Exercisable at December 31, 2020 | 1,540,287 | $ | 5.55 | |||||||||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Cost of revenue | $ | 30 | $ | 3 | $ | 4 | ||||||
Engineering and product development | 376 | 226 | 399 | |||||||||
Marketing and sales | 657 | 226 | 190 | |||||||||
General and administrative expense | 1,781 | 713 | 912 | |||||||||
$ | 2,844 | $ | 1,168 | $ | 1,505 | |||||||
Year Ended December 31, | ||||||
2020 | 2019 | 2018 | ||||
Average risk-free interest rate | 0.65% | 1.88% | 2.65% | |||
Expected dividend yield | NaN | NaN | NaN | |||
Expected life | 3.5 | 3.5 | 3.5 | |||
Expected volatility | 50.17-66.04% | 50.01% to 54.23% | 50.4% to 61.6% | |||
Weighted average exercise price | $10.14 | $5.92 | $2.96 | |||
Weighted average fair value | $4.37 | $2.34 | $1.23 |
Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Outstanding | $ | 13,626 | $ | 5,465 | $ | 1,021 | ||||||
Exercisable | 11,786 | 3,067 | 499 | |||||||||
Exercised | 1,037 | 509 | 224 | |||||||||
Company’s stock price at December 31 | $ | 13.20 | $ | 7.77 | $ | 3.70 |
Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Beginning outstanding balance | 150,909 | 423,202 | 415,147 | |||||||||
Granted | — | 15,990 | 379,439 | |||||||||
Vested | (118,077 | ) | (197,730 | ) | (322,388 | ) | ||||||
Forfeited | (3,666 | ) | (90,553 | ) | (48,996 | ) | ||||||
Ending outstanding balance | 29,166 | 150,909 | 423,202 | |||||||||
Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Outstanding | $ | 385 | $ | 1,173 | $ | 1,566 | ||||||
Vested | 1,559 | 1,536 | 1,193 | |||||||||
Company’s stock price at December 31 | $ | 13.20 | $ | 7.77 | $ | 3.70 |
2020 | 2019 | 2018 | ||||||||||
Current provision (benefit): | ||||||||||||
Federal | $ | 0— | $ | — | $ | — | ||||||
State | 37 | 42 | 54 | |||||||||
$ | 37 | $ | 42 | $ | 54 | |||||||
Deferred provision: | ||||||||||||
Federal | $ | 1 | $ | 1 | $ | (10 | ) | |||||
State | — | — | (2 | ) | ||||||||
$ | 1 | $ | 1 | $ | (12 | ) | ||||||
Total | $ | 38 | $ | 43 | $ | 42 | ||||||
2020 | 2019 | 2018 | ||||||||||
Federal statutory rate | 21.0 | % | 21.0 | % | 21.0 | % | ||||||
State income taxes, net of federal benefit | 2.4 | % | 1.7 | % | 3.6 | % | ||||||
Net state impact of deferred rate change | (0.7 | %) | (2.0 | %) | 0.6 | % | ||||||
Stock compensation expense | 0.9 | % | (10.7 | %) | (1.1 | %) | ||||||
Tax amortization on goodwill | 0.0 | % | 0.0 | % | 0.1 | % | ||||||
Goodwill impairment | 0.0 | % | 0.0 | % | 0.0 | % | ||||||
Other permanent differences | (0.1 | %) | 0.0 | % | (0.5 | %) | ||||||
Change in valuation allowance | (13.4 | %) | (6.0 | %) | (27.6 | %) | ||||||
Tax credits | 1.4 | % | 2.8 | % | 3.1 | % | ||||||
Federal Rate Change | 0.0 | % | 0.0 | % | 0.0 | % | ||||||
Accrual to tax return | 0.0 | % | 1.3 | % | 0.3 | % | ||||||
Increase Xoft NOLs under 382 Study | 0.0 | % | 0.0 | % | 0.0 | % | ||||||
Change in FV of convertible debt | (9.0 | %) | (10.4 | %) | 0.0 | % | ||||||
Foreign Rate Differential | 0.0 | % | 0.2 | % | 0.0 | % | ||||||
True Ups - NOL Expiration/162(m) limits | (2.8 | %) | 0.0 | % | 0.0 | % | ||||||
Effective income tax | (0.3 | %) | (0.3 | % ) | (0.5 | % ) | ||||||
2020 | 2019 | |||||||
Inventory (Section 263A) | $ | 248 | $ | 242 | ||||
Inventory reserves | 60 | 118 | ||||||
Receivable reserves | 28 | 35 | ||||||
Other accruals | 1,081 | 1,151 | ||||||
Deferred revenue | 75 | 123 | ||||||
Accumulated depreciation/amortization | 37 | 66 | ||||||
Stock options | 459 | 267 | ||||||
Developed technology | 1,449 | 1,702 | ||||||
Tax credits | 3,859 | 3,663 | ||||||
NOL carryforward | 36,078 | 33,640 | ||||||
Lease liability | 415 | 625 | ||||||
Net deferred tax assets | 43,789 | 41,632 | ||||||
Valuation allowance | (43,356 | ) | (41,025 | ) | ||||
Right of Use Asset | (433 | ) | (607 | ) | ||||
Goodwill tax amortization | (4 | ) | (3 | ) | ||||
Deferred tax liability | $ | (4 | ) | $ | (3 | ) | ||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Segment revenues: | ||||||||||||
Detection | $ | 21,997 | $ | 22,319 | $ | 16,864 | ||||||
Therapy | 7,701 | 9,021 | 8,757 | |||||||||
Total Revenue | $ | 29,698 | $ | 31,340 | $ | 25,621 | ||||||
Segment gross profit: | ||||||||||||
Detection | $ | 17,856 | $ | 18,627 | $ | 14,709 | ||||||
Therapy | 3,498 | 5,600 | 4,721 | |||||||||
Segment gross profit | $ | 21,354 | $ | 24,227 | $ | 19,430 | ||||||
Segment operating income (loss): | ||||||||||||
Detection | $ | 2,719 | $ | 2,564 | $ | 3,412 | ||||||
Therapy | (3,028 | ) | (1,476 | ) | (2,373 | ) | ||||||
Segment operating income (loss) | $ | (309 | ) | $ | 1,088 | $ | 1,039 | |||||
General administrative | $ | (9,079 | ) | $ | (7,486 | ) | $ | (9,169 | ) | |||
Interest expense | (476 | ) | (784 | ) | (504 | ) | ||||||
Financing costs | — | — | (451 | ) | ||||||||
Loss on extinguishment of debt | (341 | ) | ||||||||||
Other income | 97 | 345 | 110 | |||||||||
Fair value of convertible debentures | (7,464 | ) | (6,671 | ) | ||||||||
Loss before income tax | $ | (17,572 | ) | $ | (13,508 | ) | $ | (8,975 | ) | |||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Detection depreciation and amortization | ||||||||||||
Depreciation | $ | 115 | $ | 103 | $ | 106 | ||||||
Amortization | 164 | 240 | 248 | |||||||||
Therapy depreciation and amortization | ||||||||||||
Depreciation | $ | 124 | $ | 166 | $ | 177 | ||||||
Amortization | 128 | 128 | 129 |
Percent of Export sales | ||||||||||||
Region | 2020 | 2019 | 2018 | |||||||||
Europe | 45 | % | 57 | % | 51 | % | ||||||
Taiwan | 13 | % | 15 | % | 22 | % | ||||||
Canada | 5 | % | 7 | % | 7 | % | ||||||
China | 22 | % | 8 | % | 0 | % | ||||||
Other | 15 | % | 13 | % | 20 | % | ||||||
Total | 100 | % | 100 | % | 100 | % | ||||||
Total Export sales | $ | 6,081 | $ | 3,788 | $ | 3,255 |
Percent of Export sales | ||||||||||||
Region | 2020 | 2019 | 2018 | |||||||||
France | 41 | % | 34 | % | 36 | % | ||||||
Spain | 17 | % | 12 | % | 8 | % | ||||||
Germany | 12 | % | 4 | % | 3 | % | ||||||
Italy | 8 | % | 2 | % | 1 | % | ||||||
United Kingdon | 6 | % | 2 | % | 0 | % |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . |
Name of Beneficial Owner | Beneficially Owned (1)(2)(3) | Percentage of Class | ||||||
Michael Klein | 674,823 | 2.6 | % | |||||
Nathaniel Dalton | 236,943 | * | ||||||
Dr. Rakesh Patel | 206,239 | * | ||||||
Andy Sassine | 1,433,234 | 5.7 | % | |||||
Dr. Susan Wood | 127,538 | * | ||||||
Stacey Stevens | 216,866 | * | % | |||||
Jonathan Go | 294,736 | 1.2 | % | |||||
All current executive officers and directors as a group (8 persons) (4) | 3,291,517 | 12.5 | % | |||||
Portolan Capital Management, LLC(5) | 1,161,199 | 5.1 | % | |||||
BlackRock, Inc.(6) | 1,452,196 | 6.3 | % |
(1) | A person is deemed to be the beneficial owner of securities that can be acquired by such person within 60 days from April 20, 2021, upon (i) the exercise of options; (ii) vesting of restricted stock; (iii) warrants or rights; (iv) through the conversion of a security; (v) pursuant to the power to revoke a trust, discretionary account or similar arrangement; or (vi) pursuant to the automatic termination of a trust, discretionary account or similar arrangement. Each beneficial owner’s percentage ownership is determined by assuming that the options or other rights to acquire beneficial ownership as described above, that are held by such person (but not those held by any other person) and which are exercisable within 60 days from April 20, 2021, have been exercised. |
(2) | Unless otherwise noted, we believe that the persons referred to in the table have sole voting and investment power with respect to all shares reflected as beneficially owned by them. |
(3) | Includes exercisable and vested options to purchase shares of common stock as follows: |
Name of Beneficial Owner | Exercisable Options | |||
Michael Klein | 648,491 | |||
Dr. Rakesh Patel | 144,022 | |||
Andrew Sassine | 118,352 | |||
Dr. Susan Wood | 124,904 | |||
Stacey Stevens | 65,078 | |||
Jonathan Go | 173,301 | |||
Nathaniel Dalton | 59,896 |
(4) | Includes securities beneficially owned by R. Scott Areglado, the Company’s Chief Financial Officer, including 64,227 exercisable options. |
(5) | Solely based on the Company’s review of filings made on Schedule 13G with the SEC, as of February 12, 2021, 1,161,199 shares of common stock are beneficially owned (i) directly by Portolan Capital Management, LLC, a registered investment adviser, in its capacity as investment manager for various clients, and (ii) indirectly by George McCabe, the Manager of Portolan Capital Management, LLC. The address of Portolan Capital Management, LLC is 2 International Place, FL 26, Boston, MA 02110. |
(6) | Solely based on the Company’s review of filings made on Schedule 13G with the SEC, as of February 2, 2021, 1,452,196 shares of common stock are beneficially owned by BlackRock, Inc. (“BlackRock”), in its capacity as a parent holding company of various subsidiaries under Rule 13d-1(b)(1)(ii)(G). In its capacity as a parent holding company or control person, BlackRock has sole voting power with respect to 1,442,823 shares and sole dispositive power with respect to 1,452,196 shares which are held by the following of its subsidiaries: BlackRock Advisors, LLC, BlackRock Asset Management Canada Limited, BlackRock Fund Advisors, BlackRock Institutional Trust Company, National Association, BlackRock Financial Management, Inc., and BlackRock Investment Management, LLC. The address of BlackRock is 55 East 52nd Street, New York, NY 10055. |
Plan Category: | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||||
Equity compensation plans approved by security holders | 1,898,673 | $ | 5.91 | 462,218 | ||||||||
Equity compensation plans not approved by security holders | 0 | $ | 0.00 | 0 | ||||||||
Total | 1,898,673 | $ | 5.91 | 462,218 |
Item 13. | Certain Relationships and Related Transactions, and Director Independence . |
Item 14. | Principal Accounting Fees and Services . |
Fiscal Year Ended | ||||||||
Services Rendered(1) | December 31, 2020 | December 31, 2019 | ||||||
Audit Fees | $ | 464,735 | $ | 482,745 | ||||
Audit Related Fees | — | — | ||||||
Tax Fees | — | — | ||||||
All Other Fees | — | — | ||||||
Total | $ | 464,735 | $ | 482,745 | ||||
(1) | The aggregate fees included in Audit Fees are fees billed for the fiscal years. |
Item 15. | Exhibits, Financial Statement Schedules . |
* | Filed herewith |
iCAD, Inc. | ||||||
Date: April 30, 2021 | By: | /s/ Michael Klein | ||||
Michael Klein | ||||||
Chief Executive Officer and Executive Chairman (Principal Executive Officer) | ||||||
Date: April 30, 2021 | By: | /s/ R. Scott Areglado | ||||
R. Scott Areglado | ||||||
Chief Financial Officer (Principal Financial and Accounting Officer) |