☒ | 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, $0.01 par value | ICAD | The NASDAQ Stock Market LLC |
Large Accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
Page | ||||||
Item 1. | 3 | |||||
Item 1A. | 24 | |||||
Item 1B. | 41 | |||||
Item 2. | 41 | |||||
Item 3. | 42 | |||||
Item 4. | 42 | |||||
Item 5. | 43 | |||||
Item 6. | 43 | |||||
Item 7. | 43 | |||||
Item 7A. | 56 | |||||
Item 8. | 56 | |||||
Item 9. | 56 | |||||
Item 9A. | 57 | |||||
Item 9B. | 57 | |||||
Item 9C. | 57 | |||||
Item 10. | 58 | |||||
Item 11. | 58 | |||||
Item 12. | 58 | |||||
Item 13. | 58 | |||||
Item 14. | 58 | |||||
Item 15. | 59 | |||||
Item 16 | 60 |
Item 1 . | Business . |
General Data Protection Regulation (“GDPR”) in the EU, and the Personal Information Protection and Electronic Documents Act in Canada; and |
Item 1A. | Risk Factors. |
Item 1B. | Unresolved Staff Comments. |
Item 2. | Properties. |
Item 3. | Legal Proceedings. |
Item 4. | Mine Safety Disclosures. |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
Item 6 . |
Item 7 . | Management’s Discussion and Analysis of Financial Condition and Results of Operations . |
For the year ended December 31, | ||||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||||
Detection revenue | ||||||||||||||||
Product revenue | $ | 15,661 | $ | 16,291 | $ | (630 | ) | (3.9 | )% | |||||||
Service and supplies revenue | 6,358 | 5,706 | 652 | 11.4 | % | |||||||||||
Subtotal | 22,019 | 21,997 | 22 | 0.1 | % | |||||||||||
Therapy revenue | ||||||||||||||||
Product revenue | 5,530 | 2,612 | 2,918 | 111.7 | % | |||||||||||
Service and supplies revenue | 6,089 | 5,089 | 1,000 | 19.7 | % | |||||||||||
Subtotal | 11,619 | 7,701 | 3,918 | 50.9 | % | |||||||||||
$ | 33,638 | $ | 29,698 | $ | 3,940 | 13.3 | % | |||||||||
For the year ended December 31, | ||||||||||||||||
2021 | 2020 | Change | % Change | |||||||||||||
Products | $ | 5,653 | $ | 5,000 | $ | 653 | 13.1 | % | ||||||||
Service and supplies | 3,425 | 2,965 | 460 | 15.5 | % | |||||||||||
Amortization and depreciation | 317 | 379 | (62 | ) | (16.4 | %) | ||||||||||
Total cost of revenue | 9,395 | 8,344 | 1,051 | 12.6 | % | |||||||||||
Gross profit | $ | 24,243 | $ | 21,354 | $ | 2,889 | 13.5 | % | ||||||||
Gross profit % | 72.1 | % | 71.9 | % |
For the year ended December 31, | ||||||||||||||||
2021 | 2020 | Change | % Change | |||||||||||||
Detection gross profit | $ | 18,510 | $ | 17,856 | $ | 654 | 3.7 | % | ||||||||
Therapy gross profit | 5,733 | 3,498 | 2,235 | 63.9 | % | |||||||||||
Gross profit | $ | 24,243 | $ | 21,354 | $ | 2,889 | 13.5 | % | ||||||||
For the year ended December 31, | ||||||||||||||||
2021 | 2020 | Change | % Change | |||||||||||||
Operating expenses: | ||||||||||||||||
Engineering and product development | $ | 9,194 | $ | 8,114 | $ | 1,080 | 13.3 | % | ||||||||
Marketing and sales | 15,135 | 13,312 | 1,823 | 13.7 | % | |||||||||||
General and administrative | 10,406 | 9,117 | 1,289 | 14.1 | % | |||||||||||
Amortization and depreciation | 240 | 199 | 41 | 20.6 | % | |||||||||||
Total operating expenses | $ | 34,975 | $ | 30,742 | $ | 4,233 | 13.8 | % | ||||||||
For the year ended December 31, | ||||||||||||||||
2021 | 2020 | Change | Change % | |||||||||||||
Interest expense | $ | (141 | ) | $ | (476 | ) | 335 | (70.4 | )% | |||||||
Interest income | 15 | 97 | (82 | ) | (84.5 | )% | ||||||||||
Loss on extinguishment of debt | (386 | ) | (341 | ) | (45 | ) | 13.2 | % | ||||||||
Loss on fair value of debentures | — | (7,464 | ) | 7,464 | (100.0 | )% | ||||||||||
Total other expense | $ | (512 | ) | $ | (8,184 | ) | $ | 7,672 | (93.7 | )% | ||||||
Income tax expense | $ | 1 | $ | 38 | (37 | ) | (97.4 | )% |
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 | )% |
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Segment revenues: | ||||||||||||
Detection | $ | 22,019 | $ | 21,997 | $ | 22,319 | ||||||
Therapy | 11,619 | 7,701 | 9,021 | |||||||||
Total Revenue | $ | 33,638 | $ | 29,698 | $ | 31,340 | ||||||
Segment gross profit: | ||||||||||||
Detection | $ | 18,510 | $ | 17,856 | $ | 18,627 | ||||||
Therapy | 5,733 | 3,498 | 5,600 | |||||||||
Total gross profit | $ | 24,243 | $ | 21,354 | $ | 24,227 | ||||||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Segment operating income (loss): | ||||||||||||
Detection | $ | 1,563 | $ | 2,719 | $ | 2,564 | ||||||
Therapy | (1,835 | ) | (3,028 | ) | (1,476 | ) | ||||||
Segment operating income (loss) | $ | (272 | ) | $ | (309 | ) | $ | 1,088 | ||||
General administrative | $ | (10,460 | ) | $ | (9,079 | ) | $ | (7,486 | ) | |||
Interest expense | (141 | ) | (476 | ) | (784 | ) | ||||||
Loss on extinguishment of debt | (386 | ) | (341 | ) | — | |||||||
Other income | 15 | 97 | 345 | |||||||||
Fair value of convertible debentures | — | (7,464 | ) | (6,671 | ) | |||||||
Loss before income tax | $ | (11,244 | ) | $ | (17,572 | ) | $ | (13,508 | ) | |||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Segment revenues: | ||||||||||||
Detection | $ | 22,019 | $ | 21,997 | $ | 22,319 | ||||||
Therapy | 11,619 | 7,701 | 9,021 | |||||||||
Total Revenue | $ | 33,638 | $ | 29,698 | $ | 31,340 | ||||||
Segment gross profit: | ||||||||||||
Detection | $ | 18,510 | $ | 17,856 | $ | 18,627 | ||||||
Therapy | 5,733 | 3,498 | 5,600 | |||||||||
Total gross profit | $ | 24,243 | $ | 21,354 | $ | 24,227 | ||||||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Segment operating income (loss): | ||||||||||||
Detection | $ | 1,563 | $ | 2,719 | $ | 2,564 | ||||||
Therapy | (1,835 | ) | (3,028 | ) | (1,476 | ) | ||||||
Segment operating income (loss) | $ | (272 | ) | $ | (309 | ) | $ | 1,088 | ||||
General administrative | $ | (10,460 | ) | $ | (9,079 | ) | $ | (7,486 | ) | |||
Interest expense | (141 | ) | (476 | ) | (784 | ) | ||||||
Loss on extinguishment of debt | (386 | ) | (341 | ) | — | |||||||
Other income | 15 | 97 | 345 | |||||||||
Fair value of convertible debentures | — | (7,464 | ) | (6,671 | ) | |||||||
Loss before income tax | $ | (11,244 | ) | $ | (17,572 | ) | $ | (13,508 | ) | |||
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 | ) | |||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Segment revenues: | ||||||||||||
Detection | $ | 22,019 | $ | 21,997 | $ | 22,319 | ||||||
Therapy | 11,619 | 7,701 | 9,021 | |||||||||
Total Revenue | $ | 33,638 | $ | 29,698 | $ | 31,340 | ||||||
Segment gross profit: | ||||||||||||
Detection | $ | 18,510 | $ | 17,856 | $ | 18,627 | ||||||
Therapy | 5,733 | 3,498 | 5,600 | |||||||||
Total gross profit | $ | 24,243 | $ | 21,354 | $ | 24,227 | ||||||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Segment operating income (loss): | ||||||||||||
Detection | $ | 1,563 | $ | 2,719 | $ | 2,564 | ||||||
Therapy | (1,835 | ) | (3,028 | ) | (1,476 | ) | ||||||
Segment operating income (loss) | $ | (272 | ) | $ | (309 | ) | $ | 1,088 | ||||
General administrative | $ | (10,460 | ) | $ | (9,079 | ) | $ | (7,486 | ) | |||
Interest expense | (141 | ) | (476 | ) | (784 | ) | ||||||
Loss on extinguishment of debt | (386 | ) | (341 | ) | — | |||||||
Other income | 15 | 97 | 345 | |||||||||
Fair value of convertible debentures | — | (7,464 | ) | (6,671 | ) | |||||||
Loss before income tax | $ | (11,244 | ) | $ | (17,572 | ) | $ | (13,508 | ) | |||
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk. |
Item 8. | Financial Statements and Supplementary Data. |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
Item 9A. | Controls and Procedures. |
Item 9B. | Other Information. |
Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. |
Item 10 . | Directors, Executive Officers and Corporate Governance . |
Item 11 . | Executive Compensation . |
Item 12 . | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters . |
Item 13 . | Certain Relationships and Related Transactions, and Director Independence . |
Item 14 . | Principal Accounting Fees and Services . |
Item 15 . | Exhibits, Financial Statement Schedules. |
21.1 | Subsidiaries | ||
23.1 | Consent of BDO USA, LLP, Independent Registered Public Accounting Firm. | ||
31.1 | Certification of | ||
31.2 | Certification of | ||
32.1 | Certification of | ||
32.2 | Certification of | ||
101 | The following materials formatted in XBRL (eXtensible Business Reporting Language); (i) Consolidated Balance Sheets as of December 31, | ||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
* | Denotes a management compensation plan or arrangement. |
** | The Registrant has omitted certain schedules and exhibits pursuant to Item 601(b)(2) of Regulation S-K and shall furnish supplementally to the SEC copies any of the omitted schedules and exhibits upon request by the SEC. |
Item 16. | Form 10-K Summary. |
By: | /s/ | |
Chief Executive Officer, |
Signature | Title | Date | ||
/s/ Stacey Stevens | (Principal Executive Officer) | March | ||
/s/ Charles R. Charles R. Carter | Chief Financial Officer (Principal Financial and Accounting Officer) | March | ||
Michael Klein | Chairman, Director | March 28, 2022 | ||
/s/ Dana Brown | Director | March 28, 2022 | ||
Dana Brown | ||||
/s/ Timothy Norris Irish | Director | March 28, 2022 | ||
Timothy Norris Irish | ||||
/s/ Nathaniel Dalton | Director | March | ||
Nathaniel Dalton | ||||
/s/ Rakesh Patel | Director | March | ||
Rakesh Patel, MD | ||||
/s/ Andy Sassine | Director | March | ||
Andy Sassine | ||||
/s/ Susan Wood | Director | March | ||
Susan Wood, |
Page | ||||
F-2 | ||||
F-4 | ||||
F-5 | ||||
F-6 | ||||
F-7 | ||||
F-8– |
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. |
December 31, | December 31, | |||||||
Assets | 2021 | 2020 | ||||||
(in thousands except shares and per share data) |
Current assets: | ||||||||
Cash and cash equivalents | $ | 34,282 | $ | 27,186 | ||||
Trade accounts receivable, net of allowance for doubtful accounts of $268 in 2021 and $111 in 2020 | 8,891 | 10,027 | ||||||
Inventory, net | 4,171 | 3,144 | ||||||
Prepaid expenses and other current assets | 2,962 | 1,945 | ||||||
Total current assets | 50,306 | 42,302 | ||||||
Property and equipment: | ||||||||
Equipment | 7,121 | 6,765 | ||||||
Leasehold improvements | 172 | 62 | ||||||
Furniture and fixtures | 319 | 319 | ||||||
Marketing assets | 376 | 376 | ||||||
7,988 | 7,522 | |||||||
Less accumulated depreciation and amortization | 7,106 | 6,778 | ||||||
Property and equipment, net | 882 | 744 | ||||||
Other assets: | ||||||||
Operating lease assets | 1,059 | 1,758 | ||||||
Other assets | 899 | 1,527 | ||||||
Intangible assets, net of accumulated amortization of $8,724 in 2021 and $8,494 in 2020 | 683 | 889 | ||||||
Goodwill | 8,362 | 8,362 | ||||||
Total other assets | 11,003 | 12,536 | ||||||
Total assets | $ | 62,191 | $ | 55,582 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,779 | $ | 2,869 | ||||
Accrued and other expenses | 5,642 | 7,039 | ||||||
Lease payable, current | 889 | 726 | ||||||
Deferred revenue, current | 5,652 | 6,117 | ||||||
Total current liabilities | 14,962 | 16,751 | ||||||
Lease payable, long-term | 266 | 1,075 | ||||||
Deferred revenue, long-term | 441 | 267 | ||||||
Notes payable, long-term | 0 | 6,960 | ||||||
Deferred tax | 5 | 4 | ||||||
Total liabilities | 15,674 | 25,057 | ||||||
Commitments and contingencies (Note 15) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $ .01 par value: authorized 1,000,000 shares; NaN issued. | 0— | 0— | ||||||
Common stock, $ .01 par value: authorized 60,000,000 shares; issued 25,326,086 in 2021 | 253 | 236 | ||||||
Additional paid-in capital | 300,859 | 273,639 | ||||||
Accumulated deficit | (253,180 | ) | (241,935 | ) | ||||
Treasury stock at cost, 185,831 shares in 2021 and 2020 | (1,415 | ) | (1,415 | ) | ||||
Total stockholders’ equity | 46,517 | 30,525 | ||||||
Total liabilities and stockholders’ equity | $ | 62,191 | $ | 55,582 | ||||
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, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands except per share data) | ||||||||||||
Revenue: | ||||||||||||
Products | $ | 21,191 | $ | 18,903 | $ | 19,767 | ||||||
Service and supplies | 12,447 | 10,795 | 11,573 | |||||||||
Total revenue | 33,638 | 29,698 | 31,340 | |||||||||
Cost of Revenue: | ||||||||||||
Products | 5,653 | 5,000 | 3,278 | |||||||||
Service and supplies | 3,425 | 2,965 | 3,438 | |||||||||
Amortization and depreciation | 317 | 379 | 397 | |||||||||
Total cost of revenue | 9,395 | 8,344 | 7,113 | |||||||||
Gross profit | 24,243 | 21,354 | 24,227 | |||||||||
Operating expenses: | ||||||||||||
Engineering and product development | 9,194 | 8,114 | 9,271 | |||||||||
Marketing and sales | 15,135 | 13,312 | 13,634 | |||||||||
General and administrative | 10,406 | 9,117 | 7,443 | |||||||||
Amortization and depreciation | 240 | 199 | 276 | |||||||||
Total operating expenses | 34,975 | 30,742 | 30,624 | |||||||||
Loss from operations | (10,732 | ) | (9,388 | ) | (6,397 | ) | ||||||
Other expense | ||||||||||||
Interest expense | (141 | ) | (476 | ) | (784 | ) | ||||||
Interest income | 15 | 97 | 344 | |||||||||
Loss on extinguishment of debt | (386 | ) | (341 | ) | 0 | |||||||
Loss on fair value of convertible debentures | 0 | (7,464 | ) | (6,671 | ) | |||||||
Other expense, net | (512 | ) | (8,184 | ) | (7,111 | ) | ||||||
Loss before income tax expense | (11,244 | ) | (17,572 | ) | (13,508 | ) | ||||||
Income tax expense | 1 | 38 | 43 | |||||||||
Net loss and comprehensive loss | $ | (11,245 | ) | $ | (17,610 | ) | $ | (13,551 | ) | |||
Net loss per share: | ||||||||||||
Basic | $ | (0.45 | ) | $ | (0.80 | ) | $ | (0.74 | ) | |||
Diluted | $ | (0.45 | ) | $ | (0.80 | ) | $ | (0.74 | ) | |||
Weighted average number of shares used in computing net loss per share: | ||||||||||||
Basic | 24,778 | 22,140 | 18,378 | |||||||||
Diluted | 24,778 | 22,140 | 18,378 |
Common Stock | Additional Paid-in Capital | |||||||||||||||||||||||
Number of Shares Issued | Par Value | Accumulated Deficit | Treasury Stock | Stockholders’ Equity | ||||||||||||||||||||
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 | 0 | (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 | |||||||||||
Issuance of common stock relative to vesting of restricted stock, net of 5,196 shares forfeited for tax obligations | 44,706 | 1 | (60 | ) | — | — | (59 | ) | ||||||||||||||||
Issuance of common stock pursuant to stock option plans | 168,450 | 2 | 1,025 | — | — | 1,027 | ||||||||||||||||||
Issuance of common stock, net | 1,393,738 | 14 | 23,215 | — | — | 23,229 | ||||||||||||||||||
Issuance of common stock pursuant to employee stock purchase plan | 24,786 | 0 | 257 | — | — | 257 | ||||||||||||||||||
Stock-based compensation | — | — | 2,783 | — | — | 2,783 | ||||||||||||||||||
Net loss | — | — | — | (11,245 | ) | — | (11,245 | ) | ||||||||||||||||
Balance at December 31, 2021 | 25,326,086 | $ | 253 | $ | 300,859 | $ | (253,180 | ) | $ | (1,415 | ) | $ | 46,517 | |||||||||||
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||
2020 | 2019 | 2018 | 2021 | 2020 | 2019 | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||||||
Net loss | $ | (17,610 | ) | $ | (13,551 | ) | $ | (9,017 | ) | $ | (11,245 | ) | $ | (17,610 | ) | $ | (13,551 | ) | ||||||
Adjustments to reconcile net loss to net cash used for operating activities: | ||||||||||||||||||||||||
Amortization | 309 | 377 | 383 | 230 | 309 | 377 | ||||||||||||||||||
Depreciation | 268 | 297 | 325 | 327 | 268 | 297 | ||||||||||||||||||
Bad debt provision | 94 | 62 | 225 | 167 | 94 | 62 | ||||||||||||||||||
Stock-based compensation expense | 2,844 | 1,169 | 1,505 | 2,783 | 2,844 | 1,169 | ||||||||||||||||||
Amortization of debt discount and debt costs | 78 | 149 | 170 | 17 | 78 | 149 | ||||||||||||||||||
Loss on extinguishment of debt | 341 | — | — | 386 | 341 | — | ||||||||||||||||||
Deferred tax | 1 | 1 | (12 | ) | 1 | 1 | 1 | |||||||||||||||||
Loss on disposal of assets | — | — | 12 | 97 | — | — | ||||||||||||||||||
Change in fair value of convertible debentures | 7,464 | 6,671 | — | — | 7,464 | 6,671 | ||||||||||||||||||
Changes in operating assets and liabilities, net of acquisition: | ||||||||||||||||||||||||
Accounts receivable | (302 | ) | (3,478 | ) | 2,003 | 969 | (302 | ) | (3,478 | ) | ||||||||||||||
Inventory | (533 | ) | (1,024 | ) | 536 | (1,027 | ) | (533 | ) | (1,024 | ) | |||||||||||||
Prepaid and other assets | (1,390 | ) | 294 | 172 | 391 | (1,390 | ) | 294 | ||||||||||||||||
Accounts payable | 878 | 836 | (209 | ) | (90 | ) | 878 | 836 | ||||||||||||||||
Accrued and other expenses | (207 | ) | 982 | 494 | (2,123 | ) | (207 | ) | 982 | |||||||||||||||
Deferred revenue | 780 | 108 | (454 | ) | (291 | ) | 780 | 108 | ||||||||||||||||
Total adjustments | 10,625 | 6,444 | 5,150 | 1,837 | 10,625 | 6,444 | ||||||||||||||||||
Net cash used for operating activities | (6,985 | ) | (7,107 | ) | (3,867 | ) | (9,408 | ) | (6,985 | ) | (7,107 | ) | ||||||||||||
Cash flow used for investing activities: | ||||||||||||||||||||||||
Additions to patents, technology and other | (13 | ) | (10 | ) | (15 | ) | (24 | ) | (13 | ) | (10 | ) | ||||||||||||
Additions to property and equipment | (461 | ) | (296 | ) | (301 | ) | (563 | ) | (461 | ) | (296 | ) | ||||||||||||
Net cash provided by (used for) investing activities | (474 | ) | (306 | ) | (316 | ) | ||||||||||||||||||
Net cash used for investing activities | (587 | ) | (474 | ) | (306 | ) | ||||||||||||||||||
Cash flow from financing activities: | ||||||||||||||||||||||||
Issuance of common stock for cash, net | 18,285 | 9,353 | — | 23,229 | 18,285 | 9,353 | ||||||||||||||||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 266 | — | — | 257 | 266 | — | ||||||||||||||||||
Issuance of common stock pursuant to stock option plans | 729 | 1,400 | 204 | 1,027 | 729 | 1,400 | ||||||||||||||||||
Taxes paid related to restricted stock issuance | (225 | ) | (196 | ) | (180 | ) | (59 | ) | (225 | ) | (196 | ) | ||||||||||||
Proceeds from convertible debentures | — | — | 6,970 | |||||||||||||||||||||
Principal payments of capital lease obligations | — | (16 | ) | (13 | ) | — | — | (16 | ) | |||||||||||||||
Proceeds from notes payable | 6,957 | — | — | 6,957 | — | |||||||||||||||||||
Principal repayment of notes payable | (4,638 | ) | (2,000 | ) | — | (7,363 | ) | (4,638 | ) | (2,000 | ) | |||||||||||||
Debt issuance costs | (42 | ) | — | — | — | (42 | ) | — | ||||||||||||||||
Proceeds from line of credit | 775 | 3,000 | — | — | 775 | 3,000 | ||||||||||||||||||
Repayment line of credit | (2,775 | ) | (1,000 | ) | — | |||||||||||||||||||
Repayment of line of credit | — | (2,775 | ) | (1,000 | ) | |||||||||||||||||||
Net cash provided by financing activities | 19,332 | 10,541 | 6,981 | 17,091 | 19,332 | 10,541 | ||||||||||||||||||
Increase in cash and equivalents | 11,873 | 3,128 | 2,798 | 7,096 | 11,873 | 3,128 | ||||||||||||||||||
Cash and equivalents, beginning of year | 15,313 | 12,185 | 9,387 | 27,186 | 15,313 | 12,185 | ||||||||||||||||||
Cash and equivalents, end of year | $ | 27,186 | $ | 15,313 | $ | 12,185 | $ | 34,282 | $ | 27,186 | $ | 15,313 | ||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||||||||||
Interest paid | $ | 272 | $ | 643 | $ | 294 | $ | 172 | $ | 272 | $ | 643 | ||||||||||||
Taxes paid | $ | 38 | $ | 43 | $ | 51 | $ | 0 | $ | 38 | $ | 43 | ||||||||||||
Right-of-use | 69 | 3,105 | — | 79 | 69 | 3,105 | ||||||||||||||||||
Issuance of common stock upon conversion of debentures | $ | 21,164 | — | — | $ | 0 | 21,164 | 0 | ||||||||||||||||
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 | ||||||||
• | A significant decrease in the market price of a long-lived asset (asset group); |
• | A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; |
• | A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; |
• | An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); |
��� | A current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group). |
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 | |||
1) | Identify the contract(s) with a customer |
2) | Identify the performance obligations in the contract |
transferred. A good or service is distinct if both |
3) | Determine the transaction price , the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. |
4) | Allocate the transaction price to the performance obligations in the contract that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative |
performance obligation or to a distinct good or service that forms part of a |
5) | Recognize revenue when (or as) the Company satisfies a performance obligation |
Fair Value Measurements (in thousands) as of December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 30,573 | — | — | $ | 30,573 | ||||||||||
Total Assets | $ | 30,573 | — | — | $ | 30,573 | ||||||||||
Fair Value Measurements (in thousands) as of December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 24,635 | $ | — | $ | — | $ | 24,635 | ||||||||
Total Assets | $ | 24,635 | $ | — | $ | — | $ | 24,635 | ||||||||
Convertible Debentures | ||||
Balance, December 31, 2019 | $ | 13,642 | ||
Issuances | 0 | |||
Fair value adjustments | 7,522 | |||
Conversion | (21,164 | ) | ||
Balance, December 31, 2020 | $ | 0 | ||
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 | |||||||
Fair Value Measurements (in thousands) as of December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 30,573 | — | — | $ | 30,573 | ||||||||||
Total Assets | $ | 30,573 | — | — | $ | 30,573 | ||||||||||
Fair Value Measurements (in thousands) as of December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 24,635 | $ | — | $ | — | $ | 24,635 | ||||||||
Total Assets | $ | 24,635 | $ | — | $ | — | $ | 24,635 | ||||||||
Convertible Debentures | ||||
Balance, December 31, 2019 | $ | 13,642 | ||
Issuances | 0 | |||
Fair value adjustments | 7,522 | |||
Conversion | (21,164 | ) | ||
Balance, December 31, 2020 | $ | 0 | ||
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 | ||||||||||
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 | ||||||||||
Fair Value Measurements (in thousands) as of December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 30,573 | — | — | $ | 30,573 | ||||||||||
Total Assets | $ | 30,573 | — | — | $ | 30,573 | ||||||||||
Fair Value Measurements (in thousands) as of December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 24,635 | $ | — | $ | — | $ | 24,635 | ||||||||
Total Assets | $ | 24,635 | $ | — | $ | — | $ | 24,635 | ||||||||
Convertible Debentures | Convertible Debentures | |||||||
Balance, December 20, 2019 | $ | 13,642 | ||||||
Balance, December 31, 2019 | $ | 13,642 | ||||||
Issuances | 0 | 0 | ||||||
Fair value adjustments | 7,522 | 7,522 | ||||||
Conversion | (21,164 | ) | (21,164 | ) | ||||
Balance, December 31, 2020 | $ | 0 | $ | 0 | ||||
Year ended December 31, 2021 | ||||||||||||
Reportable Segments | ||||||||||||
Detection | Therapy | Total | ||||||||||
Major Goods/Service Lines | ||||||||||||
Products | $ | 15,661 | $ | 7,924 | $ | 23,585 | ||||||
Service contracts | 6,358 | 1,517 | 7,875 | |||||||||
Supply and source usage agreements | — | 2,089 | 2,089 | |||||||||
Professional services | — | 89 | 89 | |||||||||
$ | 22,019 | $ | 11,619 | $ | 33,638 | |||||||
Timing of Revenue Recognition | ||||||||||||
Goods transferred at a point in time | $ | 15,584 | $ | 8,012 | $ | 23,596 | ||||||
Services transferred over time | 6,435 | 3,607 | 10,042 | |||||||||
$ | 22,019 | $ | 11,619 | $ | 33,638 | |||||||
Sales Channels | ||||||||||||
Direct sales force | $ | 14,713 | $ | 4,421 | $ | 19,134 | ||||||
OEM partners | 7,306 | — | 7,306 | |||||||||
Channel partners | — | 7,198 | 7,198 | |||||||||
$ | 22,019 | $ | 11,619 | $ | 33,638 | |||||||
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 | 0 | 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 | |||||||
Balance at December 31, 2021 | Balance at December 31, 2020 | |||||||
Receivables, which are included in ‘Trade accounts receivable’ | $ | 8,891 | $ | 10,027 | ||||
Current contract assets, which are included in “Prepaid and other assets” | $ | 1,895 | $ | 481 | ||||
Non-current contract assets, which are included in “other assets” | $ | 844 | $ | 1,434 | ||||
Contract liabilities, which are included in “Deferred revenue” | $ | 6,093 | $ | 6,384 |
Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||
Balance at beginning of period | $ | 6,384 | $ | 5,604 | ||||
Deferral of revenue | 12,315 | 11,212 | ||||||
Recognition of deferred revenue | (12,606 | ) | (10,432 | ) | ||||
Balance at end of period | $ | 6,093 | $ | 6,384 | ||||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Balance at beginning of period | $ | 406 | $ | 379 | ||||
Deferral of costs to obtain a contract | 249 | 157 | ||||||
Recognition of costs to obtain a contract | (353 | ) | (130 | ) | ||||
Balance at end of period | $ | 302 | $ | 406 | ||||
2021 | 2020 | 2019 | ||||||||||
Net loss available to common shareholders | $ | (11,245 | ) | $ | (17,610 | ) | $ | (13,551 | ) | |||
Basic shares used in the calculation of earnings per share | 24,778 | 22,140 | 18,378 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options | — | — | — | |||||||||
Restricted stock | — | — | — | |||||||||
Diluted shares used in the calculation of earnings per share | 24,778 | 22,140 | 18,378 | |||||||||
Net loss per share | ||||||||||||
Basic | $ | (0.45 | ) | $ | (0.80 | ) | $ | (0.74 | ) | |||
Diluted | $ | (0.45 | ) | $ | (0.80 | ) | $ | (0.74 | ) |
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Common stock options | 2,486,511 | 1,869,507 | 1,550,662 | |||||||||
Restricted Stock | 875 | 29,166 | 150,909 | |||||||||
Convertible Debentures | — | — | 1,742,500 | |||||||||
2,487,386 | 1,898,673 | 3,444,071 | ||||||||||
2021 | 2020 | 2019 | ||||||||||
Balance at beginning of period | $ | 111 | $ | 136 | $ | 177 | ||||||
Additions charged to costs and expenses | 167 | 94 | 62 | |||||||||
Reductions | (10 | ) | (119 | ) | (103 | ) | ||||||
Balance at end of period | $ | 268 | $ | 111 | $ | 136 | ||||||
December 31, 2021 | December 31, 2020 | |||||||
Raw materials | $ | 2,962 | $ | 1,538 | ||||
Work in process | 173 | 76 | ||||||
Finished Goods | 1,279 | 1,774 | ||||||
Inventory Gross | 4,414 | 3,388 | ||||||
Inventory Reserve | (243 | ) | (244 | ) | ||||
Inventory Net | $ | 4,171 | $ | 3,144 | ||||
2021 | 2020 | 2019 | Weighted average useful life | |||||||||||||
Gross Carrying Amount | ||||||||||||||||
Patents and licenses | $ | 619 | $ | 595 | $ | 581 | 5 years | |||||||||
Technology | 8,257 | 8,257 | 8,257 | 10 years | ||||||||||||
Customer relationships | 272 | 272 | 272 | 7 years | ||||||||||||
Tradename | 259 | 259 | 259 | 10 years | ||||||||||||
Total amortizable intangible assets | 9,407 | 9,383 | 9,369 | |||||||||||||
Accumulated Amortization | ||||||||||||||||
Patents and licenses | $ | 534 | $ | 529 | $ | 520 | ||||||||||
Technology | 7,769 | 7,571 | 7,299 | |||||||||||||
Customer relationships | 162 | 135 | 108 | |||||||||||||
Tradename | 259 | 259 | 259 | |||||||||||||
Total accumulated amortization | 8,724 | 8,494 | 8,186 | |||||||||||||
Total amortizable intangible assets, net | $ | 683 | $ | 889 | $ | 1,183 | ||||||||||
For the years ended December 31: | Estimated amortization expense | |||
2022 | 217 | |||
2023 | 186 | |||
2024 | 103 | |||
2025 | 103 | |||
2026 | 74 | |||
$ | 683 | |||
2021 | 2020 | |||||||
Accrued salary and related expenses | $ | 2,016 | $ | 3,654 | ||||
Accrued accounts payable | 2,838 | 2,405 | ||||||
Accrued professional fees | 497 | �� | 598 | |||||
Other accrued expenses | 291 | 382 | ||||||
$ | 5,642 | $ | 7,039 | |||||
Year Ended December 31, | ||||||||||
Lease Cost | Classification | 2021 | 2020 | |||||||
Operating lease cost - Right of Use | Operating expenses | $ | 862 | $ | 884 | |||||
Operating lease cost - Variable Costs | Operating expenses | 186 | 165 | |||||||
Total | $ | 1,048 | $ | 1,049 | ||||||
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Cash paid for operating cash flows from operating leases | $ | 919 | $ | 909 |
As of December 31, | ||||||||
2021 | 2020 | |||||||
Weighted-average remaining lease term of operating leases (in years) | 1.33 | 2.21 | ||||||
Weighted-average discount rate for operating leases | 5.5 | % | 5.6 | % |
Year Ended December 31: | Total | |||
2022 | 931 | |||
2023 | 253 | |||
2024 | 16 | |||
Total lease payments | 1,200 | |||
Less: imputed interest | (45 | ) | ||
Total lease liabilities | 1,155 | |||
Less: current portion of lease liabilities | (889 | ) | ||
Long-term lease liabilities | $ | 266 | ||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | ||||||||||
Outstanding, December 31, 2019 | 1,550,662 | $ | 4.33 | |||||||||
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 Years | ||||||||
Granted | 865,938 | $ | 16.33 | |||||||||
Exercised | (168,450 | ) | $ | 6.10 | ||||||||
Forfeited | (80,484 | ) | $ | 13.74 | ||||||||
Outstanding, December 31, 2021 | 2,486,511 | $ | 9.27 | 5.42 Years | ||||||||
Exercisable at December 31, 2019 | 881,461 | $ | 4.43 | |||||||||
Exercisable at December 31, 2020 | 1,540,287 | $ | 5.55 | |||||||||
Exercisable at December 31, 2021 | 1,619,855 | $ | 6.47 | |||||||||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Cost of revenue | $ | 15 | $ | 30 | $ | 3 | ||||||
Engineering and product development | 356 | 376 | 226 | |||||||||
Marketing and sales | 785 | 657 | 226 | |||||||||
General and administrative expense | 1,627 | 1,781 | 713 | |||||||||
$ | 2,783 | $ | 2,844 | $ | 1,168 | |||||||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Average risk-free interest rate | 0.42 | % | 0.65 | % | 1.88 | % | ||||||
Expected dividend yield | NaN | NaN | NaN | |||||||||
Expected life | 3.5 | 3.5 | 3.5 years | |||||||||
Expected volatility | 65.57-67.4 | 2 % | 50.17-66.04 | % | 50.01% to 54.23 | % | ||||||
Weighted average fair value | $ | $4.37 | $2.34 |
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Outstanding | $ | 3,820 | $ | 13,626 | $ | 5,465 | ||||||
Exercisable | $ | 3,730 | $ | 11,786 | $ | 3,067 | ||||||
Exercised | $ | 1,453 | $ | 1,037 | $ | 509 | ||||||
Company’s stock price at December 31 | $ | 7.20 | $ | 13.20 | $ | 7.77 |
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Beginning outstanding balance | 29,166 | 150,909 | 423,202 | |||||||||
Granted | 22,488 | 0 | 15,990 | |||||||||
Vested | (50,779 | ) | (118,077 | ) | (197,730 | ) | ||||||
Forfeited | 0 | (3,666 | ) | (90,553 | ) | |||||||
Ending outstanding balance | 875 | 29,166 | 150,909 | |||||||||
2021 | 2020 | 2019 | ||||||||||
Current provision: | ||||||||||||
Federal | $ | 0— | $ | — | $ | — | ||||||
State | 0 | 37 | 42 | |||||||||
Foreign | 0 | — | — | |||||||||
$ | 0 | $ | 37 | $ | 42 | |||||||
Deferred provision: | ||||||||||||
Federal | $ | 1 | $ | 1 | $ | 1 | ||||||
State | — | — | 0 | |||||||||
Foreign | 0 | — | — | |||||||||
$ | 1 | $ | 1 | $ | 1 | |||||||
Total | $ | 1 | $ | 38 | $ | 43 | ||||||
2021 | 2020 | 2019 | ||||||||||
Federal statutory rate | 21.0 | % | 21.0 | % | 21.0 | % | ||||||
State income taxes, net of federal benefit | 5.2 | % | 2.4 | % | 1.7 | % | ||||||
Net state impact of deferred rate change | 0.8 | % | (0.7 | %) | (0.2 | %) | ||||||
Stock compensation expense | 1.3 | % | 0.9 | % | (10.7 | %) | ||||||
Other permanent differences | (0.1 | %) | (0.1 | %) | 0.0 | % | ||||||
Change in valuation allowance | (24.4 | %) | (13.4 | %) | (6.0 | %) | ||||||
Tax credits | 3.1 | % | 1.4 | % | 2.8 | % | ||||||
Accrual to TR | (1.4 | %) | 0.0 | % | 1.3 | % | ||||||
FV Mark to market on convertible notes | 0.0 | % | (9.0 | %) | (10.4 | %) | ||||||
Foreign Rate Differential | 0.0 | % | 0.0 | % | 0.2 | % | ||||||
True Ups - NOL Expiration/162(m) limits | (5.4 | %) | (2.8 | %) | 0.0 | % | ||||||
Effective income tax | 0.1 | % | (0.3 | %) | (0.3 | %) | ||||||
2021 | 2020 | |||||||
Inventory (Section 263A) | $ | 276 | $ | 248 | ||||
Inventory reserves | 61 | 60 | ||||||
Receivable reserves | 67 | 28 | ||||||
Other accruals | 854 | 1,081 | ||||||
Deferred revenue | 107 | 75 | ||||||
Accumulated depreciation/amortization | 8 | 37 | ||||||
Stock options | 795 | 459 | ||||||
Developed technology | 1,242 | 1,449 | ||||||
Tax credits | 4,176 | 3,859 | ||||||
NOL carryforward | 38,383 | 36,078 | ||||||
Lease Liability | 290 | 415 | ||||||
Deferred tax assets | 46,259 | 43,789 | ||||||
Valuation allowance | (45,994 | ) | (43,356 | ) | ||||
Right of Use Asset | (265 | ) | (433 | ) | ||||
Goodwill tax amortization | (5 | ) | (4 | ) | ||||
Deferred tax liability | $ | (5 | ) | $ | (4 | ) | ||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Segment revenues: | ||||||||||||
Detection | $ | 22,019 | $ | 21,997 | $ | 22,319 | ||||||
Therapy | 11,619 | 7,701 | 9,021 | |||||||||
Total Revenue | $ | 33,638 | $ | 29,698 | $ | 31,340 | ||||||
Segment gross profit: | ||||||||||||
Detection | $ | 18,510 | $ | 17,856 | $ | 18,627 | ||||||
Therapy | 5,733 | 3,498 | 5,600 | |||||||||
Total gross profit | $ | 24,243 | $ | 21,354 | $ | 24,227 | ||||||
Segment operating income (loss): | ||||||||||||
Detection | $ | 1,563 | $ | 2,719 | $ | 2,564 | ||||||
Therapy | (1,835 | ) | (3,028 | ) | (1,476 | ) | ||||||
Segment operating income (loss) | $ | (272 | ) | $ | (309 | ) | $ | 1,088 | ||||
General administrative | $ | (10,460 | ) | $ | (9,079 | ) | $ | (7,486 | ) | |||
Interest expense | (141 | ) | (476 | ) | (784 | ) | ||||||
Loss on extinguishment of debt | (386 | ) | (341 | ) | — | |||||||
Other income | 15 | 97 | 345 | |||||||||
Fair value of convertible debentures | 0 | (7,464 | ) | (6,671 | ) | |||||||
Loss before income tax | $ | (11,244 | ) | $ | (17,572 | ) | $ | (13,508 | ) | |||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Detection depreciation and amortization | ||||||||||||
Depreciation | $ | 123 | $ | 115 | $ | 103 | ||||||
Amortization | $ | 158 | 164 | 240 | ||||||||
Therapy depreciation and amortization | ||||||||||||
Depreciation | $ | 129 | $ | 124 | $ | 166 | ||||||
Amortization | $ | 73 | 128 | 128 |
Percent of Export sales | ||||||||||||
Region | 2021 | 2020 | 2019 | |||||||||
Europe | 39 | % | 45 | % | 57 | % | ||||||
Taiwan | 12 | % | 13 | % | 15 | % | ||||||
Canada | 3 | % | 5 | % | 7 | % | ||||||
China | 35 | % | 22 | % | 8 | % | ||||||
Other | 11 | % | 15 | % | 13 | % | ||||||
Total | 100 | % | 100 | % | 100 | % | ||||||
Total Export Revenue | $ | 7,527 | $ | 6,081 | $ | 3,788 |
Percent of Export sales | ||||||||||||
Region | 2021 | 2020 | 2019 | |||||||||
France | 47 | % | 41 | % | 34 | % | ||||||
Spain | 17 | % | 17 | % | 12 | % | ||||||
Russia | 8 | % | 0 | % | 0 | % | ||||||
Switzerland | 8 | % | 0 | % | 0 | % | ||||||
Italy | 5 | % | 8 | % | 2 | % | ||||||
Germany | 4 | % | 12 | % | 4 | % | ||||||
United Kingdom | 4 | % | 6 | % | 2 | % |
Note 16 – Notes Payable |
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 | December 31, 2019 | February 21, 2020 | ||||||||||||
Company’s stock price | $ | 7.77 | $ | 11.64 | $ | 7.77 | $ | 11.64 | ||||||||
Conversion price | 4.00 | 4.00 | 4.00 | 4.00 | ||||||||||||
Remaining term (years) | 1.97 | 0.00 | 1.97 | 0.00 | ||||||||||||
Equity volatility | 49.00 | % | N/A | 49.00 | % | N/A | ||||||||||
Risk free rate | 1.57 | % | N/A | 1.57 | % | N/A | ||||||||||
1 Probabilty of default event | 0.45 | % | N/A | |||||||||||||
1 Probability of default event | 0.45 | % | N/A | |||||||||||||
1 Utilization of Forced Conversion (if available) | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | ||||||||
1 Exercise of Default Redemption (if available) | 100.00 | % | N/A | 100.00 | % | N/A | ||||||||||
1 Effective discount rate | 18.52 | % | N/A | 18.52 | % | N/A | ||||||||||
1 Represents a Level 3 unobservable input, as defined in Note 8 - Fair Value Measurements, below. |
1 | Represents a Level 3 unobservable input, as defined inNote 4 - 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 | % |