☒ | QUARTERLY 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, NH | 03062 | |
(Address of principal executive offices) | (Zip Code) |
Title of each 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 | ||||||
PART I | ||||||
Item 1 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
6 | ||||||
Item 2 | ||||||
Item 3 | ||||||
Item 4 | ||||||
PART II | 41 | |||||
Item 1 | ||||||
Item 1A | ||||||
Item 6 | ||||||
June 30, | December 31, | |||||||
Assets | 2020 | 2019 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 24,225 | $ | 15,313 | ||||
Trade accounts receivable, net of allowance for doubtful accounts of $255 in 2020 and $136 in 2019 | 6,658 | 9,819 | ||||||
Inventory, net | 3,348 | 2,611 | ||||||
Prepaid expenses and other current assets | 1,452 | 1,453 | ||||||
Total current assets | 35,683 | 29,196 | ||||||
Property and equipment, net of accumulated depreciation of $6,652 in 2020 and $6,510 in 2019 | 590 | 551 | ||||||
Operating lease assets | 2,131 | 2,406 | ||||||
Other assets | 110 | 50 | ||||||
Intangible assets, net of accumulated amortization of $8,338 in 2020 and $8,186 in 2019 | 1,037 | 1,183 | ||||||
Goodwill | 8,362 | 8,362 | ||||||
Total assets | $ | 47,913 | $ | 41,748 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,421 | $ | 1,990 | ||||
Accrued and other expenses | 5,085 | 6,590 | ||||||
Notes payable - current portion | — | 4,250 | ||||||
Lease payable - current portion | 813 | 758 | ||||||
Deferred revenue | 5,466 | 5,248 | ||||||
Total current liabilities | 12,785 | 18,836 | ||||||
Lease payable, long-term portion | 1,497 | 1,837 | ||||||
Notes payable, long-term portion | 6,937 | 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 revenue, long-term portion | 198 | 356 | ||||||
Deferred tax | 4 | 3 | ||||||
Total liabilities | 21,421 | 36,677 | ||||||
Commitments and Contingencies (Note 7) | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.01 par value: authorized 1,000,000 shares; NaN issued. | — | — | ||||||
Common stock, $0.01 par value: authorized 30,000,000 shares; issued 23,060,272 as of June 30, 2020 and 19,546,151 as of December 31, 2019. Outstanding 22,874,441 as of June 30, 2020 and 19,360,320 as of December 31, 2019. | 231 | 195 | ||||||
Additional paid-in capital | 266,211 | 230,615 | ||||||
Accumulated deficit | (238,535 | ) | (224,324 | ) | ||||
Treasury stock at cost, 185,831 shares in 2020 and 2019 | (1,415 | ) | (1,415 | ) | ||||
Total stockholders’ equity | 26,492 | 5,071 | ||||||
Total liabilities and stockholders’ equity | $ | 47,913 | $ | 41,748 | ||||
March 31, | December 31, | |||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 46,907 | $ | 27,186 | ||||
Trade accounts receivable, net of allowance for doubtful accounts of $111 in 2021 and $111 in 2020 | 10,649 | 10,027 | ||||||
Inventory, net | 2,498 | 3,144 | ||||||
Prepaid expenses and other current assets | 2,188 | 1,945 | ||||||
Total current assets | 62,242 | 42,302 | ||||||
Property and equipment, net of accumulated depreciation of $6,854 in 2021 and $6,778 in 2020 | �� | 930 | 744 | |||||
Operating lease assets | 1,565 | 1,758 | ||||||
Other assets | 1,564 | 1,527 | ||||||
Intangible assets, net of accumulated amortization of $8,552 in 2021 and $8,494 in 2020 | 831 | 889 | ||||||
Goodwill | 8,362 | 8,362 | ||||||
Total assets | $ | 75,494 | $ | 55,582 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,251 | $ | 2,869 | ||||
Accrued and other expenses | 5,819 | 7,039 | ||||||
Notes payable - current portion | 269 | 0 | ||||||
Lease payable - current portion | 847 | 726 | ||||||
Deferred revenue | 5,957 | 6,117 | ||||||
Total current liabilities | 14,143 | 16,751 | ||||||
Lease payable, long-term portion | 860 | 1,075 | ||||||
Notes payable, long-term portion | 6,703 | 6,960 | ||||||
Deferred revenue, long-term portion | 420 | 267 | ||||||
Deferred tax | 4 | 4 | ||||||
Total liabilities | 22,130 | 25,057 | ||||||
Commitments and Contingencies (Note 7) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.01 par value: authorized 1,000,000 shares; NaN . | 0— | 0— | ||||||
Common stock, $0.01 par value: authorized 30,000,000 shares; issued 25,143,432 a s of March 31, 2021 and 23,693,735 as of December 31, 2020. | ||||||||
Outstanding 24,957,601 as of March 31, 2021 and 23,508,575 as of December 31, 2020 . | 251 | 236 | ||||||
Additional paid-in capital | 298,106 | 273,639 | ||||||
Accumulated deficit | (243,578 | ) | (241,935 | ) | ||||
Treasury stock at cost, 185,831 shares in 2021 and 2020 | (1,415 | ) | (1,415 | ) | ||||
Total stockholders’ equity | 53,364 | 30,525 | ||||||
Total liabilities and stockholders’ equity | $ | 75,494 | $ | 55,582 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue: | ||||||||||||||||
Products | $ | 2,888 | $ | 4,353 | $ | 6,683 | $ | 8,175 | ||||||||
Service and supplies | 2,679 | 2,976 | 5,435 | 5,927 | ||||||||||||
Total revenue | 5,567 | 7,329 | 12,118 | 14,102 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Products | 537 | 645 | 1,554 | 1,325 | ||||||||||||
Service and supplies | 575 | 858 | 1,502 | 1,575 | ||||||||||||
Amortization and depreciation | 98 | 100 | 195 | 194 | ||||||||||||
Total cost of revenue | 1,210 | 1,603 | 3,251 | 3,094 | ||||||||||||
Gross profit | 4,357 | 5,726 | 8,867 | 11,008 | ||||||||||||
Operating expenses: | ||||||||||||||||
Engineering and product development | 1,878 | 2,139 | 4,089 | 4,266 | ||||||||||||
Marketing and sales | 2,631 | 3,120 | 6,239 | 5,693 | ||||||||||||
General and administrative | 2,110 | 1,858 | 4,642 | 3,404 | ||||||||||||
Amortization and depreciation | 49 | 67 | 101 | 137 | ||||||||||||
Total operating expenses | 6,668 | 7,184 | 15,071 | 13,500 | ||||||||||||
Loss from operations | (2,311 | ) | (1,458 | ) | (6,204 | ) | (2,492 | ) | ||||||||
Interest expense | (115 | ) | (202 | ) | (245 | ) | (411 | ) | ||||||||
Other income | 33 | 64 | 75 | 123 | ||||||||||||
Loss on extinguishment of debt | — | — | (341 | ) | — | |||||||||||
Loss on fair value of convertible debentures | — | (1,915 | ) | (7,464 | ) | (4,440 | ) | |||||||||
Other expense, net | (82 | ) | (2,053 | ) | (7,975 | ) | (4,728 | ) | ||||||||
Loss before income tax expense | (2,393 | ) | (3,511 | ) | (14,179 | ) | (7,220 | ) | ||||||||
Tax expense | (5 | ) | (19 | ) | (31 | ) | (27 | ) | ||||||||
Net loss and comprehensive loss | $ | (2,398 | ) | $ | (3,530 | ) | $ | (14,210 | ) | $ | (7,247 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.11 | ) | $ | (0.20 | ) | $ | (0.67 | ) | $ | (0.42 | ) | ||||
Diluted | $ | (0.11 | ) | $ | (0.20 | ) | $ | (0.67 | ) | $ | (0.42 | ) | ||||
Weighted average number of shares used in computing loss per share: | ||||||||||||||||
Basic | 22,396 | 17,640 | 21,275 | 17,422 | ||||||||||||
Diluted | 22,396 | 17,640 | 21,275 | 17,422 | ||||||||||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Revenue: | ||||||||
Products | $ | 5,557 | $ | 3,795 | ||||
Service and supplies | 3,087 | 2,756 | ||||||
Total revenue | 8,644 | 6,551 | ||||||
Cost of revenue: | ||||||||
Products | 1,409 | 1,017 | ||||||
Service and supplies | 867 | 927 | ||||||
Amortization and depreciation | 79 | 97 | ||||||
Total cost of revenue | 2,355 | 2,041 | ||||||
Gross profit | 6,289 | 4,510 | ||||||
Operating expenses: | ||||||||
Engineering and product development | 2,192 | 2,211 | ||||||
Marketing and sales | 3,424 | 3,608 | ||||||
General and administrative | 2,151 | 2,532 | ||||||
Amortization and depreciation | 55 | 52 | ||||||
Total operating expenses | 7,822 | 8,403 | ||||||
Loss from operations | (1,533 | ) | (3,893 | ) | ||||
Interest expense | (112 | ) | (130 | ) | ||||
Other income | 2 | 42 | ||||||
Loss on extinguishment of debt | — | (341 | ) | |||||
Loss on fair value of convertible debentures | — | (7,464 | ) | |||||
Other expense, net | (110 | ) | (7,893 | ) | ||||
Loss before income tax expense | (1,643 | ) | (11,786 | ) | ||||
Tax expense | 0 | (26 | ) | |||||
Net loss and comprehensive loss | $ | (1,643 | ) | $ | (11,812 | ) | ||
Net loss per share: | ||||||||
Basic | $ | (0.07 | ) | $ | (0.59 | ) | ||
Diluted | $ | (0.07 | ) | $ | (0.59 | ) | ||
Weighted average number of shares used in computing loss per share: | ||||||||
Basic | 23,929 | 20,175 | ||||||
Diluted | 23,929 | 20,175 | ||||||
For the Six Months ended June 30, | ||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Cash flow from operating activities: | ||||||||
Net loss | $ | (14,210 | ) | $ | (7,247 | ) | ||
Adjustments to reconcile net loss to net cash used for operating activities: | ||||||||
Amortization | 154 | 189 | ||||||
Depreciation | 142 | 142 | ||||||
Bad debt provision | 119 | 31 | ||||||
Stock-based compensation expense | 2,077 | 516 | ||||||
Amortization of debt discount and debt costs | 53 | 79 | ||||||
Loss on extinguishment of debt | 341 | — | ||||||
Deferred tax expense | 1 | — | ||||||
Change in fair value of convertible debentures | 7,464 | 4,440 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 3,201 | (399 | ) | |||||
Inventory | (737 | ) | (671 | ) | ||||
Prepaid and other current assets | (19 | ) | 51 | |||||
Accounts payable | (569 | ) | 573 | |||||
Accrued expenses | (1,650 | ) | (184 | ) | ||||
Deferred revenue | 60 | 76 | ||||||
Total adjustments | 10,637 | 4,843 | ||||||
Net cash used for operating activities | (3,573 | ) | (2,404 | ) | ||||
Cash flow from investing activities: | ||||||||
Additions to patents, technology and other | (6 | ) | (7 | ) | ||||
Additions to property and equipment | (180 | ) | (136 | ) | ||||
Net cash used for investing activities | (186 | ) | (143 | ) | ||||
Cash flow from financing activities: | ||||||||
Stock option exercises | 100 | 1,395 | ||||||
Taxes paid related to restricted stock issuance | — | (12 | ) | |||||
Principal payments of capital lease obligations | — | (6 | ) | |||||
Principal repayment of debt financing | (4,638 | ) | (800 | ) | ||||
Repayment of credit line | (2,000 | ) | — | |||||
Proceeds from debt financing | 6,957 | — | ||||||
Debt issuance costs | (37 | ) | ||||||
Proceeds from issuance of common stock, net | 12,289 | 9,352 | ||||||
Net cash provided by financing activities | 12,671 | 9,929 | ||||||
Decrease in cash and equivalents | 8,912 | 7,382 | ||||||
Cash and cash equivalents, beginning of period | 15,313 | 12,185 | ||||||
Cash and cash equivalents, end of period | $ | 24,225 | $ | 19,567 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid | $ | 127 | $ | 335 | ||||
Taxes paid | $ | 31 | $ | 27 | ||||
Issuance of stock upon conversion of debentures | 21,164 | — | ||||||
Right-of-use | $ | 69 | $ | 907 | ||||
For the three months ended March 31, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Cash flow from operating activities: | ||||||||
Net loss | $ | (1,643 | ) | $ | (11,812 | ) | ||
Adjustments to reconcile net loss to net cash used for operating activities: | ||||||||
Amortization | 58 | 78 | ||||||
Depreciation | 76 | 71 | ||||||
Bad debt provision | — | 119 | ||||||
Stock-based compensation | 935 | 464 | ||||||
Amortization of debt discount and debt costs | 12 | 40 | ||||||
Loss on extinguishment of debt | — | 341 | ||||||
Deferred tax expense | — | 1 | ||||||
Change in fair value of convertible debentures | — | 7,464 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (622 | ) | 2,610 | |||||
Inventory | 647 | 149 | ||||||
Prepaid and other assets | (89 | ) | (72 | ) | ||||
Accounts payable | (1,617 | ) | (317 | ) | ||||
Accrued expenses | (1,313 | ) | (439 | ) | ||||
Deferred revenue | (7 | ) | (113 | ) | ||||
Total adjustments | (1,920 | ) | 10,396 | |||||
Net cash used for operating activities | (3,563 | ) | (1,416 | ) | ||||
Cash flow from investing activities: | ||||||||
Additions to patents, technology and other | — | (1 | ) | |||||
Additions to property and equipment | (262 | ) | (155 | ) | ||||
Net cash used for investing activities | (262 | ) | (156 | ) | ||||
Cash flow from financing activities: | ||||||||
Issuance of common stock pursuant to stock option plans | 270 | 196 | ||||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 47 | — | ||||||
Proceeds from issuance of common stock, net | 23,229 | — | ||||||
Principal repayment of debt financing | — | (4,638 | ) | |||||
Repayment on line of credit | — | (2,000 | ) | |||||
Proceeds from notes payable | — | 7,000 | ||||||
Debt issuance costs | — | (43 | ) | |||||
Net cash provided by financing activities | 23,546 | 515 | ||||||
Increase (decrease in cash and equivalents) | 19,721 | (1,057 | ) | |||||
Cash and cash equivalents, beginning of period | 27,186 | 15,313 | ||||||
Cash and cash equivalents, end of period | $ | 46,907 | $ | 14,256 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid | $ | 92 | $ | 122 | ||||
Taxes paid | $ | — | $ | 26 | ||||
Issuance of common stock upon conversion of debentures | — | 21,164 | ||||||
Right-of-use | $ | — | $ | 69 | ||||
Common Stock | Additional | Common Stock | Additional | ||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares Issued | Par Value | Paid-in Capital | Accumulated Deficit | Treasury Stock | Stockholders’ Equity | Number of | Paid-in | Accumulated | Treasury | Stockholders’ | |||||||||||||||||||||||||||||||||||||||
Balance December 31, 2019 | $ | 19,546,151 | 196 | $ | 230,615 | $ | (224,325 | ) | $ | (1,415 | ) | $ | 5,071 | ||||||||||||||||||||||||||||||||||||
Shares Issued | Par Value | Capital | Deficit | Stock | Equity | ||||||||||||||||||||||||||||||||||||||||||||
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 | 68,724 | — | (131 | ) | (131 | ) | 20,000 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | 1,393,738 | 14 | 23,215 | — | — | 23,229 | |||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to stock option plans | 44,966 | 1 | 231 | 232 | 28,934 | 1 | 270 | — | — | 271 | |||||||||||||||||||||||||||||||||||||||
Stock Issuance Net | 1,580,965 | 16 | 12,273 | — | — | 12,289 | |||||||||||||||||||||||||||||||||||||||||||
Issuance of stock upon conversion of Debentures | 1,819,466 | 18 | 21,146 | — | — | 21,164 | |||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant Employee Stock Purchase Plan | 6,354 | — | 47 | — | — | 47 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 2,077 | 2,077 | — | — | 935 | — | — | 935 | |||||||||||||||||||||||||||||||||||||||||
Net loss | (14,210 | ) | (14,210 | ) | — | — | — | (1,643 | ) | — | (1,643 | ) | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 23,060,272 | $ | 231 | $ | 266,211 | $ | (238,535 | ) | $ | (1,415 | ) | $ | 26,492 | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 25,143,432 | $ | 251 | $ | 298,106 | $ | (243,578 | ) | $ | (1,415 | ) | $ | 53,364 |
Common Stock | Additional | |||||||||||||||||||||||
Number of Shares Issued | Par Value | Paid-in Capital | Accumulated Deficit | Treasury Stock | Stockholders’ Equity | |||||||||||||||||||
Balance at March 31, 2020 | 21,425,916 | $ | 215 | $ | 252,420 | $ | (236,137 | ) | $ | (1,415 | )$ | $ | 15,083 | |||||||||||
Issuance of common stock relative to vesting of restricted stock | 45,224 | — | (131 | ) | (131 | ) | ||||||||||||||||||
Issuance of common stock pursuant to stock option plans | 8,167 | — | 36 | 36 | ||||||||||||||||||||
Stock Issuance Net | 1,580,965 | 16 | 12,273 | 12,289 | ||||||||||||||||||||
Stock-based compensation | 1,613 | 1,613 | ||||||||||||||||||||||
Net loss | (2,398 | ) | (2,398 | ) | ||||||||||||||||||||
Balance at June 30, 2020 | 23,060,272 | $ | 231 | $ | 266,211 | $ | (238,535 | ) | $ | (1,415 | ) | $ | 26,492 | |||||||||||
Common Stock | Additional | |||||||||||||||||||||||
Number of | Paid-in | Accumulated | Treasury | Stockholders’ | ||||||||||||||||||||
Shares Issued | Par Value | Capital | Deficit | Stock | Equity | |||||||||||||||||||
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 | 23,500 | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock pursuant to stock option plans | 36,799 | 1 | 195 | — | — | 196 | ||||||||||||||||||
Issuance of stock upon conversion of Debentures | 1,819,466 | 18 | 21,146 | — | — | 21,164 | ||||||||||||||||||
Stock-based compensation | 464 | 464 | ||||||||||||||||||||||
Net loss | — | — | — | (11,812 | ) | — | (11,812 | ) | ||||||||||||||||
Balance at March 31, 2020 | 21,425,916 | $ | 215 | $ | 252,420 | $ | (236,137 | ) | $ | (1,415 | ) | $ | 15,083 |
Common Stock | Additional | |||||||||||||||||||||||
Number of Shares Issued | Par Value | Paid-in Capital | 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 shares forfeited for tax obligations | 71,122 | 1 | (14 | ) | — | — | (13 | ) | ||||||||||||||||
Issuance of common stock pursuant to stock option plans | 428,313 | 4 | 1,391 | — | — | 1,395 | ||||||||||||||||||
Stock Issuance Net | 1,881,818 | 18 | 9,334 | 9,352 | ||||||||||||||||||||
Stock-based compensation | — | — | 516 | — | — | 516 | ||||||||||||||||||
Net loss | — | — | — | (7,247 | ) | — | (7,247 | ) | ||||||||||||||||
Balance at June 30, 2019 | 19,447,763 | $ | 194 | $ | 230,141 | $ | (218,021 | ) | $ | (1,415 | ) | $ | 10,899 | |||||||||||
Common Stock | Additional | |||||||||||||||||||||||
Number of Shares Issued | Par Value | Paid-in Capital | Accumulated Deficit | Treasury Stock | Stockholders’ Equity | |||||||||||||||||||
Balance at March 31, 2019 | 17,500,265 | $ | 175 | $ | 220,296 | $ | (214,491 | ) | $ | (1,415 | ) | $ | 4,565 | |||||||||||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations | 4,788 | — | (13 | ) | — | — | (13 | ) | ||||||||||||||||
Issuance of common stock pursuant to stock option plans | 60,892 | 1 | 220 | — | — | 221 | ||||||||||||||||||
Stock Issuance Net | 1,881,818 | 18 | 9,334 | 9,352 | ||||||||||||||||||||
Stock-based compensation | — | — | 304 | — | — | 304 | ||||||||||||||||||
Net loss | — | — | — | (3,530 | ) | — | (3,530 | ) | ||||||||||||||||
Balance at June 30, 2019 | 19,447,763 | 194 | $ | 230,141 | $ | (218,021 | ) | $ | (1,415 | ) | $ | 10,899 | ||||||||||||
Three months ended June 30, 2020 | ||||||||||||
Reportable Segments | ||||||||||||
Detection | Therapy | Total | ||||||||||
Major Goods/Service Lines | ||||||||||||
Products | $ | 2,702 | $ | 575 | $ | 3,277 | ||||||
Service contracts | 1,403 | 385 | 1,788 | |||||||||
Supply and source usage agreements | — | 490 | 490 | |||||||||
Other | 12 | — | 12 | |||||||||
$ | 4,117 | $ | 1,450 | $ | 5,567 | |||||||
Timing of Revenue Recognition | ||||||||||||
Goods transferred at a point in time | $ | 2,714 | $ | 605 | $ | 3,319 | ||||||
Services transferred over time | 1,403 | 845 | 2,248 | |||||||||
$ | 4,117 | $ | 1,450 | $ | 5,567 | |||||||
Sales Channels | ||||||||||||
Direct sales force | $ | 2,709 | $ | 805 | $ | 3,514 | ||||||
OEM partners | 1,408 | — | 1,408 | |||||||||
Channel partners | — | 645 | 645 | |||||||||
$ | 4,117 | $ | 1,450 | $ | 5,567 | |||||||
Three months ended March 31, 2021 | ||||||||||||
Reportable Segments | ||||||||||||
Detection | Therapy | Total | ||||||||||
Major Goods/Service Lines | ||||||||||||
Products | $ | 4,161 | $ | 2,103 | $ | 6,264 | ||||||
Service contracts | 1,558 | 340 | 1,898 | |||||||||
Supply and source usage agreements | — | 481 | 481 | |||||||||
Professional services | — | 1 | 1 | |||||||||
$ | 5,719 | $ | 2,925 | $ | 8,644 | |||||||
Timing of Revenue Recognition | ||||||||||||
Goods transferred at a point in time | $ | 4,161 | $ | 2,104 | $ | 6,265 | ||||||
Services transferred over time | 1,558 | 821 | 2,379 | |||||||||
$ | 5,719 | $ | 2,925 | $ | 8,644 | |||||||
Sales Channels | ||||||||||||
Direct sales force | $ | 3,875 | $ | 674 | $ | 4,549 | ||||||
OEM partners | 1,844 | — | 1,844 | |||||||||
Channel partners | — | 2,251 | 2,251 | |||||||||
$ | 5,719 | $ | 2,925 | $ | 8,644 |
Six months ended June 30, 2020 | ||||||||||||
Reportable Segments | ||||||||||||
Detection | Therapy | Total | ||||||||||
Major Goods/Service Lines | ||||||||||||
Products | $ | 5,802 | $ | 1,921 | $ | 7,723 | ||||||
Service contracts | 2,750 | 732 | 3,482 | |||||||||
Supply and source usage agreements | — | 861 | 861 | |||||||||
Professional services | — | 11 | 11 | |||||||||
Other | 41 | — | 41 | |||||||||
$ | 8,593 | $ | 3,525 | $ | 12,118 | |||||||
Timing of Revenue Recognition | ||||||||||||
Goods transferred at a point in time | $ | 5,843 | $ | 1,988 | $ | 7,831 | ||||||
Services transferred over time | 2,750 | 1,537 | 4,287 | |||||||||
$ | 8,593 | $ | 3,525 | $ | 12,118 | |||||||
Sales Channels | ||||||||||||
Direct sales force | $ | 4,881 | $ | 2,274 | $ | 7,155 | ||||||
OEM partners | 3,712 | — | 3,712 | |||||||||
Channel partners | — | 1,251 | 1,251 | |||||||||
$ | 8,593 | $ | 3,525 | $ | 12,118 | |||||||
Three months ended March 31, 2020 | ||||||||||||
Reportable Segments | ||||||||||||
Detection | Therapy | Total | ||||||||||
Major Goods/Service Lines | ||||||||||||
Products | $ | 3,100 | $ | 1,346 | $ | 4,446 | ||||||
Service contracts | 1,347 | 347 | 1,694 | |||||||||
Supply and source usage agreements | — | 371 | 371 | |||||||||
Professional services | — | 11 | 11 | |||||||||
Other | 29 | 0 | 29 | |||||||||
$ | 4,476 | $ | 2,075 | $ | 6,551 | |||||||
Timing of Revenue Recognition | ||||||||||||
Goods transferred at a point in time | $ | 3,129 | $ | 1,383 | $ | 4,512 | ||||||
Services transferred over time | 1,347 | 692 | 2,039 | |||||||||
$ | 4,476 | $ | 2,075 | $ | 6,551 | |||||||
Sales Channels | ||||||||||||
Direct sales force | $ | 2,172 | $ | 1,469 | $ | 3,641 | ||||||
OEM partners | 2,304 | — | 2,304 | |||||||||
Channel partners | — | 606 | 606 | |||||||||
$ | 4,476 | $ | 2,075 | $ | 6,551 |
Three months ended June 30, | ||||||||||||
Reportable Segments | ||||||||||||
Detection | Therapy | Total | ||||||||||
Major Goods/Service Lines | ||||||||||||
Products | $ | 3,808 | $ | 1,050 | $ | 4,858 | ||||||
Service contracts | 1,354 | 475 | 1,829 | |||||||||
Supply and source usage agreements | — | 526 | 526 | |||||||||
Professional services | — | 8 | 8 | |||||||||
Other | 47 | 61 | 108 | |||||||||
$ | 5,209 | $ | 2,120 | $ | 7,329 | |||||||
Timing of Revenue Recognition | ||||||||||||
Goods transferred at a point in time | $ | 3,808 | $ | 1,144 | $ | 4,952 | ||||||
Services transferred over time | 1,401 | 976 | 2,377 | |||||||||
$ | 5,209 | $ | 2,120 | $ | 7,329 | |||||||
Sales Channels | ||||||||||||
Direct sales force | $ | 2,863 | $ | 1,701 | $ | 4,564 | ||||||
OEM partners | 2,346 | — | 2,346 | |||||||||
Channel partners | — | 419 | 419 | |||||||||
$ | 5,209 | $ | 2,120 | $ | 7,329 | |||||||
Six months ended June 30, 2019 | ||||||||||||
Reportable Segments | ||||||||||||
Detection | Therapy | Total | ||||||||||
Major Goods/Service Lines | ||||||||||||
Products | $ | 6,598 | $ | 2,569 | $ | 9,167 | ||||||
Service contracts | 2,676 | 991 | 3,667 | |||||||||
Supply and source usage agreements | — | 1,063 | 1,063 | |||||||||
Professional services | — | 41 | 41 | |||||||||
Other | 103 | 61 | 164 | |||||||||
$ | 9,377 | $ | 4,725 | $ | 14,102 | |||||||
Timing of Revenue Recognition | ||||||||||||
Goods transferred at a point in time | $ | 6,598 | $ | 2,776 | $ | 9,374 | ||||||
Services transferred over time | 2,779 | 1,949 | 4,728 | |||||||||
$ | 9,377 | $ | 4,725 | $ | 14,102 | |||||||
Sales Channels | ||||||||||||
Direct sales force | $ | 4,974 | $ | 3,513 | $ | 8,487 | ||||||
OEM partners | 4,403 | — | 4,403 | |||||||||
Channel partners | — | 1,212 | 1,212 | |||||||||
$ | 9,377 | $ | 4,725 | $ | 14,102 | |||||||
June 30, 2020 | ||||
Balance at March 31, 2021 | Balance at December 31, 2020 | |||||||
Receivables, which are included in ‘Trade accounts receivable’ | $ | 10,649 | $ | 10,027 | ||||
Current contract assets, which are included in “Prepaid and other assets” | 701 | 481 | ||||||
Non-current contract assets, which are included in “other assets” | 1,478 | 1,434 | ||||||
Contract liabilities, which are included in “Deferred revenue” | 6,377 | 6,384 |
Contract liabilities | March 31, 2021 | December 31, 2020 | ||||||
Short term | $ | 5,957 | $ | 6,117 | ||||
Long term | 420 | 267 | ||||||
Total | $ | 6,377 | $ | 6,384 | ||||
Contract liabilities | June 30, 2020 | December 31, 2019 | ||||||
Short term | $ | 5,466 | $ | 5,248 | ||||
Long term | 198 | 356 | ||||||
Total | $ | 5,664 | $ | 5,604 | ||||
Six Months Ended | ||||
June 30, 2020 | ||||
Balance at beginning of period | $ | 5,604 | ||
Deferral of revenue | 5,078 | |||
Recognition of deferred revenue | (5,018 | ) | ||
Balance at end of period | $ | 5,664 | ||
Three Months Ended March 31, 2021 | ||||
Balance at beginning of period | $ | 6,384 | ||
Deferral of revenue | 3,259 | |||
Recognition of deferred revenue | (3,266 | ) | ||
Balance at end of period | $ | 6,377 | ||
Three Months Ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
Net loss | $ | (1,643 | ) | $ | (11,812 | ) | ||
Shares used in the calculation of basic and diluted net loss per share | 23,929 | 20,175 | ||||||
Diluted shares used in the calculation of net loss per share | 23,929 | 20,175 | ||||||
Net loss per share - basic and diluted | $ | (0.07 | ) | $ | (0.59 | ) | ||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net loss | $ | (2,398 | ) | $ | (3,530 | ) | $ | (14,210 | ) | $ | (7,247 | ) | ||||
Shares used in the calculation of basic and diluted net loss per share | 22,396 | 17,640 | 21,275 | 17,422 | ||||||||||||
Diluted shares used in the calculation of net loss per share | 22,396 | 17,640 | 21,275 | 17,422 | ||||||||||||
Net loss per share - basic and diluted | $ | (0.11 | ) | $ | (0.20 | ) | $ | (0.67 | ) | $ | (0.42 | ) |
Period Ended | ||||||||
June 30, | ||||||||
2020 | 2019 | |||||||
Stock options | 2,006,221 | 1,519,713 | ||||||
Restricted stock | 70,992 | 262,732 | ||||||
Convertible Debentures | — | 1,742,500 | ||||||
Total | 2,077,213 | 3,524,945 | ||||||
As of | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
Stock options | 2,246,776 | 1,747,363 | ||||||
Restricted stock | 31,654 | 74,492 | ||||||
Total | 2,278,430 | 1,821,855 | ||||||
As of June 30, 2020 | As of December 31, 2019 | |||||||
Raw materials | $ | 1,734 | $ | 1,572 | ||||
Work in process | 159 | 39 | ||||||
Finished Goods | 1,675 | 1,469 | ||||||
Inventory Gross | 3,568 | 3,080 | ||||||
Inventory Reserve | (220 | ) | (469 | ) | ||||
Inventory Net | $ | 3,348 | $ | 2,611 | ||||
March 31, 2021 | December 31, 2020 | |||||||
Raw materials | $ | 1,305 | $ | 1,538 | ||||
Work in process | 194 | 76 | ||||||
Finished Goods | 1,238 | 1,774 | ||||||
Inventory Gross | 2,737 | 3,388 | ||||||
Inventory Reserve | (239 | ) | (244 | ) | ||||
Inventory Net | $ | 2,498 | $ | 3,144 | ||||
(a) Loan and Security Agreement – Western Alliance Bank |
(b) Loan and Security Agreement – Silicon Valley Bank |
(c) Convertible Debentures |
Input | December 31, 2019 | February 21, 2019 | ||||||
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 |
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 Probability 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 | December 31, 2019 | February 21, 2020 | ||||||||||||
Fair value, in accordance with fair value option | $ | 13,642 | $ | 21,164 | $ | 13,642 | $ | 21,164 | ||||||||
Principal value outstanding | $ | 6,970 | $ | 6,970 | $ | 6,970 | $ | 6,970 | ||||||||
Fiscal Year | Amount Due | |||
2020 | $ | 188 | ||
2021 | 1,238 | |||
2022 | 2,875 | |||
2023 | 2,735 | |||
2024 | 1,004 | |||
Total | $ | 8,040 | ||
Fiscal Year | Amount Due | |||
2021 | 281 | |||
2022 | 3,224 | |||
2023 | 3,636 | |||
2024 | 712 | |||
Total | $ | 7,853 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cash interest expense | $ | 95 | $ | 75 | $ | 138 | $ | 157 | ||||||||
Interest on convertible debentures | — | 87 | 49 | 174 | ||||||||||||
Accrual of notes payable final payment | 8 | 32 | 39 | 64 | ||||||||||||
Amortization of debt costs | 12 | 7 | 19 | 14 | ||||||||||||
Interest expense capital lease | — | 1 | — | 2 | ||||||||||||
Total interest expense | $ | 115 | $ | 202 | $ | 245 | $ | 411 | ||||||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Cash interest expense | $ | 92 | $ | 43 | ||||
Interest on convertible debentures | — | 49 | ||||||
Accrual of notes payable final payment | 7 | 31 | ||||||
Amortization of debt costs | 13 | 7 | ||||||
Total interest expense | $ | 112 | $ | 130 | ||||
Lease Cost | Classification | Three Months Ended June 30, 2020 | ||||
Operating lease cost | Operating expenses | $ | 224 | |||
Capital lease costs | ||||||
Amortization of leased assets | Amortization and depreciation | 4 | ||||
Interest on lease liabilities | Interest expense | — | ||||
Total | $ | 228 | ||||
Lease Cost | Classification | Three Months Ended March 31, 2021 | ||||
Operating lease cost - Right of Use Asset | Operating expenses | $ | 217 | |||
Operating lease cost - Variable | Operating expenses | 57 | ||||
Finance lease costs | ||||||
Amortization of leased assets | Amortization and depreciation | 0 | ||||
Interest on lease liabilities | Interest expense | 0 | ||||
Total | $ | 274 |
June 30, 2020 | ||||
Three Months Ended March 31, 2021 | ||||
Cash paid from operating cash flows for operating leases | $ | 118 | ||
As of March 31, 2021 | ||||
Weighted-average remaining lease term of operating leases (in years) | 1.96 | |||
Weighted-average discount rate for operating leases | 5.5 | % |
As of June 30, 2020: | Operating Leases | Finance Leases | Total | |||||||||
2020 | $ | 457 | 4 | 461 | ||||||||
2021 | 920 | — | 920 | |||||||||
2022 | 899 | — | 899 | |||||||||
2023 | 211 | — | 211 | |||||||||
2024 | 5 | — | 5 | |||||||||
Total lease payments | 2,492 | 4 | 2,496 | |||||||||
Less: imputed interest | (186 | ) | — | (186 | ) | |||||||
Total lease liabilities | 2,306 | 4 | 2,310 | |||||||||
Less: current portion of lease liabilities | (809 | ) | (4 | ) | (813 | ) | ||||||
Long-term lease liabilities | $ | 1,497 | $ | — | $ | 1,497 | ||||||
Three Months Ended March 31, 2021: | Operating Leases | |||
2021 | 692 | |||
2022 | 899 | |||
2023 | 211 | |||
2024 | 5 | |||
Total lease payments | 1,807 | |||
Less: imputed interest | (100 | ) | ||
Total lease liabilities | 1,707 | |||
Less: current portion of lease liabilities | (847 | ) | ||
Long-term lease liabilities | $ | 860 | ||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Average risk-free interest rate | 0.26% | 1.97% | 0.79% | 2.23% | ||||
Expected dividend yield | NaN | NaN | NaN | NaN | ||||
Expected life | 3.5 years | 3.5 years | 3.5 years | 3.5 years | ||||
Expected volatility | 64.0% to 65.7% | 51.9% to 54.2% | 50.2 to 65.7% | 51.9% to 54.2% | ||||
Weighted average exercise price | $10.76 | $5.81 | $10.11 | $4.78 | ||||
Weighted average fair value | $4.96 | $2.35 | $4.34 | $1.93 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cost of revenue | $ | 24 | $ | 1 | $ | 24 | $ | 2 | ||||||||
Engineering and product development | 288 | 32 | 343 | 119 | ||||||||||||
Marketing and sales | 490 | 57 | 548 | 116 | ||||||||||||
General and administrative | 811 | 214 | 1,162 | 279 | ||||||||||||
$ | 1,613 | $ | 304 | $ | 2,077 | $ | 516 | |||||||||
March 31, | ||||
2021 | 2020 | |||
Average risk-free interest rate | 0.20% | 1.24% | ||
Expected dividend yield | NaN | NaN | ||
Expected life | 3.5 years | 3.5 years | ||
Expected volatility | 66.0% to 66.0% | 50.2% to 64.0% | ||
Weighted average exercise price | $18.00 | $8.26 | ||
Weighted average fair value | $8.37 | $3.19 |
Three Months Ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
Cost of revenue | $ | 14 | $ | 1 | ||||
Engineering and product development | 149 | 54 | ||||||
Marketing and sales | 353 | 58 | ||||||
General and administrative | 419 | 351 | ||||||
$ | 935 | $ | 464 | |||||
Remaining expense | $ | 1,442 | ||
Weighted average term | 1.0 |
Remaining expense | $ | 3,823 | ||
Weighted average term | 1.26 |
As of | As of | |||||||||||||||
June 30, | March 31, | |||||||||||||||
Aggregate intrinsic value | 2020 | 2019 | 2021 | 2020 | ||||||||||||
Stock options | $ | 8,992 | $ | 2,273 | $ | 29,305 | $ | 2,273 | ||||||||
Restricted stock | 709 | 1,674 | 672 | 1,396 |
Level 1 - Quoted prices in active markets for identical assets or liabilities. |
Fair Value Measurements as of December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 27,186 | — | — | $ | 27,186 | ||||||||||
Total Assets | $ | 27,186 | — | — | $ | 27,186 | ||||||||||
Fair Value Measurements (in thousands) as of March 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 46,907 | — | — | $ | 46,907 | ||||||||||
Total Assets | $ | 46,907 | — | — | $ | 46,907 | ||||||||||
Fair Value Measurements (in thousands) 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 June 30, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 24,225 | $ | — | $ | — | $ | 24,225 | ||||||||
Total Assets | $ | 24,225 | $ | — | $ | — | $ | 24,225 | ||||||||
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, 201 9 | — | 8,362 | — | 8,362 | ||||||||||||
Balance at June 30, 2020 | $ | — | $ | 8,362 | $ | — | $ | 8,362 | ||||||||
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 | ) | ||||||||||
Balance at December 31, 2020 and March 31, 2021 | — | 8,362 | — | 8,362 | ||||||||||||
A significant decrease in the market price of a long-lived asset (or asset |
Three Months Ended | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | March 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | |||||||||||||||||||
Segment revenues: | ||||||||||||||||||||||||
Detection | $ | 4,117 | $ | 5,209 | $ | 8,593 | $ | 9,377 | $ | 5,719 | $ | 4,476 | ||||||||||||
Therapy | 1,450 | 2,120 | 3,525 | 4,725 | 2,925 | 2,075 | ||||||||||||||||||
Total Revenue | $ | 5,567 | $ | 7,329 | $ | 12,118 | $ | 14,102 | $ | 8,644 | $ | 6,551 | ||||||||||||
Segment gross profit: | ||||||||||||||||||||||||
Detection | $ | 3,533 | $ | 4,356 | $ | 7,000 | $ | 7,823 | $ | 4,725 | $ | 3,467 | ||||||||||||
Therapy | 824 | 1,370 | 1,867 | $ | 3,185 | 1,564 | 1,043 | |||||||||||||||||
Segment gross profit | $ | 4,357 | $ | 5,726 | $ | 8,867 | $ | 11,008 | $ | 6,289 | $ | 4,510 | ||||||||||||
Segment operating income (loss): | ||||||||||||||||||||||||
Detection | $ | 201 | $ | 673 | $ | (145 | ) | $ | 975 | $ | 941 | $ | (346 | ) | ||||||||||
Therapy | (432 | ) | (264 | ) | (1,438 | ) | $ | (43 | ) | (312 | ) | (1,006 | ) | |||||||||||
Segment operating income (loss) | $ | (231 | ) | $ | 409 | $ | (1,583 | ) | $ | 932 | $ | 629 | $ | (1,352 | ) | |||||||||
General, administrative, depreciation and amortization expense | $ | (2,080 | ) | $ | (1,867 | ) | $ | (4,621 | ) | $ | (3,424 | ) | $ | (2,162 | ) | $ | (2,541 | ) | ||||||
Interest expense | (115 | ) | (202 | ) | (245 | ) | (411 | ) | (112 | ) | (130 | ) | ||||||||||||
Other income | 33 | 64 | 75 | 123 | 2 | 42 | ||||||||||||||||||
Loss on extinguishment of debt | — | — | (341 | ) | — | — | (341 | ) | ||||||||||||||||
Fair value of convertible debentures | — | (1,915 | ) | (7,464 | ) | (4,440 | ) | — | (7,464 | ) | ||||||||||||||
Loss before income tax | $ | (2,393 | ) | $ | (3,511 | ) | $ | (14,179 | ) | $ | (7,220 | ) | $ | (1,643 | ) | $ | (11,786 | ) | ||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended June 30, | Three months ended March 31, | |||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2021 | 2020 | Change | % Change | |||||||||||||||||||||||||
Detection revenue | ||||||||||||||||||||||||||||||||
Product revenue | $ | 2,702 | $ | 3,808 | $ | (1,106 | ) | (29.0 | )% | $ | 4,161 | $ | 3,100 | $ | 1,061 | 34.2 | % | |||||||||||||||
Service revenue | 1,415 | 1,401 | 14 | 1.0 | % | |||||||||||||||||||||||||||
Service and supplies revenue | 1,558 | 1,376 | 182 | 13.2 | % | |||||||||||||||||||||||||||
Subtotal | 4,117 | 5,209 | (1,092 | ) | (21.0 | )% | 5,719 | 4,476 | 1,243 | 27.8 | % | |||||||||||||||||||||
Therapy revenue | ||||||||||||||||||||||||||||||||
Product revenue | 186 | 545 | (359 | ) | (65.9 | )% | 1,396 | 695 | 701 | 100.9 | % | |||||||||||||||||||||
Service revenue | 1,264 | 1,575 | (311 | ) | (19.7 | )% | ||||||||||||||||||||||||||
Service and supplies revenue | 1,529 | 1,380 | 149 | 10.8 | % | |||||||||||||||||||||||||||
Subtotal | 1,450 | 2,120 | (670 | ) | (31.6 | )% | 2,925 | 2,075 | 850 | 41.0 | % | |||||||||||||||||||||
Total revenue | $ | 5,567 | $ | 7,329 | $ | (1,762 | ) | (24.0 | )% | $ | 8,644 | $ | 6,551 | $ | 2,093 | 31.9 | % | |||||||||||||||
Six months ended June 30, | ||||||||||||||||
2020 | 2019 | $ Change | % Change | |||||||||||||
Detection revenue | ||||||||||||||||
Product revenue | $ | 5,802 | $ | 6,598 | $ | (796 | ) | (12.1 | )% | |||||||
Service revenue | 2,791 | 2,779 | 12 | 0.4 | % | |||||||||||
Subtotal | 8,593 | 9,377 | (784 | ) | (8.4 | )% | ||||||||||
Therapy revenue | ||||||||||||||||
Product revenue | 881 | 1,577 | (696 | ) | (44.1 | )% | ||||||||||
Service revenue | 2,644 | 3,148 | (504 | ) | (16.0 | )% | ||||||||||
Subtotal | 3,525 | 4,725 | (1,200 | ) | (25.4 | )% | ||||||||||
Total revenue | $ | 12,118 | $ | 14,102 | $ | (1,984 | ) | (14.1 | )% | |||||||
Three months ended June 30, | Three months ended March 31, | |||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2021 | 2020 | Change | % Change | |||||||||||||||||||||||||
Products | $ | 537 | $ | 645 | $ | (108 | ) | (16.7 | )% | $ | 1,409 | $ | 1,017 | $ | 392 | 38.5 | % | |||||||||||||||
Service and supplies | 575 | 858 | (283 | ) | (33.0 | )% | 867 | 927 | (60 | ) | (6.5 | )% | ||||||||||||||||||||
Amortization and depreciation | 98 | 100 | (2 | ) | (2.0 | )% | 79 | 97 | (18 | ) | (18.6 | )% | ||||||||||||||||||||
Total cost of revenue | $ | 1,210 | $ | 1,603 | $ | (393 | ) | (24.5 | )% | $ | 2,355 | $ | 2,041 | $ | 314 | 15.4 | % | |||||||||||||||
Gross profit | $ | 4,357 | $ | 5,726 | $ | (1,369 | ) | (23.9 | )% | $ | 6,289 | $ | 4,510 | $ | 1,779 | 39.4 | % | |||||||||||||||
Three months ended March 31, | ||||||||||||||||||||||||||||||||
Three months ended June 30, | 2021 | 2020 | Change | % Change | ||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||||||
Detection gross profit | $ | 3,533 | $ | 4,356 | $ | (823 | ) | (18.9 | %) | $ | 4,725 | $ | 3,467 | $ | 1,258 | 36.3 | % | |||||||||||||||
Therapy gross profit | 824 | 1,370 | (546 | ) | (39.9 | %) | 1,564 | 1,043 | 521 | 50.0 | % | |||||||||||||||||||||
Gross profit | $ | 4,357 | $ | 5,726 | $ | (1,369 | ) | (23.9 | )% | $ | 6,289 | $ | 4,510 | $ | 1,779 | 39.4 | % | |||||||||||||||
Gross profit % | 72.8 | % | 68.8 | % |
Six months ended June 30, | ||||||||||||||||
2020 | 2019 | $ Change | % Change | |||||||||||||
Products | $ | 1,554 | $ | 1,325 | $ | 229 | 17.3 | % | ||||||||
Service and supplies | 1,502 | 1,575 | (73 | ) | (4.6 | )% | ||||||||||
Amortization and depreciation | 195 | 194 | 1 | 0.5 | % | |||||||||||
Total cost of revenue | $ | 3,251 | $ | 3,094 | $ | 157 | 5.1 | % | ||||||||
Gross profit | $ | 8,867 | $ | 11,008 | $ | (2,141 | ) | (19.4 | )% | |||||||
Six months ended June 30, | ||||||||||||||||
2020 | 2019 | $ Change | % Change | |||||||||||||
Detection gross profit | $ | 7,000 | $ | 7,823 | $ | (823 | ) | (10.5 | %) | |||||||
Therapy gross profit | 1,867 | 3,185 | (1,318 | ) | (41.4 | %) | ||||||||||
Gross profit | 8,867 | 11,008 | (2,141 | ) | (19.4 | %) | ||||||||||
Three months ended June 30, | ||||||||||||||||
2020 | 2019 | Change | Change % | |||||||||||||
Operating expenses: | ||||||||||||||||
Engineering and product development | $ | 1,878 | $ | 2,139 | $ | (261 | ) | (12.2 | )% | |||||||
Marketing and sales | 2,631 | 3,120 | (489 | ) | (15.7 | )% | ||||||||||
General and administrative | 2,110 | 1,858 | 252 | 13.6 | % | |||||||||||
Amortization and depreciation | 49 | 67 | (18 | ) | (26.9 | )% | ||||||||||
Total operating expenses | $ | 6,668 | $ | 7,184 | $ | (516 | ) | (7.2 | )% | |||||||
Three months ended March 31, | ||||||||||||||||
2021 | 2020 | Change $ | Change % | |||||||||||||
Operating expenses: | ||||||||||||||||
Engineering and product development | $ | 2,192 | $ | 2,211 | $ | (19 | ) | (0.9 | )% | |||||||
Marketing and sales | 3,424 | 3,608 | (184 | ) | (5.1 | )% | ||||||||||
General and administrative | 2,151 | 2,532 | (381 | ) | (15.0 | )% | ||||||||||
Amortization and depreciation | 55 | 52 | 3 | 5.8 | % | |||||||||||
Total operating expenses | $ | 7,822 | $ | 8,403 | $ | (581 | ) | (6.9 | )% | |||||||
Six months ended June 30, | ||||||||||||||||
2020 | 2019 | Change | Change % | |||||||||||||
Operating expenses: | ||||||||||||||||
Engineering and product development | $ | 4,089 | $ | 4,266 | $ | (177 | ) | (4.1 | )% | |||||||
Marketing and sales | 6,239 | 5,693 | 546 | 9.6 | % | |||||||||||
General and administrative | 4,642 | 3,404 | 1,238 | 36.4 | % | |||||||||||
Amortization and depreciation | 101 | 137 | (36 | ) | (26.3 | )% | ||||||||||
Total operating expenses | $ | 15,071 | $ | 13,500 | $ | 1,571 | 11.6 | % | ||||||||
Three months ended June 30, | ||||||||||||||||
2020 | 2019 | Change | Change % | |||||||||||||
Interest expense | $ | (115 | ) | $ | (202 | ) | $ | 87 | (43.1 | )% | ||||||
Other income | 33 | 64 | (31 | ) | (48.4 | )% | ||||||||||
Loss on fair value of debentures | — | (1,915 | ) | 1,915 | (100.0 | )% | ||||||||||
$ | (82 | ) | $ | (2,053 | ) | $ | 1,971 | (96.0 | )% | |||||||
Tax benefit (expense) | (5 | ) | (19 | ) | 14 | (73.7 | )% |
Three months ended March 31, | ||||||||||||||||
2021 | 2020 | Change $ | Change % | |||||||||||||
Interest expense | $ | (112 | ) | $ | (130 | ) | $ | 18 | (13.8 | )% | ||||||
Loss on extinguishment of debt | — | (341 | ) | 341 | (100.0 | )% | ||||||||||
Other income | 2 | 42 | (40 | ) | (95.2 | )% | ||||||||||
Loss on fair value of debentures | — | (7,464 | ) | 7,464 | (100.0 | )% | ||||||||||
$ | (110 | ) | $ | (7,893 | ) | $ | 7,783 | (98.6 | )% | |||||||
Tax expense | $ | — | $ | (26 | ) | $ | 26 | (100.0 | )% |
Six months ended June 30, | ||||||||||||||||
2020 | 2019 | Change | Change % | |||||||||||||
Interest expense | $ | (245 | ) | $ | (411 | ) | $ | 166 | (40.4 | )% | ||||||
Other income | 75 | 123 | (48 | ) | (39.0 | )% | ||||||||||
Loss on fair value of debentures | (7,464 | ) | (4,440 | ) | (3,024 | ) | 68.1 | % | ||||||||
$ | (7,634 | ) | $ | (4,728 | ) | $ | (2,906 | ) | 61.5 | % | ||||||
Tax expense | $ | (31 | ) | $ | (27 | ) | $ | (4 | ) | 14.8 | % |
For the six-months ended June 30, | For the three months ended March 31, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net cash used for operating activities | $ | (3,573 | ) | $ | (2,404 | ) | $ | (3,563 | ) | $ | (1,416 | ) | ||||
Net cash used for investing activities | (186 | ) | (143 | ) | (262 | ) | (156 | ) | ||||||||
Net cash provided by financing activities | 12,671 | 9,929 | 23,546 | 515 | ||||||||||||
Decrease in cash and equivalents | $ | 8,912 | $ | 7,382 | ||||||||||||
Increase (decrease) in cash and equivalents | $ | 19,721 | $ | (1,057 | ) | |||||||||||
Total | Less than 1 year | 1-3 years | 3-5 years | 5+ years | ||||||||||||||||
Operating Lease Obligations | $ | 2,496,532 | $ | 922,858 | $ | 1,564,314 | $ | 9,360 | $ | — | ||||||||||
Finance Lease Obligations | 4,683 | 4,683 | — | — | — | |||||||||||||||
Settlement Obligations | 463,262 | 463,262 | — | — | — | |||||||||||||||
Notes Payable | 8,039,336 | 372,604 | 5,312,740 | 2,353,992 | — | |||||||||||||||
Other Commitments | 4,456,329 | 4,456,329 | — | — | — | |||||||||||||||
Total Contractual Obligations | $ | 15,460,143 | $ | 6,219,737 | $ | 6,877,054 | $ | 2,363,352 | $ | — | ||||||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors: |
Item 6. | Exhibits |
* | Filed herewith |
** | Furnished herewith |
iCAD, Inc. |
(Registrant) |
Date: May 4, 2021 | ||||||||
By: | /s/ Michael Klein | |||||||
Name: | Michael Klein | |||||||
Title: | Chief Executive Officer | |||||||
(Principal Executive Officer) | ||||||||
By: | /s/ R. Scott Areglado | |||||||
Name: | R. Scott Areglado | |||||||
Title: | Chief Financial Officer | |||||||
(Principal Financial Officer) |