☒ | 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 | ||||||
41 | ||||||
PART II | ||||||
42 | ||||||
Item | 42 | |||||
Item 1A | 43 | |||||
Item 6 | 44 | |||||
45 |
March 31, | December 31, | June 30, | December 31, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 46,907 | $ | 27,186 | $ | 37,889 | $ | 27,186 | ||||||||
Trade accounts receivable, net of allowance for doubtful accounts of $111 in 2021 and $111 in 2020 | 10,649 | 10,027 | ||||||||||||||
Trade accounts receivable, net of allowance for doubtful accounts of $104 in 2021 and $111 in 2020 | 11,107 | 10,027 | ||||||||||||||
Inventory, net | 2,498 | 3,144 | 2,861 | 3,144 | ||||||||||||
Prepaid expenses and other current assets | 2,188 | 1,945 | 1,742 | 1,945 | ||||||||||||
Total current assets | 62,242 | 42,302 | 53,599 | 42,302 | ||||||||||||
Property and equipment, net of accumulated depreciation of $6,854 in 2021 and $6,778 in 2020 | �� | 930 | 744 | |||||||||||||
Property and equipment, net of accumulated depreciation of $6,935 in 2021 and $6,778 in 2020 | 921 | 744 | ||||||||||||||
Operating lease assets | 1,565 | 1,758 | 1,370 | 1,758 | ||||||||||||
Other assets | 1,564 | 1,527 | 1,532 | 1,527 | ||||||||||||
Intangible assets, net of accumulated amortization of $8,552 in 2021 and $8,494 in 2020 | 831 | 889 | ||||||||||||||
Intangible assets, net of accumulated amortization of $8,610 in 2021 and $8,494 in 2020 | 777 | 889 | ||||||||||||||
Goodwill | 8,362 | 8,362 | 8,362 | 8,362 | ||||||||||||
Total assets | $ | 75,494 | $ | 55,582 | $ | 66,561 | $ | 55,582 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 1,251 | $ | 2,869 | $ | 1,039 | $ | 2,869 | ||||||||
Accrued and other expenses | 5,819 | 7,039 | 6,606 | 7,039 | ||||||||||||
Notes payable - current portion | 269 | 0 | ||||||||||||||
Lease payable - current portion | 847 | 726 | 851 | 726 | ||||||||||||
Deferred revenue | 5,957 | 6,117 | 5,964 | 6,117 | ||||||||||||
Total current liabilities | 14,143 | 16,751 | 14,460 | 16,751 | ||||||||||||
Lease payable, long-term portion | 860 | 1,075 | 646 | 1,075 | ||||||||||||
Notes payable, long-term portion | 6,703 | 6,960 | — | 6,960 | ||||||||||||
Deferred revenue, long-term portion | 420 | 267 | 424 | 267 | ||||||||||||
Deferred tax | 4 | 4 | 4 | 4 | ||||||||||||
Total liabilities | 22,130 | 25,057 | 15,534 | 25,057 | ||||||||||||
Commitments and Contingencies (Note 7) | 0 | 0 | 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 | ||||||||||||||
Preferred stock, $0.01 par value: authorized 1,000,000 shares; NaN issued. | 0— | 0— | ||||||||||||||
Common stock, $0.01 par value: authorized 30,000,000 shares; issued 25,213,302 as of June 30, 2021 and23,693,735 as of December 31, 2020. | ||||||||||||||||
Outstanding 25,027,471 as of June 30, 2021 and 23,508,575 as of December 31, 2020. | 251 | 236 | ||||||||||||||
Additional paid-in capital | 298,106 | 273,639 | 299,049 | 273,639 | ||||||||||||
Accumulated deficit | (243,578 | ) | (241,935 | ) | (246,858 | ) | (241,935 | ) | ||||||||
Treasury stock at cost, 185,831 shares in 2021 and 2020 | (1,415 | ) | (1,415 | ) | (1,415 | ) | (1,415 | ) | ||||||||
Total stockholders’ equity | 53,364 | 30,525 | 51,027 | 30,525 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 75,494 | $ | 55,582 | $ | 66,561 | $ | 55,582 | ||||||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Products | $ | 5,557 | $ | 3,795 | $ | 4,552 | $ | 2,888 | $ | 10,109 | $ | 6,683 | ||||||||||||
Service and supplies | 3,087 | 2,756 | 3,274 | 2,679 | 6,361 | 5,435 | ||||||||||||||||||
Total revenue | 8,644 | 6,551 | 7,826 | 5,567 | 16,470 | 12,118 | ||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||
Products | 1,409 | 1,017 | 1,377 | 537 | 2,786 | 1,554 | ||||||||||||||||||
Service and supplies | 867 | 927 | 832 | 575 | 1,699 | 1,502 | ||||||||||||||||||
Amortization and depreciation | 79 | 97 | 79 | 98 | 158 | 195 | ||||||||||||||||||
Total cost of revenue | 2,355 | 2,041 | 2,288 | 1,210 | 4,643 | 3,251 | ||||||||||||||||||
Gross profit | 6,289 | 4,510 | 5,538 | 4,357 | 11,827 | 8,867 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Engineering and product development | 2,192 | 2,211 | 2,268 | 1,878 | 4,460 | 4,089 | ||||||||||||||||||
Marketing and sales | 3,424 | 3,608 | 3,429 | 2,631 | 6,853 | 6,239 | ||||||||||||||||||
General and administrative | 2,151 | 2,532 | 2,652 | 2,110 | 4,803 | 4,642 | ||||||||||||||||||
Amortization and depreciation | 55 | 52 | 60 | 49 | 115 | 101 | ||||||||||||||||||
Total operating expenses | 7,822 | 8,403 | 8,409 | 6,668 | 16,231 | 15,071 | ||||||||||||||||||
Loss from operations | (1,533 | ) | (3,893 | ) | (2,871 | ) | (2,311 | ) | (4,404 | ) | (6,204 | ) | ||||||||||||
Interest expense | (112 | ) | (130 | ) | (28 | ) | (115 | ) | (140 | ) | (245 | ) | ||||||||||||
Other income | 2 | 42 | 5 | 33 | 7 | 75 | ||||||||||||||||||
Loss on extinguishment of debt | — | (341 | ) | (386 | ) | — | (386 | ) | (341 | ) | ||||||||||||||
Loss on fair value of convertible debentures | — | (7,464 | ) | — | — | — | (7,464 | ) | ||||||||||||||||
Other expense, net | (110 | ) | (7,893 | ) | (409 | ) | (82 | ) | (519 | ) | (7,975 | ) | ||||||||||||
Loss before income tax expense | (1,643 | ) | (11,786 | ) | (3,280 | ) | (2,393 | ) | (4,923 | ) | (14,179 | ) | ||||||||||||
Tax expense | 0 | (26 | ) | — | (5 | ) | — | (31 | ) | |||||||||||||||
Net loss and comprehensive loss | $ | (1,643 | ) | $ | (11,812 | ) | $ | (3,280 | ) | $ | (2,398 | ) | $ | (4,923 | ) | $ | (14,210 | ) | ||||||
Net loss per share: | ||||||||||||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.59 | ) | $ | (0.13 | ) | $ | (0.11 | ) | $ | (0.20 | ) | $ | (0.67 | ) | ||||||
Diluted | $ | (0.07 | ) | $ | (0.59 | ) | $ | (0.13 | ) | $ | (0.11 | ) | $ | (0.20 | ) | $ | (0.67 | ) | ||||||
Weighted average number of shares used in computing loss per share: | ||||||||||||||||||||||||
Basic | 23,929 | 20,175 | 24,989 | 22,396 | 24,462 | 21,275 | ||||||||||||||||||
Diluted | 23,929 | 20,175 | 24,989 | 22,396 | 24,462 | 21,275 | ||||||||||||||||||
For the Six Months ended | ||||||||||||||||
For the three months ended March 31, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Cash flow from operating activities: | ||||||||||||||||
Net loss | $ | (1,643 | ) | $ | (11,812 | ) | $ | (4,923 | ) | $ | (14,210 | ) | ||||
Adjustments to reconcile net loss to net cash used for operating activities: | ||||||||||||||||
Amortization | 58 | 78 | 157 | 154 | ||||||||||||
Depreciation | 76 | 71 | 115 | 142 | ||||||||||||
Bad debt provision | — | 119 | (3 | ) | 119 | |||||||||||
Stock-based compensation | 935 | 464 | 1,446 | 2,077 | ||||||||||||
Amortization of debt discount and debt costs | 12 | 40 | 17 | 53 | ||||||||||||
Loss on extinguishment of debt | — | 341 | 386 | 341 | ||||||||||||
Deferred tax expense | — | 1 | — | 1 | ||||||||||||
Change in fair value of convertible debentures | — | 7,464 | — | 7,464 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | (622 | ) | 2,610 | (924 | ) | 3,201 | ||||||||||
Inventory | 647 | 149 | 284 | (737 | ) | |||||||||||
Prepaid and other assets | (89 | ) | (72 | ) | 510 | (19 | ) | |||||||||
Accounts payable | (1,617 | ) | (317 | ) | (1,829 | ) | (569 | ) | ||||||||
Accrued expenses | (1,313 | ) | (439 | ) | (736 | ) | (1,650 | ) | ||||||||
Deferred revenue | (7 | ) | (113 | ) | (77 | ) | 60 | |||||||||
Total adjustments | (1,920 | ) | 10,396 | (654 | ) | 10,637 | ||||||||||
Net cash used for operating activities | (3,563 | ) | (1,416 | ) | (5,577 | ) | (3,573 | ) | ||||||||
Cash flow from investing activities: | ||||||||||||||||
Additions to patents, technology and other | — | (1 | ) | — | (6 | ) | ||||||||||
Additions to property and equipment | (262 | ) | (155 | ) | (336 | ) | (180 | ) | ||||||||
Net cash used for investing activities | (262 | ) | (156 | ) | (336 | ) | (186 | ) | ||||||||
Cash flow from financing activities: | ||||||||||||||||
Issuance of common stock pursuant to stock option plans | 270 | 196 | 636 | 100 | ||||||||||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 47 | — | 114 | — | ||||||||||||
Proceeds from issuance of common stock, net | 23,229 | — | 23,229 | 12,289 | ||||||||||||
Principal repayment of debt financing | — | (4,638 | ) | (7,363 | ) | (4,638 | ) | |||||||||
Repayment on line of credit | — | (2,000 | ) | — | (2,000 | ) | ||||||||||
Proceeds from notes payable | — | 7,000 | — | 6,957 | ||||||||||||
Debt issuance costs | — | (43 | ) | — | (37 | ) | ||||||||||
Net cash provided by financing activities | 23,546 | 515 | 16,616 | 12,671 | ||||||||||||
Increase (decrease in cash and equivalents) | 19,721 | (1,057 | ) | |||||||||||||
Increase in cash and equivalents | 10,703 | 8,912 | ||||||||||||||
Cash and cash equivalents, beginning of period | 27,186 | 15,313 | 27,186 | 15,313 | ||||||||||||
Cash and cash equivalents, end of period | $ | 46,907 | $ | 14,256 | $ | 37,889 | $ | 24,225 | ||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||
Interest paid | $ | 92 | $ | 122 | $ | 92 | $ | 127 | ||||||||
Taxes paid | $ | — | $ | 26 | $ | — | $ | 31 | ||||||||
Issuance of common stock upon conversion of debentures | — | 21,164 | — | 21,164 | ||||||||||||
Right-of-use | $ | — | $ | 69 | $ | — | $ | 69 | ||||||||
Common Stock | Additional | |||||||||||||||||||||||
Number of | Paid-in | Accumulated | Treasury | Stockholders’ | ||||||||||||||||||||
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 | 29,166 | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock, net | 1,393,738 | 14 | 23,215 | — | — | 23,229 | ||||||||||||||||||
Issuance of common stock pursuant to stock option plans | 83,748 | 1 | 635 | — | — | 636 | ||||||||||||||||||
Issuance of common stock pursuant Employee Stock Purchase Plan | 12,244 | — | 114 | — | — | 114 | ||||||||||||||||||
Stock-based compensation | — | — | 1,446 | — | — | 1,446 | ||||||||||||||||||
Net loss | — | — | — | (4,923 | ) | — | (4,923 | ) | ||||||||||||||||
Balance at June 30, 2021 | 25,213,302 | $ | 251 | $ | 299,049 | $ | (246,858 | ) | $ | (1,415 | ) | $ | 51,027 | |||||||||||
Common Stock | Additional | |||||||||||||||||||||||
Number of | Paid-in | Accumulated | Treasury | Stockholders’ | ||||||||||||||||||||
Shares Issued | Par Value | Capital | Deficit | Stock | Equity | |||||||||||||||||||
Balance at March 31, 2021 | 25,143,432 | 251 | 298,106 | (243,578 | ) | (1,415 | ) | $ | 53,364 | |||||||||||||||
Issuance of common stock relative to vesting of restricted stock | 9,166 | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock, net | 54,814 | — | 365 | — | — | 365 | ||||||||||||||||||
Issuance of common stock pursuant to stock option plans | — | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock pursuant Employee Stock Purchase Plan | 5,890 | — | 67 | — | — | 67 | ||||||||||||||||||
Stock-based compensation | — | — | 511 | — | — | 511 | ||||||||||||||||||
Net loss | — | — | — | (3,280 | ) | — | (3,280 | ) | ||||||||||||||||
Balance at June 30, 2021 | 25,213,302 | $ | 251 | $299,049 | $ | (246,858 | ) | $ | (1,415 | ) | $ | 51,027 | ||||||||||||
Common Stock | Additional | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
Number of | Paid-in | Accumulated | Treasury | Stockholders’ | Number of Shares Issued | Par Value | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Balance 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 | 20,000 | — | — | — | — | — | 68,724 | — | (131 | ) | — | — | (131 | ) | |||||||||||||||||||||||||||||||||||
Issuance of common stock, net | 1,393,738 | 14 | 23,215 | — | — | 23,229 | |||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to stock option plans | 28,934 | 1 | 270 | — | — | 271 | 44,966 | 1 | 231 | — | 232 | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant Employee Stock Purchase Plan | 6,354 | — | 47 | — | — | 47 | |||||||||||||||||||||||||||||||||||||||||||
Stock Issuance Net | 1,562,500 | 16 | 12,158 | — | — | 12,174 | |||||||||||||||||||||||||||||||||||||||||||
ESPP Issuance | 18,465 | — | 115 | — | — | 115 | |||||||||||||||||||||||||||||||||||||||||||
Issuance of stock upon conversion of Debentures | 1,819,466 | 18 | 21,146 | — | — | 21,164 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 935 | — | — | 935 | — | — | 2,077 | — | — | 2,077 | |||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (1,643 | ) | — | (1,643 | ) | — | — | — | (14,210 | ) | — | (14,210 | ) | |||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 25,143,432 | $ | 251 | $ | 298,106 | $ | (243,578 | ) | $ | (1,415 | ) | $ | 53,364 | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 23,060,272 | $ | 231 | $ | 266,211 | $ | (238,535 | ) | $ | (1,415 | ) | $ | 26,492 | |||||||||||||||||||||||||||||||||||
Common Stock | Additional | Common Stock | Additional Paid-in Capital | |||||||||||||||||||||||||||||||||||||||||||||
Number of | Paid-in | Accumulated | Treasury | Stockholders’ | Number of Shares Issued | Par Value | Accumulated Deficit | Treasury Stock | Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||
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 | 23,500 | — | — | — | — | — | 45,224 | — | (131 | ) | — | — | (131 | ) | ||||||||||||||||||||||||||||||||||
Issuance of common stock pursuant to stock option plans | 36,799 | 1 | 195 | — | — | 196 | 8,167 | — | 36 | — | — | 36 | ||||||||||||||||||||||||||||||||||||
Issuance of stock upon conversion of Debentures | 1,819,466 | 18 | 21,146 | — | — | 21,164 | ||||||||||||||||||||||||||||||||||||||||||
Stock Issuance Net | 1,562,500 | 16 | 12,158 | — | — | 12,174 | ||||||||||||||||||||||||||||||||||||||||||
ESPP Issuance | 18,465 | 115 | — | — | 115 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 464 | 464 | — | — | 1,613 | — | — | 1,613 | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (11,812 | ) | — | (11,812 | ) | — | — | — | (2,398 | ) | — | (2,398 | ) | ||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 21,425,916 | $ | 215 | $ | 252,420 | $ | (236,137 | ) | $ | (1,415 | ) | $ | 15,083 | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 23,060,272 | $ | 231 | $ | 266,211 | $ | (238,535 | ) | $ | (1,415 | ) | $ | 26,492 | |||||||||||||||||||||||||||||||||||
Three months ended March 31, 2021 | Three months ended June 30, 2021 | |||||||||||||||||||||||
Reportable Segments | Reportable Segments | |||||||||||||||||||||||
Detection | Therapy | Total | Detection | Therapy | Total | |||||||||||||||||||
Major Goods/Service Lines | ||||||||||||||||||||||||
Products | $ | 4,161 | $ | 2,103 | $ | 6,264 | $ | 3,164 | $ | 2,119 | $ | 5,283 | ||||||||||||
Service contracts | 1,558 | 340 | 1,898 | 1,625 | 371 | 1,996 | ||||||||||||||||||
Supply and source usage agreements | — | 481 | 481 | — | 529 | 529 | ||||||||||||||||||
Professional services | — | 1 | 1 | — | 18 | 18 | ||||||||||||||||||
Other | — | — | �� | — | ||||||||||||||||||||
$ | 4,789 | $ | 3,037 | $ | 7,826 | |||||||||||||||||||
$ | 5,719 | $ | 2,925 | $ | 8,644 | |||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||
Goods transferred at a point in time | $ | 4,161 | $ | 2,104 | $ | 6,265 | $ | 3,164 | $ | 2,136 | $ | 5,300 | ||||||||||||
Services transferred over time | 1,558 | 821 | 2,379 | 1,625 | 901 | 2,526 | ||||||||||||||||||
$ | 4,789 | $ | 3,037 | $ | 7,826 | |||||||||||||||||||
$ | 5,719 | $ | 2,925 | $ | 8,644 | |||||||||||||||||||
Sales Channels | ||||||||||||||||||||||||
Direct sales force | $ | 3,875 | $ | 674 | $ | 4,549 | $ | 3,188 | $ | 1,252 | $ | 4,440 | ||||||||||||
OEM partners | 1,844 | — | 1,844 | 1,601 | — | 1,601 | ||||||||||||||||||
Channel partners | — | 2,251 | 2,251 | — | 1,785 | 1,785 | ||||||||||||||||||
$ | 5,719 | $ | 2,925 | $ | 8,644 | $ | 4,789 | $ | 3,037 | $ | 7,826 | |||||||||||||
Six months ended June 30, 2021 | ||||||||||||
Reportable Segments | ||||||||||||
Detection | Therapy | Total | ||||||||||
Major Goods/Service Lines | ||||||||||||
Products | $ | 7,325 | $ | 4,222 | $ | 11,547 | ||||||
Service contracts | 3,183 | 711 | 3,894 | |||||||||
Supply and source usage agreements | — | 1,010 | 1,010 | |||||||||
Professional services | — | 19 | 19 | |||||||||
Other | — | — | — | |||||||||
$ | 10,508 | $ | 5,962 | $ | 16,470 | |||||||
Timing of Revenue Recognition | ||||||||||||
Goods transferred at a point in time | $ | 7,325 | $ | 4,240 | $ | 11,565 | ||||||
Services transferred over time | 3,183 | 1,722 | 4,905 | |||||||||
$ | 10,508 | $ | 5,962 | $ | 16,470 | |||||||
Sales Channels | ||||||||||||
Direct sales force | $ | 7,063 | $ | 1,926 | $ | 8,989 | ||||||
OEM partners | 3,445 | — | 3,445 | |||||||||
Channel partners | — | 4,036 | 4,036 | |||||||||
$ | 10,508 | $ | 5,962 | $ | 16,470 | |||||||
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, 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 | |||||||||
Professional services | — | — | — | |||||||||
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 | |||||||
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 | |||||||
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 |
Balance at | Balance at | |||||||
June 30, 2021 | December 31, 2020 | |||||||
Receivables, which are included in ‘Trade accounts receivable’ | $ | 11,107 | $ | 10,027 | ||||
Current contract assets, which are included in “Prepaid and other assets” | 742 | 481 | ||||||
Non-current contract assets, which are included in “other assets” | 1,478 | 1,434 | ||||||
Contract liabilities, which are included in “Deferred revenue” | 6,388 | 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, 2021 | December 31, 2020 | ||||||
Short term | $ | 5,964 | $ | 6,117 | ||||
Long term | 424 | 267 | ||||||
Total | $ | 6,388 | $ | 6,384 | ||||
Three Months Ended March 31, 2021 | Six Months Ended June 30, 2021 | |||||||
Balance at beginning of period | $ | 6,384 | $ | 6,384 | ||||
Deferral of revenue | 3,259 | 6,393 | ||||||
Recognition of deferred revenue | (3,266 | ) | (6,389 | ) | ||||
Balance at end of period | $ | 6,377 | $ | 6,388 | ||||
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, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net loss | $ | (3,280 | ) | $ | (2,398 | ) | $ | (4,923 | ) | $ | (14,210 | ) | ||||
Shares used in the calculation of basic and diluted net loss per share | 24,989 | 22,396 | 24,462 | 21,275 | ||||||||||||
Diluted shares used in the calculation of net loss per share | 24,989 | 22,396 | 24,462 | 21,275 | ||||||||||||
Net loss per share - basic and diluted | $ | (0.13 | ) | $ | (0.11 | ) | $ | (0.20 | ) | $ | (0.67 | ) | ||||
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, | ||||||||
2021 | 2020 | |||||||
Stock options | 2,176,607 | 2,006,221 | ||||||
Restricted stock | 21,613 | 70,992 | ||||||
Total | 2,198,220 | 2,077,213 | ||||||
March 31, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||
Raw materials | $ | 1,305 | $ | 1,538 | $ | 1,518 | $ | 1,538 | ||||||||
Work in process | 194 | 76 | 192 | 76 | ||||||||||||
Finished Goods | 1,238 | 1,774 | 1,381 | 1,774 | ||||||||||||
Inventory Gross | 2,737 | 3,388 | 3,091 | 3,388 | ||||||||||||
Inventory Reserve | (239 | ) | (244 | ) | (230 | ) | (244 | ) | ||||||||
Inventory Net | $ | 2,498 | $ | 3,144 | $ | 2,861 | $ | 3,144 | ||||||||
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 | |||
2021 | 281 | |||
2022 | 3,224 | |||
2023 | 3,636 | |||
2024 | 712 | |||
Total | $ | 7,853 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Cash interest expense | $ | 92 | $ | 43 | $ | 26 | $ | 95 | $ | 118 | $ | 138 | ||||||||||||
Interest on convertible debentures | — | 49 | — | 0 | — | 49 | ||||||||||||||||||
Accrual of notes payable final payment | 7 | 31 | 2 | 8 | 9 | 39 | ||||||||||||||||||
Amortization of debt costs | 13 | 7 | — | 12 | 13 | 19 | ||||||||||||||||||
Total interest expense | $ | 112 | $ | 130 | $ | 28 | $ | 115 | $ | 140 | $ | 245 | ||||||||||||
Three Months | Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
Lease Cost | Classification | Three Months Ended March 31, 2021 | Classification | 2021 | 2021 | |||||||||||
Operating lease cost - Right of Use Asset | Operating expenses | $ | 217 | Operating expenses | $ | 217 | $ | 434 | ||||||||
Operating lease cost - Variable | Operating expenses | 57 | Operating expenses | 7 | $ | 64 | ||||||||||
Finance lease costs | ||||||||||||||||
Amortization of leased assets | Amortization and depreciation | 0 | ||||||||||||||
Interest on lease liabilities | Interest expense | 0 | ||||||||||||||
Total | $ | 274 | $ | 224 | $ | 498 | ||||||||||
Three Months | Six Months | |||||||
Ended June 30, | Ended June 30, | |||||||
2021 | 2021 | |||||||
Cash paid from operating cash flows for operating leases | $ | 233 | $ | 351 |
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, 2021 | ||||
Weighted-average remaining lease term of operating leases | 1.72 | |||
Weighted-average discount rate for operating leases | 5.6 | % |
Three Months Ended March 31, 2021: | Operating Leases | |||||||
As of June 30, 2021: | Operating Leases | |||||||
2021 | 692 | 459 | ||||||
2022 | 899 | 899 | ||||||
2023 | 211 | 211 | ||||||
2024 | 5 | 5 | ||||||
Total lease payments | 1,807 | 1,574 | ||||||
Less: imputed interest | (100 | ) | (77 | ) | ||||
Total lease liabilities | 1,707 | 1,497 | ||||||
Less: current portion of lease liabilities | (847 | ) | (851 | ) | ||||
Long-term lease liabilities | $ | 860 | $ | 646 | ||||
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 | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Average risk-free interest rate | N/A | 0.26% | 0.20% | 0.79% | ||||
Expected dividend yield | NaN | NaN | NaN | NaN | ||||
Expected life | 3.5 years | 3.5 years | 3.5 years | 3.5 years | ||||
Expected volatility | N/A | 64.0% to 65.7% | 66.0% to 66.0% | 50.2 to 65.7% | ||||
Weighted average exercise price | N/A | $10.76 | $18.00 | $10.11 | ||||
Weighted average fair value | N/A | $4.96 | $8.37 | $4.34 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cost of revenue | $ | 2 | $ | 24 | $ | 16 | $ | 24 | ||||||||
Engineering and product development | 58 | 288 | 208 | 343 | ||||||||||||
Marketing and sales | 128 | 490 | 481 | 548 | ||||||||||||
General and administrative | 323 | 811 | 741 | 1,162 | ||||||||||||
$ | 511 | $ | 1,613 | $ | 1,446 | $ | 2,077 | |||||||||
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 | $ | 3,823 | $ | 3,113 | ||||
Weighted average term | 1.26 | 1.2 |
As of | As of | |||||||||||||||
March 31, | June 30, | |||||||||||||||
Aggregate intrinsic value | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Stock options | $ | 29,305 | $ | 2,273 | $ | 20,324 | $ | 8,992 | ||||||||
Restricted stock | 672 | 1,396 | 374 | 709 |
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 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 June 30, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Money market accounts | $ | 37,889 | — | — | $ | 37,889 | ||||||||||
Total Assets | $ | 37,889 | — | — | $ | 37,889 | ||||||||||
Consolidated reporting unit | Detection | Therapy | Total | Consolidated reporting unit | Detection | Therapy | Total | |||||||||||||||||||||||||
Accumulated Goodwill | $ | 47,937 | $ | — | $ | — | $ | 47,937 | $ | 47,937 | $ | — | $ | — | $ | 47,937 | ||||||||||||||||
Accumulated impairment | (26,828 | ) | — | — | (26,828 | ) | (26,828 | ) | — | — | (26,828 | ) | ||||||||||||||||||||
Fair value allocation | (21,109 | ) | 7,663 | 13,446 | — | (21,109 | ) | 7,663 | 13,446 | — | ||||||||||||||||||||||
Acquisition of DermEbx and Radion | — | — | 6,154 | 6,154 | — | — | 6,154 | 6,154 | ||||||||||||||||||||||||
Acquisition measurement period adjustments | — | — | 116 | 116 | — | — | 116 | 116 | ||||||||||||||||||||||||
Acquisition of VuComp | — | 1,093 | — | 1,093 | — | 1,093 | — | 1,093 | ||||||||||||||||||||||||
Sale of MRI assets | — | (394 | ) | (394 | ) | — | (394 | ) | (394 | ) | ||||||||||||||||||||||
Impairment | — | — | (19,716 | ) | (19,716 | ) | — | — | (19,716 | ) | (19,716 | ) | ||||||||||||||||||||
Balance at December 31, 2020 and March 31, 2021 | — | 8,362 | — | 8,362 | ||||||||||||||||||||||||||||
Balance at December 31, 2020 and June 30, 2021 | — | 8,362 | — | 8,362 | ||||||||||||||||||||||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
Segment revenues: | ||||||||
Detection | $ | 5,719 | $ | 4,476 | ||||
Therapy | 2,925 | 2,075 | ||||||
Total Revenue | $ | 8,644 | $ | 6,551 | ||||
Segment gross profit: | ||||||||
Detection | $ | 4,725 | $ | 3,467 | ||||
Therapy | 1,564 | 1,043 | ||||||
Segment gross profit | $ | 6,289 | $ | 4,510 | ||||
Segment operating income (loss): | ||||||||
Detection | $ | 941 | $ | (346 | ) | |||
Therapy | (312 | ) | (1,006 | ) | ||||
Segment operating income (loss) | $ | 629 | $ | (1,352 | ) | |||
General, administrative, depreciation and amortization expense | $ | (2,162 | ) | $ | (2,541 | ) | ||
Interest expense | (112 | ) | (130 | ) | ||||
Other income | 2 | 42 | ||||||
Loss on extinguishment of debt | — | (341 | ) | |||||
Fair value of convertible debentures | — | (7,464 | ) | |||||
Loss before income tax | $ | (1,643 | ) | $ | (11,786 | ) | ||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Segment revenues: | ||||||||||||||||
Detection | $ | 4,789 | $ | 4,117 | $ | 10,508 | $ | 8,593 | ||||||||
Therapy | 3,037 | 1,450 | 5,962 | 3,525 | ||||||||||||
Total Revenue | $ | 7,826 | $ | 5,567 | $ | 16,470 | $ | 12,118 | ||||||||
Segment gross profit: | ||||||||||||||||
Detection | $ | 4,005 | $ | 3,533 | $ | 8,730 | $ | 7,000 | ||||||||
Therapy | 1,533 | 824 | 3,097 | 1,867 | ||||||||||||
Segment gross profit | $ | 5,538 | $ | 4,357 | $ | 11,827 | $ | 8,867 | ||||||||
Segment operating income (loss): | ||||||||||||||||
Detection | $ | 52 | $ | 201 | $ | 993 | $ | (145 | ) | |||||||
Therapy | (250 | ) | (432 | ) | (562 | ) | (1,438 | ) | ||||||||
Segment operating income (loss) | $ | (198 | ) | $ | (231 | ) | $ | 431 | $ | (1,583 | ) | |||||
General, administrative, depreciation and amortization expense | $ | (2,673 | ) | $ | (2,080 | ) | $ | (4,835 | ) | $ | (4,621 | ) | ||||
Interest expense | (28 | ) | (115 | ) | (140 | ) | (245 | ) | ||||||||
Other income | 5 | 33 | 7 | 75 | ||||||||||||
Loss on extinguishment of debt | (386 | ) | 0 | (386 | ) | (341 | ) | |||||||||
Fair value of convertible debentures | — | — | — | (7,464 | ) | |||||||||||
Loss before income tax | $ | (3,280 | ) | $ | (2,393 | ) | $ | (4,923 | ) | $ | (14,179 | ) | ||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended March 31, | Three months ended June 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | Change | % Change | 2021 | 2020 | Change | % Change | |||||||||||||||||||||||||
Detection revenue | ||||||||||||||||||||||||||||||||
Product revenue | $ | 4,161 | $ | 3,100 | $ | 1,061 | 34.2 | % | $ | 3,164 | $ | 2,702 | $ | 462 | 17.1 | % | ||||||||||||||||
Service and supplies revenue | 1,558 | 1,376 | 182 | 13.2 | % | 1,625 | 1,415 | 210 | 14.8 | % | ||||||||||||||||||||||
Subtotal | 5,719 | 4,476 | 1,243 | 27.8 | % | 4,789 | 4,117 | 672 | 16.3 | % | ||||||||||||||||||||||
Therapy revenue | ||||||||||||||||||||||||||||||||
Product revenue | 1,396 | 695 | 701 | 100.9 | % | 1,388 | 186 | 1,202 | 646.2 | % | ||||||||||||||||||||||
Service and supplies revenue | 1,529 | 1,380 | 149 | 10.8 | % | 1,649 | 1,264 | 385 | 30.5 | % | ||||||||||||||||||||||
Subtotal | 2,925 | 2,075 | 850 | 41.0 | % | 3,037 | 1,450 | 1,587 | 109.4 | % | ||||||||||||||||||||||
Total revenue | $ | 8,644 | $ | 6,551 | $ | 2,093 | 31.9 | % | $ | 7,826 | $ | 5,567 | $ | 2,259 | 40.6 | % | ||||||||||||||||
Three months ended March 31, | ||||||||||||||||
2021 | 2020 | Change | % Change | |||||||||||||
Products | $ | 1,409 | $ | 1,017 | $ | 392 | 38.5 | % | ||||||||
Service and supplies | 867 | 927 | (60 | ) | (6.5 | )% | ||||||||||
Amortization and depreciation | 79 | 97 | (18 | ) | (18.6 | )% | ||||||||||
Total cost of revenue | $ | 2,355 | $ | 2,041 | $ | 314 | 15.4 | % | ||||||||
Gross profit | $ | 6,289 | $ | 4,510 | $ | 1,779 | 39.4 | % | ||||||||
Three months ended March 31, | ||||||||||||||||
2021 | 2020 | Change | % Change | |||||||||||||
Detection gross profit | $ | 4,725 | $ | 3,467 | $ | 1,258 | 36.3 | % | ||||||||
Therapy gross profit | 1,564 | 1,043 | 521 | 50.0 | % | |||||||||||
Gross profit | $ | 6,289 | $ | 4,510 | $ | 1,779 | 39.4 | % | ||||||||
Gross profit % | 72.8 | % | 68.8 | % |
Six months ended June 30, | ||||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||||
Detection revenue | ||||||||||||||||
Product revenue | $ | 7,325 | $ | 5,802 | $ | 1,523 | 26.2 | % | ||||||||
Service revenue | 3,183 | 2,791 | 392 | 14.0 | % | |||||||||||
Subtotal | 10,508 | 8,593 | 1,915 | 22.3 | % | |||||||||||
Therapy revenue | ||||||||||||||||
Product revenue | 2,784 | 881 | 1,903 | 216.0 | % | |||||||||||
Service revenue | 3,178 | 2,644 | 534 | 20.2 | % | |||||||||||
Subtotal | 5,962 | 3,525 | 2,437 | 69.1 | % | |||||||||||
Total revenue | $ | 16,470 | $ | 12,118 | $ | 4,352 | 35.9 | % | ||||||||
Three months ended June 30, | ||||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||||
Products | $ | 1,377 | $ | 537 | $ | 840 | 156.4 | % | ||||||||
Service and supplies | 832 | 575 | 257 | 44.7 | % | |||||||||||
Amortization and depreciation | 79 | 98 | (19 | ) | (19.4 | )% | ||||||||||
Total cost of revenue | $ | 2,288 | $ | 1,210 | $ | 1,078 | 89.1 | % | ||||||||
Gross profit | $ | 5,538 | $ | 4,357 | $ | 1,181 | 27.1 | % |
Three Months Ended | ||||||||
June 30, | ||||||||
2021 | 2020 | |||||||
Segment gross profit: | ||||||||
Detection | $ | 4,005 | $ | 3,533 | ||||
Therapy | 1,533 | 824 | ||||||
Segment gross profit | $ | 5,538 | $ | 4,357 | ||||
Six months ended June 30, | ||||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||||
Products | $ | 2,786 | $ | 1,554 | $ | 1,232 | 79.3 | % | ||||||||
Service and supplies | 1,699 | 1,502 | 197 | 13.1 | % | |||||||||||
Amortization and depreciation | 158 | 195 | (37 | ) | (19.0 | )% | ||||||||||
Total cost of revenue | $ | 4,643 | $ | 3,251 | $ | 1,392 | 42.8 | % | ||||||||
Gross profit | $ | 11,827 | $ | 8,867 | $ | 2,960 | 33.4 | % |
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Segment gross profit: | ||||||||
Detection | $ | 8,730 | $ | 7,000 | ||||
Therapy | 3,097 | 1,867 | ||||||
Segment gross profit | $ | 11,827 | $ | 8,867 | ||||
Three months ended March 31, | Three months ended June 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | Change $ | Change % | 2021 | 2020 | Change | Change % | |||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Engineering and product development | $ | 2,192 | $ | 2,211 | $ | (19 | ) | (0.9 | )% | $ | 2,268 | $ | 1,878 | $ | 390 | 20.8 | % | |||||||||||||||
Marketing and sales | 3,424 | 3,608 | (184 | ) | (5.1 | )% | 3,429 | 2,631 | 798 | 30.3 | % | |||||||||||||||||||||
General and administrative | 2,151 | 2,532 | (381 | ) | (15.0 | )% | 2,652 | 2,110 | 542 | 25.7 | % | |||||||||||||||||||||
Amortization and depreciation | 55 | 52 | 3 | 5.8 | % | 60 | 49 | 11 | 22.4 | % | ||||||||||||||||||||||
Total operating expenses | $ | 7,822 | $ | 8,403 | $ | (581 | ) | (6.9 | )% | $ | 8,409 | $ | 6,668 | $ | 1,741 | 26.1 | % | |||||||||||||||
Three months ended March 31, | Three months ended June 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | Change $ | Change % | 2021 | 2020 | Change | Change % | |||||||||||||||||||||||||
Interest expense | $ | (112 | ) | $ | (130 | ) | $ | 18 | (13.8 | )% | $ | (28 | ) | $ | (115 | ) | $ | 87 | (75.7 | )% | ||||||||||||
Other income | 5 | 33 | (28 | ) | (84.8 | )% | ||||||||||||||||||||||||||
Loss on extinguishment of debt | — | (341 | ) | 341 | (100.0 | )% | (386 | ) | — | — | 0.0 | % | ||||||||||||||||||||
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 | )% | $ | (409 | ) | $ | (82 | ) | $ | 59 | (72.0 | )% | |||||||||||||
Tax expense | $ | — | $ | (26 | ) | $ | 26 | (100.0 | )% | |||||||||||||||||||||||
Tax benefit (expense) | — | (5 | ) | 5 | (100.0 | )% |
Six months ended June 30, | ||||||||||||||||
2021 | 2020 | Change | Change % | |||||||||||||
Operating expenses: | ||||||||||||||||
Engineering and product development | $ | 4,460 | $ | 4,089 | $ | 371 | 9.1 | % | ||||||||
Marketing and sales | 6,853 | 6,239 | 614 | 9.8 | % | |||||||||||
General and administrative | 4,803 | 4,642 | 161 | 3.5 | % | |||||||||||
Amortization and depreciation | 115 | 101 | 14 | 13.9 | % | |||||||||||
Total operating expenses | $ | 16,231 | $ | 15,071 | $ | 1,160 | 7.7 | % | ||||||||
Six months ended June 30, | ||||||||||||||||
2021 | 2020 | Change | Change % | |||||||||||||
Interest expense | $ | (140 | ) | $ | (245 | ) | $ | 105 | (42.9 | )% | ||||||
Other income | 7 | 75 | (68 | ) | (90.7 | )% | ||||||||||
Loss on extinguishment of debt | (386 | ) | (341 | ) | (45 | ) | 13.2 | % | ||||||||
Loss on fair value of debentures | — | (7,464 | ) | 7,464 | (100.0 | )% | ||||||||||
$ | (519 | ) | $ | (7,975 | ) | $ | 7,456 | (93.5 | )% | |||||||
Tax expense | $ | — | $ | (31 | ) | $ | 31 | (100.0 | )% |
For the three months ended March 31, | For the six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net cash used for operating activities | $ | (3,563 | ) | $ | (1,416 | ) | $ | (5,577 | ) | $ | (3,573 | ) | ||||
Net cash used for investing activities | (262 | ) | (156 | ) | (336 | ) | (186 | ) | ||||||||
Net cash provided by financing activities | 23,546 | 515 | 16,616 | 12,671 | ||||||||||||
Increase (decrease) in cash and equivalents | $ | 19,721 | $ | (1,057 | ) | |||||||||||
Increase in cash and equivalents | $ | 10,703 | $ | 8,912 | ||||||||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk |
Item 6. | Exhibits |
Exhibit No. | Description | |
10.1* | 2016 Stock Incentive Plan, as amended | |
10.2 | Consulting Agreement dated April 16, 2021, by and between iCAD, Inc. and Charles Carter (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on April 28, 2021). | |
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
The following materials formatted in XBRL (eXtensible Business Reporting Language); (i) Condensed Consolidated Balance Sheets as of | ||
Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101). |
* | Filed herewith |
** | Furnished herewith |
iCAD, Inc. | ||||||||
(Registrant) | ||||||||
Date: August 6, 2021 | By: | /s/ Michael Klein | ||||||
Name: | Michael Klein | |||||||
Title: | Chief Executive Officer (Principal Executive Officer) | |||||||
Date: | By: | /s/ Charles R. | ||||||
Name: | Charles R. | |||||||
Title: | Chief Financial Officer (Principal Financial Officer) |