Heska Corp. (HSKA) 10-Q 9 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 08, 2018
Document And Entity Information
Entity Registrant Name	Heska Corp
Entity Central Index Key	1,038,133
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018
Entity Common Stock, Shares Outstanding		7,458,860

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 12,126	$ 9,659
Accounts receivable, net of allowance for doubtful accounts of $249 and $215, respectively	14,293	15,710
Due from – related parties	0	1
Inventories, net	30,301	32,596
Lease receivable, current, net of allowance for doubtful accounts of $42 and $0, respectively	2,302	2,069
Contract acquisition costs, current	874	30
Other current assets	2,992	3,066
Total current assets	62,888	63,131
Property and equipment, net	16,858	17,331
Goodwill	26,710	26,687
Other intangible assets, net	1,861	1,958
Deferred tax asset, net	12,173	11,877
Lease receivable, non-current	10,369	9,615
Contract acquisition costs, non-current	1,526	3
Other non-current assets	5,335	5,185
Total assets	137,720	135,787
Current liabilities:
Accounts payable	6,226	9,489
Due to – related parties	677	1,828
Accrued liabilities	7,441	4,417
Current portion of deferred revenue	3,090	3,992
Line of credit	6,000	6,000
Total current liabilities	23,434	25,726
Deferred revenue, net of current portion, and other	9,196	9,621
Total liabilities	32,630	35,347
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value, 2,500,000 shares authorized, none issued or outstanding	0	0
Common stock, $.01 par value, 10,000,000 shares authorized, none issued or outstanding	0	0
Public common stock, $.01 par value, 10,000,000 shares authorized, 7,419,186 and 7,302,954 shares issued and outstanding, respectively	74	73
Additional paid-in capital	243,377	243,598
Accumulated other comprehensive income	313	232
Accumulated deficit	(138,674)	(143,463)
Total stockholders' equity	105,090	100,440
Total liabilities and stockholders' equity	$ 137,720	$ 135,787

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 249	$ 215
Leases, allowance for doubtful accounts	$ 42	$ 0
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,500,000	2,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Traditional Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Public Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	7,419,186	7,302,954
Common stock, shares outstanding	7,419,186	7,302,954

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue:
Core companion animal health	$ 26,819	$ 23,784
Other vaccines, pharmaceuticals and products	5,946	5,775
Total revenue, net	32,765	29,559
Cost of revenue	19,458	16,350
Gross profit	13,307	13,209
Operating expenses:
Selling and marketing	6,140	6,100
Research and development	670	530
General and administrative	4,626	3,791
Total operating expenses	11,436	10,421
Operating income	1,871	2,788
Interest and other income, net	(4)	(62)
Income before income taxes	1,875	2,850
Income tax expense (benefit):
Current income tax expense	17	7
Deferred income tax benefit	(297)	(1,460)
Total income tax benefit	(280)	(1,453)
Net income	2,155	4,303
Net loss attributable to non-controlling interest	0	(304)
Net income attributable to Heska Corporation	$ 2,155	$ 4,607
Earnings Per Share [Abstract]
Basic earnings per share attributable to Heska Corporation (in dollars per share)	$ 0.30	$ 0.66
Diluted earnings per share attributable to Heska Corporation (in dollars per share)	$ 0.28	$ 0.61
Weighted average outstanding shares used to compute basic earnings per share attributable to Heska Corporation (in shares)	7,102	7,011
Weighted average outstanding shares used to compute diluted earnings per share attributable to Heska Corporation (in shares)	7,711	7,594

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net income	$ 2,155	$ 4,303
Other comprehensive income:
Foreign currency translation	81	56
Comprehensive income	2,236	4,359
Comprehensive loss attributable to non-controlling interest	0	(304)
Comprehensive income attributable to Heska Corporation	$ 2,236	$ 4,663

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Traditional Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance at Dec. 31, 2016	$ 86,975	$ 70	$ 238,635	$ 97	$ (151,827)
Beginning balance (in shares) at Dec. 31, 2016		7,026
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,303				4,303
Issuance of common stock, net of shares withheld for employee taxes	(147)	$ 1	(148)
Issuance of common stock, net of shares withheld for employee taxes (in shares)		68
Stock-based compensation	691		691
Accretion of non-controlling interest	845		845
Distribution for Heska Imaging minority interest	(25)		(25)
Other comprehensive income	56			56
Ending balance at Mar. 31, 2017	92,698	$ 71	239,998	153	(147,524)
Ending balance (in shares) at Mar. 31, 2017		7,094
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of accounting standards	2,634				2,634
Beginning balance (Previously Reported) at Dec. 31, 2017	100,440	$ 73	243,598	232	(143,463)
Beginning balance at Dec. 31, 2017	103,074	$ 73	243,598	232	(140,829)
Beginning balance (in shares) (Previously Reported) at Dec. 31, 2017		7,303
Beginning balance (in shares) at Dec. 31, 2017		7,303
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,155				2,155
Issuance of common stock, net of shares withheld for employee taxes	(1,284)	$ 1	(1,285)
Issuance of common stock, net of shares withheld for employee taxes (in shares)		116
Stock-based compensation	1,064		1,064
Other comprehensive income	81			81
Ending balance at Mar. 31, 2018	$ 105,090	$ 74	$ 243,377	$ 313	$ (138,674)
Ending balance (in shares) at Mar. 31, 2018		7,419

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,155	$ 4,303
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	1,196	1,092
Deferred income tax benefit	(297)	(1,460)
Stock-based compensation	1,064	691
Other expense (income)	10	(1)
Changes in operating assets and liabilities:
Accounts receivable	1,425	6,937
Inventories	2,047	(4,824)
Due from related parties	1	(16)
Lease receivable, current	(233)	(340)
Other current assets	108	(20)
Accounts payable	(3,265)	(337)
Due to related parties	(1,026)	(1,389)
Accrued liabilities and other	3,022	(247)
Lease receivable, non-current	(754)	(1,568)
Other non-current assets	(138)	(459)
Deferred revenue and other	(1,108)	(431)
Net cash provided by operating activities	4,207	1,931
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(375)	(480)
Net cash used in investing activities	(375)	(480)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	288	713
Repurchase of common stock	(1,571)	(860)
Proceeds from line of credit borrowings	0	7,970
Repayments of line of credit borrowings	0	(7,862)
Distributions to non-controlling interest members	(126)	0
Repayments of other debt	0	(64)
Net cash used in financing activities	(1,409)	(103)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	44	41
INCREASE IN CASH AND CASH EQUIVALENTS	2,467	1,389
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	9,659	10,794
CASH AND CASH EQUIVALENTS, END OF PERIOD	12,126	12,183
Supplemental Cash Flow Information [Abstract]
Non-cash transfers of equipment between inventory and property and equipment, net	$ 251	$ 402

OPERATIONS AND SUMMARY OF SIGNI

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Heska Corporation and its wholly-owned subsidiaries ("Heska", the "Company", "we" or "our") sell veterinary and animal health diagnostic and specialty products. Our offerings include Point of Care diagnostics laboratory instruments and consumables, digital imaging diagnostic products, software and services, vaccines, local and cloud-based data services, allergy testing and immunotherapy, and single-use offerings such as in-clinic diagnostic tests and heartworm preventive products. Our core focus is on supporting veterinarians in the canine and feline healthcare space. Basis of Presentation and Consolidation In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the financial position of the Company at March 31, 2018 , and the results of our operations and cash flows for the three months ended March 31, 2018 and 2017 . The unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. Our unaudited Condensed Consolidated Financial Statements include our accounts and the accounts of our wholly-owned subsidiaries since their respective dates of acquisitions. All intercompany accounts and transactions have been eliminated in consolidation. Where our ownership of a subsidiary was less than 100%, the non-controlling interest is reported on our consolidated balance sheets. The non-controlling interest in our consolidated net income is reported as "Net income (loss) attributable to non-controlling interest" on our consolidated statements of income. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2017 and other financial information filed with the SEC. Reclassification To maintain consistency and comparability, certain amounts in the financial statements have been reclassified to conform to current year presentation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are required when establishing the allowance for doubtful accounts and the provision for excess or obsolete inventory, in determining future costs associated with warranties provided, in determining the period over which our obligations are fulfilled under agreements to license product rights and/or technology rights, evaluating long-lived and intangible assets for impairment, estimating the useful lives of instruments under leasing arrangements, determining the allocation of purchase price under purchase accounting, estimating the expense associated with the granting of stock options, and in determining the need for, and the amount of a valuation allowance on deferred tax assets. Critical Accounting Policies Our accounting policies are described in our audited Consolidated Financial Statements and Notes thereto contained in our Annual Report on Form 10-K/A for the year ended December 31, 2017, and other than the recently adopted accounting pronouncements discussed below, have not changed significantly since such filing. Adoption of New Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which became effective for us beginning January 1, 2018. The new standard made eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. Adoption of this standard did not have a material impact on our financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and has subsequently issued several supplemental and/or clarifying ASUs (collectively “ASC 606”). ASC 606 prescribes a single common revenue standard that replaces most existing U.S. GAAP revenue recognition guidance. ASC 606 outlines a five-step model, under which Heska will recognize revenue as performance obligations within a customer contract are satisfied. ASC 606 is intended to provide more consistent interpretation and application of the principles outlined in the standard across filers in multiple industries and within the same industries compared to current practices, which should improve comparability. Along with the issuance of ASC 606, additional cost guidance was issued and codified under ASC 340-40 that outlines the requirement for capitalizing incremental costs of obtaining a contract and costs to fulfill a contract that meet certain capitalization criteria. On January 1, 2018, we adopted ASC 606 using the modified retrospective method for all customer contracts not yet completed as of the adoption date. Results for reporting periods beginning January 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605, Revenue Recognition . We recorded an increase to beginning retained earnings of $2.6 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606. The impact to beginning retained earnings was primarily driven by the capitalization of certain costs to obtain a contract, primarily sales-related commissions. The adoption of ASC 606 did not have a significant impact on our Condensed Consolidated Financial Statements as of and for the three-month period ended March 31, 2018 and, as a result, comparisons of revenues and operating profit performance between periods are not affected by the adoption of this ASU. Refer to Note 2 for additional disclosures required by ASC 606. We generate our Core Companion Animal (“CCA”) segment revenue through the sale of products, either by outright purchase by our customers or through a subscription agreement whereby our customers receive instruments and pay us a monthly fee for the usage of the instrument as well as the consumables needed to conduct testing. Outright sales to customers is the majority of Point of Care imaging diagnostic transactions in addition to the sale of pharmaceuticals and vaccines while subscription placement is the majority of Point of Care diagnostic laboratory transactions. For outright sales of products, revenue is recognized when control of the promised products or services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services (the transaction price). A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. For instruments, consumables, and most software licenses sold by the Company, control transfers to the customer at a point in time. To indicate the transfer of control, the Company must have a present right to payment, legal title must have passed to the customer, the customer must have the significant risks and rewards of ownership, and where acceptance is not a formality, the customer must have accepted the product or service. Heska’s principal terms of sale are FOB Shipping Point, or equivalent, and, as such, we primarily transfer control and record revenue for product sales upon shipment. If a performance obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation or acceptance by the customer), revenue recognition for that performance obligation is deferred until such commitments have been fulfilled. We do not generally allow return of products or instruments. For extended warranty plans, control transfers to the customer over the term of the arrangement. Revenue for extended warranties is recognized based upon the period of time elapsed under the arrangement. Our revenue under subscription agreements relate to operating-type lease (“OTL”) arrangements or sales-type lease (“STL”) arrangements. A STL would result in earlier recognition of instrument revenue as compared to an OTL, generally upon installation of the instruments. The cost of the customer-leased instruments is removed from inventory and recognized in the Condensed Consolidated Statements of Income. Determination of an OTL or STL is primarily determined as a result of the length of the contract as compared to the estimated useful life of the instrument, among other factors. Leases are outside of the scope of ASC 606 and are therefore accounted for in accordance with ASC 840 , Leases . Instrument lease revenue for OTL agreements is recognized on a straight-line basis over the life of the lease, and the costs of customer-leased instruments are recorded within property and equipment in the accompanying Condensed Consolidated Balance Sheets and depreciated over the instrument’s estimated useful life. The depreciation expense is reflected in cost of sales in the accompanying Condensed Consolidated Statements of Income. The OTLs and STLs are not cancellable until after an initial term. Under either type of lease, we often charge a subscription fee and a minimum supply credit. OTLs may include a minimum utilization rather than a minimum supply credit. For contracts with multiple performance obligations, the Company allocates the contracts' transaction price to each performance obligation on a relative standalone selling price basis using our best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate the standalone selling price is the price observed in standalone sales to customers, however, when prices in standalone sales are not available, we may use a cost-plus margin approach. Allocation of the transaction price is determined at the contracts' inception. The Company does not adjust the transaction price for the effects of a significant financing component when the period between the transfer of the promised good or service to the customer and payment for that good or service by the customer is expected to be one year or less. This allocation approach also applies to contracts for which a portion of the contract relates to a lease component. We generate revenue within our Other Vaccines, Pharmaceuticals, and Products (“OVP”) segment through contract manufacturing contracts with customers. The timing of revenue recognition of our customer contracts will continue to be recognized - generally upon shipment or acceptance by our customer, under the same guidelines noted above for other outright product sales. Heska assessed the over-time criteria within ASC 606 and concluded that because products within this segment have no alternative use to Heska, as Heska is contractually prohibited to redirect the product to other customers, Heska does not have right to payment for performance to date and therefore, point in time recognition is appropriate. Revenue generated from licensing arrangements is recognized based on the underlying term of the contract. Accounting Pronouncements Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU permits companies to elect a reclassification of disproportionate tax effects in accumulated other comprehensive income (AOCI) caused by the Tax Cuts and Jobs Act of 2017 to retained earnings. The ASU also requires additional disclosures. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the effect of this ASU on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , which require that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendments in this update are effective for fiscal years beginning after December 15, 2019 and interim periods within those annual periods. Early adoption for fiscal year beginning after December 15, 2018 is permitted. We are currently evaluating the effect of this update on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes ASC 840, Leases , and creates a new topic, ASC 842, Leases . This update requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance as well as to the new revenue recognition guidance in ASU 2014-09. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the effect of this update on our consolidated financial statements.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE We separate our goods and services among: • Point of Care laboratory products including instruments, consumables, and other services; • Point of Care imaging products including instruments, software and services; • Single use pharmaceuticals, vaccines, and diagnostic tests primarily related to companion animals; and • Other vaccines and pharmaceuticals related to our OVP segment Revenue from our CCA segment consists of Point of Care laboratory products, including instruments and consumables, Point of Care imaging products, and single use diagnostic and other tests, pharmaceuticals and biologicals. Point of Care laboratory products are generally sold under a long-term subscription agreement with the instrument portion of the sale accounted for under Topic 840, Leases , as either an OTL or STL. For STL, we apply the provisions of ASC 606 to determine the point in time when control is transferred to the customer, generally when installation of the instrument occurs. Related profit and derecognition of the asset from the Company's balance sheet follows prescribed guidance under ASC 840. Revenue recognized under this topic was approximately $1.5 million in the three months ended March 31, 2018. Approximately $0.8 million of instrument sales related to the outright sale of instruments to customers, which also included shipping and preparation fees. Consumables are critical to the use of the Point of Care laboratory instruments and are used one-time, requiring frequent replacement in the customer's operating cycle. Revenue recorded related to sales of consumables was $10.8 million in the three months ended March 31, 2018. Other services, such as extended service plans and repairs, resulted in approximately $0.5 million of revenue in the three months ended March 31, 2018. Point of Care imaging products for instruments and software are generally sold outright to customers and recognized upon shipment, which is generally the point in time when control transfers to customers. Revenue of approximately $5.1 million was recognized in the three months ended March 31, 2018. Rental agreements, generally accounted for as OTLs under Topic 840, Leases , resulted in approximately $0.3 million of rental revenue in the period ended March 31, 2018. Service revenue, including extended warranty revenue, of approximately $0.6 million was recognized in the three months ended March 31, 2018. Revenue from single use diagnostic and other tests, pharmaceuticals and biologicals as well as research and development, licensing and royalty revenue, represented approximately $7.2 million of our revenue for the three months ended March 31, 2018 . Of the $7.2 million of revenue, approximately $0.1 million related to license and royalty income. Revenue from our OVP segment consists of revenue generated from contract manufacturing contracts and other license and research and development revenue. Revenue from contract manufacturing contracts and other license and research and development was $5.7 million and $0.2 million , respectively, in the three months ended March 31, 2018. Remaining Performance Obligations Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. Remaining performance obligations include noncancelable purchase orders, the non-lease portion of minimum purchase commitments under long-term supply arrangements, extended warranty, service and other long-term contracts. Remaining performance obligations do not include revenue from contracts with customers with an original term of one year or less, revenue from long-term supply arrangements with no minimum purchase requirements or revenue expected from purchases made in excess of the minimum purchase requirements or revenue from instruments leased to customers. While the remaining performance obligation disclosure is similar in concept to backlog, the definition of remaining performance obligations excludes leases and contracts that provide the customer with the right to cancel or terminate for convenience with no substantial penalty, even if historical experience indicates the likelihood of cancellation or termination is remote. Additionally, the Company has elected to exclude contracts with customers with an original term of one year or less from remaining performance obligations while these contracts are included within backlog. As of March 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $72.6 million . As of March 31, 2018, the Company expects to recognize revenue as follows as (in thousands): Year Ending December 31, Revenue 2018 (remaining) $ 15,987 2019 17,962 2020 14,459 2021 10,758 2022 7,609 Thereafter 5,813 $ 72,588 Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and deferred revenue, customer deposits and billings in excess of revenue recognized (contract liabilities) on the Condensed Consolidated Balance Sheets. In addition, the Company defers certain costs incurred to obtain a contract (contract costs). Contract assets - Most of the Company’s long-term contracts are billed as product is shipped. Therefore, because the Company does not recognize revenue prior to invoicing, there are no contract assets. Contract liabilities - The Company receives cash payments from customers for licensing fees or other arrangements for a specified term. These contract liabilities are classified as either current or long-term in the Condensed Consolidated Balance Sheet based on the timing of when the Company expects to recognize revenue. As of March 31, 2018 and December 31, 2017, contract liabilities were $11.0 million and $12.3 million , respectively, and are included within current portion of "Deferred revenue" and the non-current portion of "Deferred revenue, net of current portion, and other" in the accompanying Condensed Consolidated Balance Sheet. The decrease in the contract liability balance during the three-month period ended March 31, 2018 is $1.6 million of revenue recognized during the period that was included in the contract liability balance at the date of adoption, offset by $0.3 million of additional deferred sales in the first quarter of 2018. Contract costs - The Company capitalizes certain direct incremental costs incurred to obtain a contract, typically sales-related commissions, where the recognition period for the related revenue is greater than one year. Contract costs are classified as current or non-current "Contract acquisition costs" in the Condensed Consolidated Balance Sheet based on the timing of when the Company expects to recognize the expense and are generally amortized into earnings with a certain percentage recognized immediately based upon placement of the instrument with the remainder recognized on a straight-line basis (which is consistent with the transfer of control for the related goods or services) over the term of the contract. Management assesses these costs for impairment at least quarterly on a contract by contract basis and as “triggering” events occur that indicate it is more likely than not that an impairment exists. The balance of contract costs as of March 31, 2018 and at the date of adoption was $2.4 million and $2.4 million , respectively. Amortization expense for the three-month period ended March 31, 2018, was $0.2 million . The costs to obtain a contract where the amortization period for the related asset is one year or less are expensed as incurred and recorded within selling and marketing expenses and general and administrative expenses in the accompanying Condensed Consolidated Statement of Income. Contract liabilities and costs are reported on the accompanying Condensed Consolidated Balance Sheet on a contract-by-contract basis whereas contract costs are calculated and reported on a portfolio basis.

ACQUISITION AND RELATED PARTY I

ACQUISITION AND RELATED PARTY ITEMS	3 Months Ended
	Mar. 31, 2018
Business Combinations and Related Party Disclosures [Abstract]
ACQUISITION AND RELATED PARTY ITEMS	ACQUISITIONS AND RELATED PARTY ITEMS Cuattro Veterinary, LLC On May 31, 2016, the Company closed a transaction (the "Merger") to acquire Cuattro Veterinary, LLC ("Cuattro International") from Kevin S. Wilson, and all of the members of Cuattro International (the "Members"). The Company recorded assets acquired and liabilities assumed at their estimated fair values. Intangible assets were valued based on a report from an independent third party. The goodwill associated with the acquisition is the result of expected synergies and expansion of the technology into additional markets. Cuattro International is a provider to international markets of digital radiography technologies for veterinarians. As a leading provider of advanced veterinary diagnostic and specialty products, we made the acquisition in an effort to combine Cuattro International's international reach with our domestic success in the imaging and laboratory markets in the United States. International markets represent a significant portion of worldwide veterinary revenues for which we intend to compete. As of the closing date of the Merger, Cuattro International was renamed Heska Imaging International, LLC, and the Company's interest in both Heska Imaging International, LLC ("International Imaging") and Heska Imaging US, LLC ("US Imaging") was transferred to the Company's wholly-owned subsidiary, Heska Imaging Global, LLC ("Global Imaging"). Mr. Wilson is a founder of Cuattro International, Cuattro, LLC, Cuattro Software, LLC and Cuattro Medical, LLC. Mr. Wilson, Mrs. Wilson and trusts for the benefit of Mr. and Mrs. Wilson’s children and family own a 100% interest in Cuattro, LLC and a majority interest in Cuattro Medical, LLC. Cuattro, LLC owns a 100% interest in Cuattro Software, LLC and prior to the Merger, owned a majority interest in Cuattro International. Cuattro Veterinary USA, LLC On February 24, 2013, the Company acquired a 54.6% interest in Cuattro Veterinary USA, LLC (the "Acquisition"), which was subsequently renamed Heska Imaging US, LLC ("US Imaging"). The remaining minority position (45.4%) in US Imaging was subject to purchase by Heska under performance-based puts and calls following the audit of our financial statements for 2016 and 2017. The required performance criteria were met in 2016, we considered notice given on March 3, 2017 that the put option was being exercised and on May 31, 2017, we delivered $13.8 million in cash to obtain the remaining minority interest position in US Imaging. Prior to the purchase of the minority interest position (the "Imaging Minority"), Shawna M. Wilson, Clint Roth, DVM, Steven M. Asakowicz, Rodney A. Lippincott, Kevin S. Wilson and Cuattro, LLC owned approximately 29.75% , 8.39% , 4.09% , 3.07% , 0.05% and 0.05% of US Imaging, respectively. Kevin S. Wilson is the Chief Executive Officer and President of the Company and the spouse of Shawna M. Wilson. Steven M. Asakowicz serves as Executive Vice President, Companion Animal Health Sales for the Company. Rodney A. Lippincott serves as Executive Vice President, Companion Animal Health Sales for the Company. On April 3, 2017, and in accordance with the terms of its Operating Agreement, US Imaging distributed $2.1 million based on past operating performance, including $1.0 million to its minority interest members. As of December 31, 2017, US Imaging accrued an additional $0.3 million distribution, including $0.1 million to its minority interest members, all of which was paid in January 2018. On June 1, 2017, the Company consolidated its assets and liabilities in the US Imaging and International Imaging companies into Global Imaging, which was re-named Heska Imaging, LLC ("Heska Imaging"). Related Party Activities Cuattro, LLC charged Heska Imaging $1.7 million during the three months ended March 31, 2018 , and charged Global Imaging $3.9 million during the three months ended March 31, 2017 , primarily related to digital imaging products, for which there is an underlying supply contract with minimum purchase obligations, software and services as well as other operating expenses. Heska Corporation charged US Imaging $1.7 million during the three months ended March 31, 2017 , prior to the purchase of the Imaging Minority on May 31, 2017, primarily related to sales expenses. Heska Corporation charged Cuattro, LLC approximately $1 thousand and $34 thousand during the three months ended March 31, 2018 , and 2017 , respectively, primarily related to facility usage and other services. Heska Corporation had receivables from Cuattro, LLC of approximately $0 and $1 thousand as of March 31, 2018 and December 31, 2017 , respectively, which is included in "Due from – related parties" on the Company's consolidated balance sheet. Heska Imaging owed Cuattro $0.7 million and $1.7 million as of March 31, 2018 and December 31, 2017, respectively, which is included in "Due to – related parties" on the Company's consolidated balance sheets.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our total income tax benefit and the effective tax rate for our income before income taxes were as follows (in thousands): Three Months Ended March 31, 2018 2017 Income before income taxes $ 1,875 $ 2,850 Total income tax benefit (280 ) (1,453 ) Effective tax rate 14.9 % 51.0 % There were cash payments of $18 thousand for income taxes for the three months ended March 31, 2018 and there were $62 thousand cash payments for income taxes, net of refunds, for the three months ended March 31, 2017 . The Company’s effective tax rate decreased to a tax benefit of 14.9% for the three months ended March 31, 2018 , compared to a tax benefit of 51.0% for the three months ended March 31, 2017 . The decrease in rates for both periods was primarily attributable to an increase in stock-based compensation excess tax benefits, which are now recorded as income tax expense or benefit in accordance with our policy. The Company continues to analyze the different aspects of the Tax Cuts and Jobs Act that was enacted in December 2017. Specifically, we continue to analyze the provisional amounts estimated for the transition tax, the possible impact of the “GILTI” tax, and the possible executive compensation limitations imposed by IRC Section 162(m) of the Internal Revenue Code of 1986, as amended.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share ("EPS") is computed by dividing net income attributable to Heska Corporation by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the numerator is increased to exclude charges that would not have been incurred, and the denominator is increased to include the number of additional common shares that would have been outstanding (using the if-converted and treasury stock methods), if securities containing potentially dilutive common shares (stock options and restricted stock units but excluding options to purchase fractional shares resulting from the Company's December 2010 1-for- 10 reverse stock split) had been converted to common shares, and if such assumed conversion is dilutive. The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted earnings per share for the three months ended March 31, 2018 and 2017 (in thousands, except per share data): Three Months Ended March 31, 2018 2017 Net income attributable to Heska $ 2,155 $ 4,607 Basic weighted-average common shares outstanding 7,102 7,011 Assumed exercise of dilutive stock options and restricted shares 609 583 Diluted weighted-average common shares outstanding 7,711 7,594 Basic earnings per share attributable to Heska $ 0.30 $ 0.66 Diluted earnings per share attributable to Heska $ 0.28 $ 0.61 The following stock options and restricted shares were excluded from the computation of diluted earnings per share because they would have been anti-dilutive (in thousands): Three Months Ended March 31, 2018 2017 Stock options 244 110

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
GOOWILL AND OTHER INTANGIBLES	GOODWILL AND OTHER INTANGIBLES The following summarizes the change in goodwill during the three months ended March 31, 2018 (in thousands): Carrying amount, December 31, 2017 $ 26,687 Foreign currency adjustments 23 Carrying amount, March 31, 2018 $ 26,710 Other intangibles consisted of the following as of March 31, 2018 and December 31, 2017 (in thousands): March 31, December 31, 2018 2017 Gross carrying amount $ 3,309 $ 3,309 Accumulated amortization (1,448 ) (1,351 ) Net carrying amount $ 1,861 $ 1,958 Amortization expense relating to other intangibles was as follows (in thousands): Three Months Ended March 31, 2018 2017 Amortization expense $ 97 $ 97 Estimated amortization expense related to intangibles for each of the five years from 2018 (remaining) through 2022 and thereafter is as follows (in thousands): Year Ending December 31, 2018 (remaining) $ 291 2019 388 2020 388 2021 384 2022 378 Thereafter 32 $ 1,861

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2018 2017 Land $ 377 $ 377 Building 3,076 2,868 Machinery and equipment 38,759 38,432 Leasehold and building improvements 8,662 8,156 Construction in progress 2,588 3,531 53,462 53,364 Less accumulated depreciation (36,604 ) (36,033 ) Total property and equipment, net $ 16,858 $ 17,331 The Company has subscription agreements whereby its instruments in inventory may be placed in a customer's location on a rental basis. The cost of these instruments is transferred to machinery and equipment and depreciated, typically over a five -to- seven year period depending on the circumstance under which the instrument is placed with the customer. Depreciation expense was $1.1 million and $1.0 million for the three months ended March 31, 2018 and 2017 , respectively. Our cost of instruments under operating leases as of March 31, 2018 and December 31, 2017 , was $10.6 million and $10.8 million , before accumulated depreciation of $5.4 million and $5.0 million , and the net book value was $5.2 million and $5.8 million , respectively.

INVENTORIES, NET

INVENTORIES, NET	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
INVENTORIES, NET	INVENTORIES, NET Inventories, net consisted of the following (in thousands): March 31, December 31, 2018 2017 Raw materials $ 17,752 $ 18,465 Work in process 3,942 4,296 Finished goods 10,166 11,465 Allowance for excess or obsolete inventory (1,559 ) (1,630 ) Total inventory, net $ 30,301 $ 32,596 Inventories are stated at lower of cost (first-in, first-out) or net realizable value.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2018
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): March 31, December 31, Accrued payroll and employee benefits $ 2,747 $ 1,209 Accrued purchases 2,809 695 Accrued property taxes 257 661 Other 1,628 1,852 Total accrued liabilities $ 7,441 $ 4,417 Other accrued liabilities consisted of items that are individually less than 5% of total current liabilities.

CAPITAL STOCK

CAPITAL STOCK	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
CAPITAL STOCK	CAPITAL STOCK Stock Option Plans The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions for options granted in the three months ended March 31, 2018 and 2017 . Three Months Ended March 31, 2018 2017 Risk-free interest rate 2.64% 1.87% Expected lives 4.9 years 4.9 years Expected volatility 40% 40% Expected dividend yield 0% 0% A summary of our stock option plans, excluding options to purchase fractional shares resulting from our December 2010 1-for- 10 reverse stock split, is as follows: Three Months Ended Year Ended December 31, 2018 2017 Weighted Average Exercise Price Weighted Average Exercise Price Outstanding at beginning of period 630,847 $ 29.312 829,617 $ 23.203 Granted at market 130,000 $ 69.770 27,050 $ 99.087 Canceled (18,706 ) $ 52.131 (18,331 ) $ 57.197 Exercised (6,683 ) $ 18.089 (207,489 ) $ 11.520 Outstanding at end of period 735,458 $ 35.985 630,847 $ 29.312 Exercisable at end of period 470,717 $ 19.584 456,802 $ 18.316 The total estimated fair value of stock options granted during the three months ended March 31, 2018 and 2017 was computed to be approximately $3.5 million and $9 thousand , respectively. The amounts are amortized ratably over the vesting periods of the options. The weighted average estimated fair value of options granted during the three months ended March 31, 2018 and 2017 was computed to be approximately $26.69 and $30.20 , respectively. The total intrinsic value of options exercised during the three months ended March 31, 2018 and 2017 was $406 thousand and $6.3 million , respectively. The cash proceeds from options exercised during the three months ended March 31, 2018 and 2017 was $121 thousand and $554 thousand , respectively. The following table summarizes information about stock options outstanding and exercisable at March 31, 2018 : Options Outstanding Options Exercisable Exercise Prices Number of Weighted Average Remaining Contractual Life in Years Weighted Average Exercise Price Number of Weighted Average Exercise Price $ 4.40 - $ 6.90 94,451 2.40 $ 5.382 94,451 $ 5.382 $ 6.91 - $ 8.55 168,628 5.15 $ 7.759 168,628 $ 7.759 $ 8.56 - $39.56 143,957 6.57 $ 22.445 125,721 $ 22.747 $39.57 - $69.77 215,217 8.90 $ 57.940 47,469 $ 39.840 $69.78 - $108.25 113,205 8.57 $ 79.042 34,448 $ 76.947 $ 4.40 - $108.25 735,458 6.73 $ 35.985 470,717 $ 19.584 As of March 31, 2018 , there was approximately $6.3 million in total unrecognized compensation cost related to outstanding stock options. That cost is expected to be recognized over a weighted average period of 2.23 years, with all cost to be recognized by the end of October 2021, assuming all options vest according to the vesting schedules in place at March 31, 2018 . As of March 31, 2018 , the aggregate intrinsic value of outstanding options was approximately $32.2 million and the aggregate intrinsic value of exercisable options was approximately $28.1 million . Employee Stock Purchase Plan (the "ESPP") For the three months ended March 31, 2018 and 2017 , we issued 3,127 and 3,204 shares under the ESPP, respectively. For the three months ended March 31, 2018 and 2017 , we estimated the fair values of stock purchase rights granted under the ESPP using the Black-Scholes pricing model. The weighted average assumptions used for the periods presented were as follows: Three Months Ended 2018 2017 Risk-free interest rate 1.03% 0.64% Expected lives 1.2 years 1.2 years Expected volatility 44% 45% Expected dividend yield 0% 0% For the three months ended March 31, 2018 and 2017 , the weighted-average fair value of the purchase rights granted was $14.28 and $13.41 per share, respectively. Restricted Stock Issuance On March 26, 2014, we issued 110,000 shares to Mr. Wilson pursuant to an employment agreement between Mr. Wilson and the Company effective as of March 26, 2014 (the "Wilson Employment Agreement"). The shares were issued in four equal tranches and subject to time-based vesting and other provisions outlined in the Wilson Employment Agreement. On March 26, 2017, the final of these four equal tranches of 27,500 shares vested. On March 17, 2015, the Company issued unvested shares to certain Executive Officers related to performance-based restricted stock grants (the "Performance Grants"). The Company issued 52,956 shares under the Performance Grants. The Performance Grants have met the underlying performance condition based on the Company's 2015 financial performance and vested on March 17, 2018, subject to other vesting provisions in the underlying restricted stock grant agreement. Of the shares issued, 52,956 vested, 0 were forfeited, and 14,334 were withheld for tax. On March 2, 2016, the Company issued 15,000 unvested shares to certain Executive Officers related to performance-based restricted stock grants as part of the Company’s 2016 Management Incentive Plan (the "2016 MIP Grants"). Of the shares issued, 14,629 vested, 371 were forfeited, and 4,133 were withheld for tax. The 2016 MIP Grants vested during the three months ended March 31, 2017. On May 1, 2017, the Company issued 2,720 shares of our Common Stock to the Company's non-employee directors. These grants were to vest (the "Vesting Time") in full on the latter of (i) the one year anniversary of the date of grant and (ii) the Company’s Annual Meeting of Stockholders for the year following the year of grant for the award (the "Vesting Meeting"), subject to (i) the non-employee director's continued service to the Company through the Vesting Time, unless the non-employee director’s current term expires at the Vesting Meeting in which case vesting is subject to the non-employee director’s service to the Vesting Meeting and (ii) the non-employee director not engaging in “competition”, as defined in a restricted stock grant agreement executed by the non-employee director, to the Vesting Time. Of these shares, all vested on May 3, 2018. On May 31, 2017, the Company issued 23,700 unvested performance-based restricted stock shares to certain key employees. The vesting of these shares is subject to the achievement of certain Company performance and market conditions that must be met on or before May 30, 2024 . On June 15, 2017, the Company issued 6,594 unvested restricted shares to certain Executive Officers related to performance-based restricted stock grants as part of the Company’s 2017 Management Incentive Plan (the "2017 MIP Grants"). As of December 31, 2017, all shares were forfeited and no compensation expense was recorded for the year ended December 31, 2017. On March 7, 2018, the Company issued 128,500 shares of performance-based restricted common stock and stock options with 130,000 underlying shares of common stock under the 1997 Plan, including 118,500 shares of performance-based restricted common stock and stock options with 120,000 underlying shares of common stock granted to Company Executive Officers. The vesting of the performance-based restricted shares is subject to the achievement of certain Company performance and market conditions and, in some instances, a service period requirement. The shares are to be forfeited if the applicable performance or market condition is not met by the date in each fiscal year that the Company's independent registered public accountants issue their financial report on the Company's prior fiscal year financial statements in 2025 or March 31, 2025, respectively, with the exception of 27,539 shares of restricted common stock with vesting tied to the Company's stock outperforming the S&P 500 Index over a two or four year time period, which will be forfeited if not achieved at the specified time. The stock options are to vest annually in three approximately equal tranches and immediately upon a change in control. As of March 31, 2018, there was approximately $4.1 million of total unrecognized compensation cost related to restricted stock. The Company expects to recognize this expense over a weighted average period of 2.3 years. Restrictions on the transfer of Company stock The Company's Restated Certificate of Incorporation, as amended (the "Certificate of Incorporation"), places restrictions (the "Transfer Restrictions") on the transfer of the Company's stock that could adversely affect the Company's ability to utilize its domestic Federal Net Operating Loss Position. In particular, the Transfer Restrictions prevent the transfer of shares without the approval of the Company's Board of Directors if, as a consequence of such transfer, an individual, entity or groups of individuals or entities would become a 5-percent holder under Section 382 of the Internal Revenue Code of 1986, as amended, and the related Treasury regulations, and also prevents any existing 5 -percent holder from increasing his or her ownership position in the Company without the approval of the Company's Board of Directors. Any transfer of shares in violation of the Transfer Restrictions (a "Transfer Violation") shall be void ab initio under the Certificate of Incorporation, and the Company's Board of Directors has procedures under the Certificate of Incorporation to remedy a Transfer Violation, including requiring the shares causing such Transfer Violation to be sold and any profit resulting from such sale to be transferred to a charitable entity chosen by the Company's Board of Directors in specified circumstances.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income consisted of the following (in thousands): Minimum Pension Liability Foreign Currency Translation Total Accumulated Other Comprehensive Income Balances at December 31, 2017 $ (489 ) $ 721 $ 232 Current period other comprehensive income — 81 81 Balances at March 31, 2018 $ (489 ) $ 802 $ 313

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company holds certain rights to market and manufacture products developed or created under certain research, development and licensing agreements with various entities. In connection with such agreements, the Company has agreed to pay the entities royalties on net product sales. In each of the three months ended March 31, 2018 and 2017 , royalties of $0.1 million became payable under these agreements. From time to time, the Company may be involved in litigation relating to claims arising out of its operations. On March 12, 2015, a complaint was filed against us by Shaun Fauley in the United States District Court Northern District of Illinois alleging our transmittal of unauthorized faxes in violation of the federal Telephone Consumer Protection Act of 1991, as amended by the Junk Fax Prevention Act of 2005, as a class action seeking stated damages of the greater of actual monetary loss or five hundred dollars per violation. The Company intends to defend itself vigorously in this matter and at this time is unable to estimate a possible loss or range of loss. As of March 31, 2018 , the Company was not a party to any other legal proceedings that were expected, individually or in the aggregate, to have a material adverse effect on its business, financial condition or operating results. The Company's current terms and conditions of sale include a limited warranty that its products and services will conform to published specifications at the time of shipment and a more extensive warranty related to certain of its products. The Company also sells a renewal warranty for certain of its products. The typical remedy for breach of warranty is to correct or replace any defective product, and if not possible or practical, the Company will accept the return of the defective product and refund the amount paid. Historically, the Company has incurred minimal warranty costs. The Company's warranty reserve was $0.2 million at both March 31, 2018 and December 31, 2017 . Off-Balance Sheet Commitments Unconditional Purchase Obligations The Company has contractual obligations with suppliers for unconditional annual minimum inventory purchases in the amounts of $32.1 million as of March 31, 2018. Operating Leases The Company leases various equipment and facilities. The Company does not currently utilize any other off-balance sheet financing arrangements. As of March 31, 2018, the Company's total future minimum lease payments under noncancelable operating leases were $11.1 million .

INTEREST AND OTHER INCOME, NET

INTEREST AND OTHER INCOME, NET	3 Months Ended
	Mar. 31, 2018
Other Income and Expenses [Abstract]
INTEREST AND OTHER INCOME, NET	INTEREST AND OTHER INCOME, NET Interest and other income, net consisted of the following (in thousands): Three Months Ended March 31, 2018 2017 Interest income $ (56 ) $ (38 ) Interest expense 65 24 Other income, net (13 ) (48 ) Total interest and other expense (income), net $ (4 ) $ (62 ) Cash paid for interest for the three months ended March 31, 2018 and 2017 was $27 thousand and $15 thousand , respectively.

CREDIT FACILITY

CREDIT FACILITY	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
CREDIT FACILITY	CREDIT FACILITY On July 27, 2017, we entered into a Credit Agreement (the "Credit Agreement") with JP Morgan Chase Bank, N.A. ("Chase"), which provides for a revolving credit facility of up to $30.0 million (the "Credit Facility"). The Credit Facility provides us with the ability to borrow up to $30.0 million , although the amount of the Credit Facility may be increased by an additional $20.0 million up to a total of $50.0 million subject to receipt of additional lender commitments and other conditions. Any interest on borrowings due is to be charged at either the (i) rate of interest per annum publicly announced from time to time by Chase as its prime rate in effect at its principal offices in New York City, subject to a floor, minus 1.65% , or (ii) the interest rate per annum equal to (a) LIBOR for the interest period in effect multiplied by (b) Chase's Statutory Reserve Rate (as defined in the Credit Agreement), plus 1.10% and payable monthly. There is an annual minimum interest charge of $60 thousand under the Credit Agreement. Borrowings under the Credit Facility are subject to certain financial and non-financial covenants and are available for various corporate purposes, including general working capital, capital investments, and certain permitted acquisitions. The Credit Agreement also permits us to issue letters of credit. The maturity date of the Credit Facility is July 27, 2020. The foregoing discussion of the Credit Facility is a summary only and is qualified in its entirety by reference to the full text of the Credit Agreement, a copy of which has been filed as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on August 2, 2017. At March 31, 2018 , we had $6.0 million of borrowings outstanding on this line of credit and we were in compliance with all financial covenants.

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING The Company is composed of two reportable segments, CCA and OVP. The CCA segment includes Point of Care diagnostics laboratory instruments and consumables, and Point of Care digital imaging diagnostic instruments and software services as well as single use diagnostic and other tests, pharmaceuticals and vaccines, primarily for canine and feline use. These products are sold directly by the Company as well as through independent third-party distributors and through other distribution relationships. CCA segment products manufactured at the Des Moines, Iowa production facility included in the OVP segment's assets are transferred at cost and are not recorded as revenue for the OVP segment. The OVP segment includes private label vaccine and pharmaceutical production, primarily for cattle, but also for other animals including small mammals. All OVP products are sold by third parties under third-party labels. Summarized financial information concerning the Company's reportable segments is shown in the following table (in thousands): Three Months Ended March 31, 2018 Core Other Vaccines, Pharmaceuticals and Products Total revenue $ 26,819 $ 5,946 $ 32,765 Operating income (loss) 1,923 (52 ) 1,871 Income (loss) before income taxes 1,927 (52 ) 1,875 Capital purchases 57 318 375 Depreciation and amortization 908 288 1,196 Three Months Ended March 31, 2017 Core Other Vaccines, Pharmaceuticals and Products Total revenue $ 23,784 $ 5,775 $ 29,559 Operating income 1,146 1,642 2,788 Income before income taxes 1,214 1,636 2,850 Capital purchases 49 431 480 Depreciation and amortization 845 247 1,092 Asset information by reportable segment as of March 31, 2018 is as follows (in thousands): Core Companion Animal Health Other Vaccines, Pharmaceuticals and Products Total Total assets $ 117,418 $ 20,302 $ 137,720 Net assets 80,686 24,404 105,090 Asset information by reportable segment as of December 31, 2017 is as follows (in thousands): Core Companion Animal Health Other Vaccines, Pharmaceuticals and Products Total Total assets $ 111,968 $ 23,819 $ 135,787 Net assets 75,984 24,456 100,440

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On March 26, 2018, the Company filed a definitive proxy statement with the SEC which included a share increase proposal for consideration by the Company’s stockholders and, consistent with Mr. Wilson's employment agreement, an issuance of 33,000 shares of performance-based restricted common stock to Mr. Wilson if this proposal is approved at the Company’s 2018 Annual Meeting of Stockholders on May 3, 2018. This share increase proposal and restricted common stock issuance to Mr. Wilson was approved by the Company’s stockholders on May 3, 2018. The vesting of these shares is subject to the achievement of certain Company performance conditions, and, in some instances, a service period requirement. On May 3, 2018, the Company issued 4,230 shares of our Common Stock to the Company's non-employee directors. These grants are to vest (the "Vesting Time") in full on the latter of (i) the one year anniversary of the date of grant and (ii) the Company’s Annual Meeting of Stockholders for the year following the year of grant for the award (the "Vesting Meeting"), subject to (i) the non-employee director's continued service to the Company through the Vesting Time, unless the non-employee director’s current term expires at the Vesting Meeting in which case vesting is subject to the non-employee director’s service to the Vesting Meeting and (ii) the non-employee director not engaging in “competition”, as defined in a restricted stock grant agreement executed by the non-employee director, to the Vesting Time.

OPERATIONS AND SUMMARY OF SIG24

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the financial position of the Company at March 31, 2018 , and the results of our operations and cash flows for the three months ended March 31, 2018 and 2017 . The unaudited Condensed Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. Our unaudited Condensed Consolidated Financial Statements include our accounts and the accounts of our wholly-owned subsidiaries since their respective dates of acquisitions. All intercompany accounts and transactions have been eliminated in consolidation. Where our ownership of a subsidiary was less than 100%, the non-controlling interest is reported on our consolidated balance sheets. The non-controlling interest in our consolidated net income is reported as "Net income (loss) attributable to non-controlling interest" on our consolidated statements of income. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2017 and other financial information filed with the SEC.
Use of Estimates	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are required when establishing the allowance for doubtful accounts and the provision for excess or obsolete inventory, in determining future costs associated with warranties provided, in determining the period over which our obligations are fulfilled under agreements to license product rights and/or technology rights, evaluating long-lived and intangible assets for impairment, estimating the useful lives of instruments under leasing arrangements, determining the allocation of purchase price under purchase accounting, estimating the expense associated with the granting of stock options, and in determining the need for, and the amount of a valuation allowance on deferred tax assets.
Recent Accounting Pronouncements	Adoption of New Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which became effective for us beginning January 1, 2018. The new standard made eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. Adoption of this standard did not have a material impact on our financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and has subsequently issued several supplemental and/or clarifying ASUs (collectively “ASC 606”). ASC 606 prescribes a single common revenue standard that replaces most existing U.S. GAAP revenue recognition guidance. ASC 606 outlines a five-step model, under which Heska will recognize revenue as performance obligations within a customer contract are satisfied. ASC 606 is intended to provide more consistent interpretation and application of the principles outlined in the standard across filers in multiple industries and within the same industries compared to current practices, which should improve comparability. Along with the issuance of ASC 606, additional cost guidance was issued and codified under ASC 340-40 that outlines the requirement for capitalizing incremental costs of obtaining a contract and costs to fulfill a contract that meet certain capitalization criteria. On January 1, 2018, we adopted ASC 606 using the modified retrospective method for all customer contracts not yet completed as of the adoption date. Results for reporting periods beginning January 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605, Revenue Recognition . We recorded an increase to beginning retained earnings of $2.6 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606. The impact to beginning retained earnings was primarily driven by the capitalization of certain costs to obtain a contract, primarily sales-related commissions. The adoption of ASC 606 did not have a significant impact on our Condensed Consolidated Financial Statements as of and for the three-month period ended March 31, 2018 and, as a result, comparisons of revenues and operating profit performance between periods are not affected by the adoption of this ASU. Refer to Note 2 for additional disclosures required by ASC 606. We generate our Core Companion Animal (“CCA”) segment revenue through the sale of products, either by outright purchase by our customers or through a subscription agreement whereby our customers receive instruments and pay us a monthly fee for the usage of the instrument as well as the consumables needed to conduct testing. Outright sales to customers is the majority of Point of Care imaging diagnostic transactions in addition to the sale of pharmaceuticals and vaccines while subscription placement is the majority of Point of Care diagnostic laboratory transactions. For outright sales of products, revenue is recognized when control of the promised products or services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services (the transaction price). A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. For instruments, consumables, and most software licenses sold by the Company, control transfers to the customer at a point in time. To indicate the transfer of control, the Company must have a present right to payment, legal title must have passed to the customer, the customer must have the significant risks and rewards of ownership, and where acceptance is not a formality, the customer must have accepted the product or service. Heska’s principal terms of sale are FOB Shipping Point, or equivalent, and, as such, we primarily transfer control and record revenue for product sales upon shipment. If a performance obligation to the customer with respect to a sales transaction remains to be fulfilled following shipment (typically installation or acceptance by the customer), revenue recognition for that performance obligation is deferred until such commitments have been fulfilled. We do not generally allow return of products or instruments. For extended warranty plans, control transfers to the customer over the term of the arrangement. Revenue for extended warranties is recognized based upon the period of time elapsed under the arrangement. Our revenue under subscription agreements relate to operating-type lease (“OTL”) arrangements or sales-type lease (“STL”) arrangements. A STL would result in earlier recognition of instrument revenue as compared to an OTL, generally upon installation of the instruments. The cost of the customer-leased instruments is removed from inventory and recognized in the Condensed Consolidated Statements of Income. Determination of an OTL or STL is primarily determined as a result of the length of the contract as compared to the estimated useful life of the instrument, among other factors. Leases are outside of the scope of ASC 606 and are therefore accounted for in accordance with ASC 840 , Leases . Instrument lease revenue for OTL agreements is recognized on a straight-line basis over the life of the lease, and the costs of customer-leased instruments are recorded within property and equipment in the accompanying Condensed Consolidated Balance Sheets and depreciated over the instrument’s estimated useful life. The depreciation expense is reflected in cost of sales in the accompanying Condensed Consolidated Statements of Income. The OTLs and STLs are not cancellable until after an initial term. Under either type of lease, we often charge a subscription fee and a minimum supply credit. OTLs may include a minimum utilization rather than a minimum supply credit. For contracts with multiple performance obligations, the Company allocates the contracts' transaction price to each performance obligation on a relative standalone selling price basis using our best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate the standalone selling price is the price observed in standalone sales to customers, however, when prices in standalone sales are not available, we may use a cost-plus margin approach. Allocation of the transaction price is determined at the contracts' inception. The Company does not adjust the transaction price for the effects of a significant financing component when the period between the transfer of the promised good or service to the customer and payment for that good or service by the customer is expected to be one year or less. This allocation approach also applies to contracts for which a portion of the contract relates to a lease component. We generate revenue within our Other Vaccines, Pharmaceuticals, and Products (“OVP”) segment through contract manufacturing contracts with customers. The timing of revenue recognition of our customer contracts will continue to be recognized - generally upon shipment or acceptance by our customer, under the same guidelines noted above for other outright product sales. Heska assessed the over-time criteria within ASC 606 and concluded that because products within this segment have no alternative use to Heska, as Heska is contractually prohibited to redirect the product to other customers, Heska does not have right to payment for performance to date and therefore, point in time recognition is appropriate. Revenue generated from licensing arrangements is recognized based on the underlying term of the contract. Accounting Pronouncements Not Yet Adopted In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU permits companies to elect a reclassification of disproportionate tax effects in accumulated other comprehensive income (AOCI) caused by the Tax Cuts and Jobs Act of 2017 to retained earnings. The ASU also requires additional disclosures. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the effect of this ASU on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , which require that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendments in this update are effective for fiscal years beginning after December 15, 2019 and interim periods within those annual periods. Early adoption for fiscal year beginning after December 15, 2018 is permitted. We are currently evaluating the effect of this update on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes ASC 840, Leases , and creates a new topic, ASC 842, Leases . This update requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance as well as to the new revenue recognition guidance in ASU 2014-09. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the effect of this update on our consolidated financial statements.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Timing of Revenue Expected to be Recognized	As of March 31, 2018, the Company expects to recognize revenue as follows as (in thousands): Year Ending December 31, Revenue 2018 (remaining) $ 15,987 2019 17,962 2020 14,459 2021 10,758 2022 7,609 Thereafter 5,813 $ 72,588

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of components of income tax expense	Our total income tax benefit and the effective tax rate for our income before income taxes were as follows (in thousands): Three Months Ended March 31, 2018 2017 Income before income taxes $ 1,875 $ 2,850 Total income tax benefit (280 ) (1,453 ) Effective tax rate 14.9 % 51.0 %

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Reconciliation of basic and diluted earnings per share	The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted earnings per share for the three months ended March 31, 2018 and 2017 (in thousands, except per share data): Three Months Ended March 31, 2018 2017 Net income attributable to Heska $ 2,155 $ 4,607 Basic weighted-average common shares outstanding 7,102 7,011 Assumed exercise of dilutive stock options and restricted shares 609 583 Diluted weighted-average common shares outstanding 7,711 7,594 Basic earnings per share attributable to Heska $ 0.30 $ 0.66 Diluted earnings per share attributable to Heska $ 0.28 $ 0.61
Schedule of antidilutive securities excluded from computation of earnings per share	The following stock options and restricted shares were excluded from the computation of diluted earnings per share because they would have been anti-dilutive (in thousands): Three Months Ended March 31, 2018 2017 Stock options 244 110

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in goodwill	The following summarizes the change in goodwill during the three months ended March 31, 2018 (in thousands): Carrying amount, December 31, 2017 $ 26,687 Foreign currency adjustments 23 Carrying amount, March 31, 2018 $ 26,710
Schedule of other intangible assets	Other intangibles consisted of the following as of March 31, 2018 and December 31, 2017 (in thousands): March 31, December 31, 2018 2017 Gross carrying amount $ 3,309 $ 3,309 Accumulated amortization (1,448 ) (1,351 ) Net carrying amount $ 1,861 $ 1,958
Schedule of amortization expense on intangible assets	Amortization expense relating to other intangibles was as follows (in thousands): Three Months Ended March 31, 2018 2017 Amortization expense $ 97 $ 97
Schedule of estimated future amortization expense	Estimated amortization expense related to intangibles for each of the five years from 2018 (remaining) through 2022 and thereafter is as follows (in thousands): Year Ending December 31, 2018 (remaining) $ 291 2019 388 2020 388 2021 384 2022 378 Thereafter 32 $ 1,861

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2018 2017 Land $ 377 $ 377 Building 3,076 2,868 Machinery and equipment 38,759 38,432 Leasehold and building improvements 8,662 8,156 Construction in progress 2,588 3,531 53,462 53,364 Less accumulated depreciation (36,604 ) (36,033 ) Total property and equipment, net $ 16,858 $ 17,331

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Schedule of inventory	Inventories, net consisted of the following (in thousands): March 31, December 31, 2018 2017 Raw materials $ 17,752 $ 18,465 Work in process 3,942 4,296 Finished goods 10,166 11,465 Allowance for excess or obsolete inventory (1,559 ) (1,630 ) Total inventory, net $ 30,301 $ 32,596

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2018
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): March 31, December 31, Accrued payroll and employee benefits $ 2,747 $ 1,209 Accrued purchases 2,809 695 Accrued property taxes 257 661 Other 1,628 1,852 Total accrued liabilities $ 7,441 $ 4,417

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of weighted average valuation assumptions	The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions for options granted in the three months ended March 31, 2018 and 2017 . Three Months Ended March 31, 2018 2017 Risk-free interest rate 2.64% 1.87% Expected lives 4.9 years 4.9 years Expected volatility 40% 40% Expected dividend yield 0% 0%
Schedule of stock options plans	A summary of our stock option plans, excluding options to purchase fractional shares resulting from our December 2010 1-for- 10 reverse stock split, is as follows: Three Months Ended Year Ended December 31, 2018 2017 Weighted Average Exercise Price Weighted Average Exercise Price Outstanding at beginning of period 630,847 $ 29.312 829,617 $ 23.203 Granted at market 130,000 $ 69.770 27,050 $ 99.087 Canceled (18,706 ) $ 52.131 (18,331 ) $ 57.197 Exercised (6,683 ) $ 18.089 (207,489 ) $ 11.520 Outstanding at end of period 735,458 $ 35.985 630,847 $ 29.312 Exercisable at end of period 470,717 $ 19.584 456,802 $ 18.316
Schedule of shares authorized under stock options plans by exercise price	The following table summarizes information about stock options outstanding and exercisable at March 31, 2018 : Options Outstanding Options Exercisable Exercise Prices Number of Weighted Average Remaining Contractual Life in Years Weighted Average Exercise Price Number of Weighted Average Exercise Price $ 4.40 - $ 6.90 94,451 2.40 $ 5.382 94,451 $ 5.382 $ 6.91 - $ 8.55 168,628 5.15 $ 7.759 168,628 $ 7.759 $ 8.56 - $39.56 143,957 6.57 $ 22.445 125,721 $ 22.747 $39.57 - $69.77 215,217 8.90 $ 57.940 47,469 $ 39.840 $69.78 - $108.25 113,205 8.57 $ 79.042 34,448 $ 76.947 $ 4.40 - $108.25 735,458 6.73 $ 35.985 470,717 $ 19.584
Schedule of pricing models	The weighted average assumptions used for the periods presented were as follows: Three Months Ended 2018 2017 Risk-free interest rate 1.03% 0.64% Expected lives 1.2 years 1.2 years Expected volatility 44% 45% Expected dividend yield 0% 0%

ACCUMULATED OTHER COMPREHENSI33

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Schedule of accumulated other comprehensive income (loss)	Accumulated other comprehensive income consisted of the following (in thousands): Minimum Pension Liability Foreign Currency Translation Total Accumulated Other Comprehensive Income Balances at December 31, 2017 $ (489 ) $ 721 $ 232 Current period other comprehensive income — 81 81 Balances at March 31, 2018 $ (489 ) $ 802 $ 313

INTEREST AND OTHER INCOME, NET

INTEREST AND OTHER INCOME, NET (Tables)	3 Months Ended
	Mar. 31, 2018
Other Income and Expenses [Abstract]
Schedule of interest expense (income) and other income, net	Interest and other income, net consisted of the following (in thousands): Three Months Ended March 31, 2018 2017 Interest income $ (56 ) $ (38 ) Interest expense 65 24 Other income, net (13 ) (48 ) Total interest and other expense (income), net $ (4 ) $ (62 )

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Reconciliation of other significant reconciling items from segments to consolidated	Summarized financial information concerning the Company's reportable segments is shown in the following table (in thousands): Three Months Ended March 31, 2018 Core Other Vaccines, Pharmaceuticals and Products Total revenue $ 26,819 $ 5,946 $ 32,765 Operating income (loss) 1,923 (52 ) 1,871 Income (loss) before income taxes 1,927 (52 ) 1,875 Capital purchases 57 318 375 Depreciation and amortization 908 288 1,196 Three Months Ended March 31, 2017 Core Other Vaccines, Pharmaceuticals and Products Total revenue $ 23,784 $ 5,775 $ 29,559 Operating income 1,146 1,642 2,788 Income before income taxes 1,214 1,636 2,850 Capital purchases 49 431 480 Depreciation and amortization 845 247 1,092
Schedule of revenue from external customers and long-lived assets, by geographical areas	Asset information by reportable segment as of March 31, 2018 is as follows (in thousands): Core Companion Animal Health Other Vaccines, Pharmaceuticals and Products Total Total assets $ 117,418 $ 20,302 $ 137,720 Net assets 80,686 24,404 105,090 Asset information by reportable segment as of December 31, 2017 is as follows (in thousands): Core Companion Animal Health Other Vaccines, Pharmaceuticals and Products Total Total assets $ 111,968 $ 23,819 $ 135,787 Net assets 75,984 24,456 100,440

OPERATIONS AND SUMMARY OF SIG36

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	Dec. 31, 2017USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Adoption of accounting standards	$ 2,634
Accumulated Deficit
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Adoption of accounting standards	$ 2,634

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 32,765	$ 29,559
Remaining performance obligation	72,600			$ 72,588
Contract liabilities, current	11,000
Contract liabilities, noncurrent	12,300
Contract liabilities, revenue recognized	1,600
Contract liabilities, increase due to additional deferred sales	300
Capitalized contract costs	2,400		$ 2,400
Capitalized contract costs, amortization	200
Operating Type Lease and Sales Type Lease
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	1,500
Laboratory Instruments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	800
Laboratory Supplies
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	10,800
Other Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	500
Point of Care Imaging Products for Instruments and Software
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	5,100
Rental Agreements
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	300
Service Revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	600
Single-Use Diagnostic and Other Tests, Pharmaceuticals and Biologicals And Research and Development
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	7,200
License and Royalty Income
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	100
Contract Manufacturing Contracts
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	5,700
Other License and Research and Development
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 200

REVENUE - Performance Obligatio

REVENUE - Performance Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 72,600	$ 72,588
2018 (remaining)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation		15,987
2,019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation		17,962
2,020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation		14,459
2,021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation		10,758
2,022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation		7,609
Thereafter
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation		$ 5,813

ACQUISITION AND RELATED PARTY39

ACQUISITION AND RELATED PARTY ITEMS (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Feb. 24, 2013
Business Acquisition [Line Items]
Distributions to non-controlling interest members	$ 1,000		$ 100
Heska Imaging | Affiliated Entity
Business Acquisition [Line Items]
Related party - amount of transaction		$ 1,700
Cuattro Veterinary USA, LLC
Business Acquisition [Line Items]
Percentage of voting interest acquired				54.60%
Minority interest subject to purchase (as a percent)				45.40%
Heska Imaging
Business Acquisition [Line Items]
Put option, maximum valuation	13,800
Cuattro, LLC | Affiliated Entity
Business Acquisition [Line Items]
Related party - amount of transaction	$ 0	0
Cuattro, LLC | Global Imaging | Affiliated Entity
Business Acquisition [Line Items]
Related party - amount of transaction		$ 3,900
Cuattro, LLC | Kevin S. Willson, Shawna M. Wilson and Trusts for their Children and Family | Chief Executive Officer
Business Acquisition [Line Items]
General Partner Interest (as a percent)	100.00%
Cuattro Software, LLC | Kevin S. Willson, Shawna M. Wilson and Trusts for their Children and Family | Chief Executive Officer
Business Acquisition [Line Items]
General Partner Interest (as a percent)	100.00%
Heska Imaging
Business Acquisition [Line Items]
Distributions to non-controlling interest members	$ 2,100		300
Heska Imaging | Affiliated Entity
Business Acquisition [Line Items]
Due to related parties	$ 700		1,700
Heska Imaging | Cuattro, LLC | Affiliated Entity
Business Acquisition [Line Items]
Ownership percentage	0.05%
Related party - amount of transaction	$ 1,700
Heska Imaging | Shawna M. Wilson | Immediate Family Member of Management or Principal Owner
Business Acquisition [Line Items]
Ownership percentage	29.75%
Heska Imaging | Clint Roth
Business Acquisition [Line Items]
Ownership percentage	8.39%
Heska Imaging | Steven M. Asakowicz | Executive Officer
Business Acquisition [Line Items]
Ownership percentage	4.09%
Heska Imaging | Rodney A. Lippincott | Executive Officer
Business Acquisition [Line Items]
Ownership percentage	3.07%
Heska Imaging | Kevin S. Wilson | Chief Executive Officer
Business Acquisition [Line Items]
Ownership percentage	0.05%
Heska Corporation | Cuattro, LLC
Business Acquisition [Line Items]
Accounts payable, related parties	$ 0		$ 1

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income before income taxes	$ 1,875	$ 2,850
Total income tax benefit	$ (280)	$ (1,453)
Effective tax rate	14.90%	51.00%
Cash paid for income taxes	$ 18	$ 62

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended
	Dec. 31, 2010	Mar. 31, 2018USD ($)$ / sharesshares	Mar. 31, 2017USD ($)$ / sharesshares
Earnings Per Share [Abstract]
Reverse stock split conversion ratio	0.10
Net income attributable to Heska | $		$ 2,155	$ 4,607
Weighted average outstanding shares used to compute basic earnings per share attributable to Heska Corporation (in shares)		7,102	7,011
Assumed exercise of dilutive stock options and restricted shares		609	583
Diluted weighted-average common shares outstanding		7,711	7,594
Basic earnings per share attributable to Heska Corporation (in dollars per share) | $ / shares		$ 0.30	$ 0.66
Diluted earnings per share attributable to Heska Corporation (in dollars per share) | $ / shares		$ 0.28	$ 0.61
Stock Options And Restricted Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options and restricted units excluded from computation of earnings per share		244	110

GOODWILL AND OTHER INTANGIBLE42

GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Goodwill [Roll Forward]
Carrying amount, December 31, 2017	$ 26,687
Foreign currency adjustments	23
Carrying amount, March 31, 2018	26,710
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	3,309		$ 3,309
Accumulated amortization	(1,448)		(1,351)
Net carrying amount	1,861		1,958
Amortization expense	97	$ 97
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2018 (remaining)	291
2,019	388
2,020	388
2,021	384
2,022	378
Thereafter	32
Net carrying amount	$ 1,861		$ 1,958

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 53,462		$ 53,364
Less accumulated depreciation	(36,604)		(36,033)
Total property and equipment, net	16,858		17,331
Depreciation and amortization	1,100	$ 1,000
Operating leases, gross	10,600		10,800
Operating leases, accumulated depreciation	5,400		5,000
Operating leases, net	5,200		5,800
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	377		377
Building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,076		2,868
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	38,759		38,432
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,662		8,156
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,588		$ 3,531
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	5 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	7 years

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 17,752	$ 18,465
Work in process	3,942	4,296
Finished goods	10,166	11,465
Allowance for excess or obsolete inventory	(1,559)	(1,630)
Total inventory, net	$ 30,301	$ 32,596

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued payroll and employee benefits	$ 2,747	$ 1,209
Accrued purchases	2,809	695
Accrued property taxes	257	661
Other	1,628	1,852
Total accrued liabilities	$ 7,441	$ 4,417

CAPITAL STOCK - OPTION ACTIVITY

CAPITAL STOCK - OPTION ACTIVITY (Details) - $ / shares	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2017
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)	2.64%	1.87%
Expected lives (in years)	4 years 10 months 18 days	4 years 10 months 24 days
Expected volatility (as a percent)	40.00%	40.00%
Expected dividend rate (as a percent)	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period	630,847	829,617
Granted at market	130,000		27,050
Canceled	(18,706)		(18,331)
Exercised	(6,683)		(207,489)
Outstanding at end of period	735,458		829,617
Exercisable at end of period	470,717			456,802
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period (in dollars per share)	$ 29.312	$ 23.203
Granted at Market (in dollars per share)	69.770		$ 99.087
Cancelled (in dollars per share)	52.131		57.197
Exercised (in dollars per share)	18.089		11.520
Outstanding at ending of period (in dollars per share)	35.985		$ 23.203
Exercisable at end of period (in dollars per share)	$ 19.584			$ 18.316
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)	1.03%	0.64%
Expected lives (in years)	1 year 2 months 18 days	1 year 2 months 18 days
Expected volatility (as a percent)	44.00%	45.00%
Expected dividend rate (as a percent)	0.00%	0.00%

CAPITAL STOCK - NARRATIVE (Deta

CAPITAL STOCK - NARRATIVE (Details) $ / shares in Units, $ in Thousands

Mar. 17, 2018shares

Mar. 07, 2018trancheshares

Jun. 15, 2017shares

May 31, 2017shares

May 01, 2017shares

Mar. 26, 2017trancheshares

Mar. 02, 2016shares

Mar. 17, 2015shares

Mar. 26, 2014trancheshares

Dec. 31, 2010

Mar. 31, 2018USD ($)$ / sharesshares

Mar. 31, 2017USD ($)$ / sharesshares

May 07, 2018shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Reverse stock split conversion ratio

0.10

Fair value of stock options granted during period | $

$ 3,500

$ 9

Weighted average grant date fair value | $ / shares

$ 26.69

$ 30.20

Intrinsic value of options exercised | $

$ 406

$ 6,300

Proceeds from stock options exercised | $

$ 121

$ 554

Weighted average purchase price of shares purchased | $ / shares

$ 14.28

$ 13.41

Stockholder ownership percentage, threshold for restrictions

5.00%

Share Purchase Plan 1997

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares issued during period under options

130,000

Share Purchase Plan 1997 | Non-employee director

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares issued during period under options

120,000

Employee Stock Option

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Intrinsic value of options exercised | $

$ 28,100

Total unrecognized compensation expense related to outstanding stock options | $

$ 6,300

Period for recognition of unrecognized compensation expense

2 years 2 months 24 days

Intrinsic value of options outstanding | $

$ 32,200

Employee Stock

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares issued during period

3,127

3,204

Restricted Stock

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total unrecognized compensation expense related to outstanding stock options | $

$ 4,100

Period for recognition of unrecognized compensation expense

2 years 3 months 18 days

Number of tranches in share-based payment award | tranche

3

Equity instruments other than options, shares tied to S&P 500 Index

27,539

Restricted Stock | Minimum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Equity instruments other than options, performance period

2 years

Restricted Stock | Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Equity instruments other than options, performance period

4 years

Restricted Stock | Non-employee director

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares issued during period

2,720,000

Restricted Stock | Kevin S. Wilson

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares issued during period

27,500

110,000

Number of tranches in share-based payment award | tranche

4

4

Performance Shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares issued during period

23,700,000

52,956

Performance Shares | Management Incentive Plan Grants 2015

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares vested during period

52,956

Performance shares canceled

0

Shares withheld for income tax expense

14,334

Performance Shares | Management Incentive Plan (MIP) Grants 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares issued during period

15,000

Shares vested during period

14,629

Performance shares canceled

371

Shares withheld for income tax expense

4,133

Performance Shares | Management Incentive Plan (MIP) Grants 2017

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares issued during period

6,594,000

Performance Restricted Common Stock and Stock Options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares issued during period under options

128,500

Performance Restricted Common Stock and Stock Options | Share Purchase Plan 1997

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares issued during period under options

118,500

CAPITAL STOCK - EXERCISE PRICE

CAPITAL STOCK - EXERCISE PRICE (Details)	3 Months Ended
	Mar. 31, 2018$ / sharesshares
$ 4.40 - $ 6.90
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at March 31, 2018 | shares	94,451
Weighted Average Remaining Contractual Life in Years	2 years 4 months 24 days
Weighted Average Exercise Price	$ 5.382
Number of Options Exercisable at March 31, 2018 | shares	94,451
Weighted Average Exercise Price	$ 5.382
Exercise price range, lower (in dollars per share)	4.40
Exercise price range, upper (in dollars per share)	$ 6.90
$ 6.91 - $ 8.55
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at March 31, 2018 | shares	168,628
Weighted Average Remaining Contractual Life in Years	5 years 1 month 24 days
Weighted Average Exercise Price	$ 7.759
Number of Options Exercisable at March 31, 2018 | shares	168,628
Weighted Average Exercise Price	$ 7.759
Exercise price range, lower (in dollars per share)	6.91
Exercise price range, upper (in dollars per share)	$ 8.55
$ 8.56 - $39.56
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at March 31, 2018 | shares	143,957
Weighted Average Remaining Contractual Life in Years	6 years 6 months 24 days
Weighted Average Exercise Price	$ 22.445
Number of Options Exercisable at March 31, 2018 | shares	125,721
Weighted Average Exercise Price	$ 22.747
Exercise price range, lower (in dollars per share)	8.56
Exercise price range, upper (in dollars per share)	$ 39.56
$39.57 - $69.77
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at March 31, 2018 | shares	215,217
Weighted Average Remaining Contractual Life in Years	8 years 10 months 24 days
Weighted Average Exercise Price	$ 57.940
Number of Options Exercisable at March 31, 2018 | shares	47,469
Weighted Average Exercise Price	$ 39.840
Exercise price range, lower (in dollars per share)	39.57
Exercise price range, upper (in dollars per share)	$ 69.77
$69.78 - $108.25
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at March 31, 2018 | shares	113,205
Weighted Average Remaining Contractual Life in Years	8 years 6 months 24 days
Weighted Average Exercise Price	$ 79.042
Number of Options Exercisable at March 31, 2018 | shares	34,448
Weighted Average Exercise Price	$ 76.947
Exercise price range, lower (in dollars per share)	69.78
Exercise price range, upper (in dollars per share)	$ 108.25
$ 4.40 - $108.25
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at March 31, 2018 | shares	735,458
Weighted Average Remaining Contractual Life in Years	6 years 8 months 24 days
Weighted Average Exercise Price	$ 35.985
Number of Options Exercisable at March 31, 2018 | shares	470,717
Weighted Average Exercise Price	$ 19.584
Exercise price range, lower (in dollars per share)	4.40
Exercise price range, upper (in dollars per share)	$ 108.25

ACCUMULATED OTHER COMPREHENSI49

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 103,074
Ending balance	105,090
Total Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	232
Current period other comprehensive income	81
Ending balance	313
Minimum Pension Liability
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(489)
Current period other comprehensive income	0
Ending balance	(489)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	721
Current period other comprehensive income	81
Ending balance	$ 802

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Increase in royalties payable	$ 0.1	$ 0.1
Warranty reserve	0.2		$ 0.2
Unconditional purchase obligations	32.1
Operating lease payments under noncancelable operating leases	$ 11.1

INTEREST AND OTHER INCOME, NE51

INTEREST AND OTHER INCOME, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other Income and Expenses [Abstract]
Interest income	$ (56)	$ (38)
Interest expense	65	24
Other, net	(13)	(48)
Total interest and other expense (income), net	(4)	(62)
Interest Paid	$ 27	$ 15

CREDIT FACILITY (Details)

CREDIT FACILITY (Details) - Line of Credit - Revolving Credit Facility - USD ($)	Jul. 27, 2017	Mar. 31, 2018
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 30,000,000
Additional maximum borrowing capacity increase	20,000,000
Contingent maximum borrowing capacity	$ 50,000,000
Basis spread on variable rate	1.10%
Minimum annual interest charge	$ 60,000
Long-term line of credit		$ 6,000,000
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.65%

SEGMENT REPORTING - NARRATIVE (

SEGMENT REPORTING - NARRATIVE (Details)	3 Months Ended
	Mar. 31, 2018segment
Segment Reporting [Abstract]
Number of reportable segments	2

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	$ 32,765	$ 29,559
Operating income	1,871	2,788
Income before income taxes	1,875	2,850
Capital expenditures	375	480
Depreciation and amortization	1,196	1,092
Assets	137,720		$ 135,787
Net Assets	105,090		100,440
Operating Segments | Core Companion Animal Health
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	26,819	23,784
Operating income	1,923	1,146
Income before income taxes	1,927	1,214
Capital expenditures	57	49
Depreciation and amortization	908	845
Assets	117,418		111,968
Net Assets	80,686		75,984
Operating Segments | Other Vaccines, Pharmaceuticals and Products
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	5,946	5,775
Operating income	(52)	1,642
Income before income taxes	(52)	1,636
Capital expenditures	318	431
Depreciation and amortization	288	$ 247
Assets	20,302		23,819
Net Assets	$ 24,404		$ 24,456

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - shares	May 03, 2018	Mar. 26, 2018
Chief Executive Officer | Performance Shares
Subsequent Event [Line Items]
Shares to be issued under proposed employment agreement		33,000
Non-employee director | Subsequent Event
Subsequent Event [Line Items]
Shares issued during period under options	4,230