Heska Corp. (HSKA) 10-Q 8 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 07, 2019
Document And Entity Information
Entity Registrant Name	Heska Corp
Entity Central Index Key	0001038133
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		7,750,652

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 9,101	$ 13,389
Accounts receivable, net of allowance for doubtful accounts of $259 and $245, respectively	16,202	16,454
Inventories, net	27,388	25,104
Net investment in leases, current, net of allowance for doubtful accounts of $40 and $40, respectively	3,225	2,989
Other current assets	4,620	4,471
Total current assets	60,536	62,407
Property and equipment, net	15,511	15,981
Operating lease right-of-use assets	6,414
Goodwill	27,311	26,679
Other intangible assets, net	9,923	9,764
Deferred tax asset, net	15,176	14,121
Net investment in leases, non-current	12,615	11,908
Investments in unconsolidated affiliates	7,837	8,018
Other non-current assets	7,457	7,574
Total assets	162,780	156,452
Current liabilities:
Accounts payable	7,746	7,469
Due to – related parties	0	226
Accrued liabilities	10,647	10,142
Current operating lease liability	1,693
Current portion of deferred revenue, and other	2,704	2,526
Total current liabilities	22,790	20,363
Deferred revenue, net of current portion	6,728	7,082
Line of credit and other long-term borrowings	6,026	6,031
Non-current operating lease liability	5,122
Other liabilities	175	567
Total liabilities	40,841	34,043
Commitments and contingencies
Redeemable non-controlling interest and mezzanine equity	662	0
Stockholders' equity:
Preferred stock, $.01 par value, 2,500,000 shares authorized, none issued or outstanding	0	0
Common stock, $.01 par value, 10,250,000 and 10,250,000 shares authorized, respectively, none issued or outstanding	0	0
Public common stock, $.01 par value, 10,250,000 and 10,250,000 shares authorized, 7,746,602 and 7,675,692 shares issued and outstanding, respectively	77	77
Additional paid-in capital	255,150	257,034
Accumulated other comprehensive income	215	277
Accumulated deficit	(134,165)	(134,979)
Total stockholders' equity	121,277	122,409
Total liabilities, mezzanine equity and stockholders' equity	$ 162,780	$ 156,452

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Allowance for doubtful accounts	$ 259	$ 245
Leases, allowance for doubtful accounts	$ 40	$ 40
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	10,250,000	10,250,000
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	10,250,000	10,250,000
Common stock, shares issued	7,746,602	7,675,692
Common stock, shares outstanding	7,746,602	7,675,692

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue:
Total revenue, net	$ 29,511	$ 32,765
Cost of revenue	16,968	19,458
Gross profit	12,543	13,307
Operating expenses:
Selling and marketing	7,033	6,140
Research and development	1,366	670
General and administrative	4,219	4,626
Total operating expenses	12,618	11,436
Operating (loss) income	(75)	1,871
Interest and other income, net	(16)	(4)
(Loss) income before income taxes and equity in losses of unconsolidated affiliates	(59)	1,875
Income tax (benefit) expense:
Current income tax expense	45	17
Deferred income tax benefit	(1,055)	(297)
Total income tax benefit	(1,010)	(280)
Net income before equity in losses of unconsolidated affiliates	951	2,155
Equity in losses of unconsolidated affiliates	(181)	0
Net income after equity in losses of unconsolidated affiliates	770	2,155
Net loss attributable to redeemable non-controlling interest	(44)	0
Net income attributable to Heska Corporation	$ 814	$ 2,155
Earnings Per Share [Abstract]
Basic earnings per share attributable to Heska Corporation (in dollars per share)	$ 0.11	$ 0.30
Diluted earnings per share attributable to Heska Corporation (in dollars per share)	$ 0.10	$ 0.28
Weighted average outstanding shares used to compute basic earnings per share attributable to Heska Corporation (in shares)	7,459	7,102
Weighted average outstanding shares used to compute diluted earnings per share attributable to Heska Corporation (in shares)	7,965	7,711
Core companion animal
Revenue:
Total revenue, net	$ 24,716	$ 26,819
Other vaccines and pharmaceuticals
Revenue:
Total revenue, net	$ 4,795	$ 5,946

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net income after equity in losses from unconsolidated affiliates	$ 770	$ 2,155
Other comprehensive income (loss):
Foreign currency translation	(62)	81
Comprehensive income	708	2,236
Comprehensive loss attributable to redeemable non-controlling interest	(44)	0
Comprehensive income attributable to Heska Corporation	$ 752	$ 2,236

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Previously Reported	Traditional Common Stock	Traditional Common StockPreviously Reported	Additional Paid-in Capital	Additional Paid-in CapitalPreviously Reported	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss)Previously Reported	Accumulated Deficit	Accumulated DeficitPreviously Reported
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of accounting standards	$ 2,634								$ 2,634
Beginning balance at Dec. 31, 2017	103,074	$ 100,440	$ 73	$ 73	$ 243,598	$ 243,598	$ 232	$ 232	(140,829)	$ (143,463)
Beginning balance (in shares) at Dec. 31, 2017			7,303	7,303
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income after equity in losses of unconsolidated affiliates	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 (loss)	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
Beginning balance at Dec. 31, 2018	122,409		$ 77		257,034		277		(134,979)
Beginning balance (in shares) at Dec. 31, 2018			7,676
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income after equity in losses of unconsolidated affiliates	814								814
Issuance of common stock, net of shares withheld for employee taxes	(3,070)		$ 0		(3,070)
Issuance of common stock, net of shares withheld for employee taxes (in shares)			71
Stock-based compensation	1,186				1,186
Other comprehensive income (loss)	(62)						(62)
Ending balance at Mar. 31, 2019	$ 121,277		$ 77		$ 255,150		$ 215		$ (134,165)
Ending balance (in shares) at Mar. 31, 2019			7,747

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income after equity in losses from unconsolidated affiliates	$ 770	$ 2,155
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	1,265	1,196
Non-cash impact of operating leases	375	0
Deferred income tax benefit	(1,055)	(297)
Stock-based compensation	1,186	1,064
Other losses	191	10
Changes in operating assets and liabilities (net of the effect of acquisitions):
Accounts receivable	624	1,465
Inventories	(1,052)	2,047
Due from related parties	0	1
Lease receivable, current	(237)	(233)
Other current assets	(151)	257
Accounts payable	(110)	(3,265)
Due to related parties	(226)	(1,026)
Accrued liabilities and other	39	2,981
Lease receivable, non-current	(668)	(754)
Other non-current assets	101	244
Deferred revenue and other	(325)	(1,638)
Net cash provided by operating activities	727	4,207
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in subsidiary, net of cash acquired	(224)	0
Purchases of property and equipment	(234)	(375)
Net cash used in investing activities	(458)	(375)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	410	288
Repurchase of common stock	(3,480)	(1,571)
Distributions to non-controlling interest members	0	(126)
Repayments of other debt	(1,486)	0
Net cash used in financing activities	(4,556)	(1,409)
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH	(1)	44
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(4,288)	2,467
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	13,389	9,659
CASH AND CASH EQUIVALENTS, END OF PERIOD	9,101	12,126
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Non-cash transfers of equipment between inventory and property and equipment, net	$ 227	$ 251

OPERATIONS AND SUMMARY OF SIGNI

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2019
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 diagnostic laboratory instruments and supplies; 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 as of March 31, 2019 and December 31, 2018 , the results of our operations, statements of stockholders' equity and cash flows for the three months ended March 31, 2019 and 2018 . 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 ("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 is less than 100%, the non-controlling interest is reported on our Condensed Consolidated Balance Sheets. The non-controlling interest in our consolidated net income is reported as "Net loss attributable to redeemable non-controlling interest" on our Condensed 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 for the fiscal year ended December 31, 2018 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 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 net realizable value of inventory; determining future costs associated with warranties provided; 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 and investments for estimated useful lives and 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; determining the need for, and the amount of a valuation allowance on deferred tax assets; and determining the value of the non-controlling interest in a business combination. 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 for the year ended December 31, 2018 and other than the recently adopted accounting pronouncements described below, have not changed significantly since such filing. Adoption of New Accounting Pronouncements Effective January 1, 2019, we adopted ASU 2018-07, Compensation – Stock Compensation (Topic 718) , Improvements to Non-employee Share-Based Payment Accounting . This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with accounting for employee share-based compensation. Guidance related to the stock compensation granted to employees is followed for non-employees, including the measurement date, valuation approach and performance conditions. The expense is recognized in the same period as though cash were paid for the good or service, ratably over the service period. The adoption of this ASU did not have an impact on our consolidated financial statements but did have a minimal impact on our related disclosures. Effective January 1, 2019, we adopted 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 the disproportionate tax effects in accumulated other comprehensive income ("AOCI") caused by the Tax Cuts and Jobs Act of 2017 to retained earnings. As of March 31, 2019, the Company does not have any disproportionate income tax effects in AOCI to reclassify. However, if the Company did have disproportionate income tax effects in AOCI in the future, it would reclassify them to retained earnings. In February 2016, the FASB issued ASU 2016-02, Leases ( Topic 842 ) , which supersedes ASC 840, Leases . This update requires lessees to recognize a right-of-use (“ROU”) asset and a lease liability for all leases, including operating leases, with terms greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures by lessees and lessors about the amount, timing and uncertainty of cash flows arising from 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, Revenue from Contracts with Customers (Topic 606) . Subsequent to the issuance of Topic 842, the FASB clarified the guidance through several ASUs; hereinafter the collection of lease guidance is referred to as “ASC 842”. The Company adopted ASC 842 on January 1, 2019, using the modified retrospective approach for all lease arrangements at the beginning of the period of adoption. Results for reporting periods beginning January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 840, Leases . For leases that commenced before the effective date of ASC 842, the Company elected the permitted practical expedients to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. The Company also elected to exclude leases with a term of 12 months or less from the recognized ROU assets and lease liabilities. Adoption of the standard did not have a material net impact in our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Income or Condensed Consolidated Statements of Cash Flows. The most significant impact was the recognition of ROU assets and lease liabilities for the operating leases, of which we are the lessee. As a result of the cumulative impact of adopting ASC 842, the Company recorded operating lease ROU assets of $6.5 million and operating lease liabilities of $6.9 million as of January 1, 2019, primarily related to building, vehicle, and office equipment leases, based on the present value of the future lease payments on the date of adoption. As a lessor, accounting for our subscription agreements will remain substantially unchanged. Refer to Note 6 for additional disclosures required by ASC 842. The Company determines if an arrangement is a lease at inception based on whether control of an identified asset is transferred. For leases where the Company is the lessee, ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as amortization expense and interest expense. The Company has lease agreements which require payments for lease and non-lease components and has elected to account for these as a single lease component for our building and office equipment leases, but as separate components for our vehicle leases. Our revenue under subscription agreements relates to both operating-type lease (“OTL”) arrangements or sales-type lease (“STL”) arrangements. 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. A STL results in earlier recognition of instrument revenue. The cost of the customer-leased instruments is removed from inventory and recognized in the Consolidated Statements of Income. There is no residual value taken into consideration as it does not meet our capitalization requirements. Instrument lease revenue for OTL agreements is recognized on a straight-line basis over the life of the lease and included with the predominant non-lease components in consumable revenue. The costs of customer-leased instruments are recorded within property and equipment in the accompanying Consolidated Balance Sheets and depreciated over the instrument’s estimated useful life. The depreciation expense is reflected in cost of revenue in the accompanying Consolidated Statements of Income. The OTLs and STLs are not cancellable until after an initial term and include an option to renew. For lease arrangements with lease and non-lease components where the Company is the lessor, the Company allocates the contracts transaction price to the lease and non-lease components on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate standalone selling price is the price observed in standalone sales to customers of a prior period. Changes in these values can impact the amount of consideration allocated to each component of the contract. 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 inception of the lease arrangement. The Company’s leases consist of leases with fixed and variable lease payments. For those leases with variable lease payments, the variable lease payment is typically based upon purchase of consumables used with the leased instruments and included in consumable revenue. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , which requires 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. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. 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 will adopt the provisions of this ASU in the first quarter of 2020. We are currently evaluating the effect of this update on our consolidated financial statements.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE We separate our goods and services among: • Point of Care laboratory products including instruments, consumables and 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 ("OVP"). The following table summarizes our Core Companion Animal ("CCA") revenue (in thousands): Three Months Ended March 31, 2019 2018 Point of Care laboratory revenue: $ 15,961 $ 13,641 Consumables 12,317 10,821 Sales-type leases 1,742 1,538 Outright instrument sales 1,528 811 Other 374 471 Point of Care imaging revenue: 5,410 5,972 Outright instrument sales 4,546 5,137 Service revenue 562 556 Operating type leases and other 302 279 Other CCA revenue: 3,345 7,206 Other pharmaceuticals, vaccines and diagnostic tests 3,246 7,109 Research and development, license and royalty revenue 99 97 Total CCA revenue $ 24,716 $ 26,819 Revenue from our OVP segment consists of revenue generated from contract manufacturing agreements and from other license, research and development revenue. The following table summarizes our OVP revenue (in thousands): Three Months Ended March 31, 2019 2018 Contract manufacturing $ 4,666 $ 5,791 License, research and development 129 155 Total OVP revenue $ 4,795 $ 5,946 Remaining Performance Obligations Remaining performance obligations 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, 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. As of March 31, 2019 , the aggregate amount of the transaction price allocated to remaining minimum performance obligations was approximately $87.2 million . As of March 31, 2019 , the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2019 (remaining) $ 18,023 2020 21,101 2021 17,078 2022 13,925 2023 10,337 Thereafter 6,727 $ 87,191 Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and deferred revenue, and 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 contracts (contract costs). Contract Receivables Certain unbilled receivable balances related to long-term contracts for which we provide a free term to the customer but have recognized revenue are recorded in other current and other non-current assets. We have no further performance obligations related to these receivable balances and the collection of these balances occurs over the term of the underlying contract. The balances as of March 31, 2019 were $0.9 million and $3.4 million for current and non-current assets, respectively, shown net of related unearned interest. The balances as of December 31, 2018 were $0.9 million and $3.3 million for current and non-current assets, respectively, shown net of related unearned interest. Contract Liabilities The Company receives cash payments from customers for licensing fees or other arrangements that extend for a specified term. These contract liabilities are classified as either current or long-term in the Condensed Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue. As of March 31, 2019 and December 31, 2018 , contract liabilities were $9.2 million and $9.6 million , respectively, and are included within "Current portion of deferred revenue, and other" and "Deferred revenue, net of current portion" in the accompanying Condensed Consolidated Balance Sheets. The decrease in the contract liability balance during the three -month period ended March 31, 2019 is $0.7 million of revenue recognized during the period, offset by $0.4 million of additional deferred sales in 2019 . Contract Costs The Company capitalizes certain direct incremental costs incurred to obtain customer contracts, 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, and are included in "Other current assets" and "Other non-current assets" in the Condensed Consolidated Balance Sheets based on the timing of when the Company expects to recognize the expense. Contract costs are generally amortized into selling and marketing expense 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 average term of the underlying contracts, approximately 6 years. Management assesses these costs for impairment at least quarterly on a portfolio 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, 2019 and December 31, 2018 was $2.5 million and $2.5 million , respectively. Amortization expense for the three -month period ended March 31, 2019 was approximately $0.2 million , offset by approximately $0.3 million of additional contract costs capitalized. Contract liabilities are reported on the accompanying Condensed Consolidated Balance Sheets 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, 2019
Business Combinations and Related Party Disclosures [Abstract]
ACQUISITION AND RELATED PARTY ITEMS	ACQUISITIONS AND RELATED PARTY ITEMS Optomed On February 22, 2019, Heska acquired 70% of the equity of Optomed, a French-based endoscopy company, in exchange for approximately $0.2 million in cash and the assumption of approximately $1.5 million in debt. As part of the purchase, Heska entered into put options and call options on the remaining 30% minority interest. The written put options can be exercised based on the achievement of certain financial conditions over a specified period of time for a fixed amount. The options are not currently exercisable at the acquisition date or the reporting date. The estimated value of the non-controlling interest is inclusive of the probability weighted outcome of the options described herein. The Company is in process of finalizing its purchase price allocation. As part of the purchase agreement, Heska has committed to a purchase from the minority interest holder, within six months from the acquisition date, real estate in the amount of approximately $1.0 million , which is currently under lease by Optomed. Cuattro Veterinary Acquisitions In February 2013, the Company acquired a majority interest in Cuattro Veterinary USA, LLC, which was owned by Kevin S. Wilson, among other members. The subsidiary was subsequently renamed Heska Imaging US, LLC ("US Imaging"). The remaining minority position in US Imaging was subject to purchase by Heska under a performance-based put option which was exercised in March 2017. In May 2017, we purchased the remaining minority interest position in US Imaging. In May 2016, the Company closed a transaction to acquire Cuattro Veterinary, LLC ("International Imaging"), which was owned by Kevin S. Wilson, among other members. International Imaging 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 International Imaging's global reach with our domestic success in the imaging and laboratory markets in the United States. In June 2017, the Company consolidated its assets and liabilities in the US Imaging and International Imaging companies into Heska Imaging, LLC ("Heska Imaging"). Cuattro, LLC ("Cuattro") is owned by Kevin S. Wilson, the CEO and President of the Company in addition to Mrs. Wilson and trusts for the benefit of Mr. and Mrs. Wilson's children and family. Steven M. Asakowicz and Rodney A. Lippincott, members of Cuattro Veterinary USA, LLC and Cuattro International prior the acquisitions, each serve as Executive Vice President, Companion Animal Health Sales for the Company. Purchase Agreement for Certain Assets On December 21, 2018, the Company closed a transaction (the "Asset Acquisition") to acquire certain assets from Cuattro, all related to the CCA segment. Pursuant to the Asset Acquisition, dated November 26, 2018, the Company issued 54,763 shares of the Company's common stock, $0.01 par value per share (the "Common Stock"), to Cuattro on the Closing Date, at an aggregate value equal to approximately $5.4 million based on the adjusted closing price per share of the Common Stock as reported on the Nasdaq Stock Market on the Asset Acquisition agreement date. These shares were issued to Cuattro in a private placement in reliance upon an exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof and the safe harbor provided by Rule 506 of Regulation D promulgated thereunder. In addition to the Common Stock, the Company paid cash in the amount of $2.8 million to Cuattro as part of the transaction. The total purchase price was determined based on a valuation report from an independent third party. Part of the Asset Acquisition was an agreement to terminate the supply and license agreement that Heska had been operating under since the acquisition of Cuattro Veterinary USA, LLC. The Company evaluated the acquisition of the purchased assets under ASC 805, Business Combinations and ASU 2017-01, Business Combinations (Topic 805) and concluded that as substantially all of the fair value of the gross assets acquired is concentrated in an identifiable group of similar assets, the transaction did not meet the requirements to be accounted for as a business combination and therefore was accounted for as an asset acquisition. Accordingly, the purchase price of the purchased assets was allocated entirely to an identifiable intangible asset. In addition to the software assets acquired, Cuattro is obligated, without further compensation, to assist the Company with the implementation of third-party image hosting platform and necessary data migration. Other Related Party Activities Cuattro charged Heska Imaging $6.0 thousand and $1.7 million during the three months ended March 31, 2019 and 2018 , respectively. The charge in 2019 relates to minor inventory purchases as the Company transitions the digital imaging software assets away from Cuattro. The charge in 2018 was primarily for digital imaging products, pursuant to an underlying supply contract which was terminated in December 2018. The Company had no receivables from or payables to Cuattro as of March 31, 2019 . Heska Imaging owed Cuattro $0.2 million as of December 31, 2018 , which is reported in "Due to – related parties" on the Company's Condensed Consolidated Balance Sheets.

INVESTMENTS IN UNCONSOLIDATED A

INVESTMENTS IN UNCONSOLIDATED AFFILIATES	3 Months Ended
	Mar. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENTS IN UNCONSOLIDATED AFFILIATES	INVESTMENTS IN UNCONSOLIDATED AFFILIATES The carrying values of investments in unconsolidated affiliates, categorized by type of investment, is as follows (in thousands): March 31, 2019 December 31, 2018 Equity method investment $ 4,819 $ 5,000 Non-marketable equity security investment 3,018 3,018 $ 7,837 $ 8,018 Equity Method Investment On September 24, 2018, we invested $5.1 million , including costs, in exchange for a 28.7% interest of a business as part of our product development strategy. The Company accounts for this investment using the equity method of accounting. Under the equity method, the carrying value of the investment is adjusted for the Company's proportionate share of the investee's reported earnings or losses with the corresponding share of earnings or losses reported as Equity in Losses of Unconsolidated Affiliates, listed below Net income before equity in losses of unconsolidated affiliates within the Condensed Consolidated Statements of Income. Additionally, the Company also entered into a 15 -year Manufacturing Supply Agreement, which grants the Company global exclusivity to specified products. Non-Marketable Equity Security Investment On August 8, 2018, the Company invested $3.0 million , including costs, in MBio Diagnostics, Inc. ("MBio"), in exchange for preferred stock, representing a 6.9% interest in MBio. The Company’s investment in MBio is a non-marketable equity security, recorded using the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. As part of the agreement, the Company entered into a Supply and License Agreement with MBio, which provides that MBio produce and commercialize products that will enhance the Company's diagnostic portfolio. As part of this agreement, the Company made an upfront payment to MBio of $1.0 million related to a worldwide exclusive license agreement over a 20 -year period, recorded in both short and long-term other assets. In addition, the agreement provides for an additional contingent payment from Heska to MBio of $10.0 million , relating to the successful achievement of sales milestones. This potential future milestone payment has not yet been accrued as it is not deemed by the Company to be probable at this time. Both parties in this arrangement are active participants and are exposed to significant risks and rewards dependent on the commercial success of the activities of the collaboration. The parties are actively working on developing and testing the product as well as funding the research and development. Heska classifies the amounts paid for MBio's research and development work within the CCA segment research and development operating expenses. Expense is recognized ratably when incurred and in accordance with the development plan.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our total income tax benefit for our (loss) income before income taxes were as follows (in thousands): Three Months Ended March 31, 2019 2018 (Loss) income before income taxes $ (59 ) $ 1,875 Total income tax benefit (1,010 ) (280 ) There were cash refunds of $0.1 million for income taxes, net of payments, for the three months ended March 31, 2019 , and there were $18 thousand in cash payments for income taxes, net of refunds, for the three months ended March 31, 2018 . The Company’s tax benefit increased to $1.0 million for the three months ended March 31, 2019 , compared to the tax benefit of $0.3 million for the three months ended March 31, 2018 . The increase in tax benefits is due to an increase in stock-based compensation excess tax benefits recognized in our income statement. In the first quarter of 2019, the Company recognized $1.1 million in excess tax benefits related to employee share based compensation compared to $0.8 million recognized in the first quarter of 2018.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
LEASES, LESSEE	LEASES Lessee Accounting The Company leases buildings, office equipment, and vehicles. The Company’s finance leases were not material as of March 31, 2019 and for the three-month period then ended. ROU assets arising from finance leases are included in Property and equipment, net in the accompanying Condensed Consolidated Balance Sheets. The current portion of the finance lease liabilities are included in Current portion of deferred revenue, and other and the non-current portion of the finance lease liabilities are included in Line of credit and other long term borrowings in the accompanying Condensed Consolidated Balance Sheets. For the three months ended March 31, 2019 , operating lease expense was $0.6 million , including immaterial variable lease costs. Supplemental cash flow information related to the Company's operating leases for the three months ended March 31, 2019 was as follows (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 444 ROU assets obtained in exchange for operating lease obligations 293 The following table presents the weighted average remaining lease term and weighted average discount rate related to the Company's operating leases as of March 31, 2019 : Weighted average remaining lease term 4.4 years Weighted average discount rate 4.45 % The following table presents the maturity of the Company's operating lease liabilities as of March 31, 2019 (in thousands): Remainder of 2019 $ 1,396 2020 1,611 2021 1,453 2022 1,320 2023 1,766 Total operating lease payments 7,546 Less: imputed interest 731 Total operating lease liabilities $ 6,815 Lessor Accounting In our CCA segment, primarily related to our Point of Care laboratory products, the Company enters into sales-type leases as part of our subscription agreements. The following table presents the maturity of the Company's undiscounted lease receivables as of March 31, 2019 (in thousands): Year Ending December 31, Remainder of 2019 $ 2,409 2020 3,430 2021 3,364 2022 2,989 2023 2,147 Thereafter 1,501 $ 15,840
LEASES, LESSOR	LEASES Lessee Accounting The Company leases buildings, office equipment, and vehicles. The Company’s finance leases were not material as of March 31, 2019 and for the three-month period then ended. ROU assets arising from finance leases are included in Property and equipment, net in the accompanying Condensed Consolidated Balance Sheets. The current portion of the finance lease liabilities are included in Current portion of deferred revenue, and other and the non-current portion of the finance lease liabilities are included in Line of credit and other long term borrowings in the accompanying Condensed Consolidated Balance Sheets. For the three months ended March 31, 2019 , operating lease expense was $0.6 million , including immaterial variable lease costs. Supplemental cash flow information related to the Company's operating leases for the three months ended March 31, 2019 was as follows (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 444 ROU assets obtained in exchange for operating lease obligations 293 The following table presents the weighted average remaining lease term and weighted average discount rate related to the Company's operating leases as of March 31, 2019 : Weighted average remaining lease term 4.4 years Weighted average discount rate 4.45 % The following table presents the maturity of the Company's operating lease liabilities as of March 31, 2019 (in thousands): Remainder of 2019 $ 1,396 2020 1,611 2021 1,453 2022 1,320 2023 1,766 Total operating lease payments 7,546 Less: imputed interest 731 Total operating lease liabilities $ 6,815 Lessor Accounting In our CCA segment, primarily related to our Point of Care laboratory products, the Company enters into sales-type leases as part of our subscription agreements. The following table presents the maturity of the Company's undiscounted lease receivables as of March 31, 2019 (in thousands): Year Ending December 31, Remainder of 2019 $ 2,409 2020 3,430 2021 3,364 2022 2,989 2023 2,147 Thereafter 1,501 $ 15,840

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share ("EPS") is computed by dividing net income attributable to the Company 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 EPS for the three months ended March 31, 2019 and 2018 (in thousands, except per share data): Three Months Ended March 31, 2019 2018 Net income attributable to Heska Corporation $ 814 $ 2,155 Basic weighted-average common shares outstanding 7,459 7,102 Assumed exercise of dilutive stock options and restricted shares 506 609 Diluted weighted-average common shares outstanding $ 7,965 $ 7,711 Basic earnings per share attributable to Heska Corporation $ 0.11 $ 0.30 Diluted earnings per share attributable to Heska Corporation $ 0.10 $ 0.28 The following stock options and restricted shares were excluded from the computation of diluted EPS because they would have been anti-dilutive (in thousands): Three Months Ended March 31, 2019 2018 Stock options 86 244

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	3 Months Ended
	Mar. 31, 2019
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, 2019 (in thousands): Carrying amount, December 31, 2018 $ 26,679 Goodwill attributable to acquisitions (subject to change) 643 Foreign currency adjustments (11 ) Carrying amount, March 31, 2019 $ 27,311 Other intangibles consisted of the following (in thousands): March 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 8,200 $ (205 ) $ 7,995 $ 8,200 $ — $ 8,200 Customer relationships and other 3,793 (1,865 ) 1,928 3,303 (1,739 ) 1,564 Total intangible assets $ 11,993 $ (2,070 ) $ 9,923 $ 11,503 $ (1,739 ) $ 9,764 Amortization expense relating to other intangibles was as follows (in thousands): Three Months Ended March 31, 2019 2018 Amortization expense $ 303 $ 97 Estimated amortization expense related to intangibles for each of the five years from 2019 (remaining) through 2023 and thereafter is as follows (in thousands): Year Ending December 31, 2019 (remaining) $ 968 2020 1,284 2021 1,280 2022 1,262 2023 915 Thereafter 4,214 $ 9,923

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT, NET Property and equipment, net, consisted of the following (in thousands): March 31, December 31, 2019 2018 Land $ 377 $ 377 Building 2,978 2,978 Machinery and equipment 33,591 33,087 Office furniture and equipment 1,767 1,687 Computer hardware and software 4,725 4,704 Leasehold and building improvements 10,086 9,953 Construction in progress 947 1,274 54,471 54,060 Less accumulated depreciation (38,960 ) (38,079 ) Total property and equipment, net $ 15,511 $ 15,981 Depreciation expense was $1.0 million and $ 1.1 million for the three months ended March 31, 2019 and 2018 , respectively. The Company has subscription agreements whereby its instruments in inventory may be placed at a customer's location on a rental basis. The cost of these instruments is transferred to machinery and equipment and depreciated, typically over a 5 to 7 year period depending on the circumstance under which the instrument is placed with the customer. Our cost of instruments under operating leases as of March 31, 2019 and December 31, 2018 , was $11.0 million and $10.8 million , respectively, before accumulated depreciation of $6.4 million and $6.1 million , respectively.

INVENTORIES, NET

INVENTORIES, NET	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
INVENTORIES, NET	INVENTORIES, NET Inventories, net, consisted of the following (in thousands): March 31, December 31, 2019 2018 Raw materials $ 16,626 $ 15,000 Work in process 3,214 3,592 Finished goods 8,869 8,085 Allowance for excess or obsolete inventory (1,321 ) (1,573 ) Total inventory, net $ 27,388 $ 25,104 Inventories are measured on a first-in, first-out basis and stated at lower of cost or net realizable value.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2019
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): March 31, December 31, Accrued settlement (see Note 14) $ 6,750 $ 6,750 Accrued payroll and employee benefits 840 759 Accrued property taxes 232 632 Inventory in transit 1,281 327 Other 1,544 1,674 Total accrued liabilities $ 10,647 $ 10,142 Other accrued liabilities consists of items that are individually less than 5% of total current liabilities.

CAPITAL STOCK

CAPITAL STOCK	3 Months Ended
	Mar. 31, 2019
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, 2019 and 2018 . Three Months Ended March 31, 2019 2018 Risk-free interest rate 2.45% 2.64% Expected lives 4.7 years 4.9 years Expected volatility 39% 40% Expected dividend yield 0% 0% A summary of our stock option plans is as follows: Three Months Ended March 31, Year Ended December 31, 2019 2018 Weighted Average Exercise Price Weighted Average Exercise Price Outstanding at beginning of period 620,553 $ 40.741 630,847 $ 29.312 Granted at market 1,200 $ 98.970 153,700 $ 75.244 Forfeited — $ — (18,978 ) $ 53.010 Expired — $ — (896 ) $ 25.740 Exercised (122,895 ) $ 17.013 (144,120 ) $ 65.414 Outstanding at end of period 498,858 $ 46.727 620,553 $ 40.741 Exercisable at end of period 319,523 $ 31.026 386,176 $ 21.214 The total estimated fair value of stock options granted during the three months ended March 31, 2019 and 2018 was computed to be approximately $43 thousand and $3.5 million , 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, 2019 and 2018 was computed to be approximately $36.18 and $26.69 , respectively. The total intrinsic value of options exercised during the three months ended March 31, 2019 and 2018 was $9.9 million and $406 thousand , respectively. The cash proceeds from options exercised during the three months ended March 31, 2019 and 2018 was $84 thousand and $121 thousand , respectively. The following table summarizes information about stock options outstanding and exercisable at March 31, 2019 : 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 $ 4.50 - $ 7.36 101,502 3.65 $ 6.807 101,502 $ 6.807 $ 7.37 - $ 32.21 94,485 5.05 $ 15.917 93,758 $ 15.793 $ 32.22 - $ 62.50 61,104 6.84 $ 39.783 44,672 $ 39.693 $ 62.51 - $ 69.77 130,000 8.93 $ 69.770 43,337 $ 69.770 $ 69.78 - $ 108.25 111,767 8.20 $ 86.020 36,254 $ 81.236 $ 4.50 - $ 108.25 498,858 6.70 $ 46.727 319,523 $ 31.026 As of March 31, 2019 , there was approximately $4.7 million in total unrecognized compensation cost related to outstanding stock options. That cost is expected to be recognized over a weighted average period of 1.62 years, with all cost to be recognized by the end of February 2023, assuming all options vest according to the vesting schedules in place at March 31, 2019 . As of March 31, 2019 , the aggregate intrinsic value of outstanding options was approximately $20.0 million and the aggregate intrinsic value of exercisable options was approximately $17.4 million . The Company issues new shares upon share option exercise, which may be netted or withheld to meet strike price or related tax obligations. Employee Stock Purchase Plan (the "ESPP") For the three months ended March 31, 2019 and 2018 , we issued 2,583 and 3,127 shares under the ESPP, respectively. For the three months ended March 31, 2019 and 2018 , 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 March 31, 2019 2018 Risk-free interest rate 2.35% 1.03% Expected lives 1.1 years 1.2 years Expected volatility 40% 44% Expected dividend yield 0% 0% For the three months ended March 31, 2019 and 2018 , the weighted-average fair value of the purchase rights granted was $18.97 and $14.28 per share, respectively. Restricted Stock Issuance We have granted non-vested restricted stock awards (“restricted stock”) to management and non-employee directors pursuant to the 1997 Plan. The restricted stock awards have varying vesting periods, but generally become fully vested between one and four years after the grant date, depending on the specific award, performance targets met for performance-based awards granted to management, and vesting periods for time based awards. Management performance-based awards are granted at the target amount of shares that may be earned. We valued the restricted stock awards related to service and/or company performance targets based on grant date fair value and expense over the period when achievement of those conditions is deemed probable. For restricted stock awards related to market conditions, we utilize a Monte Carlo simulation model to estimate grant date fair value and expense over the requisite period. We recognize forfeitures as they occur. There were no modifications that affected our accounting for restricted stock awards in the three months ended March 31, 2019 or 2018. The following table summarizes restricted stock transactions for the three months ended March 31, 2019 : RSAs Weighted-Average Grant Date Fair Value Per Award Non-vested as of December 31, 2018 259,430 $ 74.26 Granted 117 77.52 Vested — — Forfeited — — Non-vested as of March 31, 2019 259,547 $ 74.26 The weighted average grant date fair value of awards granted was $77.52 and $62.73 for the three months ended March 31, 2019 and 2018, respectively. Fair value of restricted stock vested was $0.0 and $4.2 million for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019 , there was approximately $2.5 million of total unrecognized compensation cost related to restricted stock with market and time vesting conditions. The Company expects to recognize this expense over a weighted average period of 1.4 years. As of March 31, 2019, we reviewed each of the underlying corporate performance targets and determined that approximately 167,000 of shares of common stock were related to company performance targets in which we did not deem achievement probable. No compensation expense had been recorded at any period prior to March 31, 2019. 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, 2019
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income (loss) consisted of the following (in thousands): Minimum Pension Liability Foreign Currency Translation Total Accumulated Other Comprehensive Income Balances at December 31, 2018 $ (419 ) $ 696 $ 277 Current period other comprehensive loss — (62 ) (62 ) Balances at March 31, 2019 $ (419 ) $ 634 $ 215

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Royalty Agreements 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, 2019 and 2018 , royalties of $0.1 million became payable under these agreements. Warranties 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, 2019 and December 31, 2018 . Litigation From time to time, the Company may be involved in litigation relating to claims arising out of its operations. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred, and the amount can be reasonably estimated. On October 10, 2018, we reached an agreement in principle to settle the complaint that was filed against the Company by Shaun Fauley on March 12, 2015 in the U.S. 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 (the "Fauley Complaint"). The settlement, which received the Court's approval on February 28, 2019 and was not subsequently appealed by a class member, required us to make available a total of $6.75 million to pay class members, as well as to pay attorneys' fees and expenses to legal counsel to the class. The Company recorded the loss provision in the third quarter of 2018 in connection with the settlement agreement and does not have insurance coverage for the Fauley Complaint. The payment in respect of the settlement was made in full on April 3, 2019, and all activity related to the Fauley Complaint has ceased. As of March 31, 2019 , 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. Off-Balance Sheet Commitments Unconditional Purchase Obligations The Company has contractual obligations with suppliers for unconditional annual minimum inventory purchases in the amounts of $12.2 million as of March 31, 2019 .

INTEREST AND OTHER EXPENSE, NET

INTEREST AND OTHER EXPENSE, NET	3 Months Ended
	Mar. 31, 2019
Other Income and Expenses [Abstract]
INTEREST AND OTHER EXPENSE, NET	INTEREST AND OTHER INCOME, NET Interest and other income, net, consisted of the following (in thousands): Three Months Ended March 31, 2019 2018 Interest income $ (92 ) $ (56 ) Interest expense 77 65 Other income, net (1 ) (13 ) Total interest and other income, net $ (16 ) $ (4 ) Cash paid for interest for the three months ended March 31, 2019 and 2018 was $56 thousand and $27 thousand , respectively.

CREDIT FACILITY

CREDIT FACILITY	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
CREDIT FACILITY	CREDIT FACILITY On July 27, 2017, and subsequently amended in May and December 2018, we entered into a Credit Agreement (the "Credit Agreement") with JPMorgan Chase Bank, N.A. ("Chase") which provides for a revolving credit facility 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. Chase holds first right of priority over all other liens, if any were to exist. 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. Failure to comply with any of the covenants, representations or warranties could result in our being in default on the loan and could cause all outstanding amounts payable to Chase to become immediately due and payable or impact our ability to borrow under the agreement. The Credit Agreement also permits us to issue letters of credit, although there are currently none outstanding. 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, and the Facility Amendment, a copy of which has been filed as an exhibit to the Company's Current Report on Form 10-Q filed with the SEC on August 8, 2018, each of which are incorporated herein by reference. At March 31, 2019 , we had a $6.0 million line of credit outstanding under the Credit Facility and we were in compliance with all financial covenants. In April 2019, we used this Credit Facility to make a $6.75 million payment to settle all claims associated with the Fauley Complaint that is further discussed in Note 14 of this Form 10-Q.

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2019
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 diagnostic 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 tables (in thousands): Three Months Ended March 31, 2019 Core Other Vaccines and Pharmaceuticals Total revenue $ 24,716 $ 4,795 $ 29,511 Operating loss (51 ) (24 ) (75 ) Loss before income taxes (35 ) (24 ) (59 ) Capital expenditures 44 190 234 Depreciation and amortization 947 318 1,265 Three Months Ended March 31, 2018 Core Other Vaccines and Pharmaceuticals 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 expenditures 57 318 375 Depreciation and amortization 908 288 1,196 Asset information by reportable segment as of March 31, 2019 is as follows (in thousands): Three Months Ended March 31, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total Investments in unconsolidated affiliates $ 7,837 $ — $ 7,837 Total assets 138,076 24,704 162,780 Net assets 95,683 26,256 121,939 Asset information by reportable segment as of December 31, 2018 is as follows (in thousands): Year Ended December 31, 2018 Core Companion Animal Other Vaccines and Pharmaceuticals Total Investments in unconsolidated affiliates $ 8,018 $ — $ 8,018 Total assets 133,586 22,866 156,452 Net assets 96,129 26,280 122,409

OPERATIONS AND SUMMARY OF SIG_2

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2019
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 as of March 31, 2019 and December 31, 2018 , the results of our operations, statements of stockholders' equity and cash flows for the three months ended March 31, 2019 and 2018 . 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 ("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 is less than 100%, the non-controlling interest is reported on our Condensed Consolidated Balance Sheets. The non-controlling interest in our consolidated net income is reported as "Net loss attributable to redeemable non-controlling interest" on our Condensed 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 for the fiscal year ended December 31, 2018 and other financial information filed with the SEC.
Use of Estimates	The preparation of financial statements in conformity with 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 net realizable value of inventory; determining future costs associated with warranties provided; 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 and investments for estimated useful lives and 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; determining the need for, and the amount of a valuation allowance on deferred tax assets; and determining the value of the non-controlling interest in a business combination.
Recent Accounting Pronouncements	Adoption of New Accounting Pronouncements Effective January 1, 2019, we adopted ASU 2018-07, Compensation – Stock Compensation (Topic 718) , Improvements to Non-employee Share-Based Payment Accounting . This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with accounting for employee share-based compensation. Guidance related to the stock compensation granted to employees is followed for non-employees, including the measurement date, valuation approach and performance conditions. The expense is recognized in the same period as though cash were paid for the good or service, ratably over the service period. The adoption of this ASU did not have an impact on our consolidated financial statements but did have a minimal impact on our related disclosures. Effective January 1, 2019, we adopted 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 the disproportionate tax effects in accumulated other comprehensive income ("AOCI") caused by the Tax Cuts and Jobs Act of 2017 to retained earnings. As of March 31, 2019, the Company does not have any disproportionate income tax effects in AOCI to reclassify. However, if the Company did have disproportionate income tax effects in AOCI in the future, it would reclassify them to retained earnings. In February 2016, the FASB issued ASU 2016-02, Leases ( Topic 842 ) , which supersedes ASC 840, Leases . This update requires lessees to recognize a right-of-use (“ROU”) asset and a lease liability for all leases, including operating leases, with terms greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures by lessees and lessors about the amount, timing and uncertainty of cash flows arising from 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, Revenue from Contracts with Customers (Topic 606) . Subsequent to the issuance of Topic 842, the FASB clarified the guidance through several ASUs; hereinafter the collection of lease guidance is referred to as “ASC 842”. The Company adopted ASC 842 on January 1, 2019, using the modified retrospective approach for all lease arrangements at the beginning of the period of adoption. Results for reporting periods beginning January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 840, Leases . For leases that commenced before the effective date of ASC 842, the Company elected the permitted practical expedients to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. The Company also elected to exclude leases with a term of 12 months or less from the recognized ROU assets and lease liabilities. Adoption of the standard did not have a material net impact in our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Income or Condensed Consolidated Statements of Cash Flows. The most significant impact was the recognition of ROU assets and lease liabilities for the operating leases, of which we are the lessee. As a result of the cumulative impact of adopting ASC 842, the Company recorded operating lease ROU assets of $6.5 million and operating lease liabilities of $6.9 million as of January 1, 2019, primarily related to building, vehicle, and office equipment leases, based on the present value of the future lease payments on the date of adoption. As a lessor, accounting for our subscription agreements will remain substantially unchanged. Refer to Note 6 for additional disclosures required by ASC 842. The Company determines if an arrangement is a lease at inception based on whether control of an identified asset is transferred. For leases where the Company is the lessee, ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as amortization expense and interest expense. The Company has lease agreements which require payments for lease and non-lease components and has elected to account for these as a single lease component for our building and office equipment leases, but as separate components for our vehicle leases. Our revenue under subscription agreements relates to both operating-type lease (“OTL”) arrangements or sales-type lease (“STL”) arrangements. 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. A STL results in earlier recognition of instrument revenue. The cost of the customer-leased instruments is removed from inventory and recognized in the Consolidated Statements of Income. There is no residual value taken into consideration as it does not meet our capitalization requirements. Instrument lease revenue for OTL agreements is recognized on a straight-line basis over the life of the lease and included with the predominant non-lease components in consumable revenue. The costs of customer-leased instruments are recorded within property and equipment in the accompanying Consolidated Balance Sheets and depreciated over the instrument’s estimated useful life. The depreciation expense is reflected in cost of revenue in the accompanying Consolidated Statements of Income. The OTLs and STLs are not cancellable until after an initial term and include an option to renew. For lease arrangements with lease and non-lease components where the Company is the lessor, the Company allocates the contracts transaction price to the lease and non-lease components on a relative standalone selling price basis using the Company’s best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate standalone selling price is the price observed in standalone sales to customers of a prior period. Changes in these values can impact the amount of consideration allocated to each component of the contract. 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 inception of the lease arrangement. The Company’s leases consist of leases with fixed and variable lease payments. For those leases with variable lease payments, the variable lease payment is typically based upon purchase of consumables used with the leased instruments and included in consumable revenue. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , which requires 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. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. 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 will adopt the provisions of this ASU in the first quarter of 2020. We are currently evaluating the effect of this update on our consolidated financial statements.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes our Core Companion Animal ("CCA") revenue (in thousands): Three Months Ended March 31, 2019 2018 Point of Care laboratory revenue: $ 15,961 $ 13,641 Consumables 12,317 10,821 Sales-type leases 1,742 1,538 Outright instrument sales 1,528 811 Other 374 471 Point of Care imaging revenue: 5,410 5,972 Outright instrument sales 4,546 5,137 Service revenue 562 556 Operating type leases and other 302 279 Other CCA revenue: 3,345 7,206 Other pharmaceuticals, vaccines and diagnostic tests 3,246 7,109 Research and development, license and royalty revenue 99 97 Total CCA revenue $ 24,716 $ 26,819 Revenue from our OVP segment consists of revenue generated from contract manufacturing agreements and from other license, research and development revenue. The following table summarizes our OVP revenue (in thousands): Three Months Ended March 31, 2019 2018 Contract manufacturing $ 4,666 $ 5,791 License, research and development 129 155 Total OVP revenue $ 4,795 $ 5,946
Schedule of Timing of Revenue Expected to be Recognized	As of March 31, 2019 , the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2019 (remaining) $ 18,023 2020 21,101 2021 17,078 2022 13,925 2023 10,337 Thereafter 6,727 $ 87,191

INVESTMENTS IN UNCONSOLIDATED_2

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Tables)	3 Months Ended
	Mar. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]
Carrying values of investments in unconsolidated entities	The carrying values of investments in unconsolidated affiliates, categorized by type of investment, is as follows (in thousands): March 31, 2019 December 31, 2018 Equity method investment $ 4,819 $ 5,000 Non-marketable equity security investment 3,018 3,018 $ 7,837 $ 8,018

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Schedule of components of income tax expense	Our total income tax benefit for our (loss) income before income taxes were as follows (in thousands): Three Months Ended March 31, 2019 2018 (Loss) income before income taxes $ (59 ) $ 1,875 Total income tax benefit (1,010 ) (280 )

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Additional lease information	Supplemental cash flow information related to the Company's operating leases for the three months ended March 31, 2019 was as follows (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 444 ROU assets obtained in exchange for operating lease obligations 293 The following table presents the weighted average remaining lease term and weighted average discount rate related to the Company's operating leases as of March 31, 2019 : Weighted average remaining lease term 4.4 years Weighted average discount rate 4.45 %
Schedule of maturity of operating leases	The following table presents the maturity of the Company's operating lease liabilities as of March 31, 2019 (in thousands): Remainder of 2019 $ 1,396 2020 1,611 2021 1,453 2022 1,320 2023 1,766 Total operating lease payments 7,546 Less: imputed interest 731 Total operating lease liabilities $ 6,815
Lessor, maturity of undiscounted lease receivables	The following table presents the maturity of the Company's undiscounted lease receivables as of March 31, 2019 (in thousands): Year Ending December 31, Remainder of 2019 $ 2,409 2020 3,430 2021 3,364 2022 2,989 2023 2,147 Thereafter 1,501 $ 15,840

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
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 EPS for the three months ended March 31, 2019 and 2018 (in thousands, except per share data): Three Months Ended March 31, 2019 2018 Net income attributable to Heska Corporation $ 814 $ 2,155 Basic weighted-average common shares outstanding 7,459 7,102 Assumed exercise of dilutive stock options and restricted shares 506 609 Diluted weighted-average common shares outstanding $ 7,965 $ 7,711 Basic earnings per share attributable to Heska Corporation $ 0.11 $ 0.30 Diluted earnings per share attributable to Heska Corporation $ 0.10 $ 0.28
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 EPS because they would have been anti-dilutive (in thousands): Three Months Ended March 31, 2019 2018 Stock options 86 244

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019 (in thousands): Carrying amount, December 31, 2018 $ 26,679 Goodwill attributable to acquisitions (subject to change) 643 Foreign currency adjustments (11 ) Carrying amount, March 31, 2019 $ 27,311
Schedule of other intangible assets	Other intangibles consisted of the following (in thousands): March 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 8,200 $ (205 ) $ 7,995 $ 8,200 $ — $ 8,200 Customer relationships and other 3,793 (1,865 ) 1,928 3,303 (1,739 ) 1,564 Total intangible assets $ 11,993 $ (2,070 ) $ 9,923 $ 11,503 $ (1,739 ) $ 9,764
Schedule of amortization expense on intangible assets	Amortization expense relating to other intangibles was as follows (in thousands): Three Months Ended March 31, 2019 2018 Amortization expense $ 303 $ 97
Schedule of estimated future amortization expense	Estimated amortization expense related to intangibles for each of the five years from 2019 (remaining) through 2023 and thereafter is as follows (in thousands): Year Ending December 31, 2019 (remaining) $ 968 2020 1,284 2021 1,280 2022 1,262 2023 915 Thereafter 4,214 $ 9,923

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment, net, consisted of the following (in thousands): March 31, December 31, 2019 2018 Land $ 377 $ 377 Building 2,978 2,978 Machinery and equipment 33,591 33,087 Office furniture and equipment 1,767 1,687 Computer hardware and software 4,725 4,704 Leasehold and building improvements 10,086 9,953 Construction in progress 947 1,274 54,471 54,060 Less accumulated depreciation (38,960 ) (38,079 ) Total property and equipment, net $ 15,511 $ 15,981

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of inventory	Inventories, net, consisted of the following (in thousands): March 31, December 31, 2019 2018 Raw materials $ 16,626 $ 15,000 Work in process 3,214 3,592 Finished goods 8,869 8,085 Allowance for excess or obsolete inventory (1,321 ) (1,573 ) Total inventory, net $ 27,388 $ 25,104

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2019
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): March 31, December 31, Accrued settlement (see Note 14) $ 6,750 $ 6,750 Accrued payroll and employee benefits 840 759 Accrued property taxes 232 632 Inventory in transit 1,281 327 Other 1,544 1,674 Total accrued liabilities $ 10,647 $ 10,142

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019 and 2018 . Three Months Ended March 31, 2019 2018 Risk-free interest rate 2.45% 2.64% Expected lives 4.7 years 4.9 years Expected volatility 39% 40% Expected dividend yield 0% 0%
Schedule of stock options plans	A summary of our stock option plans is as follows: Three Months Ended March 31, Year Ended December 31, 2019 2018 Weighted Average Exercise Price Weighted Average Exercise Price Outstanding at beginning of period 620,553 $ 40.741 630,847 $ 29.312 Granted at market 1,200 $ 98.970 153,700 $ 75.244 Forfeited — $ — (18,978 ) $ 53.010 Expired — $ — (896 ) $ 25.740 Exercised (122,895 ) $ 17.013 (144,120 ) $ 65.414 Outstanding at end of period 498,858 $ 46.727 620,553 $ 40.741 Exercisable at end of period 319,523 $ 31.026 386,176 $ 21.214
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, 2019 : 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 $ 4.50 - $ 7.36 101,502 3.65 $ 6.807 101,502 $ 6.807 $ 7.37 - $ 32.21 94,485 5.05 $ 15.917 93,758 $ 15.793 $ 32.22 - $ 62.50 61,104 6.84 $ 39.783 44,672 $ 39.693 $ 62.51 - $ 69.77 130,000 8.93 $ 69.770 43,337 $ 69.770 $ 69.78 - $ 108.25 111,767 8.20 $ 86.020 36,254 $ 81.236 $ 4.50 - $ 108.25 498,858 6.70 $ 46.727 319,523 $ 31.026
Schedule of pricing models	The weighted average assumptions used for the periods presented were as follows: Three Months Ended March 31, 2019 2018 Risk-free interest rate 2.35% 1.03% Expected lives 1.1 years 1.2 years Expected volatility 40% 44% Expected dividend yield 0% 0%

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Schedule of accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss) consisted of the following (in thousands): Minimum Pension Liability Foreign Currency Translation Total Accumulated Other Comprehensive Income Balances at December 31, 2018 $ (419 ) $ 696 $ 277 Current period other comprehensive loss — (62 ) (62 ) Balances at March 31, 2019 $ (419 ) $ 634 $ 215

INTEREST AND OTHER EXPENSE, N_2

INTEREST AND OTHER EXPENSE, NET (Tables)	3 Months Ended
	Mar. 31, 2019
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, 2019 2018 Interest income $ (92 ) $ (56 ) Interest expense 77 65 Other income, net (1 ) (13 ) Total interest and other income, net $ (16 ) $ (4 )

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2019
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 tables (in thousands): Three Months Ended March 31, 2019 Core Other Vaccines and Pharmaceuticals Total revenue $ 24,716 $ 4,795 $ 29,511 Operating loss (51 ) (24 ) (75 ) Loss before income taxes (35 ) (24 ) (59 ) Capital expenditures 44 190 234 Depreciation and amortization 947 318 1,265 Three Months Ended March 31, 2018 Core Other Vaccines and Pharmaceuticals 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 expenditures 57 318 375 Depreciation and amortization 908 288 1,196
Schedule of revenue from external customers and long-lived assets, by geographical areas	Asset information by reportable segment as of March 31, 2019 is as follows (in thousands): Three Months Ended March 31, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total Investments in unconsolidated affiliates $ 7,837 $ — $ 7,837 Total assets 138,076 24,704 162,780 Net assets 95,683 26,256 121,939 Asset information by reportable segment as of December 31, 2018 is as follows (in thousands): Year Ended December 31, 2018 Core Companion Animal Other Vaccines and Pharmaceuticals Total Investments in unconsolidated affiliates $ 8,018 $ — $ 8,018 Total assets 133,586 22,866 156,452 Net assets 96,129 26,280 122,409

OPERATIONS AND SUMMARY OF SIG_3

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Operating lease right-of-use assets	$ 6,414
Total operating lease liabilities	$ 6,815
ASU 2016-02
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Operating lease right-of-use assets		$ 6,500
Total operating lease liabilities		$ 6,900

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	$ 29,511	$ 32,765
Contract receivables, current	900		$ 900
Contract receivables, noncurrent	3,400		3,300
Current portion of deferred revenue, and other	9,200		9,600
Contract liabilities, revenue recognized	700
Contract liabilities, increase due to additional deferred sales	$ 400
Average term of underlying contracts	6
Capitalized contract costs	$ 2,500		$ 2,500
Capitalized contract costs, amortization	200
Capitalized contract costs during the period	300
Core companion animal
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	24,716	26,819
Point of Care laboratory revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	15,961	13,641
Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	12,317	10,821
Sales-type leases
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	1,742	1,538
Outright instrument sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	1,528	811
Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	374	471
Point of Care imaging revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	5,410	5,972
Outright instrument sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	4,546	5,137
Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	562	556
Operating type leases and other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	302	279
Other CCA revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	3,345	7,206
Other pharmaceuticals, vaccines and diagnostic tests
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	3,246	7,109
Research and development, license and royalty revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	99	97
Other vaccines and pharmaceuticals
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	4,795	5,946
Contract manufacturing
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	4,666	5,791
License, research and development
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	$ 129	$ 155

REVENUE - Performance Obligatio

REVENUE - Performance Obligations (Details) $ in Thousands	Mar. 31, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 87,191
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 18,023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 21,101
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 17,078
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 13,925
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 10,337
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 6,727
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction

ACQUISITION AND RELATED PARTY_2

ACQUISITION AND RELATED PARTY ITEMS (Details) - USD ($)	Feb. 22, 2019	Dec. 21, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)		$ 0.01
Cuattro, LLC | Heska Imaging | Affiliated Entity
Business Acquisition [Line Items]
Related party - amount of transaction			$ 6,000	$ 1,700,000
Heska Imaging | Affiliated Entity
Business Acquisition [Line Items]
Due to related parties					$ 200,000
Optomed
Business Acquisition [Line Items]
Minority interest	30.00%
Cuattro, LLC
Business Acquisition [Line Items]
Equity transferred as consideration for asset acquisition (in shares)		54,763
Equity transferred as consideration for asset acquisition, value		$ 5,400,000
Payments for asset acquisitions		$ 2,800,000
Optomed
Business Acquisition [Line Items]
Percentage of voting interest acquired	70.00%
Cash consideration transferred	$ 200,000
Committed purchase amount	$ 1,000,000

INVESTMENTS IN UNCONSOLIDATED_3

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Thousands	Sep. 24, 2018	Aug. 08, 2018	Mar. 31, 2019	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated affiliates			$ 4,819	$ 5,000
Non-marketable equity security investment			3,018	3,018
Investments			$ 7,837	$ 8,018
General Fluidics Corporation
Schedule of Equity Method Investments [Line Items]
Supply commitment term	15 years
General Fluidics Corporation
Schedule of Equity Method Investments [Line Items]
Payments to acquire equity method investments	$ 5,100
Ownership percentage	28.70%
MBio Diagnostics, Inc.
Schedule of Equity Method Investments [Line Items]
Payments to acquire non-marketable securities		$ 3,000
Non-Marketable equity security investment, ownership percentage		6.90%
Intangible asset acquired		$ 1,000
Intangible assets acquired, useful life		20 years
Contingent consideration on milestones		$ 10,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income before income taxes	$ (59)	$ 1,875
Total income tax benefit	(1,010)	(280)
Cash paid for income taxes	100	18
Excess tax benefits related to employee share-based compensation	$ 1,100	$ 800

LEASES - LESEE ACCOUNTING (Deta

LEASES - LESEE ACCOUNTING (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease expense	$ 600
Cash paid for amounts included in the measurement of operating lease liabilities	444
ROU assets obtained in exchange for operating lease obligations	$ 293
Weighted average remaining lease term	4 years 4 months 23 days
Weighted average discount rate	4.45%
Operating Lease Liabilities, Payments Due [Abstract]
Remainder of 2019	$ 1,396
2020	1,611
2021	1,453
2022	1,320
2023	1,766
Total operating lease payments	7,546
Less: imputed interest	731
Total operating lease liabilities	$ 6,815

LEASES - LESSOR ACCOUNTING (Det

LEASES - LESSOR ACCOUNTING (Details) $ in Thousands	Mar. 31, 2019USD ($)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Remainder of 2019	$ 2,409
2020	3,430
2021	3,364
2022	2,989
2023	2,147
Thereafter	1,501
Lessor, Operating Lease, Payments to be Received	$ 15,840

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, 2019USD ($)$ / sharesshares	Mar. 31, 2018USD ($)$ / sharesshares
Earnings Per Share [Abstract]
Reverse stock split conversion ratio	0.10
Net income after equity in losses of unconsolidated affiliates | $		$ 814	$ 2,155
Basic weighted-average common shares outstanding (in shares)		7,459	7,102
Assumed exercise of dilutive stock options and restricted shares		506	609
Diluted weighted-average common shares outstanding		7,965	7,711
Basic earnings per share attributable to Heska Corporation (in dollars per share) | $ / shares		$ 0.11	$ 0.30
Diluted earnings per share attributable to Heska Corporation (in dollars per share) | $ / shares		$ 0.10	$ 0.28
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		86	244

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Goodwill [Roll Forward]
Carrying amount, December 31, 2018	$ 26,679
Goodwill, Acquired During Period	643
Foreign currency adjustments	(11)
Carrying amount, March 31, 2019	27,311
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	11,993		$ 11,503
Accumulated amortization	(2,070)		(1,739)
Net carrying amount	9,923		9,764
Amortization expense	303	$ 97
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2019 (remaining)	968
2020	1,284
2021	1,280
2022	1,262
2023	915
Thereafter	4,214
Net carrying amount	9,923		9,764
Developed technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	8,200		8,200
Accumulated amortization	(205)		0
Net carrying amount	7,995		8,200
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	7,995		8,200
Customer relationships and other
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	3,793		3,303
Accumulated amortization	(1,865)		(1,739)
Net carrying amount	1,928		1,564
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	$ 1,928		$ 1,564

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 54,471		$ 54,060
Less accumulated depreciation	(38,960)		(38,079)
Total property and equipment, net	15,511		15,981
Depreciation and amortization	1,000	$ 1,100
Operating leases, gross	11,000		10,800
Operating leases, accumulated depreciation	6,400		6,100
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	377		377
Building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,978		2,978
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	33,591		33,087
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,767		1,687
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,725		4,704
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,086		9,953
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 947		$ 1,274
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, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 16,626	$ 15,000
Work in process	3,214	3,592
Finished goods	8,869	8,085
Allowance for excess or obsolete inventory	(1,321)	(1,573)
Total inventory, net	$ 27,388	$ 25,104

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued settlement	$ 6,750	$ 6,750
Accrued payroll and employee benefits	840	759
Accrued property taxes	232	632
Inventory in transit	1,281	327
Other	1,544	1,674
Total accrued liabilities	$ 10,647	$ 10,142
Percentage of total current liabilities	5.00%

CAPITAL STOCK - OPTION ACTIVITY

CAPITAL STOCK - OPTION ACTIVITY (Details) - $ / shares	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)	2.45%	2.64%
Expected lives (in years)	4 years 8 months 6 days	4 years 10 months 24 days
Expected volatility (as a percent)	39.00%	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	620,553	630,847	630,847
Granted at market	1,200		153,700
Forfeited	0		(18,978)
Expired	0		(896)
Exercised	(122,895)		(144,120)
Outstanding at end of period	498,858		620,553
Exercisable at end of period	319,523		386,176
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)	$ 40.741	$ 29.312	$ 29.312
Granted at market (in dollars per share)	98.970		75.244
Forfeited (in dollars per share)	0		53.010
Expired (in dollars per share)	0		25.740
Exercised (in dollars per share)	17.013		65.414
Outstanding at ending of period (in dollars per share)	46.727		40.741
Exercisable at end of period (in dollars per share)	$ 31.026		$ 21.214
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)	2.35%	1.03%
Expected lives (in years)	1 year 1 month 6 days	1 year 2 months 18 days
Expected volatility (as a percent)	40.00%	44.00%
Expected dividend rate (as a percent)	0.00%	0.00%

CAPITAL STOCK - NARRATIVE (Deta

CAPITAL STOCK - NARRATIVE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of stock options granted during period	$ 43	$ 3,500
Weighted average grant date fair value	$ 36.18	$ 26.69
Intrinsic value of options exercised	$ 9,900	$ 406
Proceeds from stock options exercised	$ 84	$ 121
Weighted average purchase price of shares purchased (in dollars per share)	$ 18.97	$ 14.28
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised	$ 17,400
Total unrecognized compensation expense related to outstanding stock options	$ 4,700
Period for recognition of unrecognized compensation expense	1 year 7 months 13 days
Intrinsic value of options outstanding	$ 20,000
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued during period	2,583	3,127
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to outstanding stock options	$ 2,500
Period for recognition of unrecognized compensation expense	1 year 4 months 26 days
Weighted average purchase price of shares purchased (in dollars per share)	$ 77.52	$ 62.73
Fair value of stock vested	$ 0	$ 4,200
Performance shares, nonprobable performance targets (in shares)	167,000
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years

CAPITAL STOCK - EXERCISE PRICE

CAPITAL STOCK - EXERCISE PRICE (Details)	3 Months Ended
	Mar. 31, 2019$ / sharesshares
$ 4.50 - $ 7.36
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at March 31, 2019 | shares	101,502
Weighted Average Remaining Contractual Life in Years	3 years 7 months 25 days
Weighted Average Exercise Price	$ 6.807
Number of Options Exercisable at March 31, 2019 | shares	101,502
Weighted Average Exercise Price	$ 6.807
Exercise price range, lower (in dollars per share)	4.50
Exercise price range, upper (in dollars per share)	$ 7.36
$ 7.37 - $ 32.21
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at March 31, 2019 | shares	94,485
Weighted Average Remaining Contractual Life in Years	5 years 20 days
Weighted Average Exercise Price	$ 15.917
Number of Options Exercisable at March 31, 2019 | shares	93,758
Weighted Average Exercise Price	$ 15.793
Exercise price range, lower (in dollars per share)	7.37
Exercise price range, upper (in dollars per share)	$ 32.21
$ 32.22 - $ 62.50
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at March 31, 2019 | shares	61,104
Weighted Average Remaining Contractual Life in Years	6 years 10 months 3 days
Weighted Average Exercise Price	$ 39.783
Number of Options Exercisable at March 31, 2019 | shares	44,672
Weighted Average Exercise Price	$ 39.693
Exercise price range, lower (in dollars per share)	32.22
Exercise price range, upper (in dollars per share)	$ 62.50
$ 62.51 - $ 69.77
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at March 31, 2019 | shares	130,000
Weighted Average Remaining Contractual Life in Years	8 years 11 months 6 days
Weighted Average Exercise Price	$ 69.770
Number of Options Exercisable at March 31, 2019 | shares	43,337
Weighted Average Exercise Price	$ 69.770
Exercise price range, lower (in dollars per share)	62.51
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, 2019 | shares	111,767
Weighted Average Remaining Contractual Life in Years	8 years 2 months 13 days
Weighted Average Exercise Price	$ 86.020
Number of Options Exercisable at March 31, 2019 | shares	36,254
Weighted Average Exercise Price	$ 81.236
Exercise price range, lower (in dollars per share)	69.78
Exercise price range, upper (in dollars per share)	$ 108.25
$ 4.50 - $ 108.25
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at March 31, 2019 | shares	498,858
Weighted Average Remaining Contractual Life in Years	6 years 8 months 13 days
Weighted Average Exercise Price	$ 46.727
Number of Options Exercisable at March 31, 2019 | shares	319,523
Weighted Average Exercise Price	$ 31.026
Exercise price range, lower (in dollars per share)	4.40
Exercise price range, upper (in dollars per share)	$ 108.25

CAPITAL STOCK CAPITAL STOCK - R

CAPITAL STOCK CAPITAL STOCK - RESTRICTED STOCK (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Granted (in dollars per share)	$ 18.97	$ 14.28
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested balance (in shares)	259,430
Granted (in shares)	117
Vested (in shares)	0
Forfeited (in shares)	0
Non-vested balance (in shares)	259,547
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested balance (in dollars per share)	$ 74.26
Granted (in dollars per share)	77.52	$ 62.73
Vested (in dollars per share)	0
Forfeited (in dollars per share)	0
Non-vested balance (in dollars per share)	$ 74.26

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 122,409
Ending balance	121,277
Total Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	277
Current period other comprehensive loss	(62)
Ending balance	215
Minimum Pension Liability
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(419)
Current period other comprehensive loss	0
Ending balance	(419)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	696
Current period other comprehensive loss	(62)
Ending balance	$ 634

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Oct. 16, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Increase in royalties payable		$ 100	$ 100
Warranty reserve		200		$ 200
Litigation settlement, amount	$ 6,750
Unconditional annual minimum inventory purchases		$ 12,200

INTEREST AND OTHER EXPENSE, N_3

INTEREST AND OTHER EXPENSE, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Other Income and Expenses [Abstract]
Interest income	$ (92)	$ (56)
Interest expense	77	65
Other, net	(1)	(13)
Total interest and other income, net	(16)	(4)
Cash paid for interest	$ 56	$ 27

CREDIT FACILITY (Details)

CREDIT FACILITY (Details) - USD ($)	Jul. 27, 2017	Apr. 30, 2019	Mar. 31, 2019
Subsequent Event
Debt Instrument [Line Items]
Payments for legal settlements		$ 6,750,000
Line of Credit | Revolving Credit Facility
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
Line of Credit | Revolving Credit Facility | 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, 2019segment
Segment Reporting [Abstract]
Number of reportable segments	2

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	$ 29,511	$ 32,765
Operating income (loss)	(75)	1,871
Income before income taxes	(59)	1,875
Capital expenditures	234	375
Depreciation and amortization	1,265	1,196
Investments in unconsolidated affiliates	7,837		$ 8,018
Assets	162,780		156,452
Net Assets	121,939		122,409
Operating Segments | Core Companion Animal Health
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	24,716	26,819
Operating income (loss)	(51)	1,923
Income before income taxes	(35)	1,927
Capital expenditures	44	57
Depreciation and amortization	947	908
Investments in unconsolidated affiliates	7,837		8,018
Assets	138,076		133,586
Net Assets	95,683		96,129
Operating Segments | Other Vaccines, Pharmaceuticals and Products
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	4,795	5,946
Operating income (loss)	(24)	(52)
Income before income taxes	(24)	(52)
Capital expenditures	190	318
Depreciation and amortization	318	$ 288
Investments in unconsolidated affiliates	0		0
Assets	24,704		22,866
Net Assets	$ 26,256		$ 26,280