Heska Corp. (HSKA) 10-Q 7 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 06, 2019
Document And Entity Information
Entity Registrant Name	Heska Corp
Entity Central Index Key	0001038133
Document Type	10-Q
Document Period End Date	Jun. 30, 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	Q2
Document Fiscal Year Focus	2019
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,796,571

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 9,992	$ 13,389
Accounts receivable, net of allowance for doubtful accounts of $212 and $245, respectively	12,775	16,454
Inventories, net	28,977	25,104
Net investment in leases, current, net of allowance for doubtful accounts of $78 and $40, respectively	3,379	2,989
Prepaid expenses	2,322	1,533
Other current assets	3,044	2,938
Total current assets	60,489	62,407
Property and equipment, net	15,318	15,981
Operating lease right-of-use assets	6,092
Goodwill	27,190	26,679
Other intangible assets, net	9,526	9,764
Deferred tax asset, net	15,920	14,121
Net investment in leases, non-current	13,033	11,908
Investments in unconsolidated affiliates	7,711	8,018
Other non-current assets	7,565	7,574
Total assets	162,844	156,452
Current liabilities:
Accounts payable	7,330	7,469
Due to – related parties	0	226
Accrued liabilities	3,755	10,142
Current operating lease liabilities	1,685
Current portion of deferred revenue, and other	2,615	2,526
Total current liabilities	15,385	20,363
Deferred revenue, net of current portion	6,442	7,082
Line of credit	12,750	6,000
Non-current operating lease liabilities	4,819
Other liabilities	196	598
Total liabilities	39,592	34,043
Commitments and contingencies
Redeemable non-controlling interest and mezzanine equity	330	0
Stockholders' equity:
Preferred stock, $.01 par value, 2,500,000 and 2,500,000 shares authorized, respectively, 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, 7,794,271 and 7,675,692 shares issued and outstanding, respectively	78	77
Additional paid-in capital	256,952	257,034
Accumulated other comprehensive income	298	277
Accumulated deficit	(134,406)	(134,979)
Total stockholders' equity	122,922	122,409
Total liabilities, mezzanine equity and stockholders' equity	$ 162,844	$ 156,452

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Allowance for doubtful accounts	$ 212	$ 245
Leases, allowance for doubtful accounts	$ 78	$ 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	7,794,271	7,675,692
Common stock, shares outstanding	7,794,271	7,675,692

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue:
Total revenue, net	$ 28,146	$ 29,662	$ 57,657	$ 62,427
Cost of revenue	15,734	16,597	32,702	36,055
Gross profit	12,412	13,065	24,955	26,372
Operating expenses:
Selling and marketing	6,715	5,944	13,748	12,084
Research and development	2,239	559	3,605	1,229
General and administrative	4,024	4,358	8,243	8,984
Total operating expenses	12,978	10,861	25,596	22,297
Operating (loss) income	(566)	2,204	(641)	4,075
Interest and other expense, net	21	92	5	88
(Loss) income before income taxes and equity in losses of unconsolidated affiliates	(587)	2,112	(646)	3,987
Income tax (benefit) expense:
Current income tax expense	28	12	72	29
Deferred income tax (benefit) expense	(454)	203	(1,508)	(94)
Total income tax (benefit) expense	(426)	215	(1,436)	(65)
Net (loss) income before equity in losses of unconsolidated affiliates	(161)	1,897	790	4,052
Equity in losses of unconsolidated affiliates	(127)	0	(308)	0
Net (loss) income after equity in losses of unconsolidated affiliates	(288)	1,897	482	4,052
Net loss attributable to redeemable non-controlling interest	(47)	0	(91)	0
Net (loss) income attributable to Heska Corporation	$ (241)	$ 1,897	$ 573	$ 4,052
Earnings Per Share [Abstract]
Basic (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.03)	$ 0.26	$ 0.08	$ 0.57
Diluted (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.03)	$ 0.24	$ 0.07	$ 0.52
Weighted average outstanding shares used to compute basic (loss) earnings per share attributable to Heska Corporation (in shares)	7,486	7,226	7,463	7,146
Weighted average outstanding shares used to compute diluted (loss) earnings per share attributable to Heska Corporation (in shares)	7,486	7,850	7,956	7,781
Core companion animal
Revenue:
Total revenue, net	$ 24,716	$ 26,644	$ 49,432	$ 53,463
Other vaccines and pharmaceuticals
Revenue:
Total revenue, net	$ 3,430	$ 3,018	$ 8,225	$ 8,964

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net income after equity in losses from unconsolidated affiliates	$ (288)	$ 1,897	$ 482	$ 4,052
Other comprehensive (loss) income:
Foreign currency translation	83	(112)	21	(31)
Comprehensive (loss) income	(205)	1,785	503	4,021
Comprehensive loss attributable to redeemable non-controlling interest	(47)	0	(91)	0
Comprehensive (loss) income attributable to Heska Corporation	$ (158)	$ 1,785	$ 594	$ 4,021

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Traditional Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance at Dec. 31, 2017	$ 100,440	$ 73	$ 243,598	$ 232	$ (143,463)
Beginning balance (in shares) at Dec. 31, 2017		7,303
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income after equity in losses of unconsolidated affiliates	4,052
Ending balance at Jun. 30, 2018	109,922	$ 75	246,422	201	(136,776)
Ending balance (in shares) at Jun. 30, 2018		7,498
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of accounting standards	2,635				2,635
Beginning balance at Jan. 01, 2018	103,075	$ 73	243,598	232	(140,828)
Beginning balance (in shares) at Jan. 01, 2018		7,303
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income after equity in losses of unconsolidated affiliates	4,052				4,052
Issuance of common stock, net of shares withheld for employee taxes	458	$ 2	456
Issuance of common stock, net of shares withheld for employee taxes (in shares)		195
Stock-based compensation	2,368		2,368
Other comprehensive income (loss)	(31)			(31)
Ending balance at Jun. 30, 2018	109,922	$ 75	246,422	201	(136,776)
Ending balance (in shares) at Jun. 30, 2018		7,498
Beginning balance at Mar. 31, 2018	105,091	$ 74	243,377	313	(138,673)
Beginning balance (in shares) at Mar. 31, 2018		7,419
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income after equity in losses of unconsolidated affiliates	1,897				1,897
Issuance of common stock, net of shares withheld for employee taxes	1,742	$ 1	1,741
Issuance of common stock, net of shares withheld for employee taxes (in shares)		79
Stock-based compensation	1,304		1,304
Other comprehensive income (loss)	(112)			(112)
Ending balance at Jun. 30, 2018	109,922	$ 75	246,422	201	(136,776)
Ending balance (in shares) at Jun. 30, 2018		7,498
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	573				573
Issuance of common stock, net of shares withheld for employee taxes	(2,461)	$ 1	(2,462)
Issuance of common stock, net of shares withheld for employee taxes (in shares)		118
Stock-based compensation	2,380		2,380
Other comprehensive income (loss)	21			21
Ending balance at Jun. 30, 2019	122,922	$ 78	256,952	298	(134,406)
Ending balance (in shares) at Jun. 30, 2019		7,794
Beginning balance at Mar. 31, 2019	121,277	$ 77	255,150	215	(134,165)
Beginning balance (in shares) at Mar. 31, 2019		7,747
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income after equity in losses of unconsolidated affiliates	(241)				(241)
Issuance of common stock, net of shares withheld for employee taxes	608	$ 1	607
Issuance of common stock, net of shares withheld for employee taxes (in shares)		47
Stock-based compensation	1,195		1,195
Other comprehensive income (loss)	83			83
Ending balance at Jun. 30, 2019	$ 122,922	$ 78	$ 256,952	$ 298	$ (134,406)
Ending balance (in shares) at Jun. 30, 2019		7,794

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income after equity in losses from unconsolidated affiliates	$ 482	$ 4,052
Adjustments to reconcile net income to cash (used in) provided by operating activities:
Depreciation and amortization	2,522	2,333
Non-cash impact of operating leases	750	0
Deferred income tax benefit	(1,508)	(94)
Stock-based compensation	2,380	2,368
Equity in losses of unconsolidated affiliates	308	0
Other losses	245	8
Changes in operating assets and liabilities (net of the effect of acquisitions):
Accounts receivable	3,764	2,780
Inventories	(2,978)	3,192
Due from related parties	0	1
Lease receivable, current	(392)	(524)
Other current assets	(531)	250
Accounts payable	(707)	(2,510)
Due to related parties	(226)	(1,336)
Accrued liabilities and other	(7,680)	(1,332)
Lease receivable, non-current	(1,090)	(1,526)
Other non-current assets	28	(706)
Deferred revenue and other	(723)	(2,457)
Net cash (used in) provided by operating activities	(5,356)	4,499
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in subsidiary, net of cash acquired	(622)	0
Purchases of property and equipment	(629)	(811)
Proceeds from disposition of property and equipment	0	4
Net cash used in investing activities	(1,251)	(807)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on line of credit	6,750	0
Proceeds from issuance of common stock	1,018	1,613
Repurchase of common stock	(3,480)	(1,155)
Distributions to non-controlling interest members	0	(126)
Repayments of other debt	(1,083)	0
Net cash provided by financing activities	3,205	332
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH	5	(8)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(3,397)	4,016
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	13,389	9,659
CASH AND CASH EQUIVALENTS, END OF PERIOD	9,992	13,675
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Non-cash transfers of equipment between inventory and property and equipment, net	$ 878	$ 528

OPERATIONS AND SUMMARY OF SIGNI

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 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 June 30, 2019 and December 31, 2018 , the results of our operations and statements of stockholders' equity for the three and six months ended June 30, 2019 and 2018 , and cash flows for the six months ended June 30, 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 June 30, 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 and 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 total contract consideration 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. Subsequent to the issuance of ASU 2016-13, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses , in November 2018 . This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments , which further clarifies and improves guidance related to accounting for credit losses. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) . This ASU provides relief to certain entities adopting ASU 2016-13. The amendment provides entities with an option to irrevocably elect the fair value option for certain financial assets. These amendments are effective for fiscal years beginning after December 15, 2019 and interim periods within those annual periods. We are currently evaluating the amended guidance and the impact on our consolidated financial statements and will adopt the provisions in the first quarter of 2020.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Point of Care laboratory revenue: $ 16,120 $ 15,053 $ 32,081 $ 28,693 Consumables 13,208 11,524 25,524 22,344 Sales-type leases 1,493 1,793 3,234 3,331 Outright instrument sales 1,045 1,335 2,575 2,146 Other 374 401 748 872 Point of Care imaging revenue: 5,229 4,462 10,639 10,434 Outright instrument sales 4,405 3,566 8,951 8,705 Service revenue 558 544 1,120 1,099 Operating type leases and other 266 352 568 630 Other CCA revenue: 3,367 7,129 6,712 14,336 Other pharmaceuticals, vaccines and diagnostic tests 3,281 6,991 6,527 14,102 Research and development, license and royalty revenue 86 138 185 234 Total CCA revenue $ 24,716 $ 26,644 $ 49,432 $ 53,463 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Contract manufacturing $ 3,327 $ 2,887 $ 7,994 $ 8,678 License, research and development 103 131 231 286 Total OVP revenue $ 3,430 $ 3,018 $ 8,225 $ 8,964 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 June 30, 2019 , the aggregate amount of the transaction price allocated to remaining minimum performance obligations was approximately $89.5 million . As of June 30, 2019 , the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2019 (remaining) $ 12,289 2020 22,138 2021 18,315 2022 15,244 2023 11,848 Thereafter 9,641 $ 89,475 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 where revenue has been recognized 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 June 30, 2019 were $1.0 million and $3.5 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 June 30, 2019 and December 31, 2018 , contract liabilities were $8.9 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 six -month period ended June 30, 2019 is approximately $1.5 million of revenue recognized during the period, offset by approximately $0.7 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 June 30, 2019 and December 31, 2018 was $2.6 million and $2.5 million , respectively. Amortization expense for the six -month period ended June 30, 2019 was approximately $0.5 million , offset by approximately $0.6 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	6 Months Ended
	Jun. 30, 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 $0.4 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 purchase from the minority interest holder, by the end of the fiscal year, 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 to 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 a third-party image hosting platform and necessary data migration. Other Related Party Activities Cuattro charged Heska Imaging $6.0 thousand and $2.3 million during the six months ended June 30, 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 June 30, 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	6 Months Ended
	Jun. 30, 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): June 30, 2019 December 31, 2018 Equity method investment $ 4,693 $ 5,000 Non-marketable equity security investment 3,018 3,018 $ 7,711 $ 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 will enter 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	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our total income tax (benefit) expense for our (loss) income before income taxes were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Loss) income before income taxes $ (587 ) $ 2,112 $ (646 ) $ 3,987 Total income tax (benefit) expense (426 ) 215 (1,436 ) (65 ) There were cash payments of $28 thousand and cash refunds, net of payments, of $0.1 million , respectively, for income taxes for the three and six months ended June 30, 2019 . There were $12 thousand and $30 thousand in cash payments for income taxes, net of refunds, for the three and six months ended June 30, 2018 . The Company’s tax benefit increased to $0.4 million and $1.4 million for the three and six months ended June 30, 2019 , respectively, compared to the tax expense of $0.2 million for the three months ended June 30, 2018 and tax benefit of $0.1 million for the six months ended June 30, 2018 . The increase in tax benefits is due to lower financial income and stock-based compensation excess tax benefits recognized in our income statement. The Company recognized $0.3 million in excess tax benefits related to employee share-based compensation for the three months ended June 30, 2019 compared to $0.4 million recognized for the three months ended June 30, 2018 . The Company recognized $1.4 million in excess tax benefits related to employee share-based compensation for the six months ended June 30, 2019 compared to $1.2 million recognized for the six months ended June 30, 2018 .

LEASES

LEASES	6 Months Ended
	Jun. 30, 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 June 30, 2019 and for the three and six 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 Other liabilities in the accompanying Condensed Consolidated Balance Sheets. For the three and six months ended June 30, 2019 , operating lease expense was $0.6 million and $1.1 million , respectively, including immaterial variable lease costs. Supplemental cash flow information related to the Company's operating leases for the six months ended June 30, 2019 was as follows (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 889 ROU assets obtained in exchange for operating lease obligations 341 The following table presents the weighted average remaining lease term and weighted average discount rate related to the Company's operating leases as of June 30, 2019 : Weighted average remaining lease term 4.2 years Weighted average discount rate 4.45 % The following table presents the maturity of the Company's operating lease liabilities as of June 30, 2019 (in thousands): Remainder of 2019 $ 1,052 2020 1,605 2021 1,429 2022 1,321 2023 1,766 Total operating lease payments 7,173 Less: imputed interest 669 Total operating lease liabilities $ 6,504 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 June 30, 2019 (in thousands): Year Ending December 31, Remainder of 2019 $ 1,614 2020 3,596 2021 3,574 2022 3,223 2023 2,431 Thereafter 1,974 $ 16,412
LEASES, LESSOR	LEASES Lessee Accounting The Company leases buildings, office equipment, and vehicles. The Company’s finance leases were not material as of June 30, 2019 and for the three and six 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 Other liabilities in the accompanying Condensed Consolidated Balance Sheets. For the three and six months ended June 30, 2019 , operating lease expense was $0.6 million and $1.1 million , respectively, including immaterial variable lease costs. Supplemental cash flow information related to the Company's operating leases for the six months ended June 30, 2019 was as follows (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 889 ROU assets obtained in exchange for operating lease obligations 341 The following table presents the weighted average remaining lease term and weighted average discount rate related to the Company's operating leases as of June 30, 2019 : Weighted average remaining lease term 4.2 years Weighted average discount rate 4.45 % The following table presents the maturity of the Company's operating lease liabilities as of June 30, 2019 (in thousands): Remainder of 2019 $ 1,052 2020 1,605 2021 1,429 2022 1,321 2023 1,766 Total operating lease payments 7,173 Less: imputed interest 669 Total operating lease liabilities $ 6,504 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 June 30, 2019 (in thousands): Year Ending December 31, Remainder of 2019 $ 1,614 2020 3,596 2021 3,574 2022 3,223 2023 2,431 Thereafter 1,974 $ 16,412

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 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 such as stock options converting 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 and six months ended June 30, 2019 and 2018 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net (loss) income attributable to Heska Corporation $ (241 ) $ 1,897 $ 573 $ 4,052 Basic weighted-average common shares outstanding 7,486 7,226 7,463 7,146 Assumed exercise of dilutive stock options and restricted shares — 624 493 635 Diluted weighted-average common shares outstanding $ 7,486 $ 7,850 $ 7,956 $ 7,781 Basic (loss) earnings per share attributable to Heska Corporation $ (0.03 ) $ 0.26 $ 0.08 $ 0.57 Diluted (loss) earnings per share attributable to Heska Corporation $ (0.03 ) $ 0.24 $ 0.07 $ 0.52 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options and restricted shares 714 169 225 238

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLES	GOODWILL AND OTHER INTANGIBLES The following summarizes the change in goodwill during the six months ended June 30, 2019 (in thousands): Carrying amount, December 31, 2018 $ 26,679 Goodwill attributable to acquisitions (subject to change) 503 Foreign currency adjustments 8 Carrying amount, June 30, 2019 $ 27,190 Other intangibles consisted of the following (in thousands): June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 8,200 $ (410 ) $ 7,790 $ 8,200 $ — $ 8,200 Customer relationships and other 3,700 (1,964 ) 1,736 3,303 (1,739 ) 1,564 Total intangible assets $ 11,900 $ (2,374 ) $ 9,526 $ 11,503 $ (1,739 ) $ 9,764 Amortization expense relating to other intangibles was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Amortization expense $ 305 $ 97 $ 607 $ 194 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) $ 666 2020 1,287 2021 1,283 2022 1,265 2023 918 Thereafter 4,107 $ 9,526

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT, NET Property and equipment, net, consisted of the following (in thousands): June 30, 2019 December 31, 2018 Land $ 377 $ 377 Building 2,978 2,978 Machinery and equipment 31,013 33,087 Office furniture and equipment 1,700 1,687 Computer hardware and software 4,749 4,704 Leasehold and building improvements 9,981 9,953 Construction in progress 1,309 1,274 52,107 54,060 Less accumulated depreciation (36,789 ) (38,079 ) Total property and equipment, net $ 15,318 $ 15,981 Depreciation expense was $0.9 million and $ 1.0 million for the three months ended June 30, 2019 and 2018 , respectively, and $1.9 million and $2.1 million for the six months ended June 30, 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 June 30, 2019 and December 31, 2018 , was $10.3 million and $10.8 million , respectively, before accumulated depreciation of $5.7 million and $6.1 million , respectively.

INVENTORIES, NET

INVENTORIES, NET	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
INVENTORIES, NET	INVENTORIES, NET Inventories, net, consisted of the following (in thousands): June 30, 2019 December 31, 2018 Raw materials $ 16,832 $ 15,000 Work in process 3,807 3,592 Finished goods 9,548 8,085 Allowance for excess or obsolete inventory (1,210 ) (1,573 ) Total inventory, net $ 28,977 $ 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	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): June 30, 2019 December 31, 2018 Accrued settlement (see Note 14) $ — $ 6,750 Accrued payroll and employee benefits 1,118 759 Accrued property taxes 402 632 Other 2,235 2,001 Total accrued liabilities $ 3,755 $ 10,142 Other accrued liabilities consists of items that are individually less than 5% of total current liabilities.

CAPITAL STOCK

CAPITAL STOCK	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2019 and 2018 . Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Risk-free interest rate 1.89% 2.76% 1.95% 2.64% Expected lives 4.7 years 4.9 years 4.7 years 4.9 years Expected volatility 40% 40% 40% 40% Expected dividend yield 0% 0% 0% 0% A summary of our stock option plans is as follows: Six Months Ended June 30, 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 11,200 $ 73.193 153,700 $ 75.244 Forfeited (256 ) $ 98.660 (18,978 ) $ 53.010 Expired — $ — (896 ) $ 65.414 Exercised (149,828 ) $ 16.776 (144,120 ) $ 25.740 Outstanding at end of period 481,669 $ 48.920 620,553 $ 40.741 Exercisable at end of period 305,452 $ 33.655 386,176 $ 21.214 The total estimated fair value of stock options granted during the six months ended June 30, 2019 and 2018 was computed to be approximately $0.3 million 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 six months ended June 30, 2019 and 2018 was computed to be approximately $26.67 and $26.74 , respectively. The total intrinsic value of options exercised during the six months ended June 30, 2019 and 2018 was $11.6 million and $3.1 million , respectively. The cash proceeds from options exercised during the six months ended June 30, 2019 and 2018 was $0.5 million and $1.3 million , respectively. The following table summarizes information about stock options outstanding and exercisable at June 30, 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 $ 4.96 - $ 7.36 93,352 3.65 $ 6.998 93,352 $ 6.998 $ 7.37 - $ 32.21 79,273 4.79 $ 15.897 78,941 $ 15.828 $ 32.22 - $ 62.50 57,533 6.57 $ 39.797 46,524 $ 39.724 $ 62.51 - $ 69.77 130,000 8.68 $ 69.770 43,337 $ 69.770 $ 69.78 - $ 108.25 121,511 8.10 $ 84.684 43,298 $ 80.960 $ 4.96 - $ 108.25 481,669 6.67 $ 48.920 305,452 $ 33.655 As of June 30, 2019 , there was approximately $4.3 million in total unrecognized compensation cost related to outstanding stock options. That cost is expected to be recognized over a weighted average period of 1.36 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 June 30, 2019 . As of June 30, 2019 , the aggregate intrinsic value of outstanding options was approximately $18.3 million and the aggregate intrinsic value of exercisable options was approximately $15.9 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 June 30, 2019 and 2018 , we issued 2,786 and 2,327 shares under the ESPP, respectively. For the six months ended June 30, 2019 and 2018 , we issued 5,369 and 5,454 shares under the ESPP, respectively. For the three and six months ended June 30, 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Risk-free interest rate 2.21% 1.09% 2.27% 1.06% Expected lives 1.1 years 1.2 years 1.1 years 1.2 years Expected volatility 39% 44% 39% 44% Expected dividend yield 0% 0% 0% 0% For the three months ended June 30, 2019 and 2018 , the weighted-average fair value of the purchase rights granted was $18.69 and $17.98 per share, respectively. For the six months ended June 30, 2019 and 2018 , the weighted-average fair value of the purchase rights granted was $18.82 and $15.86 per share, respectively. Restricted Stock Issuances We have granted non-vested restricted stock awards (“restricted stock” or "RSAs") to management and non-employee directors pursuant to the Company's amended and restated Stock Incentive 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 six months ended June 30, 2019 or 2018 . The following table summarizes restricted stock transactions for the six months ended June 30, 2019 : RSAs Weighted-Average Grant Date Fair Value Per Award Non-vested as of December 31, 2018 259,430 $ 74.26 Granted 18,567 71.38 Vested (4,230 ) 85.09 Forfeited (500 ) 80.90 Non-vested as of June 30, 2019 273,267 $ 73.90 The weighted average grant date fair value of awards granted was $71.35 and $85.09 for the three months ended June 30, 2019 and 2018 , respectively. The weighted average grant date fair value of awards granted was $71.38 and $67.76 for the six months ended June 30, 2019 and 2018 , respectively. Fair value of restricted stock vested was $0.3 million and $0.3 million for the three months ended June 30, 2019 and 2018 , respectively. Fair value of restricted stock vested was $0.3 million and $4.4 million for the six months ended June 30, 2019 and 2018 , respectively. As of June 30, 2019 , there was approximately $2.6 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 1.3 years. As of June 30, 2019 , we reviewed each of the underlying corporate performance targets and determined that approximately 176,000 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 June 30, 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	6 Months Ended
	Jun. 30, 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 income — 21 21 Balances at June 30, 2019 $ (419 ) $ 717 $ 298

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 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 June 30, 2019 and 2018 , royalties of $0.1 million became payable under these agreements. In each of the six months ended June 30, 2019 and 2018 , royalties of $0.2 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 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 June 30, 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 (the "Court") 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 $6.8 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 June 30, 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 $16.7 million as of June 30, 2019 .

INTEREST AND OTHER EXPENSE, NET

INTEREST AND OTHER EXPENSE, NET	6 Months Ended
	Jun. 30, 2019
Other Income and Expenses [Abstract]
INTEREST AND OTHER EXPENSE, NET	INTEREST AND OTHER EXPENSE, NET Interest and other expense, net, consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest income $ (133 ) $ (63 ) $ (225 ) $ (119 ) Interest expense 147 77 224 142 Other expense, net 7 78 6 65 Total interest and other expense, net $ 21 $ 92 $ 5 $ 88 Cash paid for interest for the three months ended June 30, 2019 and 2018 was $71 thousand and $58 thousand , respectively. Cash paid for interest for the six months ended June 30, 2019 and 2018 was $127 thousand and $85 thousand , respectively.

CREDIT FACILITY

CREDIT FACILITY	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
CREDIT FACILITY	CREDIT FACILITY On July 27, 2017, and subsequently amended in May 2018, December 2018 and July 2019, 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, incorporated herein by reference. Additionally, the following amendments are included in summary only and are qualified in their entirety by reference to the full text of the First Facility Amendment , a copy of which has been filed as an exhibit to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 8, 2018, the Second Facility Amendment , a copy of which has been filed as an exhibit to the Company's Annual Report on Form 10-K filed with the SEC on March 7, 2019 and the Third Facility Amendment , a copy of which has been filed as an exhibit to this Quarterly Report on Form 10-Q filed with the SEC on August 7, 2019, each of which are incorporated herein by reference. At June 30, 2019 , we had a $12.8 million line of credit outstanding under the Credit Facility and we were in compliance with all financial covenants.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 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 June 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 24,716 $ 3,430 $ 28,146 Operating loss (254 ) (312 ) (566 ) Loss before income taxes (275 ) (312 ) (587 ) Capital expenditures 32 363 395 Depreciation and amortization 934 323 1,257 Three Months Ended June 30, 2018 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 26,644 $ 3,018 $ 29,662 Operating (loss) income 2,864 (660 ) 2,204 (Loss) income before income taxes 2,772 (660 ) 2,112 Capital expenditures 39 397 436 Depreciation and amortization 838 300 1,138 Six Months Ended June 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 49,432 $ 8,225 $ 57,657 Operating loss (305 ) (336 ) (641 ) Loss before income taxes (310 ) (336 ) (646 ) Capital expenditures 76 553 629 Depreciation and amortization 1,881 641 2,522 Six Months Ended June 30, 2018 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 53,463 $ 8,964 $ 62,427 Operating (loss) income 4,787 (712 ) 4,075 (Loss) income before income taxes 4,699 (712 ) 3,987 Capital expenditures 96 715 811 Depreciation and amortization 1,746 587 2,333 Asset information by reportable segment as of June 30, 2019 is as follows (in thousands): As of June 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total Investments in unconsolidated affiliates $ 7,711 $ — $ 7,711 Total assets 139,036 23,808 162,844 Net assets 103,455 19,797 123,252 Asset information by reportable segment as of December 31, 2018 is as follows (in thousands): As of 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)	6 Months Ended
	Jun. 30, 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 June 30, 2019 and December 31, 2018 , the results of our operations and statements of stockholders' equity for the three and six months ended June 30, 2019 and 2018 , and cash flows for the six months ended June 30, 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.
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 June 30, 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 and 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 total contract consideration 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. Subsequent to the issuance of ASU 2016-13, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses , in November 2018 . This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments , which further clarifies and improves guidance related to accounting for credit losses. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) . This ASU provides relief to certain entities adopting ASU 2016-13. The amendment provides entities with an option to irrevocably elect the fair value option for certain financial assets. These amendments are effective for fiscal years beginning after December 15, 2019 and interim periods within those annual periods. We are currently evaluating the amended guidance and the impact on our consolidated financial statements and will adopt the provisions in the first quarter of 2020.

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Point of Care laboratory revenue: $ 16,120 $ 15,053 $ 32,081 $ 28,693 Consumables 13,208 11,524 25,524 22,344 Sales-type leases 1,493 1,793 3,234 3,331 Outright instrument sales 1,045 1,335 2,575 2,146 Other 374 401 748 872 Point of Care imaging revenue: 5,229 4,462 10,639 10,434 Outright instrument sales 4,405 3,566 8,951 8,705 Service revenue 558 544 1,120 1,099 Operating type leases and other 266 352 568 630 Other CCA revenue: 3,367 7,129 6,712 14,336 Other pharmaceuticals, vaccines and diagnostic tests 3,281 6,991 6,527 14,102 Research and development, license and royalty revenue 86 138 185 234 Total CCA revenue $ 24,716 $ 26,644 $ 49,432 $ 53,463 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Contract manufacturing $ 3,327 $ 2,887 $ 7,994 $ 8,678 License, research and development 103 131 231 286 Total OVP revenue $ 3,430 $ 3,018 $ 8,225 $ 8,964
Schedule of Timing of Revenue Expected to be Recognized	As of June 30, 2019 , the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2019 (remaining) $ 12,289 2020 22,138 2021 18,315 2022 15,244 2023 11,848 Thereafter 9,641 $ 89,475

INVESTMENTS IN UNCONSOLIDATED_2

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Tables)	6 Months Ended
	Jun. 30, 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): June 30, 2019 December 31, 2018 Equity method investment $ 4,693 $ 5,000 Non-marketable equity security investment 3,018 3,018 $ 7,711 $ 8,018

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Schedule of components of income tax expense	Our total income tax (benefit) expense for our (loss) income before income taxes were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Loss) income before income taxes $ (587 ) $ 2,112 $ (646 ) $ 3,987 Total income tax (benefit) expense (426 ) 215 (1,436 ) (65 )

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Additional lease information	Supplemental cash flow information related to the Company's operating leases for the six months ended June 30, 2019 was as follows (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 889 ROU assets obtained in exchange for operating lease obligations 341 The following table presents the weighted average remaining lease term and weighted average discount rate related to the Company's operating leases as of June 30, 2019 : Weighted average remaining lease term 4.2 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 June 30, 2019 (in thousands): Remainder of 2019 $ 1,052 2020 1,605 2021 1,429 2022 1,321 2023 1,766 Total operating lease payments 7,173 Less: imputed interest 669 Total operating lease liabilities $ 6,504
Lessor, maturity of undiscounted lease receivables	The following table presents the maturity of the Company's undiscounted lease receivables as of June 30, 2019 (in thousands): Year Ending December 31, Remainder of 2019 $ 1,614 2020 3,596 2021 3,574 2022 3,223 2023 2,431 Thereafter 1,974 $ 16,412

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2019 and 2018 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net (loss) income attributable to Heska Corporation $ (241 ) $ 1,897 $ 573 $ 4,052 Basic weighted-average common shares outstanding 7,486 7,226 7,463 7,146 Assumed exercise of dilutive stock options and restricted shares — 624 493 635 Diluted weighted-average common shares outstanding $ 7,486 $ 7,850 $ 7,956 $ 7,781 Basic (loss) earnings per share attributable to Heska Corporation $ (0.03 ) $ 0.26 $ 0.08 $ 0.57 Diluted (loss) earnings per share attributable to Heska Corporation $ (0.03 ) $ 0.24 $ 0.07 $ 0.52
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options and restricted shares 714 169 225 238

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in goodwill	The following summarizes the change in goodwill during the six months ended June 30, 2019 (in thousands): Carrying amount, December 31, 2018 $ 26,679 Goodwill attributable to acquisitions (subject to change) 503 Foreign currency adjustments 8 Carrying amount, June 30, 2019 $ 27,190
Schedule of other intangible assets	Other intangibles consisted of the following (in thousands): June 30, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 8,200 $ (410 ) $ 7,790 $ 8,200 $ — $ 8,200 Customer relationships and other 3,700 (1,964 ) 1,736 3,303 (1,739 ) 1,564 Total intangible assets $ 11,900 $ (2,374 ) $ 9,526 $ 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Amortization expense $ 305 $ 97 $ 607 $ 194
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) $ 666 2020 1,287 2021 1,283 2022 1,265 2023 918 Thereafter 4,107 $ 9,526

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment, net, consisted of the following (in thousands): June 30, 2019 December 31, 2018 Land $ 377 $ 377 Building 2,978 2,978 Machinery and equipment 31,013 33,087 Office furniture and equipment 1,700 1,687 Computer hardware and software 4,749 4,704 Leasehold and building improvements 9,981 9,953 Construction in progress 1,309 1,274 52,107 54,060 Less accumulated depreciation (36,789 ) (38,079 ) Total property and equipment, net $ 15,318 $ 15,981

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Schedule of inventory	Inventories, net, consisted of the following (in thousands): June 30, 2019 December 31, 2018 Raw materials $ 16,832 $ 15,000 Work in process 3,807 3,592 Finished goods 9,548 8,085 Allowance for excess or obsolete inventory (1,210 ) (1,573 ) Total inventory, net $ 28,977 $ 25,104

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): June 30, 2019 December 31, 2018 Accrued settlement (see Note 14) $ — $ 6,750 Accrued payroll and employee benefits 1,118 759 Accrued property taxes 402 632 Other 2,235 2,001 Total accrued liabilities $ 3,755 $ 10,142

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2019 and 2018 . Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Risk-free interest rate 1.89% 2.76% 1.95% 2.64% Expected lives 4.7 years 4.9 years 4.7 years 4.9 years Expected volatility 40% 40% 40% 40% Expected dividend yield 0% 0% 0% 0%
Schedule of stock options plans	A summary of our stock option plans is as follows: Six Months Ended June 30, 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 11,200 $ 73.193 153,700 $ 75.244 Forfeited (256 ) $ 98.660 (18,978 ) $ 53.010 Expired — $ — (896 ) $ 65.414 Exercised (149,828 ) $ 16.776 (144,120 ) $ 25.740 Outstanding at end of period 481,669 $ 48.920 620,553 $ 40.741 Exercisable at end of period 305,452 $ 33.655 386,176 $ 21.214 The following table summarizes restricted stock transactions for the six months ended June 30, 2019 : RSAs Weighted-Average Grant Date Fair Value Per Award Non-vested as of December 31, 2018 259,430 $ 74.26 Granted 18,567 71.38 Vested (4,230 ) 85.09 Forfeited (500 ) 80.90 Non-vested as of June 30, 2019 273,267 $ 73.90
Schedule of shares authorized under stock options plans by exercise price	The following table summarizes information about stock options outstanding and exercisable at June 30, 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 $ 4.96 - $ 7.36 93,352 3.65 $ 6.998 93,352 $ 6.998 $ 7.37 - $ 32.21 79,273 4.79 $ 15.897 78,941 $ 15.828 $ 32.22 - $ 62.50 57,533 6.57 $ 39.797 46,524 $ 39.724 $ 62.51 - $ 69.77 130,000 8.68 $ 69.770 43,337 $ 69.770 $ 69.78 - $ 108.25 121,511 8.10 $ 84.684 43,298 $ 80.960 $ 4.96 - $ 108.25 481,669 6.67 $ 48.920 305,452 $ 33.655
Schedule of pricing models	The weighted average assumptions used for the periods presented were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Risk-free interest rate 2.21% 1.09% 2.27% 1.06% Expected lives 1.1 years 1.2 years 1.1 years 1.2 years Expected volatility 39% 44% 39% 44% Expected dividend yield 0% 0% 0% 0%

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	6 Months Ended
	Jun. 30, 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 income — 21 21 Balances at June 30, 2019 $ (419 ) $ 717 $ 298

INTEREST AND OTHER EXPENSE, N_2

INTEREST AND OTHER EXPENSE, NET (Tables)	6 Months Ended
	Jun. 30, 2019
Other Income and Expenses [Abstract]
Schedule of interest expense (income) and other income, net	Interest and other expense, net, consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest income $ (133 ) $ (63 ) $ (225 ) $ (119 ) Interest expense 147 77 224 142 Other expense, net 7 78 6 65 Total interest and other expense, net $ 21 $ 92 $ 5 $ 88

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 24,716 $ 3,430 $ 28,146 Operating loss (254 ) (312 ) (566 ) Loss before income taxes (275 ) (312 ) (587 ) Capital expenditures 32 363 395 Depreciation and amortization 934 323 1,257 Three Months Ended June 30, 2018 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 26,644 $ 3,018 $ 29,662 Operating (loss) income 2,864 (660 ) 2,204 (Loss) income before income taxes 2,772 (660 ) 2,112 Capital expenditures 39 397 436 Depreciation and amortization 838 300 1,138 Six Months Ended June 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 49,432 $ 8,225 $ 57,657 Operating loss (305 ) (336 ) (641 ) Loss before income taxes (310 ) (336 ) (646 ) Capital expenditures 76 553 629 Depreciation and amortization 1,881 641 2,522 Six Months Ended June 30, 2018 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 53,463 $ 8,964 $ 62,427 Operating (loss) income 4,787 (712 ) 4,075 (Loss) income before income taxes 4,699 (712 ) 3,987 Capital expenditures 96 715 811 Depreciation and amortization 1,746 587 2,333
Schedule of revenue from external customers and long-lived assets, by geographical areas	Asset information by reportable segment as of June 30, 2019 is as follows (in thousands): As of June 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total Investments in unconsolidated affiliates $ 7,711 $ — $ 7,711 Total assets 139,036 23,808 162,844 Net assets 103,455 19,797 123,252 Asset information by reportable segment as of December 31, 2018 is as follows (in thousands): As of 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	Jun. 30, 2019	Jan. 01, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Operating lease right-of-use assets	$ 6,092
Total operating lease liabilities	$ 6,504
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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	$ 28,146	$ 29,662	$ 57,657	$ 62,427
Contract receivables, current	1,000		1,000		$ 900
Contract receivables, noncurrent	3,500		3,500		3,300
Current portion of deferred revenue, and other	8,900		8,900		9,600
Contract liabilities, revenue recognized			1,500
Contract liabilities, increase due to additional deferred sales			$ 700
Average term of underlying contracts			P6Y0M0D
Capitalized contract costs	2,600		$ 2,600		$ 2,500
Capitalized contract costs, amortization			500
Capitalized contract costs during the period			600
Core companion animal
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	24,716	26,644	49,432	53,463
Point of Care laboratory revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	16,120	15,053	32,081	28,693
Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	13,208	11,524	25,524	22,344
Sales-type leases
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	1,493	1,793	3,234	3,331
Outright instrument sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	1,045	1,335	2,575	2,146
Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	374	401	748	872
Point of Care imaging revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	5,229	4,462	10,639	10,434
Outright instrument sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	4,405	3,566	8,951	8,705
Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	558	544	1,120	1,099
Operating type leases and other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	266	352	568	630
Other CCA revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	3,367	7,129	6,712	14,336
Other pharmaceuticals, vaccines and diagnostic tests
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	3,281	6,991	6,527	14,102
Research and development, license and royalty revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	86	138	185	234
Other vaccines and pharmaceuticals
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	3,430	3,018	8,225	8,964
Contract manufacturing
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	3,327	2,887	7,994	8,678
License, research and development
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	$ 103	$ 131	$ 231	$ 286

REVENUE - Performance Obligatio

REVENUE - Performance Obligations (Details) $ in Thousands	Jun. 30, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 89,475
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 12,289
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 22,138
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	$ 18,315
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	$ 15,244
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	$ 11,848
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	$ 9,641
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	Jun. 30, 2019	Jun. 30, 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	$ 2,300,000
Heska Imaging | Affiliated Entity
Business Acquisition [Line Items]
Due to related parties			$ 0		$ 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
Debt assumed as consideration for business combination	400,000
Committed purchase amount	$ 1,000,000

INVESTMENTS IN UNCONSOLIDATED_3

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Thousands	Sep. 24, 2018	Aug. 08, 2018	Jun. 30, 2019	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Equity method investment			$ 4,693	$ 5,000
Non-marketable equity security investment			3,018	3,018
Investments			$ 7,711	$ 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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income before income taxes	$ (587)	$ 2,112	$ (646)	$ 3,987
Total income tax (benefit) expense	(426)	215	(1,436)	(65)
Cash paid for income taxes	28	12	100	30
Excess tax benefits related to employee share-based compensation	$ 300	$ 400	$ 1,400	$ 1,200

LEASES - LESEE ACCOUNTING (Deta

LEASES - LESEE ACCOUNTING (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2019USD ($)
Leases [Abstract]
Operating lease expense	$ 600	$ 1,100
Cash paid for amounts included in the measurement of operating lease liabilities		889
ROU assets obtained in exchange for operating lease obligations		$ 341
Weighted average remaining lease term	4 years 2 months 12 days	4 years 2 months 12 days
Weighted average discount rate	4.45%	4.45%
Operating Lease Liabilities, Payments Due [Abstract]
Remainder of 2019	$ 1,052	$ 1,052
2020	1,605	1,605
2021	1,429	1,429
2022	1,321	1,321
2023	1,766	1,766
Total operating lease payments	7,173	7,173
Less: imputed interest	669	669
Total operating lease liabilities	$ 6,504	$ 6,504

LEASES - LESSOR ACCOUNTING (Det

LEASES - LESSOR ACCOUNTING (Details) $ in Thousands	Jun. 30, 2019USD ($)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Remainder of 2019	$ 1,614
2020	3,596
2021	3,574
2022	3,223
2023	2,431
Thereafter	1,974
Lessor, Operating Lease, Payments to be Received	$ 16,412

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2018
Earnings Per Share [Abstract]
Net (loss) income attributable to Heska Corporation	$ (241)	$ 1,897	$ 573	$ 4,052	$ 4,052
Basic weighted-average common shares outstanding (in shares)	7,486	7,226	7,463		7,146
Assumed exercise of dilutive stock options and restricted shares	0	624	493		635
Diluted weighted-average common shares outstanding	7,486	7,850	7,956		7,781
Basic (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.03)	$ 0.26	$ 0.08		$ 0.57
Diluted (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.03)	$ 0.24	$ 0.07		$ 0.52
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	714	169	225		238

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Goodwill [Roll Forward]
Carrying amount, December 31, 2018			$ 26,679
Goodwill attributable to acquisitions (subject to change)			503
Foreign currency adjustments			8
Carrying amount, June 30, 2019	$ 27,190		27,190
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	11,900		11,900		$ 11,503
Accumulated amortization	(2,374)		(2,374)		(1,739)
Net carrying amount	9,526		9,526		9,764
Amortization expense	305	$ 97	607	$ 194
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2019 (remaining)	666		666
2020	1,287		1,287
2021	1,283		1,283
2022	1,265		1,265
2023	918		918
Thereafter	4,107		4,107
Net carrying amount	9,526		9,526		9,764
Developed technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	8,200		8,200		8,200
Accumulated amortization	(410)		(410)		0
Net carrying amount	7,790		7,790		8,200
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	7,790		7,790		8,200
Customer relationships and other
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	3,700		3,700		3,303
Accumulated amortization	(1,964)		(1,964)		(1,739)
Net carrying amount	1,736		1,736		1,564
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	$ 1,736		$ 1,736		$ 1,564

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 52,107		$ 52,107		$ 54,060
Less accumulated depreciation	(36,789)		(36,789)		(38,079)
Total property and equipment, net	15,318		15,318		15,981
Depreciation and amortization	900	$ 1,000	1,900	$ 2,100
Operating leases, gross	10,300		10,300		10,800
Operating leases, accumulated depreciation	5,700		5,700		6,100
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	377		377		377
Building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,978		2,978		2,978
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	31,013		31,013		33,087
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,700		1,700		1,687
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,749		4,749		4,704
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,981		9,981		9,953
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,309		$ 1,309		$ 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	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 16,832	$ 15,000
Work in process	3,807	3,592
Finished goods	9,548	8,085
Allowance for excess or obsolete inventory	(1,210)	(1,573)
Total inventory, net	$ 28,977	$ 25,104

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued settlement	$ 0	$ 6,750
Accrued payroll and employee benefits	1,118	759
Accrued property taxes	402	632
Other	2,235	2,001
Total accrued liabilities	$ 3,755	$ 10,142
Percentage of total current liabilities	5.00%

CAPITAL STOCK - OPTION ACTIVITY

CAPITAL STOCK - OPTION ACTIVITY (Details) - $ / shares	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 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)	1.89%	2.76%	1.95%	2.64%
Expected lives (in years)	4 years 8 months 6 days	4 years 10 months 24 days	4 years 8 months 6 days	4 years 10 months 24 days
Expected volatility (as a percent)	40.00%	40.00%	40.00%	40.00%
Expected dividend rate (as a percent)	0.00%	0.00%	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			11,200		153,700
Forfeited			(256)		(18,978)
Expired			0		(896)
Exercised			(149,828)		(144,120)
Outstanding at end of period	481,669		481,669		620,553
Exercisable at end of period	305,452		305,452		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)			73.193		75.244
Forfeited (in dollars per share)			98.660		53.010
Expired (in dollars per share)			0		65.414
Exercised (in dollars per share)			16.776		25.740
Outstanding at ending of period (in dollars per share)	$ 48.920		48.920		40.741
Exercisable at end of period (in dollars per share)	$ 33.655		$ 33.655		$ 21.214
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)	2.21%	1.09%	2.27%	1.06%
Expected lives (in years)	1 year 1 month 6 days	1 year 2 months 18 days	1 year 1 month 6 days	1 year 2 months 18 days
Expected volatility (as a percent)	39.00%	44.00%	39.00%	44.00%
Expected dividend rate (as a percent)	0.00%	0.00%	0.00%	0.00%

CAPITAL STOCK - NARRATIVE (Deta

CAPITAL STOCK - NARRATIVE (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of stock options granted during period			$ 0.3	$ 3.5
Weighted average grant date fair value			$ 26.67	$ 26.74
Intrinsic value of options exercised			$ 11.6	$ 3.1
Proceeds from stock options exercised			$ 0.5	$ 1.3
Weighted average purchase price of shares purchased (in dollars per share)	$ 18.69	$ 17.98	$ 18.82	$ 15.86
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised			$ 15.9
Total unrecognized compensation expense related to outstanding stock options	$ 4.3		$ 4.3
Period for recognition of unrecognized compensation expense			1 year 4 months 9 days
Intrinsic value of options outstanding	$ 18.3		$ 18.3
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued during period	2,786	2,327	5,369	5,454
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to outstanding stock options	$ 2.6		$ 2.6
Period for recognition of unrecognized compensation expense			1 year 4 months
Weighted average purchase price of shares purchased (in dollars per share)	$ 71.35	$ 85.09	$ 71.38	$ 67.76
Fair value of stock vested		$ 0.3	$ 0.3	$ 4.4
Performance shares, nonprobable performance targets (in shares)	176,000		176,000
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)	6 Months Ended
	Jun. 30, 2019$ / sharesshares
$ 4.96 - $ 7.36
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at June 30, 2019 | shares	93,352
Weighted Average Remaining Contractual Life in Years	3 years 7 months 25 days
Weighted Average Exercise Price	$ 6.998
Number of Options Exercisable at June 30, 2019 | shares	93,352
Weighted Average Exercise Price	$ 6.998
Exercise price range, lower (in dollars per share)	4.96
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 June 30, 2019 | shares	79,273
Weighted Average Remaining Contractual Life in Years	4 years 9 months 14 days
Weighted Average Exercise Price	$ 15.897
Number of Options Exercisable at June 30, 2019 | shares	78,941
Weighted Average Exercise Price	$ 15.828
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 June 30, 2019 | shares	57,533
Weighted Average Remaining Contractual Life in Years	6 years 6 months 25 days
Weighted Average Exercise Price	$ 39.797
Number of Options Exercisable at June 30, 2019 | shares	46,524
Weighted Average Exercise Price	$ 39.724
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 June 30, 2019 | shares	130,000
Weighted Average Remaining Contractual Life in Years	8 years 8 months 4 days
Weighted Average Exercise Price	$ 69.770
Number of Options Exercisable at June 30, 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 June 30, 2019 | shares	121,511
Weighted Average Remaining Contractual Life in Years	8 years 1 month 6 days
Weighted Average Exercise Price	$ 84.684
Number of Options Exercisable at June 30, 2019 | shares	43,298
Weighted Average Exercise Price	$ 80.960
Exercise price range, lower (in dollars per share)	69.78
Exercise price range, upper (in dollars per share)	$ 108.25
$ 4.96 - $ 108.25
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at June 30, 2019 | shares	481,669
Weighted Average Remaining Contractual Life in Years	6 years 8 months 1 day
Weighted Average Exercise Price	$ 48.920
Number of Options Exercisable at June 30, 2019 | shares	305,452
Weighted Average Exercise Price	$ 33.655
Exercise price range, lower (in dollars per share)	4.96
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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 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)	$ 18.69	$ 17.98	$ 18.82	$ 15.86
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)			18,567
Vested (in shares)			(4,230)
Forfeited (in shares)			(500)
Non-vested balance (in shares)	273,267		273,267
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)	$ 71.35	$ 85.09	71.38	$ 67.76
Vested (in dollars per share)			85.09
Forfeited (in dollars per share)			80.90
Non-vested balance (in dollars per share)	$ 73.90		$ 73.90

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 122,409
Ending balance	122,922
Total Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	277
Current period other comprehensive income	21
Ending balance	298
Minimum Pension Liability
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(419)
Current period other comprehensive income	0
Ending balance	(419)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	696
Current period other comprehensive income	21
Ending balance	$ 717

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	Feb. 28, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Increase in royalties payable		$ 0.1	$ 0.1	$ 0.2	$ 0.2
Warranty reserve		0.2		0.2		$ 0.2
Litigation settlement, amount	$ 6.8
Unconditional annual minimum inventory purchases		$ 16.7		$ 16.7

INTEREST AND OTHER EXPENSE, N_3

INTEREST AND OTHER EXPENSE, NET (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other Income and Expenses [Abstract]
Interest income	$ (133)	$ (63)	$ (225)	$ (119)
Interest expense	147	77	224	142
Other, net	7	78	6	65
Total interest and other expense, net	21	92	5	88
Cash paid for interest	$ 71	$ 58	$ 127	$ 85

CREDIT FACILITY (Details)

CREDIT FACILITY (Details) - Line of Credit - Revolving Credit Facility - USD ($)	Jul. 27, 2017	Jun. 30, 2019
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		$ 12,800,000
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.65%

SEGMENT REPORTING - NARRATIVE (

SEGMENT REPORTING - NARRATIVE (Details)	6 Months Ended
	Jun. 30, 2019segment
Segment Reporting [Abstract]
Number of reportable segments	2

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	$ 28,146	$ 29,662	$ 57,657	$ 62,427
Operating (loss) income	(566)	2,204	(641)	4,075
Income before income taxes	(587)	2,112	(646)	3,987
Capital expenditures	395	436	629	811
Depreciation and amortization	1,257	1,138	2,522	2,333
Investments in unconsolidated affiliates	7,711		7,711		$ 8,018
Assets	162,844		162,844		156,452
Net Assets	123,252		123,252		122,409
Operating Segments | Core Companion Animal Health
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	24,716	26,644	49,432	53,463
Operating (loss) income	(254)	2,864	(305)	4,787
Income before income taxes	(275)	2,772	(310)	4,699
Capital expenditures	32	39	76	96
Depreciation and amortization	934	838	1,881	1,746
Investments in unconsolidated affiliates	7,711		7,711		8,018
Assets	139,036		139,036		133,586
Net Assets	103,455		103,455		96,129
Operating Segments | Other Vaccines, Pharmaceuticals and Products
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	3,430	3,018	8,225	8,964
Operating (loss) income	(312)	(660)	(336)	(712)
Income before income taxes	(312)	(660)	(336)	(712)
Capital expenditures	363	397	553	715
Depreciation and amortization	323	$ 300	641	$ 587
Investments in unconsolidated affiliates	0		0		0
Assets	23,808		23,808		22,866
Net Assets	$ 19,797		$ 19,797		$ 26,280