Heska Corp. (HSKA) 10-Q 6 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 05, 2019
Document And Entity Information
Entity Registrant Name	Heska Corp
Entity Central Index Key	0001038133
Document Type	10-Q
Document Period End Date	Sep. 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	Q3
Document Fiscal Year Focus	2019
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		7,828,358

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 80,505	$ 13,389
Accounts receivable, net of allowance for doubtful accounts of $170 and $245, respectively	13,715	16,454
Inventories, net	26,215	25,104
Net investment in leases, current, net of allowance for doubtful accounts of $89 and $40, respectively	3,593	2,989
Prepaid expenses	3,028	1,533
Other current assets	2,695	2,938
Total current assets	129,751	62,407
Property and equipment, net	14,623	15,981
Operating lease right-of-use assets	5,870
Goodwill	27,216	26,679
Other intangible assets, net	9,206	9,764
Deferred tax asset, net	6,634	14,121
Net investment in leases, non-current	13,515	11,908
Investments in unconsolidated affiliates	7,563	8,018
Other non-current assets	9,633	7,574
Total assets	224,011	156,452
Current liabilities:
Accounts payable	5,524	7,469
Due to related parties	0	226
Accrued liabilities	5,302	10,142
Current operating lease liabilities	1,714
Current portion of deferred revenue, and other	2,687	2,526
Total current liabilities	15,227	20,363
Convertible note, long-term, net	43,823	0
Deferred revenue, net of current portion	6,183	7,082
Line of credit	0	6,000
Non-current operating lease liabilities	4,578
Other liabilities	217	598
Total liabilities	70,028	34,043
Commitments and contingencies
Redeemable non-controlling interest and mezzanine equity	300	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, 7,823,802 and 7,675,692 shares issued and outstanding, respectively	78	77
Additional paid-in capital	288,181	257,034
Accumulated other comprehensive income	140	277
Accumulated deficit	(134,716)	(134,979)
Total stockholders' equity	153,683	122,409
Total liabilities, mezzanine equity and stockholders' equity	$ 224,011	$ 156,452

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue:
Total revenue, net	$ 31,237	$ 30,955	$ 88,894	$ 93,381
Cost of revenue	17,573	16,161	50,275	52,215
Gross profit	13,664	14,794	38,619	41,166
Operating expenses:
Selling and marketing	6,709	6,215	20,457	18,299
Research and development	2,532	935	6,137	2,165
General and administrative	4,230	11,239	12,473	20,223
Total operating expenses	13,471	18,389	39,067	40,687
Operating income (loss)	193	(3,595)	(448)	479
Interest and other expense (income), net	927	(50)	932	37
(Loss) income before income taxes and equity in losses of unconsolidated affiliates	(734)	(3,545)	(1,380)	442
Income tax (benefit) expense:
Current income tax expense	40	27	112	56
Deferred income tax benefit	(570)	(1,902)	(2,078)	(1,997)
Total income tax benefit	(530)	(1,875)	(1,966)	(1,941)
Net (loss) income before equity in losses of unconsolidated affiliates	(204)	(1,670)	586	2,383
Equity in losses of unconsolidated affiliates	(147)	0	(455)	0
Net (loss) income after equity in losses of unconsolidated affiliates	(351)	(1,670)	131	2,383
Net loss attributable to redeemable non-controlling interest	(41)	0	(132)	0
Net (loss) income attributable to Heska Corporation	$ (310)	$ (1,670)	$ 263	$ 2,383
Earnings Per Share [Abstract]
Basic (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.04)	$ (0.23)	$ 0.04	$ 0.33
Diluted (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.04)	$ (0.23)	$ 0.03	$ 0.30
Weighted average outstanding shares used to compute basic (loss) earnings per share attributable to Heska Corporation (in shares)	7,501	7,289	7,461	7,194
Weighted average outstanding shares used to compute diluted (loss) earnings per share attributable to Heska Corporation (in shares)	7,501	7,289	7,960	7,820
Core companion animal
Revenue:
Total revenue, net	$ 26,339	$ 27,190	$ 75,771	$ 80,652
Other vaccines and pharmaceuticals
Revenue:
Total revenue, net	$ 4,898	$ 3,765	$ 13,123	$ 12,729

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net income after equity in losses from unconsolidated affiliates	$ (351)	$ (1,670)	$ 131	$ 2,383
Other comprehensive (loss) income:
Foreign currency translation	(158)	15	(137)	(16)
Comprehensive (loss) income	(509)	(1,655)	(6)	2,367
Comprehensive loss attributable to redeemable non-controlling interest	(41)	0	(132)	0
Comprehensive (loss) income attributable to Heska Corporation	$ (468)	$ (1,655)	$ 126	$ 2,367

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ 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		7,303,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income after equity in losses of unconsolidated affiliates	2,383
Ending balance at Sep. 30, 2018	111,601	$ 76	249,755	216	(138,446)
Ending balance (in shares) at Sep. 30, 2018		7,553,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of accounting standards	2,634				2,634
Beginning balance at Jan. 01, 2018	103,074	$ 73	243,598	232	(140,829)
Beginning balance (in shares) at Jan. 01, 2018		7,303,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income after equity in losses of unconsolidated affiliates	2,383				2,383
Issuance of common stock, net of shares withheld for employee taxes	2,386	$ 3	2,383
Issuance of common stock, net of shares withheld for employee taxes (in shares)		250,000
Stock-based compensation	3,774		3,774
Other comprehensive income (loss)	(16)			(16)
Ending balance at Jun. 30, 2018	109,922	$ 75	246,422	201	(136,776)
Ending balance (in shares) at Jun. 30, 2018		7,498,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income after equity in losses of unconsolidated affiliates	(1,670)				(1,670)
Issuance of common stock, net of shares withheld for employee taxes	1,928	$ 1	1,927
Issuance of common stock, net of shares withheld for employee taxes (in shares)		55,000
Stock-based compensation	1,406		1,406
Other comprehensive income (loss)	15			15
Ending balance at Sep. 30, 2018	111,601	$ 76	249,755	216	(138,446)
Ending balance (in shares) at Sep. 30, 2018		7,553,000
Beginning balance at Dec. 31, 2018	122,409	$ 77	257,034	277	(134,979)
Beginning balance (in shares) at Dec. 31, 2018		7,676,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income after equity in losses of unconsolidated affiliates	263				263
Issuance of common stock, net of shares withheld for employee taxes	(2,247)	$ 1	(2,248)
Issuance of common stock, net of shares withheld for employee taxes (in shares)		148,000
Stock-based compensation	3,625		3,625
Convertible notes, equity	29,770		29,770
Other comprehensive income (loss)	(137)			(137)
Ending balance at Sep. 30, 2019	153,683	$ 78	288,181	140	(134,716)
Ending balance (in shares) at Sep. 30, 2019		7,824,000
Beginning balance at Jun. 30, 2019	122,922	$ 78	256,952	298	(134,406)
Beginning balance (in shares) at Jun. 30, 2019		7,794,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income after equity in losses of unconsolidated affiliates	(310)				(310)
Issuance of common stock, net of shares withheld for employee taxes	213	$ 0	213
Issuance of common stock, net of shares withheld for employee taxes (in shares)		30,000
Stock-based compensation	1,246		1,246
Convertible notes, equity	29,770		29,770
Other comprehensive income (loss)	(158)			(158)
Ending balance at Sep. 30, 2019	$ 153,683	$ 78	$ 288,181	$ 140	$ (134,716)
Ending balance (in shares) at Sep. 30, 2019		7,824,000

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income after equity in losses from unconsolidated affiliates	$ 131	$ 2,383
Adjustments to reconcile net income to cash (used in) provided by operating activities:
Depreciation and amortization	3,759	3,473
Non-cash impact of operating leases	1,126
Deferred income tax benefit	(2,078)	(1,997)
Stock-based compensation	3,625	3,774
Equity in losses of unconsolidated affiliates	455	0
Amortization of debt discount and issuance costs	282	30
Other losses (gains)	340	(32)
Changes in operating assets and liabilities (net of the effect of acquisitions):
Accounts receivable	2,808	2,102
Inventories	(438)	3,935
Due from related parties	0	1
Lease receivable, current	(605)	(708)
Other current assets	(892)	(451)
Accounts payable	(2,491)	(5,092)
Due to related parties	(226)	(1,422)
Accrued liabilities and other	(6,528)	6,076
Lease receivable, non-current	(1,551)	(1,906)
Other non-current assets	(65)	(843)
Deferred revenue and other	(928)	(2,865)
Net cash (used in) provided by operating activities	(3,276)	6,458
Cash flows from investing activities:
Investment in subsidiary, net of cash acquired	(622)	0
Investments in unconsolidated affiliates	0	(8,089)
Purchases of property and equipment	(722)	(1,061)
Proceeds from disposition of property and equipment	0	24
Net cash (used in) investing activities	(1,344)	(9,126)
Cash flows from financing activities:
Borrowings on line of credit	6,750	3,000
Repayments of line of credit borrowings	(12,750)	(3,000)
Payment of debt issuance costs	(3,072)	0
Convertible debt proceeds	86,250	0
Proceeds from issuance of common stock	1,233	3,627
Repurchase of common stock	(3,480)	(1,241)
Distributions to non-controlling interest members	0	(126)
Repayments of other debt	(1,164)	(5)
Net cash provided by financing activities	73,767	2,255
Foreign exchange effect on cash, cash equivalents and restricted cash	(31)	(10)
Net increase (decrease) in cash, cash equivalents and restricted cash	69,116	(423)
Cash, cash equivalents and restricted cash, beginning of period	13,389	9,659
Cash, cash equivalents and restricted cash, end of period	82,505	9,236
Supplemental disclosure of cash flow information:
Non-cash transfers of equipment between inventory and property and equipment, net	1,118	1,019
Accrued debt issuance costs	$ 105	$ 0

OPERATIONS AND SUMMARY OF SIGNI

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 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 September 30, 2019 and December 31, 2018 , the results of our operations and statements of stockholders' equity for the three and nine months ended September 30, 2019 and 2018 , and cash flows for the nine months ended September 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; determining the value of the non-controlling interest in a business combination; and determining the fair value of the liability component associated with the issuance of convertible debt. 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, restricted cash, and fair value measurement of convertible senior notes discussed below, have not changed materially since such filing. Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the same amounts shown in the condensed consolidated statements of cash flows. September 30, 2019 December 31, 2018 Cash and cash equivalents $ 80,505 $ 13,389 Restricted cash in other non-current assets 2,000 — Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 82,505 $ 13,389 Restricted cash relates to cash deposited in a blocked collateral account held by Chase (as defined below) to secure the Company's obligations under the Amendment to the Credit Facility discussed in Note 16. Fair Value of Financial Instruments Our policies for the fair value measurement of cash and cash equivalents, short-term trade receivables and payables and the Company's revolving line of credit have not changed from the policies described in our Annual Report on Form 10-K for the year ended December 31, 2018 . The estimated fair value of the convertible senior notes disclosed at each reporting period is evaluated through consideration of quoted market prices in less active markets. The fair value measurement is classified as Level 2 in the fair value hierarchy, which is defined in ASC 820 as inputs other than quoted prices in active markets that are either directly or indirectly observable. For additional information regarding the Company's accounting treatment for the issuance of the convertible senior notes, including the fair value measurement of the liability component, refer to Note 16 - Convertible Notes and Credit Facility. Adoption of New Accounting Pronouncements Effective January 1, 2019, we adopted Accounting Standard Update ("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 September 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	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE We separate our goods and services among two reportable segments, Core companion animal ("CCA") and Other vaccines and pharmaceuticals ("OVP"). The CCA segment consists of revenue generated from the following: • 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. The OVP segment consists of revenue generated from the following: • Contract manufacturing agreements; and • Other license, research and development revenue. The following table summarizes our CCA revenue (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Point of Care laboratory revenue: $ 17,524 $ 14,584 $ 49,605 $ 43,277 Consumables 14,021 11,598 39,545 33,942 Sales-type leases 1,587 1,228 4,821 4,559 Outright instrument sales 1,547 1,382 4,122 3,528 Other 369 376 1,117 1,248 Point of Care imaging revenue: 5,337 5,326 15,976 15,759 Outright instrument sales 4,479 4,453 13,431 13,157 Service revenue 544 590 1,663 1,689 Operating type leases and other 314 283 882 913 Other CCA revenue: 3,478 7,280 10,190 21,616 Other pharmaceuticals, vaccines and diagnostic tests 3,400 7,176 9,927 21,278 Research and development, license and royalty revenue 78 104 263 338 Total CCA revenue $ 26,339 $ 27,190 $ 75,771 $ 80,652 The following table summarizes our OVP revenue (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Contract manufacturing $ 4,747 $ 3,540 $ 12,741 $ 12,218 License, research and development 151 225 382 511 Total OVP revenue $ 4,898 $ 3,765 $ 13,123 $ 12,729 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 September 30, 2019 , the aggregate amount of the transaction price allocated to remaining minimum performance obligations was approximately $94.1 million . As of September 30, 2019 , the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2019 (remaining) $ 6,409 2020 23,605 2021 19,858 2022 16,831 2023 13,453 Thereafter 13,993 $ 94,149 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 September 30, 2019 were $1.0 million and $3.6 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 September 30, 2019 and December 31, 2018 , contract liabilities were $8.7 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 nine -month period ended September 30, 2019 is approximately $2.1 million of revenue recognized during the period, offset by approximately $1.2 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 September 30, 2019 and December 31, 2018 was $2.6 million and $2.5 million , respectively. Amortization expense for the nine -month period ended September 30, 2019 was approximately $0.7 million , offset by approximately $0.9 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	9 Months Ended
	Sep. 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 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. As of September 30, 2019, the purchase price allocation is final. 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. The Company prepaid approximately $0.6 million of the real estate purchase price during the quarter ended September 30, 2019 and paid the remainder of the purchase price on November 4, 2019 to complete the transaction. 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 $3.1 million during the nine months ended September 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 September 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	9 Months Ended
	Sep. 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): September 30, 2019 December 31, 2018 Equity method investment $ 4,545 $ 5,000 Non-marketable equity security investment 3,018 3,018 $ 7,563 $ 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. In connection with the investment, the Company entered into a Manufacturing Supply Agreement that grants the Company global exclusivity to specified products to be delivered under the agreement for a 15 -year period that begins upon the Company's receipt and acceptance of an initial order under the agreement. 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. 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	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our total income tax benefit for our (loss) income before income taxes were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Loss) income before income taxes and equity in losses of unconsolidated affiliates $ (734 ) $ (3,545 ) $ (1,380 ) $ 442 Total income tax benefit (530 ) (1,875 ) (1,966 ) (1,941 ) There were cash payments of $1 thousand and cash refunds, net of payments, of $114 thousand , respectively, for income taxes for the three and nine months ended September 30, 2019 . There were $0 thousand and $30 thousand in cash payments for income taxes, net of refunds, for the three and nine months ended September 30, 2018 . The Company’s tax benefit decreased to $0.5 million and $2.0 million for the three and nine months ended September 30, 2019 , respectively, compared to the tax benefit of $1.9 million for the three months ended September 30, 2018 and tax benefit of $1.9 million for the nine months ended September 30, 2018 . The decrease in tax benefits is due to the lower financial loss. The Company recognized $0.1 million in excess tax benefits related to employee share-based compensation for the three months ended September 30, 2019 compared to $0.8 million recognized for the three months ended September 30, 2018 . The Company recognized $1.5 million in excess tax benefits related to employee share-based compensation for the nine months ended September 30, 2019 compared to $2.1 million recognized for the nine months ended September 30, 2018 . As more fully described in Note 16, the Company accounted for the issuance of the 3.750% Convertible Senior Notes due 2026 (the "Notes") by separating the Notes into liability and equity components. The portion of the proceeds allocated to equity created a basis difference associated with the liability component and resulted in a temporary taxable difference for tax purposes. The Company recognized a $9.7 million net deferred tax liability for the temporary difference between the carrying value and the tax basis of the Notes, which was recorded as an adjustment to additional paid-in-capital.

LEASES

LEASES	9 Months Ended
	Sep. 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 September 30, 2019 and for the three and nine month periods 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 nine months ended September 30, 2019 , operating lease expense was approximately $0.6 million and $1.8 million , respectively, including immaterial variable lease costs. Supplemental cash flow information related to the Company's operating leases for the nine months ended September 30, 2019 was as follows (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 1,344 ROU assets obtained in exchange for operating lease obligations 498 The following table presents the weighted average remaining lease term and weighted average discount rate related to the Company's operating leases as of September 30, 2019 : Weighted average remaining lease term 3.9 years Weighted average discount rate 4.44 % The following table presents the maturity of the Company's operating lease liabilities as of September 30, 2019 (in thousands): Remainder of 2019 $ 727 2020 1,633 2021 1,439 2022 1,328 2023 1,766 Total operating lease payments 6,893 Less: imputed interest 601 Total operating lease liabilities $ 6,292 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 September 30, 2019 (in thousands): Year Ending December 31, Remainder of 2019 $ 799 2020 3,788 2021 3,797 2022 3,455 2023 2,698 Thereafter 2,571 $ 17,108
LEASES, LESSOR	LEASES Lessee Accounting The Company leases buildings, office equipment, and vehicles. The Company’s finance leases were not material as of September 30, 2019 and for the three and nine month periods 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 nine months ended September 30, 2019 , operating lease expense was approximately $0.6 million and $1.8 million , respectively, including immaterial variable lease costs. Supplemental cash flow information related to the Company's operating leases for the nine months ended September 30, 2019 was as follows (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 1,344 ROU assets obtained in exchange for operating lease obligations 498 The following table presents the weighted average remaining lease term and weighted average discount rate related to the Company's operating leases as of September 30, 2019 : Weighted average remaining lease term 3.9 years Weighted average discount rate 4.44 % The following table presents the maturity of the Company's operating lease liabilities as of September 30, 2019 (in thousands): Remainder of 2019 $ 727 2020 1,633 2021 1,439 2022 1,328 2023 1,766 Total operating lease payments 6,893 Less: imputed interest 601 Total operating lease liabilities $ 6,292 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 September 30, 2019 (in thousands): Year Ending December 31, Remainder of 2019 $ 799 2020 3,788 2021 3,797 2022 3,455 2023 2,698 Thereafter 2,571 $ 17,108

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 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 nine months ended September 30, 2019 and 2018 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net (loss) income attributable to Heska Corporation $ (310 ) $ (1,670 ) $ 263 $ 2,383 Basic weighted-average common shares outstanding 7,501 7,289 7,461 7,194 Assumed exercise of dilutive stock options and restricted shares — — 499 626 Diluted weighted-average common shares outstanding $ 7,501 $ 7,289 $ 7,960 $ 7,820 Basic (loss) earnings per share attributable to Heska Corporation $ (0.04 ) $ (0.23 ) $ 0.04 $ 0.33 Diluted (loss) earnings per share attributable to Heska Corporation $ (0.04 ) $ (0.23 ) $ 0.03 $ 0.30 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options and restricted shares 273 675 272 190 As more fully described in Note 16, our Notes are convertible under certain circumstances, as defined in the indenture, into a combination of cash and shares of our common stock. Potential dilution upon conversion of the Notes occurs when the market price per share of our common stock is greater than the conversion price of the Notes of $86.63 . The Company intends to settle the principal value of the Notes in cash and issue shares of our common stock to settle the intrinsic value of the conversion feature. The Company will use the treasury stock method when calculating the potential dilutive effect of the conversion feature on earnings per share, if any. The average price of our common stock during the three and nine months ended September 30, 2019 did not exceed the conversion price of the Notes; therefore, under the net share settlement method, there are no potential shares issuable under the Notes to be used in the calculation of diluted EPS.

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	9 Months Ended
	Sep. 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 nine months ended September 30, 2019 (in thousands): Carrying amount, December 31, 2018 $ 26,679 Goodwill attributable to acquisitions 547 Foreign currency adjustments (10 ) Carrying amount, September 30, 2019 $ 27,216 Other intangibles consisted of the following (in thousands): September 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 $ (615 ) $ 7,585 $ 8,200 $ — $ 8,200 Customer relationships and other 3,726 (2,105 ) 1,621 3,303 (1,739 ) 1,564 Total intangible assets $ 11,926 $ (2,720 ) $ 9,206 $ 11,503 $ (1,739 ) $ 9,764 Amortization expense relating to other intangibles was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amortization expense $ 346 $ 97 $ 953 $ 291 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) $ 322 2020 1,295 2021 1,291 2022 1,275 2023 926 Thereafter 4,097 $ 9,206

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT, NET Property and equipment, net, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Land $ 377 $ 377 Building 2,978 2,978 Machinery and equipment 30,039 33,087 Office furniture and equipment 1,699 1,687 Computer hardware and software 4,318 4,704 Leasehold and building improvements 10,545 9,953 Construction in progress 747 1,274 50,703 54,060 Less accumulated depreciation (36,080 ) (38,079 ) Total property and equipment, net $ 14,623 $ 15,981 Depreciation expense was $0.9 million and $ 1.0 million for the three months ended September 30, 2019 and 2018 , respectively, and $2.8 million and $3.2 million for the nine months ended September 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 September 30, 2019 and December 31, 2018 , was $9.2 million and $10.8 million , respectively, before accumulated depreciation of $5.1 million and $6.1 million , respectively.

INVENTORIES, NET

INVENTORIES, NET	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
INVENTORIES, NET	INVENTORIES, NET Inventories, net, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Raw materials $ 15,292 $ 15,000 Work in process 2,959 3,592 Finished goods 9,145 8,085 Allowance for excess or obsolete inventory (1,181 ) (1,573 ) Total inventory, net $ 26,215 $ 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	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): September 30, 2019 December 31, 2018 Accrued settlement (see Note 14) $ — $ 6,750 Accrued payroll and employee benefits 1,189 759 Accrued property taxes 510 632 Accrued purchase orders 1,957 699 Other 1,646 1,302 Total accrued liabilities $ 5,302 $ 10,142 Other accrued liabilities consists of items that are individually less than 5% of total current liabilities.

CAPITAL STOCK

CAPITAL STOCK	9 Months Ended
	Sep. 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 nine months ended September 30, 2019 and 2018 . Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Risk-free interest rate 1.53% 2.80% 1.66% 2.66% 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: Nine Months Ended September 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 35,200 $ 72.271 153,700 $ 75.244 Forfeited (664 ) $ 98.660 (18,978 ) $ 53.010 Expired (234 ) $ 98.660 (896 ) $ 65.414 Exercised (153,227 ) $ 16.583 (144,120 ) $ 25.740 Outstanding at end of period 501,628 $ 50.230 620,553 $ 40.741 Exercisable at end of period 321,229 $ 36.493 386,176 $ 21.214 The total estimated fair value of stock options granted during the nine months ended September 30, 2019 and 2018 was computed to be approximately $0.9 million and $4.4 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 nine months ended September 30, 2019 and 2018 was computed to be approximately $26.05 and $28.74 , respectively. The total intrinsic value of options exercised during the nine months ended September 30, 2019 and 2018 was $11.8 million and $6.6 million , respectively. The cash proceeds from options exercised during the nine months ended September 30, 2019 and 2018 was $0.5 million and $3.0 million , respectively. The following table summarizes information about stock options outstanding and exercisable at September 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 90,852 3.38 $ 6.988 90,852 $ 6.988 $ 7.37 - $ 32.21 78,374 4.55 $ 15.964 78,374 $ 15.964 $ 32.22 - $ 62.50 57,533 6.31 $ 39.797 51,945 $ 39.740 $ 62.51 - $ 69.77 130,000 8.43 $ 69.770 43,337 $ 69.770 $ 69.78 - $ 108.25 144,869 8.19 $ 82.494 56,721 $ 83.719 $ 4.96 - $ 108.25 501,628 6.60 $ 50.230 321,229 $ 36.493 As of September 30, 2019 , there was approximately $4.2 million in total unrecognized compensation cost related to outstanding stock options. That cost is expected to be recognized over a weighted average period of 1.28 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 September 30, 2019 . As of September 30, 2019 , the aggregate intrinsic value of outstanding options was approximately $12.0 million and the aggregate intrinsic value of exercisable options was approximately $11.8 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 September 30, 2019 and 2018 , we issued 3,032 and 1,942 shares under the ESPP, respectively. For the nine months ended September 30, 2019 and 2018 , we issued 8,401 and 7,396 shares under the ESPP, respectively. For the three and nine months ended September 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Risk-free interest rate 1.94% 2.04% 2.16% 1.39% Expected lives 1.1 years 1.1 years 1.1 years 1.2 years Expected volatility 39% 42% 39% 43% Expected dividend yield 0% 0% 0% 0% For the three months ended September 30, 2019 and 2018 , the weighted-average fair value of the purchase rights granted was $16.62 and $23.44 per share, respectively. For the nine months ended September 30, 2019 and 2018 , the weighted-average fair value of the purchase rights granted was $18.03 and $17.85 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 nine months ended September 30, 2019 or 2018 . The following table summarizes restricted stock transactions for the nine months ended September 30, 2019 : RSAs Weighted-Average Grant Date Fair Value Per Award Non-vested as of December 31, 2018 259,430 $ 74.26 Granted 42,567 70.00 Vested (4,230 ) 85.09 Forfeited (1,400 ) 80.90 Non-vested as of September 30, 2019 296,367 $ 73.50 The weighted average grant date fair value of awards granted was $71.84 and $98.41 for the three months ended September 30, 2019 and 2018 , respectively. The weighted average grant date fair value of awards granted was $70.00 and $71.77 for the nine months ended September 30, 2019 and 2018 , respectively. No restricted stock awards vested during the three months ended September 30, 2019 and 2018 . Fair value of restricted stock vested was $0.3 million and $4.4 million for the nine months ended September 30, 2019 and 2018 , respectively. As of September 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 1.1 years. As of September 30, 2019 , we reviewed each of the underlying corporate performance targets and determined that approximately 193,000 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 September 30, 2019 .

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	9 Months Ended
	Sep. 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 loss — (137 ) (137 ) Balances at September 30, 2019 $ (419 ) $ 559 $ 140

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 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 September 30, 2019 and 2018 , royalties of $0.1 million became payable under these agreements. In each of the nine months ended September 30, 2019 , and 2018 , royalties of $0.3 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 September 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 September 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 The Company has contractual obligations with suppliers for unconditional annual minimum inventory purchases in the amounts of $17.0 million as of September 30, 2019 . The Company also committed to purchase real estate in the amount of approximately $1.0 million from Optomed's minority interest holder within a reasonable amount of time from acquisition date of the French company. Approximately half of the $1.0 million commitment was prepaid in the quarter ended September 30, 2019 and the remainder was paid on November 4, 2019.

INTEREST AND OTHER EXPENSE, NET

INTEREST AND OTHER EXPENSE, NET	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest income $ (141 ) $ (66 ) $ (365 ) $ (186 ) Interest expense 494 89 718 231 Other expense (income), net 574 (73 ) 579 (8 ) Total interest and other expense (income), net $ 927 $ (50 ) $ 932 $ 37 Cash paid for interest for the three months ended September 30, 2019 and 2018 was $224 thousand and $58 thousand , respectively. Cash paid for interest for the nine months ended September 30, 2019 and 2018 was $351 thousand and $143 thousand , respectively.

CONVERTIBLE NOTES AND CREDIT FA

CONVERTIBLE NOTES AND CREDIT FACILITY	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
CONVERTIBLE NOTES AND CREDIT FACILITY	We entered into a Credit Agreement, dated July 27, 2017, as amended in May 2018, December 2018 and July 2019 (the "Credit Agreement"), with JPMorgan Chase Bank, N.A. ("Chase") which provided for a revolving credit facility up to $30.0 million (the "Credit Facility"). The Credit Facility provided us with the ability to borrow up to $30.0 million although the amount of the Credit Facility may have been 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 was 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 was an annual minimum interest charge of $60 thousand under the Credit Agreement. Chase held first right of priority over all other liens, if any were to exist. In September 2019, we entered into an amendment to the Credit Agreement (the “Amendment”), which among other things, reduced and limited the Credit Facility to a $2.0 million , cash collateralized, letter of credit facility and eliminated a majority of the negative covenants previously contained in the Credit Facility, including any covenants that could have prohibited the issuance of any Notes and the Company's ability to pay cash upon conversion, repurchase or redemption of any Notes issued. The Company was required to repay in full the approximately $12.8 million of indebtedness outstanding under the Credit Facility and fully fund the $2.0 million collateral account to be held by Chase to secure the Company's obligations under the Amendment to the Credit Facility in connection with the issuance of the Notes. The maturity date of the Credit Facility, as amended by the Amendment, is September 9, 2021 . This Amendment became effective on September 17, 2019 , the first date any Notes were issued. The Company accounted for the modification of the Credit Facility by writing off approximately $33 thousand of remaining unamortized debt issuance costs related to the Credit Agreement. 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 the Company's Quarterly Report on Form 10-Q filed with the SEC on August 7, 2019, and the Fourth 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 November 6, 2019, each of which are incorporated herein by reference. As of September 30, 2019 , we had fully collateralized the $2.0 million letter of credit facility. There were no letters of credit outstanding under the facility at September 30, 2019 . The $2.0 million of collateral has been recorded as restricted cash on the Company's Consolidated Balance Sheets at September 30, 2019 . In connection with the Credit Agreement, the Company incurred debt issuance costs of $38 thousand . These costs are included in other non-current assets on the Company's Consolidated Balance Sheets, and will be amortized to interest expense ratably over the term of the agreement.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 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 September 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 26,339 $ 4,898 $ 31,237 Operating income (loss) 560 (367 ) 193 Loss before income taxes (367 ) (367 ) (734 ) Capital expenditures 27 66 93 Depreciation and amortization 908 329 1,237 Three Months Ended September 30, 2018 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 27,190 $ 3,765 $ 30,955 Operating (loss) income (4,402 ) 807 (3,595 ) (Loss) income before income taxes (4,352 ) 807 (3,545 ) Capital expenditures 20 229 249 Depreciation and amortization 823 317 1,140 Nine Months Ended September 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 75,771 $ 13,123 $ 88,894 Operating income (loss) 255 (703 ) (448 ) Loss before income taxes (677 ) (703 ) (1,380 ) Capital expenditures 103 619 722 Depreciation and amortization 2,789 970 3,759 Nine Months Ended September 30, 2018 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 80,652 $ 12,729 $ 93,381 Operating income 384 95 479 Income before income taxes 347 95 442 Capital expenditures 117 944 1,061 Depreciation and amortization 2,568 905 3,473 Asset information by reportable segment as of September 30, 2019 is as follows (in thousands): As of September 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total Investments in unconsolidated affiliates $ 7,563 $ — $ 7,563 Total assets 202,306 21,705 224,011 Net assets 135,190 18,493 153,683 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)	9 Months Ended
	Sep. 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 September 30, 2019 and December 31, 2018 , the results of our operations and statements of stockholders' equity for the three and nine months ended September 30, 2019 and 2018 , and cash flows for the nine months ended September 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; determining the value of the non-controlling interest in a business combination; and determining the fair value of the liability component associated with the issuance of convertible debt.
Recent Accounting Pronouncements	Adoption of New Accounting Pronouncements Effective January 1, 2019, we adopted Accounting Standard Update ("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 September 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.

OPERATIONS AND SUMMARY OF SIG_3

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Restrictions on Cash and Cash Equivalents	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the same amounts shown in the condensed consolidated statements of cash flows. September 30, 2019 December 31, 2018 Cash and cash equivalents $ 80,505 $ 13,389 Restricted cash in other non-current assets 2,000 — Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 82,505 $ 13,389
Schedule of Cash and Cash Equivalents	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the same amounts shown in the condensed consolidated statements of cash flows. September 30, 2019 December 31, 2018 Cash and cash equivalents $ 80,505 $ 13,389 Restricted cash in other non-current assets 2,000 — Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 82,505 $ 13,389

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes our CCA revenue (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Point of Care laboratory revenue: $ 17,524 $ 14,584 $ 49,605 $ 43,277 Consumables 14,021 11,598 39,545 33,942 Sales-type leases 1,587 1,228 4,821 4,559 Outright instrument sales 1,547 1,382 4,122 3,528 Other 369 376 1,117 1,248 Point of Care imaging revenue: 5,337 5,326 15,976 15,759 Outright instrument sales 4,479 4,453 13,431 13,157 Service revenue 544 590 1,663 1,689 Operating type leases and other 314 283 882 913 Other CCA revenue: 3,478 7,280 10,190 21,616 Other pharmaceuticals, vaccines and diagnostic tests 3,400 7,176 9,927 21,278 Research and development, license and royalty revenue 78 104 263 338 Total CCA revenue $ 26,339 $ 27,190 $ 75,771 $ 80,652 The following table summarizes our OVP revenue (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Contract manufacturing $ 4,747 $ 3,540 $ 12,741 $ 12,218 License, research and development 151 225 382 511 Total OVP revenue $ 4,898 $ 3,765 $ 13,123 $ 12,729
Schedule of Timing of Revenue Expected to be Recognized	As of September 30, 2019 , the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2019 (remaining) $ 6,409 2020 23,605 2021 19,858 2022 16,831 2023 13,453 Thereafter 13,993 $ 94,149

INVESTMENTS IN UNCONSOLIDATED_2

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Tables)	9 Months Ended
	Sep. 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): September 30, 2019 December 31, 2018 Equity method investment $ 4,545 $ 5,000 Non-marketable equity security investment 3,018 3,018 $ 7,563 $ 8,018

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Schedule of components of income tax expense	Our total income tax benefit for our (loss) income before income taxes were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Loss) income before income taxes and equity in losses of unconsolidated affiliates $ (734 ) $ (3,545 ) $ (1,380 ) $ 442 Total income tax benefit (530 ) (1,875 ) (1,966 ) (1,941 )

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Additional lease information	Supplemental cash flow information related to the Company's operating leases for the nine months ended September 30, 2019 was as follows (in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 1,344 ROU assets obtained in exchange for operating lease obligations 498 The following table presents the weighted average remaining lease term and weighted average discount rate related to the Company's operating leases as of September 30, 2019 : Weighted average remaining lease term 3.9 years Weighted average discount rate 4.44 %
Schedule of maturity of operating leases	The following table presents the maturity of the Company's operating lease liabilities as of September 30, 2019 (in thousands): Remainder of 2019 $ 727 2020 1,633 2021 1,439 2022 1,328 2023 1,766 Total operating lease payments 6,893 Less: imputed interest 601 Total operating lease liabilities $ 6,292
Lessor, maturity of undiscounted lease receivables	The following table presents the maturity of the Company's undiscounted lease receivables as of September 30, 2019 (in thousands): Year Ending December 31, Remainder of 2019 $ 799 2020 3,788 2021 3,797 2022 3,455 2023 2,698 Thereafter 2,571 $ 17,108

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2019 and 2018 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net (loss) income attributable to Heska Corporation $ (310 ) $ (1,670 ) $ 263 $ 2,383 Basic weighted-average common shares outstanding 7,501 7,289 7,461 7,194 Assumed exercise of dilutive stock options and restricted shares — — 499 626 Diluted weighted-average common shares outstanding $ 7,501 $ 7,289 $ 7,960 $ 7,820 Basic (loss) earnings per share attributable to Heska Corporation $ (0.04 ) $ (0.23 ) $ 0.04 $ 0.33 Diluted (loss) earnings per share attributable to Heska Corporation $ (0.04 ) $ (0.23 ) $ 0.03 $ 0.30
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options and restricted shares 273 675 272 190

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in goodwill	The following summarizes the change in goodwill during the nine months ended September 30, 2019 (in thousands): Carrying amount, December 31, 2018 $ 26,679 Goodwill attributable to acquisitions 547 Foreign currency adjustments (10 ) Carrying amount, September 30, 2019 $ 27,216
Schedule of other intangible assets	Other intangibles consisted of the following (in thousands): September 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 $ (615 ) $ 7,585 $ 8,200 $ — $ 8,200 Customer relationships and other 3,726 (2,105 ) 1,621 3,303 (1,739 ) 1,564 Total intangible assets $ 11,926 $ (2,720 ) $ 9,206 $ 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amortization expense $ 346 $ 97 $ 953 $ 291
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) $ 322 2020 1,295 2021 1,291 2022 1,275 2023 926 Thereafter 4,097 $ 9,206

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment, net, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Land $ 377 $ 377 Building 2,978 2,978 Machinery and equipment 30,039 33,087 Office furniture and equipment 1,699 1,687 Computer hardware and software 4,318 4,704 Leasehold and building improvements 10,545 9,953 Construction in progress 747 1,274 50,703 54,060 Less accumulated depreciation (36,080 ) (38,079 ) Total property and equipment, net $ 14,623 $ 15,981

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of inventory	Inventories, net, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Raw materials $ 15,292 $ 15,000 Work in process 2,959 3,592 Finished goods 9,145 8,085 Allowance for excess or obsolete inventory (1,181 ) (1,573 ) Total inventory, net $ 26,215 $ 25,104

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): September 30, 2019 December 31, 2018 Accrued settlement (see Note 14) $ — $ 6,750 Accrued payroll and employee benefits 1,189 759 Accrued property taxes 510 632 Accrued purchase orders 1,957 699 Other 1,646 1,302 Total accrued liabilities $ 5,302 $ 10,142

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2019 and 2018 . Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Risk-free interest rate 1.53% 2.80% 1.66% 2.66% 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	The following table summarizes restricted stock transactions for the nine months ended September 30, 2019 : RSAs Weighted-Average Grant Date Fair Value Per Award Non-vested as of December 31, 2018 259,430 $ 74.26 Granted 42,567 70.00 Vested (4,230 ) 85.09 Forfeited (1,400 ) 80.90 Non-vested as of September 30, 2019 296,367 $ 73.50 A summary of our stock option plans is as follows: Nine Months Ended September 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 35,200 $ 72.271 153,700 $ 75.244 Forfeited (664 ) $ 98.660 (18,978 ) $ 53.010 Expired (234 ) $ 98.660 (896 ) $ 65.414 Exercised (153,227 ) $ 16.583 (144,120 ) $ 25.740 Outstanding at end of period 501,628 $ 50.230 620,553 $ 40.741 Exercisable at end of period 321,229 $ 36.493 386,176 $ 21.214
Schedule of shares authorized under stock options plans by exercise price	The following table summarizes information about stock options outstanding and exercisable at September 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 90,852 3.38 $ 6.988 90,852 $ 6.988 $ 7.37 - $ 32.21 78,374 4.55 $ 15.964 78,374 $ 15.964 $ 32.22 - $ 62.50 57,533 6.31 $ 39.797 51,945 $ 39.740 $ 62.51 - $ 69.77 130,000 8.43 $ 69.770 43,337 $ 69.770 $ 69.78 - $ 108.25 144,869 8.19 $ 82.494 56,721 $ 83.719 $ 4.96 - $ 108.25 501,628 6.60 $ 50.230 321,229 $ 36.493
Schedule of pricing models	The weighted average assumptions used for the periods presented were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Risk-free interest rate 1.94% 2.04% 2.16% 1.39% Expected lives 1.1 years 1.1 years 1.1 years 1.2 years Expected volatility 39% 42% 39% 43% Expected dividend yield 0% 0% 0% 0%

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	9 Months Ended
	Sep. 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 loss — (137 ) (137 ) Balances at September 30, 2019 $ (419 ) $ 559 $ 140

INTEREST AND OTHER EXPENSE, N_2

INTEREST AND OTHER EXPENSE, NET (Tables)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest income $ (141 ) $ (66 ) $ (365 ) $ (186 ) Interest expense 494 89 718 231 Other expense (income), net 574 (73 ) 579 (8 ) Total interest and other expense (income), net $ 927 $ (50 ) $ 932 $ 37

CONVERTIBLE NOTES AND CREDIT _2

CONVERTIBLE NOTES AND CREDIT FACILITY (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Convertible Debt	September 30, 2019 Carrying amount of equity component $ 39,508 Principal amount of the Notes 86,250 Unamortized debt discount (42,427 ) Net carrying amount $ 43,823
Interest Income and Interest Expense Disclosure	Interest expense related to the Notes for the quarter ended September 30, 2019 was $337 thousand , which is comprised of the amortization of debt discount and debt issuance costs and the contractual coupon interest as follows: Three and Nine Months Ended September 30, 2019 Interest expense related to contractual coupon interest $ 117 Interest expense related to amortization of the debt discount 220 $ 337

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 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 September 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 26,339 $ 4,898 $ 31,237 Operating income (loss) 560 (367 ) 193 Loss before income taxes (367 ) (367 ) (734 ) Capital expenditures 27 66 93 Depreciation and amortization 908 329 1,237 Three Months Ended September 30, 2018 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 27,190 $ 3,765 $ 30,955 Operating (loss) income (4,402 ) 807 (3,595 ) (Loss) income before income taxes (4,352 ) 807 (3,545 ) Capital expenditures 20 229 249 Depreciation and amortization 823 317 1,140 Nine Months Ended September 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 75,771 $ 13,123 $ 88,894 Operating income (loss) 255 (703 ) (448 ) Loss before income taxes (677 ) (703 ) (1,380 ) Capital expenditures 103 619 722 Depreciation and amortization 2,789 970 3,759 Nine Months Ended September 30, 2018 Core Companion Animal Other Vaccines and Pharmaceuticals Total revenue $ 80,652 $ 12,729 $ 93,381 Operating income 384 95 479 Income before income taxes 347 95 442 Capital expenditures 117 944 1,061 Depreciation and amortization 2,568 905 3,473
Schedule of revenue from external customers and long-lived assets, by geographical areas	Asset information by reportable segment as of September 30, 2019 is as follows (in thousands): As of September 30, 2019 Core Companion Animal Other Vaccines and Pharmaceuticals Total Investments in unconsolidated affiliates $ 7,563 $ — $ 7,563 Total assets 202,306 21,705 224,011 Net assets 135,190 18,493 153,683 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_4

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Operating lease right-of-use assets	$ 5,870
Total operating lease liabilities	$ 6,292
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

OPERATIONS AND SUMMARY OF SIG_5

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 80,505	$ 13,389
Restricted cash in other non-current assets	2,000	0
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 82,505	$ 13,389	$ 9,236	$ 9,659

REVENUE (Details)

REVENUE (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Number of reportable segments | segment			2
Total revenue, net	$ 31,237	$ 30,955	$ 88,894	$ 93,381
Contract receivables, current	1,000		1,000		$ 900
Contract receivables, noncurrent	3,600		3,600		3,300
Current portion of deferred revenue, and other	8,700		8,700		9,600
Contract liabilities, revenue recognized			2,100
Contract liabilities, increase due to additional deferred sales			$ 1,200
Average term of underlying contracts			P6Y0M0D
Capitalized contract costs	2,600		$ 2,600		$ 2,500
Capitalized contract costs, amortization			700
Capitalized contract costs during the period			900
Core companion animal
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	26,339	27,190	75,771	80,652
Point of Care laboratory revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	17,524	14,584	49,605	43,277
Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	14,021	11,598	39,545	33,942
Sales-type leases
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	1,587	1,228	4,821	4,559
Outright instrument sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	1,547	1,382	4,122	3,528
Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	369	376	1,117	1,248
Point of Care imaging revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	5,337	5,326	15,976	15,759
Outright instrument sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	4,479	4,453	13,431	13,157
Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	544	590	1,663	1,689
Operating type leases and other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	314	283	882	913
Other CCA revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	3,478	7,280	10,190	21,616
Other pharmaceuticals, vaccines and diagnostic tests
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	3,400	7,176	9,927	21,278
Research and development, license and royalty revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	78	104	263	338
Other vaccines and pharmaceuticals
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	4,898	3,765	13,123	12,729
Contract manufacturing
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	4,747	3,540	12,741	12,218
License, research and development
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	$ 151	$ 225	$ 382	$ 511

REVENUE - Performance Obligatio

REVENUE - Performance Obligations (Details) $ in Thousands	Sep. 30, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 94,149
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 6,409
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	$ 23,605
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	$ 19,858
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	$ 16,831
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	$ 13,453
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	$ 13,993
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	Sep. 30, 2019	Sep. 30, 2019	Sep. 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	$ 3,100,000
Heska Imaging | Affiliated Entity
Business Acquisition [Line Items]
Due to related parties			$ 0	$ 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
Real Estate Purchase | Optomed
Business Acquisition [Line Items]
Committed purchase amount	$ 1,000,000
Prepaid real estate purchase price			$ 600,000

INVESTMENTS IN UNCONSOLIDATED_3

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Thousands	Sep. 24, 2018	Aug. 08, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Equity method investment			$ 4,545		$ 5,000
Non-marketable equity security investment			3,018		3,018
Investments			7,563		$ 8,018
Payments to acquire equity method investments			$ 0	$ 8,089
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income before income taxes	$ (734)	$ (3,545)	$ (1,380)	$ 442
Total income tax benefit	(530)	(1,875)	(1,966)	(1,941)
Cash paid for income taxes	1	0	114	30
Excess tax benefits related to employee share-based compensation	$ 100	$ 800	1,500	$ 2,100
Net deferred tax liability			$ 9,700

LEASES - LESEE ACCOUNTING (Deta

LEASES - LESEE ACCOUNTING (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Leases [Abstract]
Operating lease expense	$ 600	$ 1,800
Cash paid for amounts included in the measurement of operating lease liabilities		1,344
ROU assets obtained in exchange for operating lease obligations		$ 498
Weighted average remaining lease term	3 years 10 months 24 days	3 years 10 months 24 days
Weighted average discount rate	4.44%	4.44%
Operating Lease Liabilities, Payments Due [Abstract]
Remainder of 2019	$ 727	$ 727
2020	1,633	1,633
2021	1,439	1,439
2022	1,328	1,328
2023	1,766	1,766
Total operating lease payments	6,893	6,893
Less: imputed interest	601	601
Total operating lease liabilities	$ 6,292	$ 6,292

LEASES - LESSOR ACCOUNTING (Det

LEASES - LESSOR ACCOUNTING (Details) $ in Thousands	Sep. 30, 2019USD ($)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
Remainder of 2019	$ 799
2020	3,788
2021	3,797
2022	3,455
2023	2,698
Thereafter	2,571
Lessor, Operating Lease, Payments to be Received	$ 17,108

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 17, 2019
Earnings Per Share [Abstract]
Net (loss) income attributable to Heska Corporation	$ (310)	$ (1,670)	$ 2,383	$ 263	$ 2,383
Basic weighted-average common shares outstanding (in shares)	7,501	7,289		7,461	7,194
Assumed exercise of dilutive stock options and restricted shares	0	0		499	626
Diluted weighted-average common shares outstanding	7,501	7,289		7,960	7,820
Basic (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.04)	$ (0.23)		$ 0.04	$ 0.33
Diluted (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.04)	$ (0.23)		$ 0.03	$ 0.30
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	273	675		272	190
Senior Convertible Note | Convertible Debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Conversion price (in dollars per share)						$ 86.63

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Goodwill [Roll Forward]
Carrying amount, December 31, 2018			$ 26,679
Goodwill attributable to acquisitions			547
Foreign currency adjustments			(10)
Carrying amount, September 30, 2019	$ 27,216		27,216
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	11,926		11,926		$ 11,503
Accumulated amortization	(2,720)		(2,720)		(1,739)
Net carrying amount	9,206		9,206		9,764
Amortization expense	346	$ 97	953	$ 291
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2019 (remaining)	322		322
2020	1,295		1,295
2021	1,291		1,291
2022	1,275		1,275
2023	926		926
Thereafter	4,097		4,097
Net carrying amount	9,206		9,206		9,764
Developed technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	8,200		8,200		8,200
Accumulated amortization	(615)		(615)		0
Net carrying amount	7,585		7,585		8,200
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	7,585		7,585		8,200
Customer relationships and other
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	3,726		3,726		3,303
Accumulated amortization	(2,105)		(2,105)		(1,739)
Net carrying amount	1,621		1,621		1,564
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	$ 1,621		$ 1,621		$ 1,564

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 50,703		$ 50,703		$ 54,060
Less accumulated depreciation	(36,080)		(36,080)		(38,079)
Total property and equipment, net	14,623		14,623		15,981
Depreciation and amortization	900	$ 1,000	2,800	$ 3,200
Operating leases, gross	9,200		9,200		10,800
Operating leases, accumulated depreciation	5,100		5,100		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	30,039		30,039		33,087
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,699		1,699		1,687
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,318		4,318		4,704
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,545		10,545		9,953
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 747		$ 747		$ 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	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 15,292	$ 15,000
Work in process	2,959	3,592
Finished goods	9,145	8,085
Allowance for excess or obsolete inventory	(1,181)	(1,573)
Total inventory, net	$ 26,215	$ 25,104

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued settlement	$ 0	$ 6,750
Accrued payroll and employee benefits	1,189	759
Accrued property taxes	510	632
Accrued purchase orders	1,957	699
Other	1,646	1,302
Total accrued liabilities	$ 5,302	$ 10,142
Percentage of total current liabilities	5.00%

CAPITAL STOCK - OPTION ACTIVITY

CAPITAL STOCK - OPTION ACTIVITY (Details) - $ / shares	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 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)	1.53%	2.80%	1.66%	2.66%
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			35,200		153,700
Forfeited			(664)		(18,978)
Expired			(234)		(896)
Exercised			(153,227)		(144,120)
Outstanding at end of period	501,628		501,628		620,553
Exercisable at end of period	321,229		321,229		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)			72.271		75.244
Forfeited (in dollars per share)			98.660		53.010
Expired (in dollars per share)			98.660		65.414
Exercised (in dollars per share)			16.583		25.740
Outstanding at ending of period (in dollars per share)	$ 50.230		50.230		40.741
Exercisable at end of period (in dollars per share)	$ 36.493		$ 36.493		$ 21.214
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)	1.94%	2.04%	2.16%	1.39%
Expected lives (in years)	1 year 1 month 6 days	1 year 1 month 18 days	1 year 1 month 6 days	1 year 2 months 18 days
Expected volatility (as a percent)	39.00%	42.00%	39.00%	43.00%
Expected dividend rate (as a percent)	0.00%	0.00%	0.00%	0.00%

CAPITAL STOCK - NARRATIVE (Deta

CAPITAL STOCK - NARRATIVE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of stock options granted during period			$ 900,000	$ 4,400,000
Weighted average grant date fair value			$ 26.05	$ 28.74
Intrinsic value of options exercised			$ 11,800,000	$ 6,600,000
Proceeds from stock options exercised			$ 500,000	$ 3,000,000
Weighted average purchase price of shares purchased (in dollars per share)	$ 16.62	$ 23.44	$ 18.03	$ 17.85
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised			$ 11,800,000
Total unrecognized compensation expense related to outstanding stock options	$ 4,200,000		$ 4,200,000
Period for recognition of unrecognized compensation expense			1 year 3 months 11 days
Intrinsic value of options outstanding	$ 12,000,000		$ 12,000,000
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued during period	3,032	1,942	8,401	7,396
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to outstanding stock options	$ 2,600,000		$ 2,600,000
Period for recognition of unrecognized compensation expense			1 year 1 month
Weighted average purchase price of shares purchased (in dollars per share)	$ 71.84	$ 98.41	$ 70	$ 71.77
Fair value of stock vested	$ 0	$ 0	$ 300,000	$ 4,400,000
Performance shares, nonprobable performance targets (in shares)	193,000		193,000
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)	9 Months Ended
	Sep. 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 September 30, 2019 | shares	90,852
Weighted Average Remaining Contractual Life in Years	3 years 4 months 17 days
Weighted Average Exercise Price	$ 6.988
Number of Options Exercisable at September 30, 2019 | shares	90,852
Weighted Average Exercise Price	$ 6.988
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 September 30, 2019 | shares	78,374
Weighted Average Remaining Contractual Life in Years	4 years 6 months 18 days
Weighted Average Exercise Price	$ 15.964
Number of Options Exercisable at September 30, 2019 | shares	78,374
Weighted Average Exercise Price	$ 15.964
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 September 30, 2019 | shares	57,533
Weighted Average Remaining Contractual Life in Years	6 years 3 months 22 days
Weighted Average Exercise Price	$ 39.797
Number of Options Exercisable at September 30, 2019 | shares	51,945
Weighted Average Exercise Price	$ 39.740
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 September 30, 2019 | shares	130,000
Weighted Average Remaining Contractual Life in Years	8 years 5 months 5 days
Weighted Average Exercise Price	$ 69.770
Number of Options Exercisable at September 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 September 30, 2019 | shares	144,869
Weighted Average Remaining Contractual Life in Years	8 years 2 months 9 days
Weighted Average Exercise Price	$ 82.494
Number of Options Exercisable at September 30, 2019 | shares	56,721
Weighted Average Exercise Price	$ 83.719
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 September 30, 2019 | shares	501,628
Weighted Average Remaining Contractual Life in Years	6 years 7 months 6 days
Weighted Average Exercise Price	$ 50.230
Number of Options Exercisable at September 30, 2019 | shares	321,229
Weighted Average Exercise Price	$ 36.493
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 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)	$ 16.62	$ 23.44	$ 18.03	$ 17.85
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)			42,567
Vested (in shares)			(4,230)
Forfeited (in shares)			(1,400)
Non-vested balance (in shares)	296,367		296,367
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)	$ 71.84	$ 98.41	70	$ 71.77
Vested (in dollars per share)			85.09
Forfeited (in dollars per share)			80.90
Non-vested balance (in dollars per share)	$ 73.50		$ 73.50

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 122,409
Ending balance	153,683
Total Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	277
Current period other comprehensive loss	(137)
Ending balance	140
Minimum Pension Liability
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(419)
Current period other comprehensive loss	0
Ending balance	(419)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	696
Current period other comprehensive loss	(137)
Ending balance	$ 559

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	Feb. 28, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Long-term Purchase Commitment [Line Items]
Increase in royalties payable		$ 0.1	$ 0.1	$ 0.3	$ 0.2
Warranty reserve		0.2		0.2		$ 0.2
Litigation settlement, amount	$ 6.8
Unconditional annual minimum inventory purchases		$ 17		$ 17

INTEREST AND OTHER EXPENSE, N_3

INTEREST AND OTHER EXPENSE, NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Other Income and Expenses [Abstract]
Interest income	$ (141)	$ (66)	$ (365)	$ (186)
Interest expense	494	89	718	231
Other, net	574	(73)	579	(8)
Total interest and other expense (income), net	927	(50)	932	37
Cash paid for interest	$ 224	$ 58	$ 351	$ 143

CONVERTIBLE NOTES AND CREDIT _3

CONVERTIBLE NOTES AND CREDIT FACILITY - Convertible Notes Narrative (Details)	Sep. 17, 2019USD ($)day$ / sharesshares	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Jul. 27, 2017USD ($)
Debt Instrument [Line Items]
Proceeds from convertible debt				$ 86,250,000	$ 0
Debt instrument, convertible, remaining discount amortization period				83 months 15 days
Senior Convertible Note
Debt Instrument [Line Items]
Proceeds from convertible debt	$ 83,700,000
Debt instrument, convertible, conversion ratio	0.0115434
Convertible Debt
Debt Instrument [Line Items]
Debt instrument, interest rate, effective percentage	10.80%
Convertible Debt | Senior Convertible Note
Debt Instrument [Line Items]
Aggregate principal amount	$ 86,250,000	$ 86,250,000	$ 86,250,000	$ 86,250,000
Debt instrument, interest rate, stated percentage	3.75%
Conversion price (in dollars per share) | $ / shares	$ 86.63
Debt conversion, converted instrument, shares issued (in shares) | shares	995,618.25
Debt instrument, debt default, maximum rate increase	0.50%
Interest expense, debt			337,000
Carrying amount of equity component		39,508,000	39,508,000	39,508,000
Convertible Debt | Senior Convertible Note | Redemption of notes prior to March 15, 2026
Debt Instrument [Line Items]
Threshold trading days | day	20
Threshold consecutive trading days | day	30
Threshold percentage of stock price trigger	130.00%
Convertible Debt | Senior Convertible Note | Notes measurement period
Debt Instrument [Line Items]
Threshold consecutive trading days | day	5
Threshold percentage of stock price trigger	98.00%
Threshold business trading days | day	5
Convertible Debt | Senior Convertible Note | Redemption of notes prior to Sep. 30, 2023
Debt Instrument [Line Items]
Threshold trading days | day	20
Threshold consecutive trading days | day	30
Threshold percentage of stock price trigger	130.00%
Debt instrument, redemption price, percentage	100.00%
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity						$ 30,000,000
Write off of deferred debt issuance cost		33,000
Fair Value, Inputs, Level 2 | Senior Convertible Note
Debt Instrument [Line Items]
Convertible debt, fair value		$ 95,300,000	$ 95,300,000	$ 95,300,000
Initial Purchasers | Convertible Debt | Senior Convertible Note
Debt Instrument [Line Items]
Aggregate principal amount	$ 11,250,000

CONVERTIBLE NOTES AND CREDIT _4

CONVERTIBLE NOTES AND CREDIT FACILITY - Carrying Amount of Debt (Details) - Convertible Debt - Senior Convertible Note - USD ($)	Sep. 30, 2019	Sep. 17, 2019
Debt Instrument [Line Items]
Carrying amount of equity component	$ 39,508,000
Aggregate principal amount	86,250,000	$ 86,250,000
Unamortized debt discount	(42,427,000)
Net carrying amount	$ 43,823,000

CONVERTIBLE NOTES AND CREDIT _5

CONVERTIBLE NOTES AND CREDIT FACILITY - Interest Expense (Details) - Convertible Debt - Senior Convertible Note $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Debt Instrument [Line Items]
Interest expense related to contractual coupon interest	$ 117
Interest expense related to amortization of the debt discount	220
Interest expense, debt	$ 337

CONVERTIBLE NOTES AND CREDIT _6

CONVERTIBLE NOTES AND CREDIT FACILITY - Credit Facility Narrative (Details) - Line of Credit - USD ($)	Jul. 27, 2017	Sep. 30, 2019	Sep. 30, 2019
Debt Instrument [Line Items]
Letters of credit outstanding, amount		$ 0	$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 30,000,000
Additional maximum borrowing capacity increase	20,000,000
Contingent maximum borrowing capacity	$ 50,000,000
Basis spread on variable rate	1.10%
Minimum annual interest charge	$ 60,000
Repayments of debt			12,800,000
Write off of deferred debt issuance cost		33,000
Collateral amount		2,000,000	2,000,000
Debt issuance costs, net		38,000	38,000
Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.65%
Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		2,000,000	2,000,000
Secured debt		2,000,000	2,000,000
Collateral amount		$ 2,000,000	$ 2,000,000

SEGMENT REPORTING - NARRATIVE (

SEGMENT REPORTING - NARRATIVE (Details)	9 Months Ended
	Sep. 30, 2019segment
Segment Reporting [Abstract]
Number of reportable segments	2

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	$ 31,237	$ 30,955	$ 88,894	$ 93,381
Operating (loss) income	193	(3,595)	(448)	479
Income before income taxes	(734)	(3,545)	(1,380)	442
Capital expenditures	93	249	722	1,061
Depreciation and amortization	1,237	1,140	3,759	3,473
Investments in unconsolidated affiliates	7,563		7,563		$ 8,018
Assets	224,011		224,011		156,452
Net Assets	153,683		153,683		122,409
Operating Segments | Core Companion Animal Health
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	26,339	27,190	75,771	80,652
Operating (loss) income	560	(4,402)	255	384
Income before income taxes	(367)	(4,352)	(677)	347
Capital expenditures	27	20	103	117
Depreciation and amortization	908	823	2,789	2,568
Investments in unconsolidated affiliates	7,563		7,563		8,018
Assets	202,306		202,306		133,586
Net Assets	135,190		135,190		96,129
Operating Segments | Other Vaccines, Pharmaceuticals and Products
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	4,898	3,765	13,123	12,729
Operating (loss) income	(367)	807	(703)	95
Income before income taxes	(367)	807	(703)	95
Capital expenditures	66	229	619	944
Depreciation and amortization	329	$ 317	970	$ 905
Investments in unconsolidated affiliates	0		0		0
Assets	21,705		21,705		22,866
Net Assets	$ 18,493		$ 18,493		$ 26,280