Heska Corp. (HSKA) 10-Q 9 May 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	May 05, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	000-22427
Entity Registrant Name	HESKA CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0192527
Entity Address, Address Line One	3760 Rocky Mountain Avenue
Entity Address, City or Town	Loveland
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80538
City Area Code	970
Local Phone Number	493-7272
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	HSKA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		10,790,622
Entity Central Index Key	0001038133
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 172,744,000	$ 223,574,000
Accounts receivable, net of allowance for losses of $858 and $874, respectively	26,541,000	27,995,000
Inventories	55,222,000	49,361,000
Net investment in leases, current, net of allowance for losses of $119 and $137, respectively	6,544,000	6,175,000
Prepaid expenses	5,389,000	5,244,000
Other current assets	6,309,000	7,206,000
Total current assets	272,749,000	319,555,000
Property and equipment, net	33,818,000	33,413,000
Operating lease right-of-use assets	8,154,000	5,198,000
Goodwill	139,990,000	118,826,000
Other intangible assets, net	71,839,000	56,705,000
Deferred tax asset, net	21,503,000	19,429,000
Net investment in leases, non-current	21,972,000	20,128,000
Investments in unconsolidated affiliates	5,043,000	5,424,000
Related party convertible note receivable, net	6,880,000	6,800,000
Promissory note receivable from investee, net	8,464,000	8,448,000
Other non-current assets	11,259,000	10,146,000
Total assets	601,671,000	604,072,000
Current liabilities:
Accounts payable	12,375,000	15,374,000
Accrued liabilities	19,774,000	19,424,000
Operating lease liabilities, current	2,504,000	2,227,000
Deferred revenue, current, and other	5,878,000	6,901,000
Total current liabilities	40,531,000	43,926,000
Convertible note, non-current, net	84,140,000	84,034,000
Notes payable	15,900,000	15,900,000
Deferred revenue, non-current	3,711,000	3,854,000
Operating lease liabilities, non-current	6,211,000	3,509,000
Deferred tax liability	17,461,000	12,667,000
Other liabilities	5,122,000	4,328,000
Total liabilities	173,076,000	168,218,000
Stockholders' equity:
Preferred stock, $0.01 par value, 2,500,000 shares authorized, none issued or outstanding	0	0
Common stock, $0.01 par value, 20,000,000 shares authorized, respectively, none issued or outstanding	0	0
Public common stock, $0.01 par value, 20,000,000 shares authorized, 10,785,620 and 10,712,347 shares issued and outstanding, respectively	108,000	107,000
Additional paid-in capital	585,123,000	579,354,000
Accumulated other comprehensive income	1,994,000	5,037,000
Accumulated deficit	(158,630,000)	(148,644,000)
Total stockholders' equity	428,595,000	435,854,000
Total liabilities and stockholders' equity	$ 601,671,000	$ 604,072,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Allowance for credit loss	$ 858	$ 874
Leases, allowance for doubtful accounts	$ 119	$ 137
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,500,000	2,500,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0
Public Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	10,785,620	10,712,347
Common stock, shares outstanding (in shares)	10,785,620	10,712,347

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues [Abstract]
Revenue, net	$ 64,800	$ 60,503
Cost of revenue	35,655	35,033
Gross profit	29,145	25,470
Operating expenses:
Selling and marketing	11,997	10,907
Research and development	12,456	1,186
General and administrative	16,146	12,359
Total operating expenses	40,599	24,452
Operating (loss) income	(11,454)	1,018
Interest and other expense, net	359	526
Net (loss) income before taxes and equity in losses of unconsolidated affiliates	(11,813)	492
Income tax (benefit) expense:
Current income tax expense	158	641
Deferred income tax benefit	(2,366)	(2,206)
Total income tax benefit	(2,208)	(1,565)
Net (loss) income before equity in losses of unconsolidated affiliates	(9,605)	2,057
Equity in losses of unconsolidated affiliates	(381)	(186)
Net (loss) income attributable to Heska Corporation	$ (9,986)	$ 1,871
Earnings Per Share [Abstract]
Basic (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.97)	$ 0.20
Diluted (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.97)	$ 0.19
Weighted average outstanding shares used to compute basic (loss) earnings per share attributable to Heska Corporation (in shares)	10,273	9,478
Weighted average outstanding shares used to compute diluted (loss) earnings per share attributable to Heska Corporation (in shares)	10,273	9,844

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net (loss) income before equity in losses of unconsolidated affiliates	$ (9,986)	$ 1,871
Other comprehensive loss:
Translation adjustments and losses from intra-entity transactions	(3,043)	(5,383)
Comprehensive loss attributable to Heska Corporation	$ (13,029)	$ (3,512)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Adoption of accounting standards	Cumulative Effect, Period of Adoption, Adjusted Balance	Preferred Stock	Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common StockCumulative Effect, Period of Adoption, Adjusted Balance	Additional Paid-in Capital	Additional Paid-in CapitalAdoption of accounting standards	Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Income	Accumulated Other Comprehensive IncomeCumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Deficit	Accumulated DeficitAdoption of accounting standards	Accumulated DeficitCumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance (in shares) at Dec. 31, 2020				0	0	9,476	9,476
Beginning balance at Dec. 31, 2020	$ 287,053	$ (26,469)	$ 260,584	$ 0	$ 0	$ 95	$ 95	$ 423,650	$ (29,834)	$ 393,816	$ 14,169	$ 14,169	$ (150,861)	$ 3,365	$ (147,496)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to Heska Corporation	1,871												1,871
Issuance of common stock, net of shares withheld for employee taxes (in shares)						1
Issuance of common stock, net of forfeitures and shares withheld for employee taxes	178					$ 0		178
Equity offering, net of issuance costs (in shares)						941
Equity offering, net of issuance costs	164,186					$ 9		164,177
Stock-based compensation	3,837							3,837
Other comprehensive income (loss)	(5,383)										(5,383)
Ending balance (in shares) at Mar. 31, 2021				0		10,418
Ending balance at Mar. 31, 2021	425,273			$ 0		$ 104		562,008			8,786		(145,625)
Beginning balance (in shares) at Dec. 31, 2021				0		10,712
Beginning balance at Dec. 31, 2021	435,854			$ 0		$ 107		579,354			5,037		(148,644)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to Heska Corporation	(9,986)												(9,986)
Issuance of common stock, net of shares withheld for employee taxes (in shares)						74
Issuance of common stock, net of forfeitures and shares withheld for employee taxes	(3,200)					$ 1		(3,201)
Stock-based compensation	5,110							5,110
Equity contingent consideration	3,860							3,860
Other comprehensive income (loss)	(3,043)										(3,043)
Ending balance (in shares) at Mar. 31, 2022				0		10,786
Ending balance at Mar. 31, 2022	$ 428,595			$ 0		$ 108		$ 585,123			$ 1,994		$ (158,630)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net (loss) income before equity in losses of unconsolidated affiliates	$ (9,986)	$ 1,871
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities:
Depreciation and amortization	3,300	3,571
Non-cash impact of operating leases	673	526
Deferred tax benefit	(2,366)	(2,206)
Stock-based compensation	5,110	3,837
Change in fair value of contingent consideration	(236)	0
Equity in losses of unconsolidated affiliates	381	186
Accretion of discounts and issuance costs	11	22
Other (gains) losses	(473)	207
Changes in operating assets and liabilities (net of the effect of acquisitions):
Accounts receivable	2,060	858
Inventories	(6,528)	(1,818)
Lease receivables	(2,248)	49
Other assets	(288)	(942)
Accounts payable	(3,069)	153
Other liabilities	(4,006)	(4,977)
Net cash (used in) provided by operating activities	(17,665)	1,337
Cash flows from investing activities:
Promissory note receivable issuance	0	(9,000)
Capital expenditures	(334)	(262)
Proceeds from disposition of property and equipment	0	13
Net cash used in investing activities	(29,843)	(13,131)
Cash flows from financing activities:
Payment of stock issuance costs	0	(217)
Proceeds from issuance of common stock	1,761	165,357
Payments for taxes related to shares withheld for employee taxes	(4,961)	(679)
Repayments of other debt	(62)	(106)
Net cash (used in) provided by financing activities	(3,262)	164,355
Foreign exchange effect on cash and cash equivalents	(60)	(440)
Net (decrease) increase in cash and cash equivalents	(50,830)	152,121
Cash and cash equivalents, beginning of period	223,574	86,334
Cash and cash equivalents, end of period	172,744	238,455
Supplemental disclosure of cash flow information:
Non-cash transfers of equipment between inventory and property and equipment, net	749	1,549
Contingent consideration for acquisitions	3,860	1,700
Indemnity holdback and net working capital adjustment for acquisitions	1,608	370
Accrued preferred issuance costs	0	97
Lacuna Diagnostics, Inc.
Cash flows from investing activities:
Acquisition	0	(3,882)
Biotech
Cash flows from investing activities:
Acquisition	$ (29,509)	$ 0

OPERATIONS AND SUMMARY OF SIGNI

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2022
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 advanced veterinary diagnostic and specialty products. Our offerings include Point of Care ("POC") laboratory instruments and consumables, single-use offerings such as in-clinic diagnostics tests; Point of Care digital imaging diagnostic instruments and veterinary practice information management software solutions (“PIMS”); digital cytology services; vaccines; local and cloud-based data services; allergy testing and immunotherapy; and heartworm preventive products. Our core focus is on supporting veterinarians in the canine and feline healthcare space. Basis of Presentation and Consolidation The accompanying interim Condensed Consolidated Financial Statements are unaudited. The interim unaudited Condensed Consolidated Financial Statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include normal, recurring adjustments, necessary to present fairly the financial position of the Company as of March 31, 2022, and the results of our operations and statements of stockholders' equity for the three months ended March 31, 2022 and 2021, and cash flows for the three months ended March 31, 2022 and 2021. 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. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year or any future period, particularly in light of the COVID-19 pandemic and its effects on the domestic and global economies as described below. 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 year ended December 31, 2021 and other financial information filed with the SEC. Beginning in the first quarter of 2020, to limit the spread of COVID-19, governments took various actions including the issuance of stay-at-home policies and social distancing procedures and guidelines, causing some businesses to adjust, reduce or suspend business and operating activities. Veterinary care is widely recognized as an "essential" service for pet owners, and veterinarians continued to deliver essential medical care for sick and injured pets. The stay-at-home policies deployed early in 2020 to combat the spread of COVID-19 resulted in a decrease in companion animal clinical visits, including delay of elective procedures and wellness visits and as a result, lower demand for diagnostic testing services. Beginning in the second quarter of 2020, certain local, state and federal governments began to ease the stay-at-home policies and allowed more businesses and facilities to re-open, leading to a recovery in companion animal clinical visits and associated demand for our diagnostic products. In some part, and of different degrees depending on the geography, due to the introduction and acceptance of COVID-19 vaccines, restrictions have eased in many of the countries in which we operate. Global diagnostic animal health demand continued throughout 2021 and into the first quarter of 2022. While this trend is encouraging, with the rise in COVID-19 variants, the extent to which the continuation, or another wave, of COVID-19, or an outbreak of other health epidemics could impact our business, results of operations and financial condition, including the potential for write-offs or impairments of assets and suspension of capital investments, will depend on future developments. We are unable to predict with certainty the effects of the COVID-19 pandemic on our customers, suppliers and vendors, as well as the actions of governments, and when and to what extent normal economic and operating conditions can resume; these effects may differ from those assumed in our projected estimates. Even after the COVID-19 pandemic has subsided, we may continue to experience adverse impacts to our business, mainly in our ability to place new capital equipment, primarily under long-term contracts, as a result of any economic impact that may occur in the future. 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 credit losses 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 and standalone selling prices 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 fair value of our embedded derivatives; and determining the value of the non-controlling interest in a business combination. Our actual results may differ from these estimates and there may be changes to those estimates in future periods. Fair Value of Financial Instruments In accordance with ASC 820, Fair Value Measurements (“ASC 820”), the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets and liabilities, quoted prices for identically similar assets or liabilities in markets that are not active and models for which all significant inputs are observable either directly or indirectly. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs for inactive markets. The Company's financial instruments consist of cash and cash equivalents, short-term trade receivables and payables, long-term note receivables with embedded derivative assets, contingent consideration liabilities, notes payable for acquisitions and its 3.75% Convertible Senior Notes due 2026 (the "Notes"). The carrying values of cash and cash equivalents and short-term trade receivables and payables approximate fair value because of the short-term nature of the instruments. The fair values of our financial instruments at March 31, 2022 and December 31, 2021 were (in thousands): Total Level 1 Level 2 Level 3 2022 Financial Assets Convertible note receivable embedded derivative $ 888 $ — $ — $ 888 Promissory note receivable derivative 337 — — 337 Financial Liabilities BiEsseA contingent consideration 1,955 — — 1,955 Notes payable 15,900 — — 15,900 Balances, March 31, 2022 $ 19,080 $ — $ — $ 19,080 2021 Total Level 1 Level 2 Level 3 Financial Assets Convertible note receivable embedded derivative $ 888 $ — $ — $ 888 Promissory note receivable embedded derivative 337 — — 337 Financial Liabilities BiEsseA contingent consideration 2,334 — — 2,334 Notes payable 15,900 — — 15,900 Balances, December 31, 2021 $ 19,459 $ — $ — $ 19,459 The Company's financial assets based upon Level 3 inputs include embedded derivatives relating to its note receivables. The Company determined the redemption features of its convertible note receivable represents an embedded derivative. The estimated fair value of the embedded derivative asset is evaluated through Level 3 inputs using a probability-weighted scenario analysis. The Company determined the warrant associated with its promissory note receivable represents a derivative. The estimated fair value of the derivative asset is evaluated through Level 3 inputs, using an enterprise valuation model. For additional information regarding the Company's note receivables and derivatives, refer to Note 17, Notes Receivable. The estimated fair value of the Company's 3.75% Convertible Senior Notes due in 2026 (the "Notes"), is disclosed at each reporting period and is evaluated through Level 2 inputs with consideration of quoted market prices in less active markets. For additional information regarding the Company's accounting treatment for the issuance of the Notes, refer to Note 16, Convertible Notes. The Company's financial liabilities based upon Level 3 inputs include contingent consideration arrangements and notes payable relating to its acquisitions of Lacuna Diagnostics, Inc. ("Lacuna"), BiEsse A-Laboratorio die Analisi Veterinarie S.r.l. (“BSA”), and Biotech Laboratories U.S.A. LLC ("Biotech"). The Company is obligated to pay contingent consideration payments of $2.0 million in connection with the Lacuna acquisition based on the achievement of certain performance metrics within a twelve month period ("Initial Earn Out Period"), reducing to $1.0 million if such metrics were met in a twelve month period subsequent to the Initial Earn Out Period. The fair value of the Lacuna contingent consideration was $0 as of both December 31, 2021 and March 31, 2022. The Company is obligated to pay contingent consideration payments of $2.9 million in connection with the BSA acquisition based on the achievement of certain revenue metrics within three annual periods after 2021. The Company is obligated to pay contingent notes of up to $17.5 million in connection with the Biotech acquisition based on the achievement of certain product development milestones or at a predetermined date in the future. Refer to Note 3, Acquisitions and Related Party Items for further discussion. The fair value of our contingent consideration and notes payable arrangements are determined based on a probability-weighted outcome analysis. The fair value of the contingent consideration and notes payable liabilities associated with future payments were based on several factors, the most significant of which are the financial and product development performance of the acquired businesses. For the contingent consideration liabilities, the Company will update its assumptions each reporting period based on new developments and record such amounts at fair value based on the revised assumptions until the agreements expire. Changes in fair value are recorded in the Condensed Consolidated Statements of (Loss) Income within general and administrative expenses. The note payable associated with the Biotech acquisition is not adjusted to fair value each period. The following table presents the changes of our Level 3 assets and liabilities as of March 31, 2022 (in thousands): Derivative Assets Contingent Consideration Liability Notes Payable Convertible note receivable Promissory note receivable BSA Biotech Balances, December 31, 2021 $ 888 $ 337 $ 2,334 $ 15,900 Acquisition value — — — — Cash payments — — — — Changes in fair value, including foreign currency adjustments — — (379) — Balances, March 31, 2022 $ 888 $ 337 $ 1,955 $ 15,900 Significant 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, 2021, and other than the recently adopted accounting pronouncements and revenue recognition updates described below, have not changed materially since such filing. Revenue Recognition With the acquisition of VetZ GmbH (“VetZ”) on January 3, 2022, the Company entered the market for veterinary practice information management software solutions (“PIMS”). Revenue for the sale of software licenses is recognized at a point in time upon delivery of the software. The software has significant stand-alone functionality, and provides the customer with the right to use the intellectual property as it exists at the point in time at which the license is granted. Revenue for support services, cloud-based services, and installation and training is recognized over time as the services are performed. Refer to Note 3 for further details regarding the VetZ acquisition. Adoption of New Accounting Pronouncements Effective January 1, 2022, we adopted ASU 2021-05, Leases (Topic 842), Lessors- Certain Leases with Variable Lease Payments. This guidance amends the lease classification accounting for lessors for certain leases with variable lease payments that do not depend on a reference index or a rate and would have resulted in the recognition of a loss at lease commencement if classified as a sale-type or direct financing lease. Under the new guidance, these leases will be classified as an operating lease. We evaluated the impact of the standard on our consolidated financial statements and the adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures. Effective January 1, 2022, we early adopted ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This guidance requires an acquiring entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, the acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. We evaluated the impact of the standard on our consolidated financial statements and the adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE We separate our goods and services among two reportable segments, North America and International. The two segments consist of revenue originating from: • North America: including the United States, Canada and Mexico • International: all geographies outside North America, currently consisting primarily of Australia, France, Germany, Italy, Malaysia, Spain and Switzerland Refer to Note 18 for further detail regarding the Company's reportable segments. The following table summarizes our segment revenue (in thousands): Three Months Ended March 31, 2022 2021 North America Revenue: POC Lab Instruments & Other $ 4,647 $ 2,988 POC Lab Consumables 18,637 16,951 POC Imaging & Informatics 6,051 6,688 PVD 4,576 6,864 OVP 3,463 3,781 Total North America Revenue $ 37,374 $ 37,272 International Revenue: POC Lab Instruments & Other $ 3,733 $ 3,014 POC Lab Consumables 11,748 12,225 POC Imaging & Informatics 10,962 6,658 PVD 983 1,334 Total International Revenue $ 27,426 $ 23,231 Total Revenue $ 64,800 $ 60,503 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 noncancellable 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 obligations disclosure is similar in concept to backlog, the definition of remaining performance obligations excludes leases and contracts that provide the customer with the right to cancel or terminate for convenience with no substantial penalty, even if historical experience indicates the likelihood of cancellation or termination is remote. Additionally, the Company has elected to exclude contracts with customers with an original term of one year or less from remaining performance obligations. As of March 31, 2022, the aggregate amount of the transaction price allocated to remaining minimum performance obligations was approximately $178.1 million. As of March 31, 2022, the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2022 (remaining) $ 32,055 2023 40,330 2024 35,663 2025 29,854 2026 24,315 Thereafter 15,888 $ 178,105 Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled contract assets, deferred revenue, and customer deposits and billings in excess of revenue recognized. In addition, the Company defers certain costs incurred to obtain contracts. Contract Assets Certain unbilled amounts related to long-term contracts for which we provide a free term to the customer are recorded in "Other current assets" and "Other non-current assets" on the accompanying Condensed Consolidated Balance Sheets. The collection of these balances occurs over the term of the underlying contract. The balances as of March 31, 2022 were $1.5 million and $5.3 million for current and non-current assets, respectively, shown net of related unearned interest. The balances as of December 31, 2021 were $1.5 million and $5.1 million for current and non-current assets, respectively, shown net of related unearned interest. Contract Liabilities The Company receives cash payments from customers for licensing fees or other arrangements that extend for a specified term. These contract liabilities are classified as either current or long-term in the Condensed Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue. As of March 31, 2022 and December 31, 2021, contract liabilities were $9.1 million and $9.6 million, respectively, and are included within "Deferred revenue, current, and other" and "Deferred revenue, non-current" in the accompanying Condensed Consolidated Balance Sheets. The decrease in the contract liability balance during the three-month period ended March 31, 2022 is approximately $2.7 million of revenue recognized during the period, offset by approximately $1.5 million of additional deferred sales in 2022, and the acquisition of VetZ contract liabilities of approximately $0.7 million. Contract liabilities are reported on the accompanying Condensed Consolidated Balance Sheets on a contract-by-contract basis.

ACQUISITION AND RELATED PARTY I

ACQUISITION AND RELATED PARTY ITEMS	3 Months Ended
	Mar. 31, 2022
Business Combinations and Related Party Disclosure [Abstract]
ACQUISITION AND RELATED PARTY ITEMS	ACQUISITIONS AND RELATED PARTY ITEMS VetZ Acquisition On January 3, 2022, the Company acquired 100% of the equity of VetZ GmbH (“VetZ”), a European leader in veterinary practice information management software solutions (“PIMS”), for an aggregate purchase price of approximately $36.2 million. The purchase price consisted of approximately $32.4 million in cash, including a general indemnity holdback of approximately $1.4 million to be released within 18 months of closing, a net working capital adjustment of $0.2 million, and contingent consideration as described below. As additional consideration for the acquisition, the Company agreed to a contingent earn-out of $15.5 million in Heska stock, which will be issued in tranches based on future financial and non-financial milestones. The fair value of the contingent consideration as of the acquisition date was approximately $3.9 million, determined using a Monte-Carlo simulation model. The contingent consideration was determined to be classified as equity, and therefore is not subsequently remeasured each reporting period and subsequent settlement of the obligation will be accounted for within equity. The purchase price exceeded the fair value of the identifiable net assets, resulting in goodwill of $22.6 million, all of which is attributable to our International segment. The goodwill resulting from this acquisition consists of new product offerings from entering the PIMS market. All of the goodwill is tax deductible for purposes of calculating Controlled Foreign Corporation tested income, which may result in a decrease to the Company's future U.S. federal tax liability. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations . As such, the total purchase consideration was allocated to the assets acquired and liabilities assumed based on their fair values as of January 3, 2022. The total purchase consideration is subject to customary working capital adjustments. The information below represents the preliminary purchase price allocation as of the acquisition date (in thousands): January 3, 2022 Purchase price in cash $ 32,368 Fair value of equity contingent consideration 3,860 Total purchase consideration $ 36,228 Cash and cash equivalents $ 1,251 Inventory 359 Accounts receivable 911 Prepaid expenses and other assets 318 Property and equipment, net 602 Operating lease right-of-use assets 2,962 Intangible assets 18,504 Total assets acquired 24,907 Accounts payable 607 Accrued liabilities 1,260 Operating lease liabilities, current 247 Deferred revenue, current 695 Operating lease liabilities, non-current 2,714 Deferred tax liabilities 5,408 Other liabilities 318 Net assets acquired 13,658 Goodwill 22,570 Total fair value of consideration transferred $ 36,228 The Company's preliminary estimates of fair values of the net assets acquired are based on the information that was available at the date of the acquisition, and the Company is continuing to evaluate the underlying inputs and assumptions used in its valuations. Accordingly, these preliminary estimates are subject to change during the measurement period, which is up to one year from the date of the acquisition. A decrease in the fair value of assets acquired or an increase in the fair value of liabilities assumed in the acquisition from those valuations would result in a corresponding increase in the amount of goodwill from the acquisition. Intangible assets acquired, amortization method and estimated useful life as of January 3, 2022, were as follows (dollars in thousands): Weighted- Average Useful Life Amortization Fair Value Customer relationships 12 years Straight-line $ 12,941 Trade name 8 years Straight-line 1,816 Developed technology 4.3 years Straight-line 3,747 Total intangible assets acquired $ 18,504 VetZ generated net revenue of $3.3 million and a net loss of $0.3 million for the period from January 3, 2022 to March 31, 2022. The Company incurred acquisition related costs of approximately $0.5 million for the three months ended March 31, 2022, which are included within general and administrative expenses on our Condensed Consolidated Statements of (Loss) Income. Unaudited Pro Forma Financial Information The following table presents unaudited supplemental pro forma financial information as if the acquisition had occurred on January 1, 2021 (in thousands): Three Months Ended March 31, 2021 Revenue, net $ 63,460 Net income before equity in losses of unconsolidated affiliates $ 2,429 Net income attributable to Heska Corporation $ 2,243 Biotech Acquisition On September 1, 2021, Heska acquired 65% of the equity of Biotech Laboratories U.S.A. LLC ("Biotech"), a developer of rapid assay diagnostic testing, in exchange for approximately $16.3 million in cash. As part of the purchase, Heska entered into put and call options in order to purchase the remaining 35% ownership in future years. The counterparty, Chinta Lamichhane, DVM, Ph.D, maintains an interest in Biotech and is an employee of the Company, thus commencing a related party relationship. Aside from the acquisition described herein, there were no financial or non-financial transactions between the Company and the counterparty. In conjunction with the acquisition, the Company entered into various put and call options which are classified on the Condensed Consolidated Balance Sheets as Notes Payable. The written put options can be exercised after June 30, 2024, at a valuation identical to the initial purchase price. The written call options can be exercised at any time prior to June 30, 2026, at an amount equal to two times the initial valuation or after June 30, 2026, at a valuation identical to the initial purchase price. Additionally, if certain product development milestones are met, the shares may be bought in various tranches at two times the initial valuation. The Company evaluated the put and call options embedded in the shares representing the non-controlling interest under the guidance in ASC 480, Distinguishing Liabilities from Equity, and determined the instrument met the criteria to be recorded as a liability because the fixed price of the put and call options are identical starting after June 30, 2026. As a result, the Company recorded the transaction as a financing arrangement of the purchase of the non-controlling interest, and will record 100% of the income and loss of Biotech in our Condensed Consolidated Statements of (Loss) Income. The options were not redeemable as of the acquisition date or as of the period ending March 31, 2022. The estimated fair value of the Notes Payable of $15.9 million is inclusive of the probability weighted outcomes of the options described herein. The total purchase consideration exceeded the fair value of the identifiable net assets acquired, resulting in goodwill of $25.8 million, all of which is attributable to our North America segment. In connection with the acquisition and pursuant to the elections under Section 754 of the Internal Revenue Code, the Company expects to obtain an increase with respect to the tax basis in the assets of Biotech. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations . As such, the total purchase consideration was allocated to the assets acquired and liabilities assumed based on their fair values as of September 1, 2021. The information below represents the preliminary purchase price allocation as of the acquisition date (in thousands): September 1, 2021 Purchase price $ 16,250 Notes payable 15,900 Total purchase consideration $ 32,150 Accounts receivables 18 Other current assets 1 Inventories 190 Property and equipment, net 148 Operating lease right-of-use assets 1,033 Other intangible assets, net 6,000 Other non-current assets 15 Total assets acquired 7,405 Accounts payable 11 Accrued liabilities 33 Operating lease liabilities, current 188 Operating lease liabilities, non-current 845 Net assets acquired 6,328 Goodwill 25,822 Total fair value of consideration transferred $ 32,150 The Company's preliminary estimates of fair values of the net assets acquired are based on the information that was available at the date of the acquisition, and the Company is continuing to evaluate the underlying inputs and assumptions used in its valuations. Accordingly, these preliminary estimates are subject to change during the measurement period, which is up to one year from the date of the acquisition. A decrease in the fair value of assets acquired or an increase in the fair value of liabilities assumed in the acquisition from those valuations would result in a corresponding increase in the amount of goodwill from the acquisition. Intangible assets acquired, amortization method and estimated useful life as of September 1, 2021, were as follows (dollars in thousands): Useful Life Amortization Fair Value Development technology 6 years Straight-line $ 6,000 Total intangible assets acquired $ 6,000 Pro forma financial information related to the acquisition of Biotech has not been provided as it is not material to our consolidated results of operations. BiEsseA Acquisition On July 1, 2021, the Company completed the acquisition of BiEsse A-Laboratorio die Analisi Veterinarie S.r.l. (“BSA”). The Company acquired 100% of the issued and outstanding shares of BSA for an aggregate purchase price of $7.2 million. On January 1, 2022, BSA was merged into scil animal care company Srl, a wholly owned subsidiary of scil animal care company GmbH ("scil"). As additional consideration for the shares, the Company agreed to a contingent earn-out of $2.8 million based on the achievement of certain performance metrics within three annual periods after 2021, each of which can pay up to one third of the total earn-out. The fair value of the contingent consideration as of the acquisition date was $2.3 million, and as of March 31, 2022, was $2.0 million. The total purchase consideration exceeded the fair value of the identifiable net assets acquired, resulting in $4.6 million of goodwill, all of which is attributable to our International segment. All of the goodwill is tax deductible for purposes of calculating Controlled Foreign Corporation tested income, which may result in a decrease to the Company's future U.S. federal income tax liability. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations . As such, the total purchase consideration was allocated to the assets acquired and liabilities assumed based on their fair values as of July 1, 2021. The total purchase consideration is subject to customary working capital adjustments, which were finalized as of December 31, 2021. Per the tax indemnification included in the purchase agreement of BSA, the seller has indemnified the Company for $0.5 million related to uncertain tax positions taken in prior years. The outcome of this arrangement will either be settled or expire due to lapse of statute of limitations by 2025. As of March 31, 2022, approximately $0.5 million of the indemnification agreement remains outstanding. The information below represents the preliminary purchase price allocation as of the acquisition date (in thousands): July 1, 2021 Purchase price $ 4,835 Fair value of contingent consideration 2,334 Total purchase consideration $ 7,169 Cash and cash equivalents 322 Accounts receivables 152 Other receivables 497 Prepaid expenses 8 Other current assets 275 Property and equipment, net 89 Operating lease right-of-use assets 44 Other intangible assets, net 3,329 Total assets acquired 4,716 Accounts payable 208 Accrued liabilities 334 Operating lease liabilities, current 37 Deferred revenue, current, and other 85 Operating lease liabilities, non-current 20 Deferred tax liability 925 Other liabilities 500 Net assets acquired 2,607 Goodwill 4,562 Total fair value of consideration transferred $ 7,169 The Company's preliminary estimates of fair values of the net assets acquired are based on the information that was available at the date of the acquisition, and the Company is continuing to evaluate the underlying inputs and assumptions used in its valuations. Accordingly, these preliminary estimates are subject to change during the measurement period, which is up to one year from the date of the acquisition. A decrease in the fair value of assets acquired or an increase in the fair value of liabilities assumed in the acquisition from those valuations would result in a corresponding increase in the amount of goodwill from the acquisition. Intangible assets acquired, amortization method and estimated useful life as of July 1, 2021, were as follows (dollars in thousands): Useful Life Amortization Method Fair Value Customer relationships 14 years Straight-line $ 3,329 Total intangible assets acquired $ 3,329 Pro forma financial information related to the acquisition of BSA has not been provided as it is not material to our consolidated results of operations. Lacuna Acquisition On February 1, 2021, the Company completed the acquisition of Lacuna Diagnostics, Inc. ("Lacuna"), a veterinary digital cytology company, to broaden the Company's point of care diagnostic offerings. The Company acquired 100% of the issued and outstanding shares of Lacuna for a purchase price of $4.3 million. The Company then dissolved Lacuna on February 1, 2021. In accordance with the purchase agreement, the Company is required to hold a $0.4 million general indemnity holdback that is intended to provide a non-exclusive source of funds for the payment of any losses identified and shall be released within 18 months of closing. As of March 31, 2022, $0.1 million of the indemnification holdback was released for licensing fees and $0.3 million of the indemnification holdback remains outstanding. As additional consideration for the shares, the Company agreed to a contingent earn-out of $2.0 million based on the achievement of certain performance metrics within a twelve month period ("Initial Earn Out Period"), reducing to $1.0 million if such metrics were met in a twelve month period subsequent to the Initial Earn Out Period. The fair value of the contingent consideration as of the acquisition date was $1.7 million, and subsequently decreased to $0 million as of March 31, 2022 and December 31, 2021. The total purchase consideration exceeded the fair value of the identifiable net assets acquired, resulting in $4.2 million of goodwill, primarily related to expanded opportunities with our offerings. All of the goodwill is allocated to the North America segment and is not tax deductible for income tax purposes. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations . As such, the total purchase consideration was allocated to the assets acquired and liabilities assumed based on their fair values as of February 1, 2021. The information below represents the purchase price allocation as of the acquisition date (in thousands): February 1, 2021 Purchase price $ 4,255 Fair value of contingent consideration 1,700 Total purchase consideration $ 5,955 Cash and cash equivalents $ 3 Accounts receivable 170 Property and equipment, net 530 Other intangible assets, net 1,185 Total assets acquired 1,888 Deferred tax liability 133 Net assets acquired 1,755 Goodwill 4,200 Total fair value of consideration transferred $ 5,955 Intangible assets acquired, amortization method and estimated useful life as of February 1, 2021, were as follows (dollars in thousands): Useful Life Amortization Fair Value Developed technology 3 years Straight-line $ 1,000 Customer relationships 6 months Straight-line 150 Trade name 11 months Straight-line 35 Total intangible assets acquired $ 1,185 Pro forma financial information related to the acquisition of Lacuna has not been provided as it is not material to our consolidated results of operations. Other Related Party Activities In connection with the VetZ acquisition, the Company entered into a related party building lease agreement with the former owners, who are now employees of the Company. The Company recorded operating lease expense of $75 thousand related to this lease for the three months ended March 31, 2022. The right-of-use asset and lease liability related to the building lease were both approximately $2.6 million as of March 31, 2022. Prior to the closing of the VetZ acquisition, the former owners who are now employees of the Company purchased vehicles and bicycles from VetZ. As of January 3, 2022, a receivable of approximately $165 thousand was included in the preliminary purchase price allocation related to these transactions. These receivables were settled in full on January 7, 2022.

INVESTMENTS IN UNCONSOLIDATED A

INVESTMENTS IN UNCONSOLIDATED AFFILIATES	3 Months Ended
	Mar. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENTS IN UNCONSOLIDATED AFFILIATES	INVESTMENTS IN UNCONSOLIDATED AFFILIATES The carrying values of investments in unconsolidated affiliates, categorized by type of investment, is as follows (in thousands): March 31, 2022 December 31, 2021 Equity method investment $ 2,025 $ 2,406 Non-marketable equity security investment 3,018 3,018 Investments in unconsolidated affiliates $ 5,043 $ 5,424 Equity Method Investment On September 24, 2018, we invested approximately $5.1 million, including costs, to acquire an equity interest in a business as part of our product development strategy. As of March 31, 2022, the Company's ownership interest in the business was 26.0%. 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 (loss) income before equity in losses of unconsolidated affiliates within the Condensed Consolidated Statements of (Loss) Income. Non-Marketable Equity Security Investment On August 8, 2018, the Company invested approximately $3.0 million, including costs, in exchange for preferred stock. The Company’s investment 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, which provides that the investee produce and commercialize products that will enhance the Company's diagnostic portfolio. As part of this agreement, the Company made an upfront payment 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 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.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company's total income tax benefit for our (loss) income before income taxes were as follows (in thousands): Three Months Ended March 31, 2022 2021 (Loss) income before income taxes and equity in losses of unconsolidated affiliates $ (11,813) $ 492 Total income tax benefit $ (2,208) $ (1,565) There were cash payments for income taxes, net of refunds, of $0.5 million for the three months ended March 31, 2022 and there were cash payments of $0.5 million for income taxes for the three months ended March 31, 2021. The Company had a tax benefit of $2.2 million for the three months ended March 31, 2022 compared to the tax benefit of $1.6 million for the three months ended March 31, 2021. The increase in tax benefit in the three month period is due to an increased loss for financial reporting. The Company recognized $0.6 million in excess tax benefits related to employee share-based compensation for the three months ended March 31, 2022, compared to $0.5 million recognized for the three months ended March 31, 2021.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
LEASES, LESSEE	LEASES Lessee Accounting The Company leases buildings, office equipment, and vehicle s. The following table summarizes the Company's operating and finance lease balances (in thousands): Leases Balance Sheet Location March 31, 2022 December 31, 2021 Assets Operating Operating lease right-of-use assets $ 8,154 $ 5,198 Finance Property and equipment, net 1,523 1,650 Total Leased Assets $ 9,677 $ 6,848 Liabilities Operating Operating lease liabilities, current $ 2,504 $ 2,227 Operating lease liabilities, non-current 6,211 3,509 Finance Deferred revenue, current, and other 168 200 Other liabilities 297 331 Total Lease Liabilities $ 9,180 $ 6,267 Lessor Accounting The following table summarizes the profit recognized on the commencement date for sales-type leases and lease income for equipment-only operating leases (in thousands):
LEASES, LESSOR	LEASES Lessee Accounting The Company leases buildings, office equipment, and vehicle s. The following table summarizes the Company's operating and finance lease balances (in thousands): Leases Balance Sheet Location March 31, 2022 December 31, 2021 Assets Operating Operating lease right-of-use assets $ 8,154 $ 5,198 Finance Property and equipment, net 1,523 1,650 Total Leased Assets $ 9,677 $ 6,848 Liabilities Operating Operating lease liabilities, current $ 2,504 $ 2,227 Operating lease liabilities, non-current 6,211 3,509 Finance Deferred revenue, current, and other 168 200 Other liabilities 297 331 Total Lease Liabilities $ 9,180 $ 6,267 Lessor Accounting The following table summarizes the profit recognized on the commencement date for sales-type leases and lease income for equipment-only operating leases (in thousands):

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted earnings per share ("EPS") for the three months ended March 31, 2022 and 2021 (in thousands, except per share data): Three Months Ended March 31, 2022 2021 Net (loss) income attributable to Heska Corporation $ (9,986) $ 1,871 Basic weighted-average common shares outstanding 10,273 9,478 Dilutive effect of stock options and restricted stock — 366 Diluted weighted-average common shares outstanding 10,273 9,844 Basic (loss) earnings per share attributable to Heska Corporation $ (0.97) $ 0.20 Diluted (loss) earnings per share attributable to Heska Corporation $ (0.97) $ 0.19 The following potentially outstanding common shares from convertible preferred stock, convertible senior notes, stock options and restricted stock awards were excluded from the computation of diluted EPS because the effect would have been antidilutive (in thousands): Three Months Ended March 31, 2022 2021 Convertible Senior Notes 996 996 Stock options and restricted stock 356 — 1,352 996

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLES	GOODWILL AND OTHER INTANGIBLES The following summarizes the change in goodwill during the three months ended March 31, 2022 (in thousands): North America International Total Carrying amount, December 31, 2021 $ 65,535 $ 53,291 $ 118,826 Goodwill attributable to acquisitions (subject to change) — 22,570 22,570 Measurement period adjustment to prior year acquisition (17) — (17) Foreign currency adjustments (150) (1,239) (1,389) Carrying amount, March 31, 2022 $ 65,368 $ 74,622 $ 139,990 Other intangibles consisted of the following (in thousands): March 31, 2022 December 31, 2021 Gross Carrying Amount Accum. Amortiz. Net Carrying Amount Gross Carrying Amount Accum. Amortiz. Net Carrying Amount Intangible assets subject to amortization: Customer relationships and other $ 59,674 $ (12,502) $ 47,172 $ 47,629 $ (11,145) $ 36,484 Developed technology 19,341 (4,039) 15,302 15,633 (3,218) 12,415 Trade names 2,000 (229) 1,771 223 (166) 57 Intangible assets not subject to amortization: Trade names 7,594 — 7,594 7,749 — 7,749 Total intangible assets $ 88,609 $ (16,770) $ 71,839 $ 71,234 $ (14,529) $ 56,705 Amortization expense was $2.2 million and $1.4 million for the three months ended March 31, 2022 and 2021, respectively. The remaining weighted-average amortization period for intangible assets is approximately 8.2 years. Estimated amortization expense related to intangibles for each of the five years from 2022 (remaining) through 2026 and thereafter is as follows (in thousands): Year Ending December 31, 2022 (remaining) $ 7,095 2023 8,816 2024 8,112 2025 8,059 2026 7,677 Thereafter 24,486 Total amortization related to finite-lived intangible assets $ 64,245 Intangible assets not subject to amortization 7,594 Net intangible assets $ 71,839

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT, NET Property and equipment, net, consisted of the following (in thousands): March 31, 2022 December 31, 2021 Land $ 2,251 $ 2,959 Building 11,792 11,288 Machinery and equipment 40,075 39,851 Office furniture and equipment 2,481 1,732 Computer hardware and software 5,393 5,285 Leasehold and building improvements 10,858 10,796 Construction in progress 482 286 Property and equipment, gross 73,332 72,197 Less accumulated depreciation (39,514) (38,784) Total property and equipment, net $ 33,818 $ 33,413 The Company has subscription agreements whereby its instruments in inventory may be placed at a customer's location on a rental basis. For instruments classified as operating leases, the cost of these instruments is transferred to machinery and equipment and depreciated, typically over a 5 to 7 year period depending on the circumstance under which the instrument is placed with the customer. Our cost of instruments under operating leases as of March 31, 2022 and December 31, 2021, was $15.6 million and $15.1 million, respectively, before accumulated depreciation of $5.1 million and $5.8 million, respectively. Depreciation expense was $0.8 million and $1.9 million for the three months ended March 31, 2022 and 2021, respectively.

INVENTORIES, NET

INVENTORIES, NET	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
INVENTORIES, NET	INVENTORIES Inventories consisted of the following (in thousands): March 31, 2022 December 31, 2021 Raw materials $ 19,808 $ 16,094 Work in process 4,778 3,656 Finished goods 30,636 29,611 Total inventories $ 55,222 $ 49,361

ACCRUED LIABILITIES

ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): March 31, 2022 December 31, 2021 Accrued payroll and employee benefits $ 8,074 $ 9,392 Accrued property taxes 542 656 Accrued purchase orders 1,868 552 Inventory in transit 3,040 1,605 Accrued taxes 3,520 3,574 Other 2,730 3,645 Total accrued liabilities $ 19,774 $ 19,424 Other accrued liabilities consist of items that are individually less than 5% of total current liabilities.

CAPITAL STOCK

CAPITAL STOCK	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
CAPITAL STOCK	CAPITAL STOCK During the three months ended March 31, 2022, the Company granted the following restricted stock awards and restricted stock units: Three Months Ended March 31, 2022 Awards/Units Weighted-Average Grant Date Fair Value Restricted stock awards 51,919 $ 127.09 Restricted stock units 9,207 $ 127.09

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income (loss) consisted of the following (in thousands): Pension Adjustments Foreign Currency Translation 1 Foreign Currency Gain on Intra-Entity Transactions 2 Total Accumulated Other Comprehensive Income Balances at December 31, 2021 $ (279) $ 1,974 $ 3,342 $ 5,037 Current period other comprehensive loss — (1,545) (1,498) (3,043) Balances at March 31, 2022 $ (279) $ 429 $ 1,844 $ 1,994

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES 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 repair 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 re serve was $0.6 million and $0.5 million as of March 31, 2022 and December 31, 2021, respectively. 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 February 18, 2020, a former managing director of scil filed a claim disputing the effective date of the termination of his management service agreement and the validity of the Company´s waiver of his two-year post-contractual non-compete obligation. The Company defended itself from the claim but ultimately reached a settlement agreement and will pay $0.8 million to the defendant. The Company is indemnified by the scil acquisition agreement for this claim. As of March 31, 2022, 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. Global Supply and Licensing Agreement On March 28, 2022, the Company entered into a global supply and licensing agreement with VolitionRx Limited (“Volition”) to adapt and commercialize the Nu.Q ® Vet Cancer Screening Test at the point of care for canines and felines on Heska’s technology. On March 30, 2022, the Company made an upfront milestone payment of $10 million to Volition in exchange for exclusive rights to develop the Nu.Q ® Vet Cancer Screening Test for the point of care and non-exclusive rights for central reference lab testing. The full $10 million payment was expensed to Research and development on the Condensed Consolidated Statements of (Loss) Income for the three months ended March 31, 2022. The Company is obligated to pay an additional $13 million on or before December 31, 2024, if certain milestones are met, or to obtain an extended timeline to meet those milestones. If those milestones are not met by the agreed upon extension, the agreement may be terminated. However, if the $13 million milestones are met, the agreement will have a total term of 22 years for exclusivity in point of care testing. If the first milestones are met and the agreement does not terminate, there will be another $5 million payment due upon the achievement of an additional milestone within the remaining term of the agreement. These potential future milestone payments have not yet been accrued, as the Company has not deemed them probable at this time. Off-Balance Sheet Commitments We have no off-balance sheet arrangements or variable interest entities.

INTEREST AND OTHER (INCOME) EXP

INTEREST AND OTHER (INCOME) EXPENSE, NET	3 Months Ended
	Mar. 31, 2022
Other Income and Expenses [Abstract]
INTEREST AND OTHER (INCOME) EXPENSE, NET	INTEREST AND OTHER EXPENSE, NET Interest and other expense, net, consisted of the following (in thousands): Three Months Ended March 31, 2022 2021 Interest income $ (485) $ (389) Interest expense 925 920 Other (income) expense , net (81) (5) Total interest and other expense, net $ 359 $ 526

CONVERTIBLE NOTES AND CREDIT FA

CONVERTIBLE NOTES AND CREDIT FACILITY	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
CONVERTIBLE NOTES AND CREDIT FACILITY	CONVERTIBLE NOTES Convertible Notes On September 17, 2019, the Company issued $86.25 million aggregate principal amount of 3.750% Convertible Senior Notes due 2026 (the "Notes"), which included the exercise in full of an $11.25 million purchase option, to certain financial institutions as the initial purchasers of the Notes (the "Initial Purchasers"). The Company pays interest on the Notes semiannually in arrears at a rate of 3.750% per annum on March 15 and September 15 of each year. The Notes are senior unsecured obligations of the Company. The Notes were issued pursuant to an Indenture, dated September 17, 2019, between the Company and U.S. Bank National Association, as trustee. The net proceeds from the sale of the Notes were approximately $83.7 million after deducting the Initial Purchasers' discounts and the offering expenses payable by the Company. Refer to Note 16, Convertible Notes, in the Notes to Consolidated Financial Statements included in Part II, Item 8 of the Company's 2021 Form 10-K for further information on the Notes. No portion of the Notes was converted during the three months ended March 31, 2022 and the liability component was classified as long-term debt on the Company's Condensed Consolidated Balance Sheet as of March 31, 2022. As discussed in Note 1, the Company early adopted ASU 2020-06, effective January 1, 2021, which simplifies the accounting for certain convertible instruments. Under the new standard, qualifying convertible debt is accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. As a result of ASU 2020-06, the Company's cash interest expense is not impacted, however, the Company's non-cash interest accretion is limited to the amortization of debt issuance costs under ASC 835-30. The new effective interest rate of the Notes post-adoption is 4.35%. The Company also reversed the conversion feature amount recorded in APIC and reversed the difference in non-cash interest expense via retained earnings. The following table summarizes the net carrying amount of the Notes (in thousands): March 31, 2022 December 31, 2021 Principal amount of the Notes $ 86,250 $ 86,250 Unamortized debt discount (2,110) (2,216) Net carrying amount $ 84,140 $ 84,034 Interest expense related to the Notes is comprised of the amortization of debt discount and debt issuance costs and the contractual coupon interest as follows (in thousands): Three Months Ended March 31, 2022 2021 Interest expense related to contractual coupon interest $ 809 $ 809 Interest expense related to amortization of the debt discount 107 102 $ 916 $ 911 As of March 31, 2022, the remaining period over which the unamortized discount will be amortized is 54 months. The estimated fair value of the Notes was $154.4 million and $194.3 million as of March 31, 2022 and December 31, 2021, respectively, determined 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. Based on our closing stock price of $138.28 on March 31, 2022, the if-converted value exceeded the aggregate principal amount of the Notes by $51.4 million.

NOTE RECEIVABLES

NOTE RECEIVABLES	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
NOTE RECEIVABLES	NOTE RECEIVABLES Convertible Promissory Note On December 9, 2020, the Company's equity method investee (the “Equity Method Investee”), issued a Convertible Promissory Note to the Company (the “Convertible Promissory Note”) with a principal amount of $6.65 million and a stated interest rate of 3.0% per annum that is payable monthly. The Convertible Promissory Note has a maturity date of December 9, 2023, or otherwise upon qualified redemption event or in the event of a default. Refer to Note 4 for additional information on our equity method investment. The conversion of the Convertible Promissory Note is contingent upon certain events. Due to the convertible debt features included in the Convertible Promissory Note, it is not an equity security and is therefore not considered an additional investment in our Equity Method Investee. The Company accounted for the transaction as a note receivable, included in Related party convertible note receivable, net on the Consolidated Balance Sheets. The note receivable will be measured at amortized cost and evaluated for credit losses each reporting period. The Company determined that the redemption features described above met the definition of an embedded derivative that requires bifurcation from the note receivable host. The Company measured the redemption features at fair value, with the residual proceeds paid allocated to the note receivable host, creating a discount to the note receivable. The discount will be amortized over the contractual term of the Convertible Promissory Note using the effective interest method. The effective interest rate of the Convertible Promissory Note is 8.69%, and the amortization of the discount will be included as interest income within Interest and other (income) expense, net on the Condensed Consolidated Statements of (Loss) Income. The carrying value of the note receivable, included in Related party convertible note receivable, net on the Condensed Consolidated Balance Sheets, is as follows (in thousands): March 31, 2022 December 31, 2021 Principal amount $ 6,650 $ 6,650 Unamortized discount (591) (672) Net carrying amount $ 6,059 $ 5,978 The fair value of the embedded derivative wa s $0.9 million as of March 31, 2022 and December 31, 2021, and is included in Related party convertible note receivable, net on the Condensed Consolidated Balance Sheets. The fair value of the derivative will be remeasured each reporting period, with the mark-to-market adjustment to be included in Interest and other (income) expense, net on the Condensed Consolidated Statements of (Loss) Income. In addition, the Company recorded an allowance for expected credit losses on the promissory note of $67 thousand as of March 31, 2022. Promissory Note On February 1, 2021, one of the Company's equity investees (the "Investee"), which the Company accounts for as a non-marketable equity security, issued a Promissory Note to the Company (the “Promissory Note”) with a principal amount of $9.0 million and a stated interest rate of 10.0% per annum that is payable monthly. The Promissory Note has a maturity date of December 1, 2024 and provides for interest only payments through December 1, 2023. Beginning on January 1, 2024, the Promissory Note requires repayment of the principal and interest over twelve consecutive monthly payments. As additional consideration, the Company was also issued a warrant to acquire securities of the Investee that expires December 31, 2034. Refer to Note 4 for additional information on our equity investments. The Company evaluated the accounting treatment of the warrant to acquire securities and determined it is a freestanding instrument that meets the definition of a derivative under ASC 815 and requires bifurcation from the note receivable host. The Company measured the warrant at fair value, with the residual proceeds paid allocated to the note receivable host, creating a discount to the note receivable. The discount will be amortized over the contractual term of the Promissory Note using the effective interest method. The effective interest rate of the Promissory Note is 10.99%, and the amortization of the discount will be included as interest income within Interest and other (income) expense, net on the Condensed Consolidated Statements of (Loss) Income. The carrying value of the note receivable, included in Promissory note receivable from investee, net, on the Condensed Consolidated Balance Sheets, is as follows (in thousands): March 31, 2022 December 31, 2021 Principal amount $ 9,000 $ 9,000 Unamortized discount (238) (254) Net carrying amount $ 8,762 $ 8,746 The fair value of the derivative was $0.3 million as of March 31, 2022 and December 31, 2021, and is included in Other non-current assets on our Condensed Consolidated Balance Sheets. The fair value of the derivative will be remeasured each reporting period, with the mark-to-market adjustment to be included in other Interest and other expense, net on the Condensed Consolidated Statements of (Loss) Income. In addition, the Company recorded an allowance for expected credit losses on the note receivable of $0.3 million as of March 31, 2022.

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING The Company’s two segments are North America and International. The North America segment is comprised of the Company's operations in the United States, Canada and Mexico and the International segment is comprised of geographies outside of North America, which are the Company's operations primarily in Australia, France, Germany, Italy, Malaysia, Spain and Switzerland. Certain expenses incurred at the Company’s headquarters located in the North America segment are allocated to each segment in a manner consistent with where the benefits from the expenses are derived. However, there are certain corporate expenses included in the North America segment that the Company does not allocate. Such expenses include research and development, certain selling, marketing, general, and administrative costs that support the global organization. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation. The Company's sales are determined by the country of origin where the sale occurred. Our CODM evaluates segment performance and allocates resources based on Revenue, Cost of Revenue, Gross Profit, Gross Margin and Operating Income. The CODM does not evaluate operating segments using asset information; however, we have included total asset information by segment below as there was a material change in total assets by segment as of March 31, 2022, due to the acquisition of VetZ. Summarized financial information concerning the Company's reportable segments is shown in the following tables (in thousands): Three Months Ended March 31, 2022 North America International Total Total revenue $ 37,374 $ 27,426 $ 64,800 Cost of revenue 19,466 16,189 35,655 Gross profit $ 17,908 $ 11,237 $ 29,145 Gross margin 48 % 41 % 45 % Operating (loss) income $ (12,311) $ 857 $ (11,454) Three Months Ended March 31, 2021 North America International Total Total revenue $ 37,272 $ 23,231 $ 60,503 Cost of revenue 19,763 15,270 35,033 Gross profit $ 17,509 $ 7,961 $ 25,470 Gross margin 47 % 34 % 42 % Operating income (loss) $ 1,033 $ (15) $ 1,018 Asset information by reportable segment as of March 31, 2022 is as follows (in thousands): As of March 31, 2022 North America International Total Total assets $ 369,013 $ 232,658 $ 601,671 Asset information by reportable segment as of December 31, 2021 is as follows (in thousands): As of December 31, 2021 North America International Total Total assets $ 441,234 $ 162,838 $ 604,072

OPERATIONS AND SUMMARY OF SIG_2

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	The accompanying interim Condensed Consolidated Financial Statements are unaudited. The interim unaudited Condensed Consolidated Financial Statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include normal, recurring adjustments, necessary to present fairly the financial position of the Company as of March 31, 2022, and the results of our operations and statements of stockholders' equity for the three months ended March 31, 2022 and 2021, and cash flows for the three months ended March 31, 2022 and 2021. 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. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year or any future period, particularly in light of the COVID-19 pandemic and its effects on the domestic and global economies as described below. 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 year ended December 31, 2021 and other financial information filed with the SEC. Beginning in the first quarter of 2020, to limit the spread of COVID-19, governments took various actions including the issuance of stay-at-home policies and social distancing procedures and guidelines, causing some businesses to adjust, reduce or suspend business and operating activities. Veterinary care is widely recognized as an "essential" service for pet owners, and veterinarians continued to deliver essential medical care for sick and injured pets. The stay-at-home policies deployed early in 2020 to combat the spread of COVID-19 resulted in a decrease in companion animal clinical visits, including delay of elective procedures and wellness visits and as a result, lower demand for diagnostic testing services. Beginning in the second quarter of 2020, certain local, state and federal governments began to ease the stay-at-home policies and allowed more businesses and facilities to re-open, leading to a recovery in companion animal clinical visits and associated demand for our diagnostic products. In some part, and of different degrees depending on the geography, due to the introduction and acceptance of COVID-19 vaccines, restrictions have eased in many of the countries in which we operate. Global diagnostic animal health demand continued throughout 2021 and into the first quarter of 2022. While this trend is encouraging, with the rise in COVID-19 variants, the extent to which the continuation, or another wave, of COVID-19, or an outbreak of other health epidemics could impact our business, results of operations and financial condition, including the potential for write-offs or impairments of assets and suspension of capital investments, will depend on future developments. We are unable to predict with certainty the effects of the COVID-19 pandemic on our customers, suppliers and vendors, as well as the
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 credit losses 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 and standalone selling prices 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 fair value of our embedded derivatives; and determining the value of the non-controlling interest in a business combination. Our actual results may differ from these estimates and there may be changes to those estimates in future periods.
Fair Value of Financial Instruments	The Company's financial assets based upon Level 3 inputs include embedded derivatives relating to its note receivables. The Company determined the redemption features of its convertible note receivable represents an embedded derivative. The estimated fair value of the embedded derivative asset is evaluated through Level 3 inputs using a probability-weighted scenario analysis. The Company determined the warrant associated with its promissory note receivable represents a derivative. The estimated fair value of the derivative asset is evaluated through Level 3 inputs, using an enterprise valuation model. For additional information regarding the Company's note receivables and derivatives, refer to Note 17, Notes Receivable. The estimated fair value of the Company's 3.75% Convertible Senior Notes due in 2026 (the "Notes"), is disclosed at each reporting period and is evaluated through Level 2 inputs with consideration of quoted market prices in less active markets. For additional information regarding the Company's accounting treatment for the issuance of the Notes, refer to Note 16, Convertible Notes. The Company's financial liabilities based upon Level 3 inputs include contingent consideration arrangements and notes payable relating to its acquisitions of Lacuna Diagnostics, Inc. ("Lacuna"), BiEsse A-Laboratorio die Analisi Veterinarie S.r.l. (“BSA”), and Biotech Laboratories U.S.A. LLC ("Biotech"). The Company is obligated to pay contingent consideration payments of $2.0 million in connection with the Lacuna acquisition based on the achievement of certain performance metrics within a twelve month period ("Initial Earn Out Period"), reducing to $1.0 million if such metrics were met in a twelve month period subsequent to the Initial Earn Out Period. The fair value of the Lacuna contingent consideration was $0 as of both December 31, 2021 and March 31, 2022. The Company is obligated to pay contingent consideration payments of $2.9 million in connection with the BSA acquisition based on the achievement of certain revenue metrics within three annual periods after 2021. The Company is obligated to pay contingent notes of up to $17.5 million in connection with the Biotech acquisition based on the achievement of certain product development milestones or at a predetermined date in the future. Refer to Note 3, Acquisitions and Related Party Items for further discussion. The fair value of our contingent consideration and notes payable arrangements are determined based on a probability-weighted outcome analysis. The fair value of the contingent consideration and notes payable liabilities associated with future payments were based on several factors, the most significant of which are the financial and product development performance of the acquired businesses. For the contingent consideration liabilities, the Company will update its assumptions each reporting period based on new developments and record such amounts at fair value based on the revised assumptions until the agreements expire. Changes in fair value are recorded in the Condensed Consolidated Statements of (Loss) Income within general and administrative expenses. The note payable associated with the Biotech acquisition is not adjusted to fair value each period.
Revenue Recognition	Revenue Recognition With the acquisition of VetZ GmbH (“VetZ”) on January 3, 2022, the Company entered the market for veterinary practice information management software solutions (“PIMS”). Revenue for the sale of software licenses is recognized at a point in time upon delivery of the software. The software has significant stand-alone functionality, and provides the customer with the right to use the intellectual property as it exists at the point in time at which the license is granted. Revenue for support services, cloud-based services, and installation and training is recognized over time as the services are performed. Refer to Note 3 for further details regarding the VetZ acquisition.
Adoption of New Accounting Pronouncements	Adoption of New Accounting Pronouncements Effective January 1, 2022, we adopted ASU 2021-05, Leases (Topic 842), Lessors- Certain Leases with Variable Lease Payments. This guidance amends the lease classification accounting for lessors for certain leases with variable lease payments that do not depend on a reference index or a rate and would have resulted in the recognition of a loss at lease commencement if classified as a sale-type or direct financing lease. Under the new guidance, these leases will be classified as an operating lease. We evaluated the impact of the standard on our consolidated financial statements and the adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures. Effective January 1, 2022, we early adopted ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This guidance requires an acquiring entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, the acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. We evaluated the impact of the standard on our consolidated financial statements and the adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures.

OPERATIONS AND SUMMARY OF SIG_3

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Fair Value Measurements, Recurring and Nonrecurring	The fair values of our financial instruments at March 31, 2022 and December 31, 2021 were (in thousands): Total Level 1 Level 2 Level 3 2022 Financial Assets Convertible note receivable embedded derivative $ 888 $ — $ — $ 888 Promissory note receivable derivative 337 — — 337 Financial Liabilities BiEsseA contingent consideration 1,955 — — 1,955 Notes payable 15,900 — — 15,900 Balances, March 31, 2022 $ 19,080 $ — $ — $ 19,080 2021 Total Level 1 Level 2 Level 3 Financial Assets Convertible note receivable embedded derivative $ 888 $ — $ — $ 888 Promissory note receivable embedded derivative 337 — — 337 Financial Liabilities BiEsseA contingent consideration 2,334 — — 2,334 Notes payable 15,900 — — 15,900 Balances, December 31, 2021 $ 19,459 $ — $ — $ 19,459
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table presents the changes of our Level 3 assets and liabilities as of March 31, 2022 (in thousands): Derivative Assets Contingent Consideration Liability Notes Payable Convertible note receivable Promissory note receivable BSA Biotech Balances, December 31, 2021 $ 888 $ 337 $ 2,334 $ 15,900 Acquisition value — — — — Cash payments — — — — Changes in fair value, including foreign currency adjustments — — (379) — Balances, March 31, 2022 $ 888 $ 337 $ 1,955 $ 15,900
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation	The following table presents the changes of our Level 3 assets and liabilities as of March 31, 2022 (in thousands): Derivative Assets Contingent Consideration Liability Notes Payable Convertible note receivable Promissory note receivable BSA Biotech Balances, December 31, 2021 $ 888 $ 337 $ 2,334 $ 15,900 Acquisition value — — — — Cash payments — — — — Changes in fair value, including foreign currency adjustments — — (379) — Balances, March 31, 2022 $ 888 $ 337 $ 1,955 $ 15,900

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes our segment revenue (in thousands): Three Months Ended March 31, 2022 2021 North America Revenue: POC Lab Instruments & Other $ 4,647 $ 2,988 POC Lab Consumables 18,637 16,951 POC Imaging & Informatics 6,051 6,688 PVD 4,576 6,864 OVP 3,463 3,781 Total North America Revenue $ 37,374 $ 37,272 International Revenue: POC Lab Instruments & Other $ 3,733 $ 3,014 POC Lab Consumables 11,748 12,225 POC Imaging & Informatics 10,962 6,658 PVD 983 1,334 Total International Revenue $ 27,426 $ 23,231 Total Revenue $ 64,800 $ 60,503
Schedule of Timing of Revenue Expected to be Recognized	As of March 31, 2022, the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2022 (remaining) $ 32,055 2023 40,330 2024 35,663 2025 29,854 2026 24,315 Thereafter 15,888 $ 178,105

ACQUISITION AND RELATED PARTY_2

ACQUISITION AND RELATED PARTY ITEMS (Tables)	3 Months Ended
	Mar. 31, 2022
Business Combinations and Related Party Disclosure [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The information below represents the preliminary purchase price allocation as of the acquisition date (in thousands): January 3, 2022 Purchase price in cash $ 32,368 Fair value of equity contingent consideration 3,860 Total purchase consideration $ 36,228 Cash and cash equivalents $ 1,251 Inventory 359 Accounts receivable 911 Prepaid expenses and other assets 318 Property and equipment, net 602 Operating lease right-of-use assets 2,962 Intangible assets 18,504 Total assets acquired 24,907 Accounts payable 607 Accrued liabilities 1,260 Operating lease liabilities, current 247 Deferred revenue, current 695 Operating lease liabilities, non-current 2,714 Deferred tax liabilities 5,408 Other liabilities 318 Net assets acquired 13,658 Goodwill 22,570 Total fair value of consideration transferred $ 36,228 The information below represents the preliminary purchase price allocation as of the acquisition date (in thousands): September 1, 2021 Purchase price $ 16,250 Notes payable 15,900 Total purchase consideration $ 32,150 Accounts receivables 18 Other current assets 1 Inventories 190 Property and equipment, net 148 Operating lease right-of-use assets 1,033 Other intangible assets, net 6,000 Other non-current assets 15 Total assets acquired 7,405 Accounts payable 11 Accrued liabilities 33 Operating lease liabilities, current 188 Operating lease liabilities, non-current 845 Net assets acquired 6,328 Goodwill 25,822 Total fair value of consideration transferred $ 32,150 The information below represents the preliminary purchase price allocation as of the acquisition date (in thousands): July 1, 2021 Purchase price $ 4,835 Fair value of contingent consideration 2,334 Total purchase consideration $ 7,169 Cash and cash equivalents 322 Accounts receivables 152 Other receivables 497 Prepaid expenses 8 Other current assets 275 Property and equipment, net 89 Operating lease right-of-use assets 44 Other intangible assets, net 3,329 Total assets acquired 4,716 Accounts payable 208 Accrued liabilities 334 Operating lease liabilities, current 37 Deferred revenue, current, and other 85 Operating lease liabilities, non-current 20 Deferred tax liability 925 Other liabilities 500 Net assets acquired 2,607 Goodwill 4,562 Total fair value of consideration transferred $ 7,169 The information below represents the purchase price allocation as of the acquisition date (in thousands): February 1, 2021 Purchase price $ 4,255 Fair value of contingent consideration 1,700 Total purchase consideration $ 5,955 Cash and cash equivalents $ 3 Accounts receivable 170 Property and equipment, net 530 Other intangible assets, net 1,185 Total assets acquired 1,888 Deferred tax liability 133 Net assets acquired 1,755 Goodwill 4,200 Total fair value of consideration transferred $ 5,955
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	Intangible assets acquired, amortization method and estimated useful life as of January 3, 2022, were as follows (dollars in thousands): Weighted- Average Useful Life Amortization Fair Value Customer relationships 12 years Straight-line $ 12,941 Trade name 8 years Straight-line 1,816 Developed technology 4.3 years Straight-line 3,747 Total intangible assets acquired $ 18,504 Intangible assets acquired, amortization method and estimated useful life as of September 1, 2021, were as follows (dollars in thousands): Useful Life Amortization Fair Value Development technology 6 years Straight-line $ 6,000 Total intangible assets acquired $ 6,000 Intangible assets acquired, amortization method and estimated useful life as of July 1, 2021, were as follows (dollars in thousands): Useful Life Amortization Method Fair Value Customer relationships 14 years Straight-line $ 3,329 Total intangible assets acquired $ 3,329 Intangible assets acquired, amortization method and estimated useful life as of February 1, 2021, were as follows (dollars in thousands): Useful Life Amortization Fair Value Developed technology 3 years Straight-line $ 1,000 Customer relationships 6 months Straight-line 150 Trade name 11 months Straight-line 35 Total intangible assets acquired $ 1,185
Business Acquisition, Pro Forma Information	The following table presents unaudited supplemental pro forma financial information as if the acquisition had occurred on January 1, 2021 (in thousands): Three Months Ended March 31, 2021 Revenue, net $ 63,460 Net income before equity in losses of unconsolidated affiliates $ 2,429 Net income attributable to Heska Corporation $ 2,243

INVESTMENTS IN UNCONSOLIDATED_2

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Tables)	3 Months Ended
	Mar. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Carrying values of investments in unconsolidated entities	The carrying values of investments in unconsolidated affiliates, categorized by type of investment, is as follows (in thousands): March 31, 2022 December 31, 2021 Equity method investment $ 2,025 $ 2,406 Non-marketable equity security investment 3,018 3,018 Investments in unconsolidated affiliates $ 5,043 $ 5,424

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of components of income tax expense	The Company's total income tax benefit for our (loss) income before income taxes were as follows (in thousands): Three Months Ended March 31, 2022 2021 (Loss) income before income taxes and equity in losses of unconsolidated affiliates $ (11,813) $ 492 Total income tax benefit $ (2,208) $ (1,565)

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Assets and Liabilities, Lessee	The following table summarizes the Company's operating and finance lease balances (in thousands): Leases Balance Sheet Location March 31, 2022 December 31, 2021 Assets Operating Operating lease right-of-use assets $ 8,154 $ 5,198 Finance Property and equipment, net 1,523 1,650 Total Leased Assets $ 9,677 $ 6,848 Liabilities Operating Operating lease liabilities, current $ 2,504 $ 2,227 Operating lease liabilities, non-current 6,211 3,509 Finance Deferred revenue, current, and other 168 200 Other liabilities 297 331 Total Lease Liabilities $ 9,180 $ 6,267
Sales-type Lease, Lease Income	The following table summarizes the profit recognized on the commencement date for sales-type leases and lease income for equipment-only operating leases (in thousands): Three Months Ended March 31, 2022 2021 Sales-type lease revenue $ 4,101 $ 1,658 Sales-type lease cost of revenue 3,473 1,264 Profit recognized at commencement for sales-type leases $ 628 $ 394 Operating lease income $ 503 $ 608

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Reconciliation of basic and diluted earnings per share	The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted earnings per share ("EPS") for the three months ended March 31, 2022 and 2021 (in thousands, except per share data): Three Months Ended March 31, 2022 2021 Net (loss) income attributable to Heska Corporation $ (9,986) $ 1,871 Basic weighted-average common shares outstanding 10,273 9,478 Dilutive effect of stock options and restricted stock — 366 Diluted weighted-average common shares outstanding 10,273 9,844 Basic (loss) earnings per share attributable to Heska Corporation $ (0.97) $ 0.20 Diluted (loss) earnings per share attributable to Heska Corporation $ (0.97) $ 0.19
Schedule of antidilutive securities excluded from computation of earnings per share	The following potentially outstanding common shares from convertible preferred stock, convertible senior notes, stock options and restricted stock awards were excluded from the computation of diluted EPS because the effect would have been antidilutive (in thousands): Three Months Ended March 31, 2022 2021 Convertible Senior Notes 996 996 Stock options and restricted stock 356 — 1,352 996

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in goodwill	The following summarizes the change in goodwill during the three months ended March 31, 2022 (in thousands): North America International Total Carrying amount, December 31, 2021 $ 65,535 $ 53,291 $ 118,826 Goodwill attributable to acquisitions (subject to change) — 22,570 22,570 Measurement period adjustment to prior year acquisition (17) — (17) Foreign currency adjustments (150) (1,239) (1,389) Carrying amount, March 31, 2022 $ 65,368 $ 74,622 $ 139,990
Schedule of other intangible assets	Other intangibles consisted of the following (in thousands): March 31, 2022 December 31, 2021 Gross Carrying Amount Accum. Amortiz. Net Carrying Amount Gross Carrying Amount Accum. Amortiz. Net Carrying Amount Intangible assets subject to amortization: Customer relationships and other $ 59,674 $ (12,502) $ 47,172 $ 47,629 $ (11,145) $ 36,484 Developed technology 19,341 (4,039) 15,302 15,633 (3,218) 12,415 Trade names 2,000 (229) 1,771 223 (166) 57 Intangible assets not subject to amortization: Trade names 7,594 — 7,594 7,749 — 7,749 Total intangible assets $ 88,609 $ (16,770) $ 71,839 $ 71,234 $ (14,529) $ 56,705
Schedule of amortization expense on intangible assets
Schedule of estimated future amortization expense	Estimated amortization expense related to intangibles for each of the five years from 2022 (remaining) through 2026 and thereafter is as follows (in thousands): Year Ending December 31, 2022 (remaining) $ 7,095 2023 8,816 2024 8,112 2025 8,059 2026 7,677 Thereafter 24,486 Total amortization related to finite-lived intangible assets $ 64,245 Intangible assets not subject to amortization 7,594 Net intangible assets $ 71,839

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment, net, consisted of the following (in thousands): March 31, 2022 December 31, 2021 Land $ 2,251 $ 2,959 Building 11,792 11,288 Machinery and equipment 40,075 39,851 Office furniture and equipment 2,481 1,732 Computer hardware and software 5,393 5,285 Leasehold and building improvements 10,858 10,796 Construction in progress 482 286 Property and equipment, gross 73,332 72,197 Less accumulated depreciation (39,514) (38,784) Total property and equipment, net $ 33,818 $ 33,413

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Schedule of inventory	Inventories consisted of the following (in thousands): March 31, 2022 December 31, 2021 Raw materials $ 19,808 $ 16,094 Work in process 4,778 3,656 Finished goods 30,636 29,611 Total inventories $ 55,222 $ 49,361

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): March 31, 2022 December 31, 2021 Accrued payroll and employee benefits $ 8,074 $ 9,392 Accrued property taxes 542 656 Accrued purchase orders 1,868 552 Inventory in transit 3,040 1,605 Accrued taxes 3,520 3,574 Other 2,730 3,645 Total accrued liabilities $ 19,774 $ 19,424

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Schedule of stock options plans	During the three months ended March 31, 2022, the Company granted the following restricted stock awards and restricted stock units: Three Months Ended March 31, 2022 Awards/Units Weighted-Average Grant Date Fair Value Restricted stock awards 51,919 $ 127.09 Restricted stock units 9,207 $ 127.09

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Schedule of accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss) consisted of the following (in thousands): Pension Adjustments Foreign Currency Translation 1 Foreign Currency Gain on Intra-Entity Transactions 2 Total Accumulated Other Comprehensive Income Balances at December 31, 2021 $ (279) $ 1,974 $ 3,342 $ 5,037 Current period other comprehensive loss — (1,545) (1,498) (3,043) Balances at March 31, 2022 $ (279) $ 429 $ 1,844 $ 1,994

INTEREST AND OTHER (INCOME) E_2

INTEREST AND OTHER (INCOME) EXPENSE, NET (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 2021 Interest income $ (485) $ (389) Interest expense 925 920 Other (income) expense , net (81) (5) Total interest and other expense, net $ 359 $ 526

CONVERTIBLE NOTES AND CREDIT _2

CONVERTIBLE NOTES AND CREDIT FACILITY (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Convertible Debt	March 31, 2022 December 31, 2021 Principal amount of the Notes $ 86,250 $ 86,250 Unamortized debt discount (2,110) (2,216) Net carrying amount $ 84,140 $ 84,034
Interest Income and Interest Expense Disclosure	Interest expense related to the Notes is comprised of the amortization of debt discount and debt issuance costs and the contractual coupon interest as follows (in thousands): Three Months Ended March 31, 2022 2021 Interest expense related to contractual coupon interest $ 809 $ 809 Interest expense related to amortization of the debt discount 107 102 $ 916 $ 911

NOTE RECEIVABLES (Tables)

NOTE RECEIVABLES (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Schedule of Related Party Transactions	The carrying value of the note receivable, included in Related party convertible note receivable, net on the Condensed Consolidated Balance Sheets, is as follows (in thousands): March 31, 2022 December 31, 2021 Principal amount $ 6,650 $ 6,650 Unamortized discount (591) (672) Net carrying amount $ 6,059 $ 5,978 The carrying value of the note receivable, included in Promissory note receivable from investee, net, on the Condensed Consolidated Balance Sheets, is as follows (in thousands): March 31, 2022 December 31, 2021 Principal amount $ 9,000 $ 9,000 Unamortized discount (238) (254) Net carrying amount $ 8,762 $ 8,746

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Reconciliation of Revenue from Segments to Consolidated	Three Months Ended March 31, 2022 North America International Total Total revenue $ 37,374 $ 27,426 $ 64,800 Cost of revenue 19,466 16,189 35,655 Gross profit $ 17,908 $ 11,237 $ 29,145 Gross margin 48 % 41 % 45 % Operating (loss) income $ (12,311) $ 857 $ (11,454) Three Months Ended March 31, 2021 North America International Total Total revenue $ 37,272 $ 23,231 $ 60,503 Cost of revenue 19,763 15,270 35,033 Gross profit $ 17,509 $ 7,961 $ 25,470 Gross margin 47 % 34 % 42 % Operating income (loss) $ 1,033 $ (15) $ 1,018
Schedule of revenue from external customers and long-lived assets, by geographical areas	Asset information by reportable segment as of March 31, 2022 is as follows (in thousands): As of March 31, 2022 North America International Total Total assets $ 369,013 $ 232,658 $ 601,671 Asset information by reportable segment as of December 31, 2021 is as follows (in thousands): As of December 31, 2021 North America International Total Total assets $ 441,234 $ 162,838 $ 604,072

OPERATIONS AND SUMMARY OF SIG_4

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Lacuna Diagnostics, Inc.
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Business Combination, Contingent Consideration Arrangements, Payments	$ 2,000,000
Business Combination, Contingent Consideration Arrangements, Payments If Metrics Met In Period	1,000,000
Contingent Consideration	0	$ 0
BiEsseA s.r.1.
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Business Combination, Contingent Consideration Arrangements, Payments	2,900,000
Biotech
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Business Combination, Contingent Consideration Arrangements, Payments	$ 17,500,000
Convertible Senior Notes Due 2026 | Senior Notes
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Debt instrument, interest rate, stated percentage	3.75%

OPERATIONS AND SUMMARY OF SIG_5

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	$ 15,900	$ 15,900
Balances	19,080	19,459
BiEsseA s.r.1.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration	1,955	2,334
Convertible Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative	888	888
Promissory Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative	337	337
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	0	0
Balances	0	0
Level 1 | BiEsseA s.r.1.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration	0	0
Level 1 | Convertible Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative	0	0
Level 1 | Promissory Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	0	0
Balances	0	0
Level 2 | BiEsseA s.r.1.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration	0	0
Level 2 | Convertible Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative	0	0
Level 2 | Promissory Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	15,900	15,900
Balances	19,080	19,459
Level 3 | BiEsseA s.r.1.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration	1,955	2,334
Level 3 | Convertible Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative	888	888
Level 3 | Promissory Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative	$ 337	$ 337

OPERATIONS AND SUMMARY OF SIG_6

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value Roll Forward (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Contingent Consideration | BiEsseA s.r.1.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 2,334
Acquisition value	0
Cash payments	0
Changes in fair value, including foreign currency adjustments	(379)
Ending balance	1,955
Long-term Debt
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	15,900
Acquisition value	0
Cash payments	0
Changes in fair value, including foreign currency adjustments	0
Ending balance	15,900
Derivative Financial Instruments, Assets | Convertible Note Receivable
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	888
Acquisition value	0
Cash payments	0
Changes in fair value, including foreign currency adjustments	0
Ending balance	888
Derivative Financial Instruments, Assets | Promissory Note Receivable
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	337
Acquisition value	0
Cash payments	0
Changes in fair value, including foreign currency adjustments	0
Ending balance	$ 337

REVENUE - Disaggregation (Detai

REVENUE - Disaggregation (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)segment	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Number of reportable segments | segment	2
Revenue, net	$ 64,800	$ 60,503
Contract receivables, current	1,500		$ 1,500
Contract receivables, noncurrent	5,300		5,100
Current portion of deferred revenue, and other	9,100		$ 9,600
Contract liabilities, revenue recognized	2,700
Contract liabilities, increase due to additional deferred sales	1,500
VetZ GmbH
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contact with customer, due to business acquisition	700
North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	37,374	37,272
International | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	27,426	23,231
POC Lab Instruments & Other | North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	4,647	2,988
POC Lab Instruments & Other | International | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	3,733	3,014
POC Lab Consumables | North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	18,637	16,951
POC Lab Consumables | International | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	11,748	12,225
POC Imaging & Informatics | North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	6,051	6,688
POC Imaging & Informatics | International | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	10,962	6,658
PVD | North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	4,576	6,864
PVD | International | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	983	1,334
OVP | North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	$ 3,463	$ 3,781

REVENUE - Performance Obligatio

REVENUE - Performance Obligations (Details) $ in Thousands	Mar. 31, 2022USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 178,105
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 32,055
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 40,330
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	$ 35,663
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]: 2025-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 29,854
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]: 2026-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 24,315
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 15,888
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction

ACQUISITION AND RELATED PARTY_3

ACQUISITION AND RELATED PARTY ITEMS - Additional Information (Details) - USD ($)	Jan. 03, 2022	Sep. 01, 2021	Jul. 01, 2021	Feb. 01, 2021	Mar. 31, 2022	Mar. 31, 2022	Dec. 31, 2021	Feb. 21, 2021
Business Acquisition [Line Items]
Goodwill					$ 139,990,000	$ 139,990,000	$ 118,826,000
Operating lease right-of-use assets					8,154,000	8,154,000	5,198,000
VetZ GmbH
Business Acquisition [Line Items]
Percentage of voting interest acquired	100.00%
Cash consideration transferred	$ 32,368,000
Business Combination, Contingent Consideration, Liability, Term	18 months
Business Combination, Contingent Consideration, Earn-Out	$ 15,500,000
Business Combination, Contingent Consideration, Liability, Fair Value	3,900,000
Working capital adjustment	200,000
Business combination, contingent consideration, liability	1,400,000
Goodwill	22,570,000
Purchase price	36,228,000
Operating lease right-of-use assets					2,600,000	2,600,000
Operating Lease, Liability					2,600,000	2,600,000
Revenue of acquiree since acquisition date						3,300,000
Acquisition related costs					500,000
Operating Lease, Expense					75,000
Net income of acquiree since acquisition date						300,000
Acquisition receivables	$ 165,000
BiEsseA s.r.1.
Business Acquisition [Line Items]
Cash consideration transferred			$ 4,835,000
Business combination, contingent consideration, liability			2,800,000
Goodwill			4,562,000
Purchase price			7,169,000
Unrecognized tax benefits, decrease resulting from acquisition					500,000
Business Acquisition, Goodwill, Expected Tax Deductible Amount			$ 4,600,000
Business Combination, Indemnification Assets, Amount Outstanding					500,000	500,000
Lacuna Diagnostics, Inc.
Business Acquisition [Line Items]
Percentage of voting interest acquired								100.00%
Cash consideration transferred				$ 4,255,000
Business Combination, Contingent Consideration, Liability, Fair Value				1,700,000	0		$ 0
Business combination, indemnification liabilities, holdback				$ 400,000	300,000	300,000
Business combination, indemnification liabilities, holdback release period				18 months
Business combination, contingent consideration, liability				$ 2,000,000
Business acquisition, initial earn out period				12 months
Business combination, contingent consideration arrangements, liability performance reduction				$ 1,000,000
Fair value of contingent consideration				1,700,000
Goodwill				4,200,000
Purchase price				5,955,000
Business Acquisition, Goodwill, Expected Tax Deductible Amount				0
Business Combination, Indemnification Liabilities, Holdback Released					$ 100,000	$ 100,000
Lacuna Diagnostics, Inc. | North America
Business Acquisition [Line Items]
Goodwill				$ 4,200,000
Biotech
Business Acquisition [Line Items]
Percentage of voting interest acquired		65.00%
Cash consideration transferred		$ 16,250,000
Remaining percentage of interest to be acquired		35.00%
Notes Payable, Fair Value Disclosure		$ 15,900,000
Goodwill		25,822,000
Purchase price		$ 32,150,000

ACQUISITION AND RELATED PARTY_4

ACQUISITION AND RELATED PARTY ITEMS - Preliminary Purchase Price Acquisition (Details) - USD ($) $ in Thousands	Jan. 03, 2022	Sep. 01, 2021	Jul. 01, 2021	Feb. 01, 2021	Mar. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Goodwill					$ 139,990	$ 139,990	$ 118,826
VetZ GmbH
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract]
Cash consideration transferred	$ 32,368
Equity interest issued and issuable	3,860
Business combination, consideration transferred	36,228
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Cash and cash equivalents	1,251
Inventory	359
Accounts receivable	911
Prepaid expenses and other assets	318
Property and equipment, net	602
Operating lease right-of-use assets	2,962
Intangible assets	18,504
Total assets acquired	24,907
Accounts payable	607
Accrued liabilities	1,260
Operating lease liabilities, current	247
Deferred revenue, current	695
Operating lease liabilities, non-current	2,714
Deferred tax liabilities	5,408
Other liabilities	318
Net assets acquired	13,658
Goodwill	22,570
Total fair value of consideration transferred	$ 36,228
Biotech
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract]
Cash consideration transferred		$ 16,250
Equity interest issued and issuable		15,900
Business combination, consideration transferred		32,150
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Inventory		190
Accounts receivable		18
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other		1
Property and equipment, net		148
Operating lease right-of-use assets		1,033
Intangible assets		6,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets		15
Total assets acquired		7,405
Accounts payable		11
Accrued liabilities		33
Operating lease liabilities, current		188
Operating lease liabilities, non-current		845
Net assets acquired		6,328
Goodwill		25,822
Total fair value of consideration transferred		$ 32,150
Lacuna Diagnostics, Inc.
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract]
Cash consideration transferred				$ 4,255
Business combination, consideration transferred				5,955
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Cash and cash equivalents				3
Accounts receivable				170
Property and equipment, net				530
Intangible assets				1,185
Total assets acquired				1,888
Deferred tax liabilities				133
Net assets acquired				1,755
Goodwill				4,200
Total fair value of consideration transferred				$ 5,955
BiEsseA s.r.1.
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract]
Cash consideration transferred			$ 4,835
Equity interest issued and issuable			2,334		$ 2,000	$ 2,300
Business combination, consideration transferred			7,169
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Cash and cash equivalents			322
Accounts receivable			152
Other receivables			497
Prepaid expenses			8
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other			275
Property and equipment, net			89
Operating lease right-of-use assets			44
Intangible assets			3,329
Total assets acquired			4,716
Accounts payable			208
Accrued liabilities			334
Operating lease liabilities, current			37
Deferred revenue, current			85
Operating lease liabilities, non-current			20
Deferred tax liabilities			925
Other liabilities			500
Net assets acquired			2,607
Goodwill			4,562
Total fair value of consideration transferred			$ 7,169

ACQUISITION AND RELATED PARTY_5

ACQUISITION AND RELATED PARTY ITEMS - Intangible Assets Acquired, Amortization Method (Details) - USD ($) $ in Thousands	Jan. 03, 2022	Sep. 01, 2021	Jul. 01, 2021	Feb. 01, 2021	Mar. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Gross Carrying Amount					$ 88,609	$ 71,234
VetZ GmbH
Business Acquisition [Line Items]
Fair Value	$ 18,504
Lacuna Diagnostics, Inc.
Business Acquisition [Line Items]
Gross Carrying Amount				$ 1,185
Biotech
Business Acquisition [Line Items]
Fair Value		$ 6,000
BiEsseA s.r.1.
Business Acquisition [Line Items]
Fair Value			$ 3,329
Developed technology | VetZ GmbH
Business Acquisition [Line Items]
Weighted- Average Useful Life	4 years 3 months 18 days
Fair Value	$ 3,747
Developed technology | Lacuna Diagnostics, Inc.
Business Acquisition [Line Items]
Weighted- Average Useful Life				3 years
Fair Value				$ 1,000
Developed technology | Biotech
Business Acquisition [Line Items]
Weighted- Average Useful Life		6 years
Fair Value		$ 6,000
Customer relationships | VetZ GmbH
Business Acquisition [Line Items]
Weighted- Average Useful Life	12 years
Fair Value	$ 12,941
Customer relationships | Lacuna Diagnostics, Inc.
Business Acquisition [Line Items]
Weighted- Average Useful Life				6 months
Fair Value				$ 150
Customer relationships | BiEsseA s.r.1.
Business Acquisition [Line Items]
Weighted- Average Useful Life			14 years
Fair Value			$ 3,329
Trade name | VetZ GmbH
Business Acquisition [Line Items]
Weighted- Average Useful Life	8 years
Fair Value	$ 1,816
Trade name | Lacuna Diagnostics, Inc.
Business Acquisition [Line Items]
Weighted- Average Useful Life				11 months
Fair Value				$ 35

ACQUISITION AND RELATED PARTY_6

ACQUISITION AND RELATED PARTY ITEMS - Unaudited Pro Forma Financial Information (Details) - VetZ GmbH $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue	$ 63,460
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax	2,429
Business Acquisition, Pro Forma Net Income (Loss)	$ 2,243

INVESTMENTS IN UNCONSOLIDATED_3

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Thousands	Sep. 24, 2018	Aug. 08, 2018	Mar. 31, 2022	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Equity method investment			$ 2,025	$ 2,406
Non-marketable equity security investment			3,018	3,018
Investments			$ 5,043	$ 5,424
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			26.00%
MBio Diagnostics, Inc.
Schedule of Equity Method Investments [Line Items]
Payments to acquire non-marketable securities		$ 3,000
Intangible asset acquired		$ 1,000
Intangible assets acquired, useful life		20 years
Contingent consideration on milestones		$ 10,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Income Tax Contingency [Line Items]
Income before income taxes	$ (11,813)	$ 492
Total income tax benefit	(2,208)	(1,565)
Cash paid for income taxes	500	500
Excess tax benefits related to employee share-based compensation	$ 600	$ 500
Deferred Tax Assets, Operating Loss Carryforwards				$ 5,700
Deferred tax assets, valuation allowance				$ 500
Forecast
Income Tax Contingency [Line Items]
Deferred tax assets, valuation allowance			$ 3,300

LEASES - Operating and Financin

LEASES - Operating and Financing Lease Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease right-of-use assets	$ 8,154	$ 5,198
Property and equipment, net	1,523	1,650
Total Leased Assets	9,677	6,848
Operating lease liabilities, current	2,504	2,227
Operating lease liabilities, non-current	6,211	3,509
Deferred revenue, current, and other	168	200
Other liabilities	297	331
Total Lease Liabilities	$ 9,180	$ 6,267

LEASES - Sales-type Leases and

LEASES - Sales-type Leases and Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Sales-type lease revenue	$ 4,101	$ 1,658
Sales-type lease cost of revenue	3,473	1,264
Profit recognized at commencement for sales-type leases	628	394
Operating lease income	$ 503	$ 608

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Net (loss) income attributable to Heska Corporation	$ (9,986)	$ 1,871
Basic weighted-average common shares outstanding (in shares)	10,273	9,478
Dilutive effect of stock options and restricted stock	0	366
Diluted weighted-average common shares outstanding	10,273	9,844
Basic (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.97)	$ 0.20
Diluted (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.97)	$ 0.19
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options and restricted units excluded from computation of earnings per share	1,352	996
Senior Convertible Note
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options and restricted units excluded from computation of earnings per share	996	996
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	356	0

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Goodwill [Roll Forward]
Carrying amount, December 31, 2021	$ 118,826
Goodwill attributable to acquisitions (subject to change)	22,570
Measurement period adjustment to prior year acquisition		$ (17)
Foreign currency adjustments	(1,389)
Carrying amount, March 31, 2022	139,990
Finite-Lived Intangible Assets, Net [Abstract]
Accumulated amortization	(16,770)		$ (14,529)
Net carrying amount	64,245
Indefinite-lived Intangible Assets [Line Items]
Intangible assets not subject to amortization	7,594
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross Carrying Amount	88,609		71,234
Accumulated amortization	(16,770)		(14,529)
Net intangible assets	71,839		56,705
Amortization of Intangible Assets	$ 2,200	1,400
Remaining weighted average amortization period for intangible assets	8 years 2 months 12 days
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2022 (remaining)	$ 7,095
2023	8,816
2024	8,112
2025	8,059
2026	7,677
Thereafter	24,486
Net carrying amount	64,245
Intangible assets not subject to amortization	7,594
Net intangible assets	71,839		56,705
Trade name
Indefinite-lived Intangible Assets [Line Items]
Intangible assets not subject to amortization	7,594		7,749
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Intangible assets not subject to amortization	7,594		7,749
Customer relationships and other
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	59,674		47,629
Accumulated amortization	(12,502)		(11,145)
Net carrying amount	47,172		36,484
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	(12,502)		(11,145)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	47,172		36,484
Developed technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	19,341		15,633
Accumulated amortization	(4,039)		(3,218)
Net carrying amount	15,302		12,415
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	(4,039)		(3,218)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	15,302		12,415
Trade name
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	2,000		223
Accumulated amortization	(229)		(166)
Net carrying amount	1,771		57
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	(229)		(166)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	1,771		$ 57
Operating Segments | North America
Goodwill [Roll Forward]
Carrying amount, December 31, 2021	65,535
Goodwill attributable to acquisitions (subject to change)	0
Measurement period adjustment to prior year acquisition		(17)
Foreign currency adjustments	(150)
Carrying amount, March 31, 2022	65,368
Operating Segments | International
Goodwill [Roll Forward]
Carrying amount, December 31, 2021	53,291
Goodwill attributable to acquisitions (subject to change)	22,570
Measurement period adjustment to prior year acquisition		$ 0
Foreign currency adjustments	(1,239)
Carrying amount, March 31, 2022	$ 74,622

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 73,332		$ 72,197
Less accumulated depreciation	(39,514)		(38,784)
Total property and equipment, net	33,818		33,413
Depreciation and amortization	800	$ 1,900
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,251		2,959
Building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,792		11,288
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	40,075		39,851
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,481		1,732
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,393		5,285
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,858		10,796
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 482		286
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
Leased equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 15,600		15,100
Less accumulated depreciation	$ (5,100)		$ (5,800)

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 19,808	$ 16,094
Work in process	4,778	3,656
Finished goods	30,636	29,611
Total inventory, net	$ 55,222	$ 49,361

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued payroll and employee benefits	$ 8,074	$ 9,392
Accrued property taxes	542	656
Accrued purchase orders	1,868	552
Inventory in transit	3,040	1,605
Accrued taxes	3,520	3,574
Other	2,730	3,645
Total accrued liabilities	$ 19,774	$ 19,424
Percentage of total current liabilities	5.00%

CAPITAL STOCK - STOCK OPTIONS A

CAPITAL STOCK - STOCK OPTIONS AND RESTRICTED STOCK (Details)	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Restricted Stock
Awards/Units Granted
Restricted stock awards (in shares) | shares	51,919
Weighted-Average Grant Date Fair Value (per award/unit)
Restricted stock awards (in dollars per share) | $ / shares	$ 127.09
Restricted Stock Units (RSUs)
Awards/Units Granted
Restricted stock awards (in shares) | shares	9,207
Weighted-Average Grant Date Fair Value (per award/unit)
Restricted stock awards (in dollars per share) | $ / shares	$ 127.09

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 435,854
Ending balance	428,595
Total Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	5,037
Current period other comprehensive loss	(3,043)
Ending balance	1,994
Pension Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(279)
Current period other comprehensive loss	0
Ending balance	(279)
Foreign Currency Translation1
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	1,974
Current period other comprehensive loss	(1,545)
Ending balance	429
Foreign Currency Gain on Intra-Entity Transactions2
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	3,342
Current period other comprehensive loss	(1,498)
Ending balance	$ 1,844

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	Feb. 18, 2020	Mar. 31, 2022	Mar. 28, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Litigation settlement, amount		$ 0.8
Warranty reserve		0.6		$ 0.5
Unconditional annual minimum inventory purchases		$ 105
Loss Contingency, Post-Contractual, Non-Compete Obligation Period	2 years
VolitionRx Limited | Supply And License
Loss Contingencies [Line Items]
Contract with customer, liability			$ 10
Milestone payment			$ 13
Agreement term			22 years
Additional milestone payment			$ 5

INTEREST AND OTHER (INCOME) E_3

INTEREST AND OTHER (INCOME) EXPENSE, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Income and Expenses [Abstract]
Interest income	$ (485)	$ (389)
Interest expense	925	920
Other, net	(81)	(5)
Total interest and other expense, net	359	526
Cash paid for interest	$ 2,200	$ 1,600

CONVERTIBLE NOTES AND CREDIT _3

CONVERTIBLE NOTES AND CREDIT FACILITY - Convertible Notes Narrative (Details) - USD ($)	Sep. 17, 2019	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Jan. 01, 2021
Debt Instrument [Line Items]
Debt instrument, convertible, remaining discount amortization period		54 months
Share price		$ 138.28
Senior Convertible Note
Debt Instrument [Line Items]
Proceeds from convertible debt	$ 83,700,000
Debt instrument, convertible, if-converted value in excess of principal		$ 51,400,000
Convertible Debt | Senior Convertible Note
Debt Instrument [Line Items]
Aggregate principal amount	$ 86,250,000	86,250,000		$ 86,250,000
Debt instrument, interest rate, stated percentage	3.75%
Interest expense, debt		916,000	$ 911,000
Convertible Debt | Senior Convertible Note | Accounting Standards Update 2020-06
Debt Instrument [Line Items]
Debt instrument, interest rate, effective percentage					4.35%
Level 2 | Senior Convertible Note
Debt Instrument [Line Items]
Convertible debt, fair value		$ 154,400,000		$ 194,300,000
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 ($)	Mar. 31, 2022	Dec. 31, 2021	Sep. 17, 2019
Debt Instrument [Line Items]
Aggregate principal amount	$ 86,250,000	$ 86,250,000	$ 86,250,000
Unamortized debt discount	(2,110,000)	(2,216,000)
Net carrying amount	$ 84,140,000	$ 84,034,000

CONVERTIBLE NOTES AND CREDIT _5

CONVERTIBLE NOTES AND CREDIT FACILITY - Interest Expense (Details) - Convertible Debt - Senior Convertible Note - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Interest expense related to contractual coupon interest	$ 809	$ 809
Interest expense related to amortization of the debt discount	107	102
Interest expense, debt	$ 916	$ 911

NOTE RECEIVABLES - Additional I

NOTE RECEIVABLES - Additional Information (Details) - USD ($)	Feb. 01, 2021	Dec. 09, 2020	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Principal amount			$ 0	$ 9,000,000
Equity Method Investee | Convertible Note Receivable
Debt Instrument [Line Items]
Principal amount		$ 6,650,000
Related party transaction, rate		3.00%
Related party transaction, effective interest rate		8.69%
Embedded derivative			900,000		$ 900,000
Accounts and financing receivable, allowance for credit loss			67,000
Equity Method Investee | Notes Receivable
Debt Instrument [Line Items]
Principal amount	$ 9,000,000
Related party transaction, rate	10.00%
Related party transaction, effective interest rate	10.99%
Embedded derivative	$ 300,000
Accounts and financing receivable, allowance for credit loss			$ 300,000

NOTE RECEIVABLES - Schedule (De

NOTE RECEIVABLES - Schedule (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Net carrying amount	$ 6,880	$ 6,800
Equity Method Investee | Convertible Note Receivable
Debt Instrument [Line Items]
Principal amount	6,650	6,650
Unamortized discount	(591)	(672)
Net carrying amount	6,059	5,978
Equity Method Investee | Notes Receivable
Debt Instrument [Line Items]
Principal amount	9,000	9,000
Unamortized discount	(238)	(254)
Net carrying amount	$ 8,762	$ 8,746

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)segment	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)
Segment Reporting, Other Significant Reconciling Item [Line Items]
Number of reportable segments | segment	2
Total revenue	$ 64,800	$ 60,503
Cost of revenue	35,655	35,033
Gross profit	$ 29,145	$ 25,470
Gross margin	45.00%	42.00%
Operating (loss) income	$ (11,454)	$ 1,018
Total assets	601,671		$ 604,072
North America
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	37,374	37,272
Cost of revenue	19,466	19,763
Gross profit	$ 17,908	$ 17,509
Gross margin	48.00%	47.00%
Operating (loss) income	$ (12,311)	$ 1,033
Total assets	369,013		441,234
International
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	27,426	23,231
Cost of revenue	16,189	15,270
Gross profit	$ 11,237	$ 7,961
Gross margin	41.00%	34.00%
Operating (loss) income	$ 857	$ (15)
Total assets	$ 232,658		$ 162,838