Heska Corp. (HSKA) 10-Q 5 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 26, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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)		10,913,754
Entity Central Index Key	0001038133
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 125,209,000	$ 156,618,000
Accounts receivable, net of allowance for losses of $1,190 and $1,129, respectively	26,054,000	29,493,000
Inventories	64,183,000	60,050,000
Net investment in leases, current, net of allowance for losses of $190 and $182, respectively	8,173,000	7,433,000
Prepaid expenses	6,239,000	5,514,000
Related party convertible note receivable, net	2,312,000	0
Other current assets	6,451,000	5,926,000
Total current assets	238,621,000	265,034,000
Property and equipment, net	55,030,000	32,171,000
Operating lease right-of-use assets	13,101,000	6,897,000
Goodwill	145,403,000	135,918,000
Other intangible assets, net	65,813,000	62,393,000
Deferred tax asset, net	31,483,000	23,684,000
Net investment in leases, non-current	29,605,000	27,499,000
Investments in unconsolidated affiliates	592,000	3,959,000
Related party convertible note receivable, net	0	2,224,000
Promissory note receivable from investee, net	0	13,511,000
Other non-current assets	13,067,000	12,526,000
Total assets	592,715,000	585,816,000
Current liabilities:
Accounts payable	12,246,000	16,403,000
Accrued liabilities	20,866,000	15,149,000
Operating lease liabilities, current	4,049,000	2,944,000
Deferred revenue, current, and other	5,137,000	5,081,000
Total current liabilities	42,298,000	39,577,000
Convertible note, non-current, net	84,579,000	84,467,000
Notes payable	11,130,000	11,130,000
Deferred revenue, non-current	5,422,000	4,096,000
Operating lease liabilities, non-current	9,674,000	4,528,000
Deferred tax liability	16,629,000	16,438,000
Other liabilities	5,312,000	3,372,000
Total liabilities	175,044,000	163,608,000
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, none issued or outstanding	0	0
Public common stock, $0.01 par value, 20,000,000 shares authorized, 10,915,679 and 10,829,518 shares issued and outstanding, respectively	109,000	108,000
Additional paid-in capital	600,126,000	597,139,000
Accumulated other comprehensive loss	(3,906,000)	(6,506,000)
Accumulated deficit	(178,658,000)	(168,533,000)
Total stockholders' equity	417,671,000	422,208,000
Total liabilities and stockholders' equity	$ 592,715,000	$ 585,816,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Allowance for credit loss	$ 1,190	$ 1,129
Leases, allowance for doubtful accounts	$ 190	$ 182
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)	10,915,679	10,829,518
Common stock, shares outstanding (in shares)	10,915,679	10,829,518

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues [Abstract]
Revenue, net	$ 62,381	$ 64,800
Cost of revenue	34,982	35,655
Gross profit	27,399	29,145
Operating expenses:
Selling and marketing	12,449	11,997
Research and development	3,088	12,456
General and administrative	22,285	16,146
Total operating expenses	37,822	40,599
Operating loss	(10,423)	(11,454)
Interest and other (income) expense, net	(272)	359
Net loss before taxes and equity in losses of unconsolidated affiliates	(10,151)	(11,813)
Income tax (benefit) expense:
Current income tax expense	690	158
Deferred income tax benefit	(1,065)	(2,366)
Total income tax benefit	(375)	(2,208)
Net loss before equity in losses of unconsolidated affiliates	(9,776)	(9,605)
Equity in losses of unconsolidated affiliates	(349)	(381)
Net loss attributable to Heska Corporation	$ (10,125)	$ (9,986)
Earnings Per Share [Abstract]
Basic (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.97)	$ (0.97)
Diluted (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.97)	$ (0.97)
Weighted average outstanding shares used to compute basic (loss) earnings per share attributable to Heska Corporation (in shares)	10,390	10,273
Weighted average outstanding shares used to compute diluted (loss) earnings per share attributable to Heska Corporation (in shares)	10,390	10,273

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net loss attributable to Heska Corporation	$ (10,125)	$ (9,986)
Other comprehensive income (loss):
Translation adjustments and gains (losses) from intra-entity transactions	2,600	(3,043)
Comprehensive loss attributable to Heska Corporation	$ (7,525)	$ (13,029)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
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 loss attributable to Heska Corporation	(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)
Beginning balance (in shares) at Dec. 31, 2022		0	10,830
Beginning balance at Dec. 31, 2022	422,208	$ 0	$ 108	597,139	(6,506)	(168,533)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss attributable to Heska Corporation	(10,125)					(10,125)
Issuance of common stock, net of shares withheld for employee taxes (in shares)			86
Issuance of common stock, net of forfeitures and shares withheld for employee taxes	(89)			(90)
Stock-based compensation	3,077			3,077
Other comprehensive income (loss)	2,600				2,600
Ending balance (in shares) at Mar. 31, 2023		0	10,916
Ending balance at Mar. 31, 2023	$ 417,671	$ 0	$ 109	$ 600,126	$ (3,906)	$ (178,658)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss before equity in losses of unconsolidated affiliates	$ (10,125)	$ (9,986)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	3,974	3,300
Non-cash impact of operating leases	871	673
Deferred tax benefit	(1,065)	(2,366)
Stock-based compensation	3,077	5,110
Change in fair value of contingent consideration	8	(236)
Equity in losses of unconsolidated affiliates	349	381
Accretion of discounts and issuance costs	24	11
Other losses (gains), net	703	(473)
Changes in operating assets and liabilities (net of the effect of acquisitions):
Accounts receivable	4,399	2,060
Inventories	(3,112)	(6,528)
Lease receivables	(2,708)	(2,248)
Other assets	(1,908)	(288)
Accounts payable	(7,683)	(3,069)
Other liabilities	4,035	(4,006)
Net cash used in operating activities	(9,161)	(17,665)
Cash flows from investing activities:
Capital expenditures	(1,885)	(334)
Net cash used in investing activities	(22,558)	(29,843)
Cash flows from financing activities:
Proceeds from issuance of common stock	1	1,761
Payments for taxes related to shares withheld for employee taxes	(90)	(4,961)
Repayments of other debt	(39)	(62)
Net cash used in financing activities	(128)	(3,262)
Foreign exchange effect on cash and cash equivalents	438	(60)
Net decrease in cash and cash equivalents	(31,409)	(50,830)
Cash and cash equivalents, beginning of period	156,618	223,574
Cash and cash equivalents, end of period	125,209	172,744
Supplemental disclosure of cash flow information:
Non-cash transfers of equipment between inventory and property and equipment, net	1,297	749
Contingent consideration for acquisitions	0	3,860
Settlement of Promissory Note and other preexisting relationships as part of acquisition	11,800	0
Indemnity holdback and net working capital adjustment for acquisitions	2,550	1,608
LightDeck
Cash flows from investing activities:
Acquisition	(20,673)	0
VetZ GmbH
Cash flows from investing activities:
Acquisition	$ 0	$ (29,509)

BUSINESS OVERVIEW AND SUMMARY O

BUSINESS OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
BUSINESS OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BUSINESS OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Heska Corporation and its wholly-owned subsidiaries ("Heska", the "Company", "we" or "our") sell, manufacture, market and support diagnostic and specialty products and solutions for veterinary practitioners. Our portfolio includes Point of Care ("POC") diagnostic laboratory instruments and consumables including rapid assay diagnostic products and digital cytology services; POC digital imaging diagnostic products; local and cloud-based data services; veterinary practice information management software solutions ("PIMS") and related software and support; reference laboratory testing; allergy testing and immunotherapy; heartworm preventive products; and vaccines. Our primary focus is on supporting companion animal veterinarians in providing care to their patients. Proposed Merger On March 31, 2023, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Antech Diagnostics, Inc., a California corporation (“Acquiror”), Helsinki Merger Sub LLC, a Delaware limited liability company and a wholly owned subsidiary of Acquiror (“Merger Sub”), and, solely for purposes of Section 9.15 of the Merger Agreement, Mars, Incorporated, a Delaware corporation ("Mars"). The Merger Agreement provides that, subject to the terms and conditions set forth therein, at the effective time of the Merger, Merger Sub will be merged with and into the Company (the “Merger”), with the Company continuing as the surviving corporation and wholly owned subsidiary of Acquiror, and each share of public common stock, par value $0.01 per share, of the Company (other than shares held in the treasury of the Company, shares held, directly or indirectly, by Mars, Acquiror or Merger Sub (or any of their subsidiaries) or any wholly-owned subsidiary of the Company immediately prior to the Effective Time, restricted stock of Heska (the treatment of which is described elsewhere in the Merger Agreement) or shares held by a holder who properly demands appraisal of such shares pursuant to, and who complies in all respects with, Section 262 of the Delaware General Corporation Law) will be automatically cancelled and converted into the right to receive $120.00 per share in cash, without interest. Completion of the Merger is subject to customary closing conditions, including approval of the Company's shareholders and the receipt of required regulatory approvals. The parties expect the transaction to close in the second half of 2023. The Merger Agreement and the Merger are described in greater detail in the Preliminary Proxy Statement and other materials and documents filed with the SEC, all of which are available on the SEC's website at www.sec.gov. During the quarter ended March 31, 2023, the Company incurred $5.1 million of costs related to the Merger Agreement, which are included within General and administrative on the Condensed Consolidated Statements of Loss. 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, 2023, and the results of our operations and statements of stockholders' equity for the three months ended March 31, 2023 and 2022, and cash flows for the three months ended March 31, 2023 and 2022. 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, 2023 are not necessarily indicative of the results to be expected for the full year or any future period. 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, 2022 and other financial information filed with the SEC. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are required when establishing the allowance for 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 timing and probability of expense associated with the granting of performance-based stock awards; determining the need for, and the amount of a valuation allowance on deferred tax assets; determining the fair value of our embedded derivatives; determining the value of the contingent consideration in a business combination 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, a short-term note receivable with an embedded derivative asset, 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, 2023 and December 31, 2022 were (in thousands): Total Level 1 Level 2 Level 3 2023 Financial Assets Money market fund $ 93,000 $ 93,000 $ — $ — Convertible note receivable embedded derivative 177 — — 177 Financial Liabilities BiEsseA contingent consideration 453 — — 453 Balances, March 31, 2023 $ 93,630 $ 93,000 $ — $ 630 2022 Total Level 1 Level 2 Level 3 Financial Assets Money market fund $ 95,000 $ 95,000 $ — $ — Convertible note receivable embedded derivative 177 — — 177 Financial Liabilities BiEsseA contingent consideration 438 — — 438 Balances, December 31, 2022 $ 95,615 $ 95,000 $ — $ 615 The Company's financial assets based upon Level 3 inputs include embedded derivatives relating to its notes receivable. The Company determined the redemption features of its convertible note receivable represent 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. The fair value of the warrant was $0 as of December 31, 2022. The warrant was cancelled as of January 3, 2023, due to the LightDeck acquisition further discussed in Note 3. For additional information regarding the Company's notes receivable and derivatives, refer to Note 17, Notes Receivable. The estimated fair value of 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 twelve month period subsequent to the Initial Earn Out Period ended on March 31, 2023. The required performance metrics were not achieved, and no contingent consideration was paid. The Company is obligated to pay contingent consideration payments of $2.7 million in connection with the BSA acquisition based on the achievement of certain revenue metrics within three annual periods after 2021. Refer to Note 3, Acquisitions and Related Party Items for further discussion. The fair value of our contingent consideration and notes payable arrangements was determined at inception 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 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, 2023 (in thousands): Derivative Assets Contingent Consideration Liabilities Convertible note receivable Lacuna BiEsseA Balances, December 31, 2022 $ 177 $ — $ 438 Changes in fair value — — 8 Foreign currency impact — — 7 Balances, March 31, 2023 $ 177 $ — $ 453 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, 2022, and have not changed materially since such filing. Accounting Pronouncements Not Yet Adopted There have been no recent accounting pronouncements issued and not yet adopted that would have a material impact on our financial position or disclosures.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2023
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, 2023 2022 North America revenue: POC lab instruments & other $ 4,243 $ 4,647 POC lab consumables 21,006 18,637 POC imaging & informatics 5,828 6,051 PVD 5,433 4,576 OVP 2,050 3,463 Total North America revenue $ 38,560 $ 37,374 International revenue: POC lab instruments & other $ 4,785 $ 3,733 POC lab consumables 10,545 11,748 POC imaging & informatics 7,674 10,962 PVD 817 983 Total International revenue $ 23,821 $ 27,426 Total revenue $ 62,381 $ 64,800 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, 2023, the aggregate amount of the transaction price allocated to remaining minimum performance obligations was approximately $232.1 million. As of March 31, 2023, the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2023 (remaining) $ 41,087 2024 52,303 2025 45,981 2026 40,759 2027 27,638 Thereafter 24,369 $ 232,137 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, 2023 were $1.9 million and $6.5 million for current and non-current assets, respectively, shown net of related unearned interest. The balances as of December 31, 2022 were $1.8 million and $5.9 million for current and non-current assets, respectively, shown net of related unearned interest. The increase in contract assets for the three-month period ended March 31, 2023 is primarily related to additional contract assets recorded for contracts with a free term, partially offset by payments received. The balances as of December 31, 2021 were $1.5 million and $5.1 million for current and non-current assets, respectively. 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, 2023, December 31, 2022, and December 31, 2021 contract liabilities were $8.4 million, $8.3 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 increase in the contract liability balance during the three-month period ended March 31, 2023 is attributable to approximately $2.5 million of additional deferred sales in 2023, partially offset by approximately $2.4 million of revenue recognized during the period. 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, 2023
Business Combinations and Related Party Disclosure [Abstract]
ACQUISITION AND RELATED PARTY ITEMS	ACQUISITIONS AND RELATED PARTY ITEMS LightDeck Acquisition On January 3, 2023, the Company acquired 100% of the shares of MBio Diagnostics, Inc., d/b/a LightDeck Diagnostics ("LightDeck") for approximately $39.8 million, of which $13.7 million was the reacquisition of the Company's previously held promissory notes discussed further in Note 17. The purchase price was decreased for the settlement of preexisting relationships, including $2.5 million of payables due to LightDeck and a $0.2 million discount on the promissory notes, offset by a $0.8 million license fee further discussed in Note 4. The agreement also included a general indemnity holdback of approximately $2.6 million. The preliminary cash purchase price is subject to potential purchase price adjustments, and the holdback must be released within 18 months of the closing date. As further discussed in Note 4, prior to the acquisition the Company owned preferred stock of LightDeck, which was accounted for as a non-marketable equity security. In accordance with ASC 805, Business Combinations , the acquisition was accounted for as a business combination achieved in stages. Accordingly, the original $3.0 million investment was remeasured to fair value as of the acquisition date and included as part of the purchase consideration. The fair value was determined based on the liquidation preference of the preferred stock, and it was determined that the $3.0 million investment balance approximated the fair value as of the closing date. As such, no gain or loss was recognized in the Condensed Consolidated Statements of Loss. The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their fair values as of January 3, 2023. The total purchase consideration exceeded the fair value of the identifiable net assets acquired, resulting in $8.4 million of goodwill, which primarily relates to the increase in our intellectual property portfolio as well as our manufacturing and research and development capabilities. All of the goodwill is allocated to the North America segment and is not tax deductible for income tax purposes. The information below represents the preliminary purchase price allocation as of the acquisition date (in thousands): January 3, 2023 Purchase price in cash $ 25,000 Settlement of promissory notes 13,700 Settlement of preexisting relationships (1,900) Fair value of previously held equity interest 3,018 Total purchase consideration $ 39,818 Cash and cash equivalents $ 1,777 Accounts receivable 560 Inventory 2,691 Prepaid expenses 650 Other current assets 313 Property and equipment 21,041 Operating lease right-of-use assets 6,237 Intangible assets 5,000 Deferred tax asset 6,787 Other non-current assets 75 Total assets acquired 45,131 Accounts payable 5,422 Accrued liabilities 2,014 Operating lease liabilities, current 1,038 Operating lease liabilities, non-current 5,198 Net assets acquired 31,459 Goodwill 8,359 Total fair value of consideration transferred $ 39,818 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, 2023, were as follows (dollars in thousands): Useful Life Amortization Fair Value Developed technology 10 years Straight-line $ 5,000 Total intangible assets acquired $ 5,000 LightDeck generated net revenue of $33 thousand and a net loss of $3.4 million for the period from January 3, 2023 to March 31, 2023. The Company incurred acquisition related costs of approximately $0.5 million for the three months ended March 31, 2023, which are included within General and administrative expenses on our Condensed Consolidated Statements of Loss. Unaudited Pro Forma Financial Information The following table presents unaudited supplemental pro forma financial information as if the acquisition had occurred on January 1, 2022 (in thousands): Three Months Ended Revenue, net $ 64,821 Net loss before equity in losses of unconsolidated affiliates $ (14,371) Net loss attributable to Heska Corporation $ (14,752) VetZ Acquisition On January 3, 2022, the Company acquired 100% of the equity of VetZ GmbH (“VetZ”), a European leader in PIMS, for an aggregate purchase price of approximately $35.5 million. The purchase price consisted of approximately $31.6 million in cash as well as contingent consideration as described below. The cash purchase price includes a general indemnity holdback of approximately $1.4 million to be released within 18 months of closing. The cash purchase price was also reduced by a negative net working capital adjustment of approximately $0.6 million. As additional consideration for the acquisition, the Company agreed to a contingent earn-out of 91,039 shares of Heska stock, with a total value of $15.5 million, 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 Company evaluated whether the contingent earn-out should be treated as a liability or equity in accordance with ASC 480, Distinguishing Liabilities from Equity (“ASC 480”), and ASC 815, Derivatives and Hedging (“ASC 815”). The contingent earn-out did not meet the ASC 480 definition of a liability as it is not mandatorily redeemable, is not an obligation to repurchase the Company’s shares, and it can only be settled with a fixed number of shares. Additionally, the Company noted the contingent earn-out met the scope exception in ASC 815-10 as the earn-out is indexed to the Company’s own shares, and also met the criteria in ASC 815-40 to be classified in equity as the Company has sufficient authorized and unissued shares, the earn-out has an explicit share limit, there are no required cash payments. As such the contingent earn-out is classified in equity, and is not subsequently remeasured each reporting period. On March 31, 2023, in connection with the execution of the Merger Agreement, the Company entered into an amendment, pursuant to which the earnout payment will be settled in cash instead of shares and a portion of the earnout payment will be accelerated and become payable within 20 days upon closing of the Merger, with the remainder to be paid out upon the achievement of one or more earnout milestones. The amendment will be automatically terminated if the Merger fails to occur for any reason, including if the Merger Agreement is terminated by either party thereto according to the terms thereof. The purchase price exceeded the fair value of the identifiable net assets, resulting in goodwill of $22.0 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, which were finalized as of December 31, 2022. The information below represents the purchase price allocation as of the acquisition date (in thousands): January 3, 2022 Purchase price in cash $ 31,627 Fair value of equity contingent consideration 3,860 Total purchase consideration $ 35,487 Cash and cash equivalents $ 1,251 Inventory 359 Accounts receivable 824 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 24,820 Accounts payable 520 Accrued liabilities 1,260 Operating lease liabilities, current 247 Deferred revenue, current, and other 1,014 Operating lease liabilities, non-current 2,714 Deferred tax liabilities 5,246 Other liabilities 318 Net assets acquired 13,501 Goodwill 21,986 Total fair value of consideration transferred $ 35,487 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 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 Company is obligated to pay contingent notes of up to $17.5 million based on the achievement of certain product development milestones or at a predetermined date in the future. 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. The options were not redeemable as of the acquisition date. As of the period ending March 31, 2023, two of the product development milestones were achieved. During the year ended December 31, 2022, the Company made payments of $5.3 million. $4.8 million was a reduction to Notes payable and $0.5 million was recorded to interest expense. The Company acquired an additional 10.50% interest for a majority interest ownership of 75.50%. No additional payments have been made through March 31, 2023. The counterparty owns the remaining minority interest of 24.50%. The estimated fair value of the Notes Payable at the acquisition date of $15.9 million is inclusive of the probability weighted outcomes of the options described herein and was determined using Level 3 inputs. As of the period ending March 31, 2023, the remaining value of the Notes Payable is $11.1 million. 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 and primarily consists of opportunities to expand product offerings and the experienced workforce acquired. 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 total purchase consideration is subject to customary working capital adjustments, which were finalized as of September 1, 2022. The information below represents the purchase price allocation as of the acquisition date (in thousands): September 1, 2021 Purchase price in cash $ 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 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 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, consisting of $4.8 million in cash and contingent consideration described below. 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 $2.7 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 was $2.3 million as of the acquisition date, and subsequently decreased to $0.5 million as of March 31, 2023. 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. The goodwill resulting from this acquisition consists largely of the Company's expected future product sales and synergies from combining operations. 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, 2023, approximately $0.4 million of the indemnification agreement remains outstanding. The information below represents the purchase price allocation as of the acquisition date (in thousands): July 1, 2021 Purchase price in cash $ 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 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 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 December 31, 2022, the full $0.4 million indemnification holdback was released and none 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 as of March 31, 2023. The twelve month period subsequent to the Initial Earn Out Period ended on March 31, 2023. The required performance metrics were not achieved, and no contingent consideration was paid. 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 total purchase consideration is subject to customary working capital adjustments, which were finalized as of February 1, 2022. The information below represents the purchase price allocation as of the acquisition date (in thousands): February 1, 2021 Purchase price in cash $ 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 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 $72 thousand and $75 thousand related to this lease for the three months ended March 31, 2023 and 2022, respectively. The right-of-use asset and lease liability related to the building lease were approximately $2.6 million and $2.3 million as of March 31, 2023 and December 31, 2022, respectively. 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, 2023
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, 2023 December 31, 2022 Equity method investment $ 592 $ 941 Non-marketable equity security investment — 3,018 Investments in unconsolidated affiliates $ 592 $ 3,959 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, 2023, 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. The Company has a note receivable from the equity method investee. Refer to Note 17, Notes Receivable, for additional details. Non-Marketable Equity Security Investment On August 8, 2018, the Company invested approximately $3.0 million, including costs, in exchange for preferred stock of LightDeck. The Company's investment was 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 provided that LightDeck 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 as of December 31, 2022. In addition, the agreement provided for an additional contingent payment of $10.0 million, relating to the successful achievement of sales milestones. This potential future milestone payment was not accrued as of December 31, 2022, as it was not deemed by the Company to be probable. The Company evaluated the investment in LightDeck as well as a First Promissory Note and Second Promissory Note, discussed in Note 17, to determine whether we met the requirement for consolidation within the Variable Interest Entity ("VIE") and Voting Interest Entity ("VOE") models prior to the acquisition on January 3, 2023. In accordance with both the VIE and VOE models, it was concluded that while the Company did have a variable interest in LightDeck prior to the acquisition, the Company did not assert control over LightDeck and therefore should not consolidate their financial results prior to closing the merger transaction.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company's total income tax benefit for our loss before income taxes was as follows (in thousands): Three Months Ended March 31, 2023 2022 Loss before income taxes and equity in losses of unconsolidated affiliates $ (10,151) $ (11,813) Total income tax benefit $ (375) $ (2,208) There were cash payments for income taxes, net of refunds, of $1.4 million for the three months ended March 31, 2023, and there were cash payments of $0.5 million, for income taxes for the three months ended March 31, 2022. The Company had a tax benefit of $0.4 million for the three months ended March 31, 2023 compared to the tax benefit of $2.2 million for the three months ended March 31, 2022. The decrease in tax benefit in the three month period is due to tax expense from transaction costs and employee stock compensation. The Company recognized $0.6 million in excess tax expense related to employee share-based compensation for the three months ended March 31, 2023, compared to $0.6 million excess tax benefit recognized for the three months ended March 31, 2022. As of December 31, 2022, the Company had a deferred tax asset of approximately $6.4 million from net operating losses and tax credits. The Company has a valuation allowance recorded on statutory deferred tax assets in Germany and a partial valuation allowance recorded on state net operating losses in the US. In the first quarter, the Company forecasted an increase of approximately $0.5 million to the valuation allowance through the annual effective tax rate used to estimate income tax expense. The increase is due to forecasted future financial losses in Germany, Italy, and Spain. After the increase, the net valuation allowance is forecasted to be approximately $5.5 million as of December 31, 2023.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2023
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, 2023 December 31, 2022 Assets Operating Operating lease right-of-use assets $ 13,101 $ 6,897 Finance Property and equipment, net 1,534 1,471 Total Leased Assets $ 14,635 $ 8,368 Liabilities Operating Operating lease liabilities, current $ 4,049 $ 2,944 Operating lease liabilities, non-current 9,674 4,528 Finance Deferred revenue, current, and other 152 127 Other liabilities 333 307 Total Lease Liabilities $ 14,208 $ 7,906 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): Three Months Ended March 31, 2023 2022 Sales-type lease revenue $ 4,995 $ 4,101 Sales-type lease cost of revenue 3,959 3,473 Profit recognized at commencement for sales-type leases $ 1,036 $ 628 Operating lease income $ 375 $ 503
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, 2023 December 31, 2022 Assets Operating Operating lease right-of-use assets $ 13,101 $ 6,897 Finance Property and equipment, net 1,534 1,471 Total Leased Assets $ 14,635 $ 8,368 Liabilities Operating Operating lease liabilities, current $ 4,049 $ 2,944 Operating lease liabilities, non-current 9,674 4,528 Finance Deferred revenue, current, and other 152 127 Other liabilities 333 307 Total Lease Liabilities $ 14,208 $ 7,906 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, 2023
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, 2023 and 2022 (in thousands, except per share data): Three Months Ended March 31, 2023 2022 Net loss attributable to Heska Corporation $ (10,125) $ (9,986) Basic weighted-average common shares outstanding 10,390 10,273 Dilutive effect of stock options and restricted stock — — Diluted weighted-average common shares outstanding 10,390 10,273 Basic loss per share attributable to Heska Corporation $ (0.97) $ (0.97) Diluted loss per share attributable to Heska Corporation $ (0.97) $ (0.97) The following potentially outstanding common shares from conversion of the 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, 2023 2022 Convertible Senior Notes 996 996 Stock options and restricted stock 217 356 1,213 1,352

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	3 Months Ended
	Mar. 31, 2023
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, 2023 (in thousands): North America International Total Carrying amount, December 31, 2022 $ 64,912 $ 71,006 $ 135,918 Goodwill attributable to acquisitions (subject to change) 8,359 — 8,359 Foreign currency adjustments 8 1,118 1,126 Carrying amount, March 31, 2023 $ 73,279 $ 72,124 $ 145,403 Other intangible assets, net consisted of the following (in thousands): March 31, 2023 December 31, 2022 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 $ 57,641 $ (17,577) $ 40,064 $ 56,900 $ (16,002) $ 40,898 Developed technology 24,217 (7,366) 16,851 19,143 (6,462) 12,681 Trade names 1,845 (377) 1,468 1,818 (319) 1,499 Intangible assets not subject to amortization: Trade names 7,430 — 7,430 7,315 — 7,315 Total intangible assets $ 91,133 $ (25,320) $ 65,813 $ 85,176 $ (22,783) $ 62,393 Amortization expense was $2.5 million and $2.2 million for the three months ended March 31, 2023 and 2022, respectively. The remaining weighted-average amortization period for intangible assets is approximately 7.6 years. Estimated amortization expense related to intangibles for each of the five years from 2023 (remaining) through 2027 and thereafter is as follows (in thousands): Year Ending December 31, 2023 (remaining) $ 6,712 2024 8,456 2025 8,411 2026 8,011 2027 7,074 Thereafter 19,719 Total amortization related to finite-lived intangible assets $ 58,383 Indefinite-lived intangible assets 7,430 Net intangible assets $ 65,813

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT, NET Property and equipment, net, consisted of the following (in thousands): March 31, 2023 December 31, 2022 Land $ 2,403 $ 2,182 Building 11,582 11,558 Machinery and equipment 42,251 39,141 Office furniture and equipment 2,272 1,951 Computer hardware and software 5,657 5,923 Leasehold and building improvements 10,986 10,854 Construction in progress 20,980 283 Property and equipment, gross 96,131 71,892 Less accumulated depreciation (41,101) (39,721) Total property and equipment, net $ 55,030 $ 32,171 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, 2023 and December 31, 2022, was $15.4 million and $15.7 million, respectively, before accumulated depreciation of $6.4 million and $6.5 million, respectively. Depreciation expense was $1.6 million and $0.8 million for the three months ended March 31, 2023 and 2022, respectively.

INVENTORIES, NET

INVENTORIES, NET	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
INVENTORIES, NET	INVENTORIES Inventories consisted of the following (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 23,013 $ 20,978 Work in process 5,497 4,102 Finished goods 35,673 34,970 Total inventories $ 64,183 $ 60,050

ACCRUED LIABILITIES

ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): March 31, 2023 December 31, 2022 Accrued payroll and employee benefits $ 7,287 $ 7,908 Accrued property taxes 468 670 Accrued purchase orders 1,898 203 Accrued taxes 1,558 2,123 Inventory in transit 1,755 677 Accrued transaction costs 5,247 156 Other 2,653 3,412 Total accrued liabilities $ 20,866 $ 15,149 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, 2023
Share-based Payment Arrangement [Abstract]
CAPITAL STOCK	CAPITAL STOCK During the three months ended March 31, 2023, the Company granted the following restricted stock awards and restricted stock units: Three Months Ended March 31, 2023 Awards/Units Weighted-Average Grant Date Fair Value Restricted stock awards 89,347 $ 81.74 Restricted stock units 23,433 $ 92.55

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consisted of the following (in thousands): Pension Adjustments Foreign Currency Translation 1 Foreign Currency (Loss) Gain on Intra-Entity Transactions 2 Total Accumulated Other Comprehensive (Loss) Income Balances at December 31, 2022 $ (180) $ (4,900) $ (1,426) $ (6,506) Current period other comprehensive income — 1,234 1,366 2,600 Balances at March 31, 2023 $ (180) $ (3,666) $ (60) $ (3,906) 1 Foreign currency gains and losses related to translation of foreign subsidiary financial statements. 2 The Company has intercompany loans of a long-term investment nature that are denominated in a foreign currency. These transactions are considered to be of a long-term nature if settlement is not planned or anticipated in the foreseeable future.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2023
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 $0.3 million as of both March 31, 2023 and December 31, 2022, included in Accrued liabilities on the Condensed Consolidated Balance Sheets. 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 paid $0.8 million to the defendant on April 28, 2022. The Company is indemnified by the scil acquisition agreement for this claim. As of March 31, 2023, 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 our 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 $10 million payment was expensed to Research and development on the Condensed Consolidated Statements of Loss 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. Refer to Note 4 for discussion of our variable interest entity. Purchase Obligations

INTEREST AND OTHER (INCOME) EXP

INTEREST AND OTHER (INCOME) EXPENSE, NET	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
INTEREST AND OTHER (INCOME) EXPENSE, NET	INTEREST AND OTHER (INCOME) EXPENSE, NET Interest and other (income) expense, net, consisted of the following (in thousands): Three Months Ended March 31, 2023 2022 Interest income $ (1,362) $ (485) Interest expense 939 925 Other expense (income), net 151 (81) Total interest and other (income) expense, net $ (272) $ 359

CONVERTIBLE NOTES AND CREDIT FA

CONVERTIBLE NOTES AND CREDIT FACILITY	3 Months Ended
	Mar. 31, 2023
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 , 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 2022 Form 10-K for further information on the Notes. No portion of the Notes was converted during the three months ended March 31, 2023 and the liability was classified as long-term debt on the Company's Condensed Consolidated Balance Sheet as of March 31, 2023. 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. The Company's non-cash interest accretion is limited to the amortization of debt issuance costs under ASC 835-30. The effective interest rate of the Notes is 4.35%. The following table summarizes the net carrying amount of the Notes (in thousands): March 31, 2023 December 31, 2022 Principal amount of the Notes $ 86,250 $ 86,250 Unamortized debt discount (1,671) (1,783) Net carrying amount $ 84,579 $ 84,467 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, 2023 2022 Interest expense related to contractual coupon interest $ 809 $ 809 Interest expense related to amortization of the debt discount 111 107 $ 920 $ 916 As of March 31, 2023, the remaining period over which the unamortized discount will be amortized is 3.5 years. The estimated fair value of the Notes was $113.4 million and $89.1 million as of March 31, 2023 and December 31, 2022, 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 $97.62 on March 31, 2023, the if-converted value exceeded the aggregate principal amount of the Notes by $10.9 million.

NOTE RECEIVABLES

NOTE RECEIVABLES	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
NOTE RECEIVABLES	NOTES RECEIVABLE 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. 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. The following table summarizes the net carrying amount of the note receivable, including the unamortized discount and allowance for expected credit losses, as well as the fair value of the embedded derivative asset (in thousands): March 31, 2023 December 31, 2022 Principal amount $ 6,650 $ 6,650 Unamortized discount (251) (339) Allowance for expected credit losses (4,264) (4,264) Net carrying amount 2,135 2,047 Embedded derivative asset 177 177 Related party convertible note receivable, net $ 2,312 $ 2,224 The allowance for expected credit losses did not change from December 31, 2022 to March 31, 2023. Promissory Notes On February 1, 2021, LightDeck issued a Promissory Note to the Company (the “First Promissory Note”) with a principal amount of $9.0 million and a stated interest rate of 10.0% per annum that is payable monthly. As discussed further in Note 3 and Note 4, the Company previously owned preferred stock in LightDeck that was accounted for as a non-marketable equity security until the Company acquired 100% of the shares of LightDeck on January 3, 2023. The First 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 First 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 LightDeck that expires December 31, 2034. On September 19, 2022, a second Promissory Note (the "Second Promissory Note") was issued to the Company with a principal amount of $4.7 million and a stated interest rate of 10.0% per annum that is payable on December 31, 2023. The Second Promissory Note has a maturity date of the earlier of December 31, 2023 and a merger transaction with LightDeck. Both the First Promissory Note and Second Promissory Note were settled as part of the acquisition on January 3, 2023. 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. The fair value of the derivative was $0 as of December 31, 2022. The warrant was cancelled as of the January 3, 2023 acquisition. The following table summarizes the carrying value of the notes receivable, including the unamortized discount and allowance for expected credit losses (in thousands): March 31, 2023 December 31, 2022 Principal amount $ — $ 13,700 Unamortized discount — (189) Allowance for expected credit losses — — Promissory notes receivable from investee, net $ — $ 13,511

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2023
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, and 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 Chief Operating Decision Maker ("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, 2023, due to the acquisition of LightDeck on January 3, 2023. Summarized financial information concerning the Company's reportable segments is shown in the following tables (in thousands): Three Months Ended March 31, 2023 North America International Total Total revenue $ 38,560 $ 23,821 $ 62,381 Cost of revenue 20,451 14,531 34,982 Gross profit $ 18,109 $ 9,290 $ 27,399 Gross margin 47 % 39 % 44 % Operating loss $ (9,206) $ (1,217) $ (10,423) 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) Asset information by reportable segment as of March 31, 2023 is as follows (in thousands): As of March 31, 2023 North America International Total Total assets $ 377,259 $ 215,456 $ 592,715 Asset information by reportable segment as of December 31, 2022 is as follows (in thousands): As of December 31, 2022 North America International Total Total assets $ 374,737 $ 211,079 $ 585,816

BUSINESS OVERVIEW AND SUMMARY_2

BUSINESS OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2023
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, 2023, and the results of our operations and statements of stockholders' equity for the three months ended March 31, 2023 and 2022, and cash flows for the three months ended March 31, 2023 and 2022.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, 2023 are not necessarily indicative of the results to be expected for the full year or any future period. 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, 2022 and other financial information filed with the SEC.
Use of Estimates	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are required when establishing the allowance for 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 timing and probability of expense associated with the granting of performance-based stock awards; determining the need for, and the amount of a valuation allowance on deferred tax assets; determining the fair value of our embedded derivatives; determining the value of the contingent consideration in a business combination 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 notes receivable. The Company determined the redemption features of its convertible note receivable represent 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. The fair value of the warrant was $0 as of December 31, 2022. The warrant was cancelled as of January 3, 2023, due to the LightDeck acquisition further discussed in Note 3. For additional information regarding the Company's notes receivable and derivatives, refer to Note 17, Notes Receivable. The estimated fair value of 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 twelve month period subsequent to the Initial Earn Out Period ended on March 31, 2023. The required performance metrics were not achieved, and no contingent consideration was paid. The Company is obligated to pay contingent consideration payments of $2.7 million in connection with the BSA acquisition based on the achievement of certain revenue metrics within three annual periods after 2021. Refer to Note 3, Acquisitions and Related Party Items for further discussion. The fair value of our contingent consideration and notes payable arrangements was determined at inception 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 within General and administrative expenses. The note payable associated with the Biotech acquisition is not adjusted to fair value each period.
Revenue Recognition
Adoption of New Accounting Pronouncements	Accounting Pronouncements Not Yet Adopted There have been no recent accounting pronouncements issued and not yet adopted that would have a material impact on our financial position or disclosures.

BUSINESS OVERVIEW AND SUMMARY_3

BUSINESS OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Fair Value Measurements, Recurring and Nonrecurring	The fair values of our financial instruments at March 31, 2023 and December 31, 2022 were (in thousands): Total Level 1 Level 2 Level 3 2023 Financial Assets Money market fund $ 93,000 $ 93,000 $ — $ — Convertible note receivable embedded derivative 177 — — 177 Financial Liabilities BiEsseA contingent consideration 453 — — 453 Balances, March 31, 2023 $ 93,630 $ 93,000 $ — $ 630 2022 Total Level 1 Level 2 Level 3 Financial Assets Money market fund $ 95,000 $ 95,000 $ — $ — Convertible note receivable embedded derivative 177 — — 177 Financial Liabilities BiEsseA contingent consideration 438 — — 438 Balances, December 31, 2022 $ 95,615 $ 95,000 $ — $ 615
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, 2023 (in thousands): Derivative Assets Contingent Consideration Liabilities Convertible note receivable Lacuna BiEsseA Balances, December 31, 2022 $ 177 $ — $ 438 Changes in fair value — — 8 Foreign currency impact — — 7 Balances, March 31, 2023 $ 177 $ — $ 453
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, 2023 (in thousands): Derivative Assets Contingent Consideration Liabilities Convertible note receivable Lacuna BiEsseA Balances, December 31, 2022 $ 177 $ — $ 438 Changes in fair value — — 8 Foreign currency impact — — 7 Balances, March 31, 2023 $ 177 $ — $ 453

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes our segment revenue (in thousands): Three Months Ended March 31, 2023 2022 North America revenue: POC lab instruments & other $ 4,243 $ 4,647 POC lab consumables 21,006 18,637 POC imaging & informatics 5,828 6,051 PVD 5,433 4,576 OVP 2,050 3,463 Total North America revenue $ 38,560 $ 37,374 International revenue: POC lab instruments & other $ 4,785 $ 3,733 POC lab consumables 10,545 11,748 POC imaging & informatics 7,674 10,962 PVD 817 983 Total International revenue $ 23,821 $ 27,426 Total revenue $ 62,381 $ 64,800
Schedule of Timing of Revenue Expected to be Recognized	As of March 31, 2023, the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2023 (remaining) $ 41,087 2024 52,303 2025 45,981 2026 40,759 2027 27,638 Thereafter 24,369 $ 232,137

ACQUISITION AND RELATED PARTY_2

ACQUISITION AND RELATED PARTY ITEMS (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 Purchase price in cash $ 25,000 Settlement of promissory notes 13,700 Settlement of preexisting relationships (1,900) Fair value of previously held equity interest 3,018 Total purchase consideration $ 39,818 Cash and cash equivalents $ 1,777 Accounts receivable 560 Inventory 2,691 Prepaid expenses 650 Other current assets 313 Property and equipment 21,041 Operating lease right-of-use assets 6,237 Intangible assets 5,000 Deferred tax asset 6,787 Other non-current assets 75 Total assets acquired 45,131 Accounts payable 5,422 Accrued liabilities 2,014 Operating lease liabilities, current 1,038 Operating lease liabilities, non-current 5,198 Net assets acquired 31,459 Goodwill 8,359 Total fair value of consideration transferred $ 39,818 The information below represents the purchase price allocation as of the acquisition date (in thousands): January 3, 2022 Purchase price in cash $ 31,627 Fair value of equity contingent consideration 3,860 Total purchase consideration $ 35,487 Cash and cash equivalents $ 1,251 Inventory 359 Accounts receivable 824 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 24,820 Accounts payable 520 Accrued liabilities 1,260 Operating lease liabilities, current 247 Deferred revenue, current, and other 1,014 Operating lease liabilities, non-current 2,714 Deferred tax liabilities 5,246 Other liabilities 318 Net assets acquired 13,501 Goodwill 21,986 Total fair value of consideration transferred $ 35,487 The information below represents the purchase price allocation as of the acquisition date (in thousands): September 1, 2021 Purchase price in cash $ 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 purchase price allocation as of the acquisition date (in thousands): July 1, 2021 Purchase price in cash $ 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 in cash $ 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, 2023, were as follows (dollars in thousands): Useful Life Amortization Fair Value Developed technology 10 years Straight-line $ 5,000 Total intangible assets acquired $ 5,000 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, 2022 (in thousands): Three Months Ended Revenue, net $ 64,821 Net loss before equity in losses of unconsolidated affiliates $ (14,371) Net loss attributable to Heska Corporation $ (14,752)

INVESTMENTS IN UNCONSOLIDATED_2

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 December 31, 2022 Equity method investment $ 592 $ 941 Non-marketable equity security investment — 3,018 Investments in unconsolidated affiliates $ 592 $ 3,959

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Schedule of components of income tax expense	The Company's total income tax benefit for our loss before income taxes was as follows (in thousands): Three Months Ended March 31, 2023 2022 Loss before income taxes and equity in losses of unconsolidated affiliates $ (10,151) $ (11,813) Total income tax benefit $ (375) $ (2,208)

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 December 31, 2022 Assets Operating Operating lease right-of-use assets $ 13,101 $ 6,897 Finance Property and equipment, net 1,534 1,471 Total Leased Assets $ 14,635 $ 8,368 Liabilities Operating Operating lease liabilities, current $ 4,049 $ 2,944 Operating lease liabilities, non-current 9,674 4,528 Finance Deferred revenue, current, and other 152 127 Other liabilities 333 307 Total Lease Liabilities $ 14,208 $ 7,906
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, 2023 2022 Sales-type lease revenue $ 4,995 $ 4,101 Sales-type lease cost of revenue 3,959 3,473 Profit recognized at commencement for sales-type leases $ 1,036 $ 628 Operating lease income $ 375 $ 503

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 and 2022 (in thousands, except per share data): Three Months Ended March 31, 2023 2022 Net loss attributable to Heska Corporation $ (10,125) $ (9,986) Basic weighted-average common shares outstanding 10,390 10,273 Dilutive effect of stock options and restricted stock — — Diluted weighted-average common shares outstanding 10,390 10,273 Basic loss per share attributable to Heska Corporation $ (0.97) $ (0.97) Diluted loss per share attributable to Heska Corporation $ (0.97) $ (0.97)
Schedule of antidilutive securities excluded from computation of earnings per share	The following potentially outstanding common shares from conversion of the 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, 2023 2022 Convertible Senior Notes 996 996 Stock options and restricted stock 217 356 1,213 1,352

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 (in thousands): North America International Total Carrying amount, December 31, 2022 $ 64,912 $ 71,006 $ 135,918 Goodwill attributable to acquisitions (subject to change) 8,359 — 8,359 Foreign currency adjustments 8 1,118 1,126 Carrying amount, March 31, 2023 $ 73,279 $ 72,124 $ 145,403
Schedule of other intangible assets	Other intangible assets, net consisted of the following (in thousands): March 31, 2023 December 31, 2022 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 $ 57,641 $ (17,577) $ 40,064 $ 56,900 $ (16,002) $ 40,898 Developed technology 24,217 (7,366) 16,851 19,143 (6,462) 12,681 Trade names 1,845 (377) 1,468 1,818 (319) 1,499 Intangible assets not subject to amortization: Trade names 7,430 — 7,430 7,315 — 7,315 Total intangible assets $ 91,133 $ (25,320) $ 65,813 $ 85,176 $ (22,783) $ 62,393
Schedule of estimated future amortization expense	Estimated amortization expense related to intangibles for each of the five years from 2023 (remaining) through 2027 and thereafter is as follows (in thousands): Year Ending December 31, 2023 (remaining) $ 6,712 2024 8,456 2025 8,411 2026 8,011 2027 7,074 Thereafter 19,719 Total amortization related to finite-lived intangible assets $ 58,383 Indefinite-lived intangible assets 7,430 Net intangible assets $ 65,813

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment, net, consisted of the following (in thousands): March 31, 2023 December 31, 2022 Land $ 2,403 $ 2,182 Building 11,582 11,558 Machinery and equipment 42,251 39,141 Office furniture and equipment 2,272 1,951 Computer hardware and software 5,657 5,923 Leasehold and building improvements 10,986 10,854 Construction in progress 20,980 283 Property and equipment, gross 96,131 71,892 Less accumulated depreciation (41,101) (39,721) Total property and equipment, net $ 55,030 $ 32,171

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Schedule of inventory	Inventories consisted of the following (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 23,013 $ 20,978 Work in process 5,497 4,102 Finished goods 35,673 34,970 Total inventories $ 64,183 $ 60,050

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): March 31, 2023 December 31, 2022 Accrued payroll and employee benefits $ 7,287 $ 7,908 Accrued property taxes 468 670 Accrued purchase orders 1,898 203 Accrued taxes 1,558 2,123 Inventory in transit 1,755 677 Accrued transaction costs 5,247 156 Other 2,653 3,412 Total accrued liabilities $ 20,866 $ 15,149

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	3 Months Ended
	Mar. 31, 2023
Share-based Payment Arrangement [Abstract]
Schedule of stock options plans	During the three months ended March 31, 2023, the Company granted the following restricted stock awards and restricted stock units: Three Months Ended March 31, 2023 Awards/Units Weighted-Average Grant Date Fair Value Restricted stock awards 89,347 $ 81.74 Restricted stock units 23,433 $ 92.55

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of accumulated other comprehensive income (loss)	Accumulated other comprehensive loss consisted of the following (in thousands): Pension Adjustments Foreign Currency Translation 1 Foreign Currency (Loss) Gain on Intra-Entity Transactions 2 Total Accumulated Other Comprehensive (Loss) Income Balances at December 31, 2022 $ (180) $ (4,900) $ (1,426) $ (6,506) Current period other comprehensive income — 1,234 1,366 2,600 Balances at March 31, 2023 $ (180) $ (3,666) $ (60) $ (3,906) 1 Foreign currency gains and losses related to translation of foreign subsidiary financial statements. 2 The Company has intercompany loans of a long-term investment nature that are denominated in a foreign currency. These transactions are considered to be of a long-term nature if settlement is not planned or anticipated in the foreseeable future.

INTEREST AND OTHER (INCOME) E_2

INTEREST AND OTHER (INCOME) EXPENSE, NET (Tables)	3 Months Ended
	Mar. 31, 2023
Other Income and Expenses [Abstract]
Schedule of interest expense (income) and other income, net	Interest and other (income) expense, net, consisted of the following (in thousands): Three Months Ended March 31, 2023 2022 Interest income $ (1,362) $ (485) Interest expense 939 925 Other expense (income), net 151 (81) Total interest and other (income) expense, net $ (272) $ 359

CONVERTIBLE NOTES AND CREDIT _2

CONVERTIBLE NOTES AND CREDIT FACILITY (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Convertible Debt	March 31, 2023 December 31, 2022 Principal amount of the Notes $ 86,250 $ 86,250 Unamortized debt discount (1,671) (1,783) Net carrying amount $ 84,579 $ 84,467
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, 2023 2022 Interest expense related to contractual coupon interest $ 809 $ 809 Interest expense related to amortization of the debt discount 111 107 $ 920 $ 916

NOTE RECEIVABLES (Tables)

NOTE RECEIVABLES (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Related Party Transactions	The following table summarizes the net carrying amount of the note receivable, including the unamortized discount and allowance for expected credit losses, as well as the fair value of the embedded derivative asset (in thousands): March 31, 2023 December 31, 2022 Principal amount $ 6,650 $ 6,650 Unamortized discount (251) (339) Allowance for expected credit losses (4,264) (4,264) Net carrying amount 2,135 2,047 Embedded derivative asset 177 177 Related party convertible note receivable, net $ 2,312 $ 2,224 The following table summarizes the carrying value of the notes receivable, including the unamortized discount and allowance for expected credit losses (in thousands): March 31, 2023 December 31, 2022 Principal amount $ — $ 13,700 Unamortized discount — (189) Allowance for expected credit losses — — Promissory notes receivable from investee, net $ — $ 13,511

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Reconciliation of Revenue from Segments to Consolidated	Three Months Ended March 31, 2023 North America International Total Total revenue $ 38,560 $ 23,821 $ 62,381 Cost of revenue 20,451 14,531 34,982 Gross profit $ 18,109 $ 9,290 $ 27,399 Gross margin 47 % 39 % 44 % Operating loss $ (9,206) $ (1,217) $ (10,423) 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)
Schedule of revenue from external customers and long-lived assets, by geographical areas	Asset information by reportable segment as of March 31, 2023 is as follows (in thousands): As of March 31, 2023 North America International Total Total assets $ 377,259 $ 215,456 $ 592,715 Asset information by reportable segment as of December 31, 2022 is as follows (in thousands): As of December 31, 2022 North America International Total Total assets $ 374,737 $ 211,079 $ 585,816

BUSINESS OVERVIEW AND SUMMARY_4

BUSINESS OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023	Jul. 01, 2021	Feb. 01, 2021
Antech Diagnostics, Inc., Helsinki Merger Sub LLC, and Mars Incorporated
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Right to receive (in dollars per share)	$ 120
Acquisition related costs	$ 5.1
Lacuna
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Business Combination, Contingent Consideration Arrangements, Payments	2
Business Combination, Contingent Consideration Arrangements, Payments If Metrics Met In Period	$ 1
Business combination, contingent consideration, liability			$ 2
BiEsseA
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Business combination, contingent consideration, liability		$ 2.7
Convertible Senior Notes Due 2026 | Senior Notes
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Debt instrument, interest rate, stated percentage	3.75%
Antech Diagnostics, Inc., Helsinki Merger Sub LLC, and Mars Incorporated
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Common stock, par value (in dollars per share)	$ 0.01

BUSINESS OVERVIEW AND SUMMARY_5

BUSINESS OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balances	$ 93,630	$ 95,615
BiEsseA
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration	453	438
Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund	93,000
Convertible note receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative asset	177	95,000
Promissory Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative asset		177
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balances	93,000	95,000
Level 1 | BiEsseA
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration	0	0
Level 1 | Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund	93,000
Level 1 | Convertible note receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative asset	0	95,000
Level 1 | Promissory Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative asset		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balances	0	0
Level 2 | BiEsseA
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration	0	0
Level 2 | Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund	0
Level 2 | Convertible note receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative asset	0	0
Level 2 | Promissory Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative asset		0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balances	630	615
Level 3 | BiEsseA
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration	453	438
Level 3 | Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund	0
Level 3 | Convertible note receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative asset	$ 177	0
Level 3 | Promissory Note Receivable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative asset		$ 177

BUSINESS OVERVIEW AND SUMMARY_6

BUSINESS OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value Roll Forward (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Contingent Consideration Liabilities | Lacuna
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 0
Changes in fair value	0
Foreign currency impact	0
Ending balance	0
Contingent Consideration Liabilities | BiEsseA
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	438
Changes in fair value	8
Foreign currency impact	7
Ending balance	453
Derivative Assets | Convertible note receivable
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	177
Changes in fair value	0
Foreign currency impact	0
Ending balance	$ 177

REVENUE - Disaggregation (Detai

REVENUE - Disaggregation (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Number of reportable segments | segment	2
Revenue, net	$ 62,381	$ 64,800
Contract receivables, current	1,900		$ 1,800	$ 1,500
Contract receivables, noncurrent	6,500		5,900	5,100
Current portion of deferred revenue, and other	8,400		$ 8,300	$ 9,600
Contract liabilities, revenue recognized	2,400
Contract liabilities, increase due to additional deferred sales	2,500
North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	38,560	37,374
International | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	23,821	27,426
POC lab instruments & other | North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	4,243	4,647
POC lab instruments & other | International | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	4,785	3,733
POC lab consumables | North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	21,006	18,637
POC lab consumables | International | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	10,545	11,748
POC imaging & informatics | North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	5,828	6,051
POC imaging & informatics | International | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	7,674	10,962
PVD | North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	5,433	4,576
PVD | International | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	817	983
OVP | North America | Operating Segments
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, net	$ 2,050	$ 3,463

REVENUE - Performance Obligatio

REVENUE - Performance Obligations (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 232,137
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 41,087
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]: 2024-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 52,303
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	$ 45,981
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	$ 40,759
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	$ 27,638
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]: 2028-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 24,369
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 ($)						3 Months Ended			12 Months Ended
	Jan. 03, 2023	Jan. 03, 2022	Sep. 01, 2021	Jul. 01, 2021	Feb. 01, 2021	Mar. 31, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Feb. 21, 2021
Business Acquisition [Line Items]
Goodwill						$ 145,403,000	$ 145,403,000		$ 135,918,000
Operating lease right-of-use assets						$ 13,101,000	$ 13,101,000		6,897,000
LightDeck
Business Acquisition [Line Items]
Investment Owned, at Fair Value	$ 3,000,000
Biotech
Business Acquisition [Line Items]
Ownership percentage						75.50%	75.50%
Additional ownership interest acquired						10.50%	10.50%
Biotech | Chinta Lamichhane, DVM, Ph.D
Business Acquisition [Line Items]
Ownership percentage						24.50%	24.50%
LightDeck
Business Acquisition [Line Items]
Percentage of voting interest acquired	100%
Purchase price	$ 39,818,000
Settlement of promissory notes	13,700,000
Payable	2,500,000
Discount on promissory note	200,000
License fee	800,000
Business combination, contingent consideration, liability	2,600,000
Purchase price in cash	$ 25,000,000
Business Combination, Contingent Consideration, Liability, Term	18 months
Goodwill	$ 8,359,000
Revenue of acquiree since acquisition date						$ 33,000
Acquisition related costs							$ 500,000
Net income of acquiree since acquisition date						3,400,000
VetZ GmbH
Business Acquisition [Line Items]
Percentage of voting interest acquired		100%
Purchase price		$ 35,487,000
Business combination, contingent consideration, liability		1,400,000
Purchase price in cash		$ 31,627,000
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		$ 600,000
Additional consideration (in shares)		91,039
Goodwill		$ 21,986,000
Operating lease right-of-use assets						2,600,000	2,600,000		2,300,000
Operating Lease, Expense							72,000	$ 75,000
Acquisition receivables		$ 165,000
Biotech
Business Acquisition [Line Items]
Percentage of voting interest acquired			65%
Purchase price			$ 32,150,000
Purchase price in cash			$ 16,250,000
Remaining percentage of interest to be acquired			35%
Payment of Notes Payable							5,300,000
Reduction to notes payable							4,800,000
Interest expense related to Notes Payable							500,000
Notes Payable, Fair Value Disclosure			$ 15,900,000			11,100,000	11,100,000
Goodwill			$ 25,822,000
Biotech | Biotech
Business Acquisition [Line Items]
Minority interest			100%
Biotech | Contingent Consideration, Notes Payable
Business Acquisition [Line Items]
Business combination, contingent consideration, liability			$ 17,500,000
BiEsseA
Business Acquisition [Line Items]
Percentage of voting interest acquired										100%
Purchase price				$ 7,169,000
Business combination, contingent consideration, liability				2,700,000
Purchase price in cash				4,835,000
Goodwill				4,562,000
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						$ 400,000	400,000
Lacuna
Business Acquisition [Line Items]
Purchase price					$ 5,955,000
Business combination, contingent consideration, liability					2,000,000
Purchase price in cash					4,255,000
Business Combination, Contingent Consideration, Liability, Fair Value					1,700,000		$ 0		$ 0
Business combination, indemnification liabilities, holdback					$ 400,000
Business combination, indemnification liabilities, holdback release period					18 months
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
Business Acquisition, Goodwill, Expected Tax Deductible Amount					0
Lacuna | North America
Business Acquisition [Line Items]
Goodwill					$ 4,200,000

ACQUISITION AND RELATED PARTY_4

ACQUISITION AND RELATED PARTY ITEMS - Preliminary Purchase Price Acquisition (Details) - USD ($) $ in Thousands						3 Months Ended	9 Months Ended
	Jan. 03, 2023	Jan. 03, 2022	Sep. 01, 2021	Jul. 01, 2021	Feb. 01, 2021	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Goodwill						$ 145,403		$ 135,918
LightDeck
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract]
Purchase price in cash	$ 25,000
Settlement of promissory notes	13,700
Settlement of preexisting relationships	(1,900)
Equity interest issued and issuable	3,018
Total purchase consideration	39,818
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Cash and cash equivalents	1,777
Accounts receivable	560
Inventory	2,691
Prepaid expenses and other assets	650
Other current assets	313
Property and equipment, net	21,041
Operating lease right-of-use assets	6,237
Intangible assets	5,000
Deferred tax asset	6,787
Other non-current assets	75
Total assets acquired	45,131
Accounts payable	5,422
Accrued liabilities	2,014
Operating lease liabilities, current	1,038
Operating lease liabilities, non-current	5,198
Net assets acquired	31,459
Goodwill	8,359
Total fair value of consideration transferred	$ 39,818
VetZ GmbH
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract]
Purchase price in cash		$ 31,627
Equity interest issued and issuable		3,860
Total purchase consideration		35,487
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Cash and cash equivalents		1,251
Accounts receivable		824
Inventory		359
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		24,820
Accounts payable		520
Accrued liabilities		1,260
Operating lease liabilities, current		247
Deferred revenue, current, and other		1,014
Operating lease liabilities, non-current		2,714
Deferred tax liabilities		5,246
Other liabilities		318
Net assets acquired		13,501
Goodwill		21,986
Total fair value of consideration transferred		$ 35,487
Biotech
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract]
Purchase price in cash			$ 16,250
Equity interest issued and issuable			15,900
Total purchase consideration			32,150
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Accounts receivable			18
Inventory			190
Other current assets			1
Property and equipment, net			148
Operating lease right-of-use assets			1,033
Intangible assets			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
Lacuna
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract]
Purchase price in cash					$ 4,255
Total purchase consideration					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
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract]
Purchase price in cash				$ 4,835
Equity interest issued and issuable				2,334		$ 500	$ 2,300
Total purchase consideration				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
Other current assets				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, and other				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, 2023	Jan. 03, 2022	Sep. 01, 2021	Jul. 01, 2021	Feb. 01, 2021	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Gross Carrying Amount						$ 91,133	$ 85,176
LightDeck
Business Acquisition [Line Items]
Fair Value	$ 5,000
VetZ GmbH
Business Acquisition [Line Items]
Fair Value		$ 18,504
Lacuna
Business Acquisition [Line Items]
Gross Carrying Amount					$ 1,185
Biotech
Business Acquisition [Line Items]
Fair Value			$ 6,000
BiEsseA
Business Acquisition [Line Items]
Fair Value				$ 3,329
Developed technology | LightDeck
Business Acquisition [Line Items]
Weighted- Average Useful Life	10 years
Fair Value	$ 5,000
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
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
Business Acquisition [Line Items]
Weighted- Average Useful Life					6 months
Fair Value					$ 150
Customer relationships | BiEsseA
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
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) - LightDeck $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue	$ 64,821
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax	(14,371)
Business Acquisition, Pro Forma Net Income (Loss)	$ (14,752)

INVESTMENTS IN UNCONSOLIDATED_3

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Thousands			3 Months Ended
	Sep. 24, 2018	Aug. 08, 2018	Mar. 31, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Equity method investment			$ 592	$ 941
Non-marketable equity security investment			0	3,018
Investments			$ 592	$ 3,959
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%
LightDeck
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	$ 10,000
Increase to purchase consideration			$ 800

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Tax Contingency [Line Items]
Income before income taxes	$ (10,151)	$ (11,813)
Total income tax benefit	375	2,208
Cash paid for income taxes	1,400	500
Excess tax benefits related to employee share-based compensation	$ 600	$ 600
Deferred Tax Assets, Operating Loss Carryforwards				$ 6,400
Deferred tax assets, valuation allowance				$ 500
Forecast
Income Tax Contingency [Line Items]
Deferred tax assets, valuation allowance			$ 5,500

LEASES - Operating and Financin

LEASES - Operating and Financing Lease Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease right-of-use assets	$ 13,101	$ 6,897
Property and equipment, net	1,534	1,471
Total Leased Assets	14,635	8,368
Operating lease liabilities, current	4,049	2,944
Operating lease liabilities, non-current	9,674	4,528
Deferred revenue, current, and other	152	127
Other liabilities	333	307
Total Lease Liabilities	$ 14,208	$ 7,906

LEASES - Sales-type Leases and

LEASES - Sales-type Leases and Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Sales-type lease revenue	$ 4,995	$ 4,101
Sales-type lease cost of revenue	3,959	3,473
Profit recognized at commencement for sales-type leases	1,036	628
Operating lease income	$ 375	$ 503

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Net loss attributable to Heska Corporation	$ (10,125)	$ (9,986)	$ (9,986)
Basic weighted-average common shares outstanding (in shares)	10,390	10,273
Dilutive effect of stock options and restricted stock	0	0
Diluted weighted-average common shares outstanding	10,390	10,273
Basic (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.97)	$ (0.97)
Diluted (loss) earnings per share attributable to Heska Corporation (in dollars per share)	$ (0.97)	$ (0.97)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options and restricted units excluded from computation of earnings per share	1,213	1,352
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	217	356

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Goodwill [Roll Forward]
Carrying amount, December 31, 2022	$ 135,918
Goodwill attributable to acquisitions (subject to change)	8,359
Foreign currency adjustments	1,126
Carrying amount, March 31, 2023	145,403
Finite-Lived Intangible Assets, Net [Abstract]
Accumulated amortization	(25,320)		$ (22,783)
Net carrying amount	58,383
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	7,430
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross Carrying Amount	91,133		85,176
Accumulated amortization	(25,320)		(22,783)
Net intangible assets	65,813		62,393
Amortization of Intangible Assets	$ 2,500	$ 2,200
Remaining weighted average amortization period for intangible assets	7 years 7 months 6 days
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2023 (remaining)	$ 6,712
2024	8,456
2025	8,411
2026	8,011
2027	7,074
Thereafter	19,719
Net carrying amount	58,383
Indefinite-lived intangible assets	7,430
Net intangible assets	65,813		62,393
Trade name
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	7,430		7,315
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Indefinite-lived intangible assets	7,430		7,315
Customer relationships and other
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	57,641		56,900
Accumulated amortization	(17,577)		(16,002)
Net carrying amount	40,064		40,898
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	(17,577)		(16,002)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	40,064		40,898
Developed technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	24,217		19,143
Accumulated amortization	(7,366)		(6,462)
Net carrying amount	16,851		12,681
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	(7,366)		(6,462)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	16,851		12,681
Trade name
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	1,845		1,818
Accumulated amortization	(377)		(319)
Net carrying amount	1,468		1,499
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	(377)		(319)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net carrying amount	1,468		$ 1,499
Operating Segments | North America
Goodwill [Roll Forward]
Carrying amount, December 31, 2022	64,912
Goodwill attributable to acquisitions (subject to change)	8,359
Foreign currency adjustments	8
Carrying amount, March 31, 2023	73,279
Operating Segments | International
Goodwill [Roll Forward]
Carrying amount, December 31, 2022	71,006
Goodwill attributable to acquisitions (subject to change)	0
Foreign currency adjustments	1,118
Carrying amount, March 31, 2023	$ 72,124

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 96,131		$ 71,892
Less accumulated depreciation	(41,101)		(39,721)
Total property and equipment, net	55,030		32,171
Depreciation and amortization	1,600	$ 800
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,403		2,182
Building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,582		11,558
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	42,251		39,141
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,272		1,951
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,657		5,923
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,986		10,854
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 20,980		283
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	$ 15,400		15,700
Less accumulated depreciation	$ (6,400)		$ (6,500)

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 23,013	$ 20,978
Work in process	5,497	4,102
Finished goods	35,673	34,970
Total inventory, net	$ 64,183	$ 60,050

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued payroll and employee benefits	$ 7,287	$ 7,908
Accrued property taxes	468	670
Accrued purchase orders	1,898	203
Accrued taxes	1,558	2,123
Inventory in transit	1,755	677
Accrued transaction costs	5,247	156
Other	2,653	3,412
Total accrued liabilities	$ 20,866	$ 15,149
Percentage of total current liabilities	5%

CAPITAL STOCK - STOCK OPTIONS A

CAPITAL STOCK - STOCK OPTIONS AND RESTRICTED STOCK (Details)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Restricted Stock
Awards/Units Granted
Restricted stock awards (in shares) | shares	89,347
Weighted-Average Grant Date Fair Value (per award/unit)
Restricted stock awards (in dollars per share) | $ / shares	$ 81.74
Restricted Stock Units (RSUs)
Awards/Units Granted
Restricted stock awards (in shares) | shares	23,433
Weighted-Average Grant Date Fair Value (per award/unit)
Restricted stock awards (in dollars per share) | $ / shares	$ 92.55

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 422,208
Ending balance	417,671
Total Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(6,506)
Current period other comprehensive income	2,600
Ending balance	(3,906)
Pension Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(180)
Current period other comprehensive income	0
Ending balance	(180)
Foreign Currency Translation1
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(4,900)
Current period other comprehensive income	1,234
Ending balance	(3,666)
Foreign Currency (Loss) Gain on Intra-Entity Transactions2
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(1,426)
Current period other comprehensive income	1,366
Ending balance	$ (60)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions		3 Months Ended
	Feb. 18, 2020	Mar. 31, 2023	Mar. 28, 2022
Loss Contingencies [Line Items]
Litigation settlement, amount		$ 0.8
Warranty reserve		0.3
Unconditional annual minimum inventory purchases		$ 45.4
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, 2023	Mar. 31, 2022
Other Income and Expenses [Abstract]
Interest income	$ (1,362)	$ (485)
Interest expense	939	925
Other, net	151	(81)
Total interest and other (income) expense, net	(272)	359
Cash paid for interest	$ 1,600	$ 2,200

CONVERTIBLE NOTES AND CREDIT _3

CONVERTIBLE NOTES AND CREDIT FACILITY - Convertible Notes Narrative (Details) - USD ($)		3 Months Ended
	Sep. 17, 2019	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Jan. 01, 2021
Debt Instrument [Line Items]
Debt instrument, convertible, remaining discount amortization period		3 years 6 months
Share price		$ 97.62
Value exceeded aggregate amount, if-converted		$ 10,900,000
Senior Convertible Note
Debt Instrument [Line Items]
Proceeds from convertible debt	$ 83,700,000
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		920,000	$ 916,000
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		$ 113,400,000		$ 89,100,000
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, 2023	Dec. 31, 2022	Sep. 17, 2019
Debt Instrument [Line Items]
Aggregate principal amount	$ 86,250,000	$ 86,250,000	$ 86,250,000
Unamortized debt discount	(1,671,000)	(1,783,000)
Net carrying amount	$ 84,579,000	$ 84,467,000

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, 2023	Mar. 31, 2022
Debt Instrument [Line Items]
Interest expense related to contractual coupon interest	$ 809	$ 809
Interest expense related to amortization of the debt discount	111	107
Interest expense, debt	$ 920	$ 916

NOTE RECEIVABLES - Additional I

NOTE RECEIVABLES - Additional Information (Details) - USD ($)	Sep. 19, 2022	Feb. 01, 2021	Dec. 09, 2020	Mar. 31, 2023	Jan. 03, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Derivative fair value						$ 0
LightDeck
Debt Instrument [Line Items]
Percentage of voting interest acquired					100%
Equity Method Investee | Convertible note receivable
Debt Instrument [Line Items]
Principal amount			$ 6,650,000
Related party transaction, rate			3%
Related party transaction, effective interest rate			8.69%
Embedded derivative asset				$ 177,000		177,000
Accounts and financing receivable, allowance for credit loss				4,264,000		4,264,000
Equity Method Investee | Notes Receivable
Debt Instrument [Line Items]
Principal amount	$ 4,700,000	$ 9,000,000
Related party transaction, rate	10%	10%
Related party transaction, effective interest rate		10.99%
Accounts and financing receivable, allowance for credit loss				$ 0		$ 0

NOTE RECEIVABLES - Schedule (De

NOTE RECEIVABLES - Schedule (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Net carrying amount	$ 0	$ 2,224
Equity Method Investee | Convertible note receivable
Debt Instrument [Line Items]
Principal amount	6,650	6,650
Unamortized discount	(251)	(339)
Allowance for expected credit losses	(4,264)	(4,264)
Net carrying amount	2,135	2,047
Embedded derivative asset	177	177
Related party convertible note receivable, net	2,312	2,224
Equity Method Investee | Notes Receivable
Debt Instrument [Line Items]
Principal amount	0	13,700
Unamortized discount	0	(189)
Allowance for expected credit losses	0	0
Net carrying amount	$ 0	$ 13,511

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting, Other Significant Reconciling Item [Line Items]
Number of reportable segments | segment	2
Total revenue	$ 62,381	$ 64,800
Cost of revenue	34,982	35,655
Gross profit	$ 27,399	$ 29,145
Gross margin	44%	45%
Operating loss	$ (10,423)	$ (11,454)
Total assets	592,715		$ 585,816
North America
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	38,560	37,374
Cost of revenue	20,451	19,466
Gross profit	$ 18,109	$ 17,908
Gross margin	47%	48%
Operating loss	$ (9,206)	$ (12,311)
Total assets	377,259		374,737
International
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue	23,821	27,426
Cost of revenue	14,531	16,189
Gross profit	$ 9,290	$ 11,237
Gross margin	39%	41%
Operating loss	$ (1,217)	$ 857
Total assets	$ 215,456		$ 211,079

Uncategorized Items - hska-2023

Label	Element	Value
Retained Earnings [Member]
Net Income (Loss) Attributable to Parent	us-gaap_NetIncomeLoss	$ (9,986,000)