Ontrak (OTRK) 10-Q 14 Nov 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 13, 2019
Document Information [Line Items]
Entity Registrant Name	CATASYS, INC.
Entity Central Index Key	0001136174
Trading Symbol	cats
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		16,585,199
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Title of 12(b) Security	Common Stock, $0.0001 par value

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and restricted cash	$ 15,900	$ 3,162
Receivables, net	2,272	1,382
Unbilled receivables	2,090
Prepaid and other current assets	791	1,108
Total current assets	21,053	5,652
Long-term assets:
Property and equipment, net	175	263
Restricted cash, long-term	408	408
Right-of-use assets	2,814
Total assets	24,450	6,323
Current liabilities:
Accounts payable	1,111	497
Accrued compensation and benefits	1,784	1,537
Deferred revenue	3,708	4,195
Current portion of lease liabilities	359
Other accrued liabilities	2,551	1,501
Total current liabilities	9,513	7,730
Long-term liabilities:
Long-term debt, net	29,868	7,472
Long-term lease liabilities	2,120
Warrant liabilities	670	86
Total liabilities	42,171	15,288
Stockholders' deficit:
Preferred stock, $0.0001 par value; 50,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.0001 par value; 500,000,000 shares authorized; 16,585,199 and 16,185,146 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	2	2
Additional paid-in capital	304,906	296,688
Accumulated deficit	(322,629)	(305,655)
Total stockholders' deficit	(17,721)	(8,965)
Total liabilities and stockholders' deficit	$ 24,450	$ 6,323

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	16,585,199	16,185,146
Common stock, shares outstanding (in shares)	16,585,199	16,185,146

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue	$ 8,845,000	$ 4,369,000	$ 23,337,000	$ 9,553,000
Cost of revenue	6,119,000	3,237,000	13,511,000	8,465,000
Gross profit	2,726,000	1,132,000	9,826,000	1,088,000
Operating expenses	8,322,000	5,179,000	22,844,000	13,527,000
Operating loss	(5,596,000)	(4,047,000)	(13,018,000)	(12,439,000)
Other income / (expense)	(2,550,000)		(2,536,000)	40,000
Interest expense	(590,000)	(241,000)	(1,382,000)	(278,000)
Change in fair value of warrant liability	173,000	(65,000)	(38,000)	(94,000)
Net loss	$ (8,563,000)	$ (4,353,000)	$ (16,974,000)	$ (12,771,000)
Net loss per share, basic and diluted from operations: (in dollars per share)	$ (0.52)	$ (0.27)	$ (1.04)	$ (0.80)
Weighted-average shares used to compute basic and diluted net loss per share (in shares)	16,562	15,917	16,360	15,909

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2017	15,889,171
Balance at Dec. 31, 2017	$ 2	$ 294,220	$ (293,324)	$ 898
Reclassification of warrant liability to equity upon adoption of ASU 2017-11
Warrants issued for services		86		86
Warrant exercised for cash (in shares)	174,015
Warrant exercised for cash
Stock compensation expense		2,024		2,024
Net loss			(12,771)	(12,771)
Adoption of accounting standard, ASC 606 at Dec. 31, 2017			1,881	1,881
Balance, adjusted at Dec. 31, 2017	$ 2	294,220	(291,443)	2,779
Common stock issued for outside services (in shares)	24,000
Common stock issued for outside services		112		112
Warrants issued in connection with A/R facility		64		64
Balance (in shares) at Sep. 30, 2018	16,087,186
Balance at Sep. 30, 2018	$ 2	296,506	(304,214)	(7,706)
Balance (in shares) at Jun. 30, 2018	15,913,171
Balance at Jun. 30, 2018	$ 2	295,234	(299,861)	(4,625)
Warrant exercised for cash (in shares)	174,015
Warrant exercised for cash
Stock compensation expense		1,272		1,272
Net loss			(4,353)	(4,353)
Balance (in shares) at Sep. 30, 2018	16,087,186
Balance at Sep. 30, 2018	$ 2	296,506	(304,214)	$ (7,706)
Balance (in shares) at Dec. 31, 2018	16,185,146			16,185,146
Balance at Dec. 31, 2018	$ 2	296,688	(305,655)	$ (8,965)
Reclassification of warrant liability to equity upon adoption of ASU 2017-11		86		86
Warrants issued for services		43		43
Warrants issued in connection with 2024 notes		2,354		2,354
Warrant exercised for cash (in shares)	232,461
Warrant exercised for cash		1,128		1,128
Number of Options Exercised (in shares)	164,385
Stock option exercised for cash		1,660		1,660
Stock compensation expense (in shares)	3,207
Stock compensation expense		2,947		2,947
Net loss			(16,974)	$ (16,974)
Balance (in shares) at Sep. 30, 2019	16,585,199			16,585,199
Balance at Sep. 30, 2019	$ 2	304,906	(322,629)	$ (17,721)
Balance (in shares) at Jun. 30, 2019	16,536,992
Balance at Jun. 30, 2019	$ 2	301,909	(314,066)	(12,155)
Warrants issued in connection with 2024 notes		2,354		2,354
Warrant exercised for cash (in shares)	20,000
Warrant exercised for cash		100		100
Number of Options Exercised (in shares)	25,000
Stock option exercised for cash		187		187
Stock compensation expense (in shares)	3,207
Stock compensation expense		356		356
Net loss			(8,563)	$ (8,563)
Balance (in shares) at Sep. 30, 2019	16,585,199			16,585,199
Balance at Sep. 30, 2019	$ 2	$ 304,906	$ (322,629)	$ (17,721)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows used in operating activities
Net loss	$ (16,974,000)	$ (12,771,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	2,947,000	2,024,000
Write off of debt issuance costs	1,505,000
Depreciation	108,000	229,000
Amortization	449,000	95,000
Warrants issued for services	43,000	86,000
Change in fair value of warrants	38,000	94,000
Common stock issued for consulting services		112,000
Loss on disposal of fixed assets		69,000
Deferred rent	(26,000)	(67,000)
Changes in operating assets and liabilities:
Accounts payable	614,000	539,000
Leases liabilities	575,000
Other accrued liabilities	1,164,000	410,000
Prepaids and other current assets	149,000	3,000
Deferred revenue	(487,000)	3,994,000
Receivables	(890,000)	(1,880,000)
Unbilled receivables	(2,090,000)
Net cash used in operating activities	(12,875,000)	(7,063,000)
Cash flows provided by financing activities
Debt issuance costs	(2,813,000)	(336,000)
Debt termination related fees	(1,956,000)
Proceeds from warrant exercise	1,128,000
Proceeds from options exercise	1,660,000
Capital lease obligations	69,000	(25,000)
Net cash provided by financing activities	25,613,000	7,139,000
Net increase in cash and restricted cash	12,738,000	76,000
Cash and restricted cash at beginning of period	3,570,000	4,779,000
Cash and restricted cash at end of period	16,308,000	4,855,000
Supplemental disclosure of cash flow information:
Right of use asset obtained in exchange for lease obligation	2,574,000
Interest paid	967,000
Non cash financing and investing activities:
Warrant issued in connection with A/R facility		64,000
Warrant issued in connection with GS facility	2,354,000
Reclassification of warrant liability to equity upon amendment of the loan agreement	86,000
Warrants issued in connection with revolving loan
Property and equipment acquired through capital leases	250,000
Secured Promissory Note [Member]
Cash flows provided by financing activities
Proceeds from long term debt		7,500,000
Revolving Loan [Member]
Cash flows provided by financing activities
Proceeds from long term debt	7,500,000
Repayment of long term debt	(15,000,000)
A/R Facility [Member]
Cash flows provided by financing activities
Proceeds from long term debt	1,938,000
Repayment of long term debt	(1,938,000)
GS Loan [Member]
Cash flows provided by financing activities
Proceeds from long term debt	$ 35,025,000

Note 1 - Organization

Note 1 - Organization	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1. Organization Company Overview Catasys, Inc. (“Catasys” or the “Company”) is a leading Artificial Intelligence (“AI”) and technology-enabled healthcare company whose mission is to help improve the health and save the lives of as many people as possible. The Company’s platform, Catasys PRE TM not The Company’s integrated, technology-enabled OnTrak solution, a critical component of the Catasys PRE platform, is designed to identify and treat members with behavioral conditions that cause or exacerbate chronic medical conditions such as diabetes, hypertension, coronary artery disease, chronic obstructive pulmonary disease, and congestive heart failure, which result in high medical costs. The Company has the ability to engage these members, who do not Basis of Presentation The accompanying unaudited condensed consolidated financial statements include Catasys, Inc. and its wholly-owned subsidiaries and variable interest entities. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements for Catasys, Inc. and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and instructions to Form 10 10 X. not may 10 December 31, 2018, December 31, 2018, one As of September 30, 2019, $16.3 $11.5 twelve $1.5 nine September 30, 2019. twelve The Company’s ability to fund ongoing operations is dependent on several factors. The Company aims to increase the number of members that are eligible for its solutions by signing new contracts and identifying more eligible members in existing contracts. Additionally, the Company’s funding is dependent upon the success of management’s plan to increase revenue and control expenses. The Company currently operates its OnTrak solutions in twenty-seven Management’s Plans Historically, the Company has experienced net losses, net loss from operations, negative cash flow from operating activities as the Company continues through a period of rapid growth. The accompanying financial statements do not $45 Recently Adopted Accounting Standards Effective January 1, 2019, 842, Leases In calculating the right-of-use asset and lease liability, the Company elected to combine lease and non-lease components. The Company also elected to exclude short-term leases having initial terms of 12 In June 2018, 2018 07, Improvements to Nonemployee Share-Based Payment Accounting 2018 07” 505 50 718 December 15, 2018, no 606. 2018 07 January 1, 2019 not In July 2017, 2017 11, Earnings Per Share (Topic 260 ); Distinguishing Liabilities from Equity (Topic 480 ); Derivatives and Hedging (Topic 815 ): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception 2017 11” no no December 15, 2018, 2017 11 January 1, 2019 not Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that the Company adopts as of the specified effective date. Unless otherwise discussed, the Company does not not In August 2018, No. 2018 13, Fair Value Measurement (Topic 820 820, December 15, 2019, In June 2016, 2016 13, Financial Instruments - Credit Losses 2016 13” not first 2021.

Note 2 - Accounts Receivable

Note 2 - Accounts Receivable	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	Note 2 . Accounts Receivable The Company applies the specific identification method for assessing provision for doubtful accounts. There was no September 30, 2019 December 31, 2018. The following table is a summary of concentration of credit risk by customer revenues and accounts receivables: Three Months Ended September 30, Nine Months Ended September 30, Percentage of Revenue 2019 2018 2019 2018 Largest customer 45.6 % 26.5 % 33.6 % 25.7 % 2nd largest customer 15.2 % 20.2 % 20.1 % 23.4 % 3rd largest customer 14.4 % 17.0 % 16.3 % 14.9 % 4th largest customer 10.0 % 13.3 % 12.8 % 11.1 % Remaining customers 14.8 % 23.0 % 17.2 % 24.9 % 100.0 % 100.0 % 100.0 % 100.0 % Percentage of Accounts Receivable September 30, 2019 December 31, 2018 Largest customer 54.3 % 31.4 % 2nd largest customer 10.1 % 26.4 % 3rd largest customer 8.8 % 16.1 % 4th largest customer 7.5 % 14.1 % Remaining customers 19.3 % 12.0 % 100.0 % 100.0 %

Note 3 - Common Stock

Note 3 - Common Stock	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	Note 3 . Common Stock Net loss per share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, preferred stock and outstanding stock options and warrants, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. Common equivalent shares, consisting of 5,869,312 3,641,785 September 30, 2019 2018, September 30, 2019 September 30, 2018 Warrants to purchase common stock 1,550,975 1,795,246 Options to purchase common stock 4,318,337 1,846,539 Total 5,869,312 3,641,785 Warrant Exercise s The Company had the following exercises of warrants for the nine September 30, 2019: Exercise Date Exercise Price Number of Warrants Exercised Proceeds Received Number of Common Shares Issued January 19 $ 5.00 20,000 $ 100,000 20,000 May 19 $ 4.80 172,461 $ 827,813 172,461 June 19 $ 5.00 20,000 $ 100,000 20,000 August 19 $ 5.00 20,000 $ 100,000 20,000 Option Exercise s The Company had the following exercises of options for the nine September 30, 2019: Exercise Date Exercise Price Number of Options Exercised Proceeds Received Number of Common Shares Issued April 19 $ 7.50 9,479 $ 71,093 9,479 May 19 $ 10.79 129,906 $ 1,401,801 129,906 August 19 $ 7.50 25,000 $ 187,500 25,000

Note 4 - Stock Compensation

Note 4 - Stock Compensation	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	Note 4 . Stock Based Awards The Company’s 2017 “2017 2,333,334 243,853 2010 “2010 August 2018, 2017 1,400,000 “2017 February 2019, 2017 552,884 2017 2017 422A 2017 no ten three five September 30, 2019, 4,268,337 50,000 47,349 Stock compensation expense for employees and directors was $0.4 $2.9 three nine September 30, 2019, $1.3 $2.0 2018, Stock Options - Employees and Directors A summary of stock option activity for employees and directors is as follows: Number of Shares Weighted Average Outstanding as of December 31, 2018 3,761,259 $ 9.44 Granted 740,929 12.59 Forfeited (69,466 ) 7.50 Exercised (164,385 ) 10.10 Outstanding as of September 30, 2019 4,268,337 $ 10.02 Options vested and expected to vest as of September 30, 2019 4,268,337 $ 10.02 Options vested and exercisable as of September 30, 2019 875,024 $ 15.39 As of September 30, 2019, $10.7 2017 2.7 Performance-Based and Market-Based Awards The Company’s Compensation Committee designed a compensation structure to align the compensation levels of certain executives to the performance of the Company through the issuance of performance-based and market-based stock options. The performance-based options vest upon the Company meeting certain revenue targets and the total amount of compensation expense recognized is based on the number of shares that the Company determines are probable of vesting. The market-based options vest upon the Company’s stock price reaching a certain price at a specific performance period and the total amount of compensation expense recognized is based on a monte carlo simulation that factors in the probability of the award vesting. The following table summarizes the Company’s issuance of awards under this structure: Grant Date Performance Measures Vesting Term Performance Period # of Shares Exercise Price December 2017 Weighted Average Price of our common stock is $15.00 for at least twenty trading days within a period of thirty consecutive trading days ending on the trading day prior to January 1, 2023. Fully vest on January 1, 2023 January 1, 2023 642,307 $ 7.50 August 2018 Weighted Average Price of our common stock is $15.00 for at least twenty trading days within a period of thirty consecutive trading days ending on the trading day prior to January 1, 2023. Fully vest on January 1, 2023 January 1, 2023 397,693 $ 7.50 April 2018 The Options will be divided into five equal tranches and Performance Targets to be established by Board of Directors for each tranche at the beginning of the fiscal year 1/5 of each Tranche vest annually on December 31 of each calendar year, beginning on December 31, 2018 Fiscal Years 2018, 2019, 2020, 2021 and 2022 642,307 $ 7.50 August 2018 The Options will be divided into five equal tranches and Performance Targets to be established by Board of Directors for each tranche at the beginning of the fiscal year 1/5 of each Tranche vest annually on December 31 of each calendar year, beginning on December 31, 2018 Fiscal Years 2018, 2019, 2020, 2021 and 2022 397,693 $ 7.50 During the current quarter, the Company determined that it is not 2019, not $1.1 three September 30, 2019. three September 30, 2019 no nine September 30, 2019. Stock Options and Warrants - Non-Employees A summary of warrants activity for non-employees is as follows: Number of Warrants Weighted Average Outstanding as of December 31, 2018 1,608,996 $ 4.71 Issued 228,607 16.00 Expired (54,167 ) 12.46 Exercised (232,461 ) 4.85 Outstanding as of September 30, 2019 1,550,975 $ 6.08 Warrants exercisable as of September 30, 2019 1,550,975 $ 6.08 There were no three September 30, 2019 4,167 nine September 30, 2019, none three 24,000 nine 2018. three March 31, 2019 June 30, 2019, 51,185 7 September 24, 2019, 173,255 $25,000 2024 6 $17.32 September 24, 2026. There were not three September 30, 2019. 50,000 $9.93 nine September 30, 2019 none 2018. As of September 30, 2019, $0.3 2017 2.3

Note 5 - Leases

Note 5 - Leases	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	Note 5 . Leases The operating lease agreement for the Company’s Los Angeles, CA office space expired in April 2019, no September 30, 2019. In September 2018, 7,869 60 July 2019, 30 $0.6 The Company’s lease liability resulted from the lease of the Santa Monica Headquarters which expires in 2024. not not not not As of September 30, 2019, $2.3 $2.5 Quantitative information for the operating lease is as follows: For the Three Months Ended For the Nine Months Ended (In thousands) September 30, 2019 September 30, 2019 Operating lease expense $ 110 $ 277 Short-term lease rent expense 19 36 Total rent expense $ 129 $ 313 For the Three Months Ended For the Nine Months Ended (In thousands) September 30, 2019 September 30, 2019 Operating cash flows from operating leases $ 75 $ 238 September 30, 2019 September 30, 2019 Weighted-average remaining lease term – operating leases (years) 4.7 4.7 Weighted-average discount rate – operating leases 10.15 % 10.15 % Maturities of the operating lease liabilities are as follows: (In thousands) Amount Remaining three months ended December 31, 2019 $ 143 Year ended December 31, 2020 581 Year ended December 31, 2021 603 Year ended December 31, 2022 623 Year ended December 31, 2023 644 Year ended December 31, 2024 328 Total 2,922 Less present value discount (627 ) Operating lease liabilities $ 2,295 The Company incurred rent expense of approximately $0.1 $0.3 three nine September 30, 2019, $0.1 $0.2 2018, The Company entered into financing agreements for computer equipment for $0.3 three

Note 6 - Debt

Note 6 - Debt	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Long-term Debt [Text Block]	Note 6 . Debt 2024 In September 2019, $45 “2024 September 24, 2019 ( $35.0 2024 2024 September 24, 2020. $35 2024 $10.0 2024 second 2024 fifth 50% The Note Agreement contains customary covenants, including, among others, covenants that restrict the Company’s ability to incur debt, grant liens, make certain investments and acquisitions, pay dividends, repurchase equity interests, repay certain debt, amend certain contracts, enter into affiliate transactions and asset sales or make certain equity issuances, and covenants that require the Company to, among other things, provide annual, quarterly and monthly financial statements, together with related compliance certificates, maintain its property in good repair, maintain insurance and comply with applicable laws. The Note Agreement also includes covenants with respect to the Company’s maintenance of certain financial ratios, including a fixed charge coverage ratio, leverage ratio and consolidated liquidity as well as minimum levels of consolidated adjusted EBITDA and revenue. The Note Agreement also contains customary events of default, including, among others, payment default, bankruptcy events, cross-default, breaches of covenants and representations and warranties, change of control, judgment defaults and an ownership change within the meaning of Section 382 may, 2024 2024 second third In accounting for the Notes at issuance, the Company separated the Notes into debt and equity components pursuant to the accounting standards. The fair value of the debt component was estimated using an interest rate for debt with terms similar to the Notes. The carrying amount of the equity component was calculated by measuring the fair value based on Black-Scholes model. The gross proceeds from the transaction was allocated between debt and equity based on the proportionate value. The debt discount is accreted to interest expense over the term of the Notes using the interest method. The amount recorded to additional paid-in capital is not The Company is in compliance with all debt covenants as of September 30, 2019. 2022 Loan In June 2018, “2022 $7.5 March 2019, 2022 $15.0 one 2.00% 9.75%. 2024 2022 $1.1 $1.5 2024 2022 The net carrying amounts of the liability components consists of the following (in thousands): September 30, 2019 December 31, 2018 Principal amount $ 35,000 $ 7,950 Unamortized debt discount (5,132 ) (478 ) Net carrying amount $ 29,868 $ 7,472 The following table presents the interest expense recognized (in thousands): Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Contractual interest expense $ 434 $ 205 $ 967 $ 210 Amortization of debt issuance costs 102 - 248 - Accretion of debt discount 54 36 167 68 Total Interest $ 590 $ 241 $ 1,382 $ 278

Note 7 - Fair Value Measurement

Note 7 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Fair Value Disclosures [Text Block]	Note 7 . Fair Value Measurements Fair value is defined as the price 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. Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure fair value. The fair value hierarchy distinguishes between ( 1 2 three three Level Input: Input Definition: Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The following tables summarize fair value measurements by level as of September 30, 2019 December 31, 2018, Balance as of September 30, 2019 (in thousands) Level I Level II Level III Total Certificates of deposits (1) $ 408 $ - $ - $ 408 Total assets $ 408 $ - $ - $ 408 Warrant liabilities $ - $ - $ 670 $ 670 Total liabilities $ - $ - $ 670 $ 670 ( 1 $408,000 September 30, 2019. Balance as of December 31, 2018 (in thousands) Level I Level II Level III Total Letter of credit (2) $ 479 $ - $ - $ 479 Total assets $ 479 $ - $ - $ 479 Warrant liabilities $ - $ - $ 86 $ 86 Total liabilities $ - $ - $ 86 $ 86 ( 2 $71,000 $408,000 December 31, 2018. The following is a rollforward of the warrant liabilities: Level III Warrant (in thousands) Liabilities Balance as of December 31, 2018 $ 86 Issuance of new warrant liability 632 Change in fair value of warrant liability 38 Reclassification of warrant liability to equity upon adoption of ASU 2017-11 (86 ) Balance as of September 30, 2019 $ 670 For the three nine September 30, 2019, 173,000 $38,000, $65,000 $94,000 2018, In March 2019, 40,279 seven $0.6 five $9.93 may 18 In May 2019, $7.0 $2.5 5,561 seven $0.1 five $17.98 may 18 In June 2019, $8.0 $2.5 5,345 seven $0.1 five $18.71 may 18 In no 19.9% The Company adopted ASU 2017 11, January 1, 2019. 815. September 30, 2019, The key assumptions used to value the Horizon Warrants are as follows: September 30, 2019 Expected price volatility 98.0% - 100.2% Expected term (in years) 6.5 - 7.0 Risk-free interest rate 1.6% - 2.3% Dividend yield 0.0%

Note 8 - Variable Interest Enti

Note 8 - Variable Interest Entities	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Variable Interest Entity Disclosure [Text Block]	Note 8 . Variable I nterest E ntities The amounts and classification of assets and liabilities of the variable interest entities included in the consolidated balance sheets are as follows: September 30, December 31, (in thousands) 2019 2018 Cash and cash equivalents $ 469 $ 45 Accounts receivable 104 94 Prepaid and other current assets - 29 Total assets $ 573 $ 168 Accounts payable $ 15 $ 7 Accrued liabilities 42 14 Intercompany payable 603 147 Total liabilities $ 660 $ 168

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include Catasys, Inc. and its wholly-owned subsidiaries and variable interest entities. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements for Catasys, Inc. and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and instructions to Form 10 10 X. not may 10 December 31, 2018, December 31, 2018, one As of September 30, 2019, $16.3 $11.5 twelve $1.5 nine September 30, 2019. twelve The Company’s ability to fund ongoing operations is dependent on several factors. The Company aims to increase the number of members that are eligible for its solutions by signing new contracts and identifying more eligible members in existing contracts. Additionally, the Company’s funding is dependent upon the success of management’s plan to increase revenue and control expenses. The Company currently operates its OnTrak solutions in twenty-seven Management’s Plans Historically, the Company has experienced net losses, net loss from operations, negative cash flow from operating activities as the Company continues through a period of rapid growth. The accompanying financial statements do not $45
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Adopted Accounting Standards Effective January 1, 2019, 842, Leases In calculating the right-of-use asset and lease liability, the Company elected to combine lease and non-lease components. The Company also elected to exclude short-term leases having initial terms of 12 In June 2018, 2018 07, Improvements to Nonemployee Share-Based Payment Accounting 2018 07” 505 50 718 December 15, 2018, no 606. 2018 07 January 1, 2019 not In July 2017, 2017 11, Earnings Per Share (Topic 260 ); Distinguishing Liabilities from Equity (Topic 480 ); Derivatives and Hedging (Topic 815 ): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception 2017 11” no no December 15, 2018, 2017 11 January 1, 2019 not Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that the Company adopts as of the specified effective date. Unless otherwise discussed, the Company does not not In August 2018, No. 2018 13, Fair Value Measurement (Topic 820 820, December 15, 2019, In June 2016, 2016 13, Financial Instruments - Credit Losses 2016 13” not first 2021.

Note 2 - Accounts Receivable (T

Note 2 - Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, Percentage of Revenue 2019 2018 2019 2018 Largest customer 45.6 % 26.5 % 33.6 % 25.7 % 2nd largest customer 15.2 % 20.2 % 20.1 % 23.4 % 3rd largest customer 14.4 % 17.0 % 16.3 % 14.9 % 4th largest customer 10.0 % 13.3 % 12.8 % 11.1 % Remaining customers 14.8 % 23.0 % 17.2 % 24.9 % 100.0 % 100.0 % 100.0 % 100.0 % Percentage of Accounts Receivable September 30, 2019 December 31, 2018 Largest customer 54.3 % 31.4 % 2nd largest customer 10.1 % 26.4 % 3rd largest customer 8.8 % 16.1 % 4th largest customer 7.5 % 14.1 % Remaining customers 19.3 % 12.0 % 100.0 % 100.0 %

Note 3 - Common Stock (Tables)

Note 3 - Common Stock (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	September 30, 2019 September 30, 2018 Warrants to purchase common stock 1,550,975 1,795,246 Options to purchase common stock 4,318,337 1,846,539 Total 5,869,312 3,641,785
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Exercise Date Exercise Price Number of Warrants Exercised Proceeds Received Number of Common Shares Issued January 19 $ 5.00 20,000 $ 100,000 20,000 May 19 $ 4.80 172,461 $ 827,813 172,461 June 19 $ 5.00 20,000 $ 100,000 20,000 August 19 $ 5.00 20,000 $ 100,000 20,000
Cash Proceeds Received and Tax Benefit from Share-based Payment Awards [Table Text Block]	Exercise Date Exercise Price Number of Options Exercised Proceeds Received Number of Common Shares Issued April 19 $ 7.50 9,479 $ 71,093 9,479 May 19 $ 10.79 129,906 $ 1,401,801 129,906 August 19 $ 7.50 25,000 $ 187,500 25,000

Note 4 - Stock Compensation (Ta

Note 4 - Stock Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Share-based Payment Arrangement, Option, Activity [Table Text Block]	Number of Shares Weighted Average Outstanding as of December 31, 2018 3,761,259 $ 9.44 Granted 740,929 12.59 Forfeited (69,466 ) 7.50 Exercised (164,385 ) 10.10 Outstanding as of September 30, 2019 4,268,337 $ 10.02 Options vested and expected to vest as of September 30, 2019 4,268,337 $ 10.02 Options vested and exercisable as of September 30, 2019 875,024 $ 15.39
Share-based Payment Arrangement, Option, Performance-based and Market-based Awards [Table Text Block]	Grant Date Performance Measures Vesting Term Performance Period # of Shares Exercise Price December 2017 Weighted Average Price of our common stock is $15.00 for at least twenty trading days within a period of thirty consecutive trading days ending on the trading day prior to January 1, 2023. Fully vest on January 1, 2023 January 1, 2023 642,307 $ 7.50 August 2018 Weighted Average Price of our common stock is $15.00 for at least twenty trading days within a period of thirty consecutive trading days ending on the trading day prior to January 1, 2023. Fully vest on January 1, 2023 January 1, 2023 397,693 $ 7.50 April 2018 The Options will be divided into five equal tranches and Performance Targets to be established by Board of Directors for each tranche at the beginning of the fiscal year 1/5 of each Tranche vest annually on December 31 of each calendar year, beginning on December 31, 2018 Fiscal Years 2018, 2019, 2020, 2021 and 2022 642,307 $ 7.50 August 2018 The Options will be divided into five equal tranches and Performance Targets to be established by Board of Directors for each tranche at the beginning of the fiscal year 1/5 of each Tranche vest annually on December 31 of each calendar year, beginning on December 31, 2018 Fiscal Years 2018, 2019, 2020, 2021 and 2022 397,693 $ 7.50
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Exercise Date Exercise Price Number of Warrants Exercised Proceeds Received Number of Common Shares Issued January 19 $ 5.00 20,000 $ 100,000 20,000 May 19 $ 4.80 172,461 $ 827,813 172,461 June 19 $ 5.00 20,000 $ 100,000 20,000 August 19 $ 5.00 20,000 $ 100,000 20,000
Nonemployees [Member]
Notes Tables
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Number of Warrants Weighted Average Outstanding as of December 31, 2018 1,608,996 $ 4.71 Issued 228,607 16.00 Expired (54,167 ) 12.46 Exercised (232,461 ) 4.85 Outstanding as of September 30, 2019 1,550,975 $ 6.08 Warrants exercisable as of September 30, 2019 1,550,975 $ 6.08

Note 5 - Leases (Tables)

Note 5 - Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Lease, Cost [Table Text Block]	For the Three Months Ended For the Nine Months Ended (In thousands) September 30, 2019 September 30, 2019 Operating lease expense $ 110 $ 277 Short-term lease rent expense 19 36 Total rent expense $ 129 $ 313
Schedule of Operating Leases Information [Table Text Block]	For the Three Months Ended For the Nine Months Ended (In thousands) September 30, 2019 September 30, 2019 Operating cash flows from operating leases $ 75 $ 238 September 30, 2019 September 30, 2019 Weighted-average remaining lease term – operating leases (years) 4.7 4.7 Weighted-average discount rate – operating leases 10.15 % 10.15 %
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	(In thousands) Amount Remaining three months ended December 31, 2019 $ 143 Year ended December 31, 2020 581 Year ended December 31, 2021 603 Year ended December 31, 2022 623 Year ended December 31, 2023 644 Year ended December 31, 2024 328 Total 2,922 Less present value discount (627 ) Operating lease liabilities $ 2,295

Note 6 - Debt (Tables)

Note 6 - Debt (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Schedule of Debt [Table Text Block]	September 30, 2019 December 31, 2018 Principal amount $ 35,000 $ 7,950 Unamortized debt discount (5,132 ) (478 ) Net carrying amount $ 29,868 $ 7,472
Interest Expense, Debt [Text Block]	Three months ended September 30 Nine months ended September 30 2019 2018 2019 2018 Contractual interest expense $ 434 $ 205 $ 967 $ 210 Amortization of debt issuance costs 102 - 248 - Accretion of debt discount 54 36 167 68 Total Interest $ 590 $ 241 $ 1,382 $ 278

Note 7 - Fair Value Measureme_2

Note 7 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Balance as of September 30, 2019 (in thousands) Level I Level II Level III Total Certificates of deposits (1) $ 408 $ - $ - $ 408 Total assets $ 408 $ - $ - $ 408 Warrant liabilities $ - $ - $ 670 $ 670 Total liabilities $ - $ - $ 670 $ 670 Balance as of December 31, 2018 (in thousands) Level I Level II Level III Total Letter of credit (2) $ 479 $ - $ - $ 479 Total assets $ 479 $ - $ - $ 479 Warrant liabilities $ - $ - $ 86 $ 86 Total liabilities $ - $ - $ 86 $ 86
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Level III Warrant (in thousands) Liabilities Balance as of December 31, 2018 $ 86 Issuance of new warrant liability 632 Change in fair value of warrant liability 38 Reclassification of warrant liability to equity upon adoption of ASU 2017-11 (86 ) Balance as of September 30, 2019 $ 670
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]	September 30, 2019 Expected price volatility 98.0% - 100.2% Expected term (in years) 6.5 - 7.0 Risk-free interest rate 1.6% - 2.3% Dividend yield 0.0%

Note 8 - Variable Interest En_2

Note 8 - Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Schedule of Variable Interest Entities [Table Text Block]	September 30, December 31, (in thousands) 2019 2018 Cash and cash equivalents $ 469 $ 45 Accounts receivable 104 94 Prepaid and other current assets - 29 Total assets $ 573 $ 168 Accounts payable $ 15 $ 7 Accrued liabilities 42 14 Intercompany payable 603 147 Total liabilities $ 660 $ 168

Note 1 - Organization (Details

Note 1 - Organization (Details Textual) $ in Millions	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 24, 2019USD ($)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance	$ 16.3
Working Capital Deficit	11.5
Cash Used, Per Month	$ 1.5
Number of States in which Entity Operates	27
The 2024 Notes [Member]
Notes Payable, Total		$ 45

Note 2 - Accounts Receivable (D

Note 2 - Accounts Receivable (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounts Receivable, Allowance for Credit Loss, Ending Balance	$ 0	$ 0

Note 2 - Accounts Receivable -

Note 2 - Accounts Receivable - Concentration of Credit Risk (Details) - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Revenue, Segment Benchmark [Member]
Concentration risk	100.00%	100.00%	100.00%	100.00%
Revenue, Segment Benchmark [Member] | Largest Customer [Member]
Concentration risk	45.60%	26.50%	33.60%	25.70%
Revenue, Segment Benchmark [Member] | Second Largest Customer [Member]
Concentration risk	15.20%	20.20%	20.10%	23.40%
Revenue, Segment Benchmark [Member] | Third Largest Customer [Member]
Concentration risk	14.40%	17.00%	16.30%	14.90%
Revenue, Segment Benchmark [Member] | Fourth Largest Customer [Member]
Concentration risk	10.00%	13.30%	12.80%	11.10%
Revenue, Segment Benchmark [Member] | Remaining Customers [Member]
Concentration risk	14.80%	23.00%	17.20%	24.90%
Accounts Receivable [Member]
Concentration risk			100.00%		100.00%
Accounts Receivable [Member] | Largest Customer [Member]
Concentration risk			54.30%		31.40%
Accounts Receivable [Member] | Second Largest Customer [Member]
Concentration risk			10.10%		26.40%
Accounts Receivable [Member] | Third Largest Customer [Member]
Concentration risk			8.80%		16.10%
Accounts Receivable [Member] | Fourth Largest Customer [Member]
Concentration risk			7.50%		14.10%
Accounts Receivable [Member] | Remaining Customers [Member]
Concentration risk			19.30%		12.00%

Note 3 - Common Stock (Details

Note 3 - Common Stock (Details Textual) - shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,869,312	3,641,785

Note 3 - Common Stock - Antidil

Note 3 - Common Stock - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Antidilutive Securities (in shares)	5,869,312	3,641,785
Warrant [Member]
Antidilutive Securities (in shares)	1,550,975	1,795,246
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities (in shares)	4,318,337	1,846,539

Note 3 - Common Stock - Warrant

Note 3 - Common Stock - Warrant Exercises (Details) - USD ($)	Aug. 19, 2019	Jun. 19, 2019	May 19, 2019	Jan. 19, 2019	Sep. 30, 2019	Sep. 30, 2018
Exercise Price (in dollars per share)	$ 5	$ 5	$ 4.80	$ 5
Number of Warrants Exercised (in shares)	20,000	20,000	172,461	20,000
Proceeds Received	$ 100,000	$ 100,000	$ 827,813	$ 100,000	$ 1,128,000
Number of Common Shares Issued	$ 20,000	$ 20,000	$ 172,461	$ 20,000

Note 3 - Common Stock - Option

Note 3 - Common Stock - Option Exercises (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Proceeds Received	$ 1,660,000
Share-based Payment Arrangement, Tranche One [Member]
Exercise price (in dollars per share)	$ 7.50
Number of Options Exercised (in shares)	9,479
Proceeds Received	$ 71,093
Number of Common Shares Issued (in shares)	9,479
Share-based Payment Arrangement, Tranche Two [Member]
Exercise price (in dollars per share)	$ 10.79
Number of Options Exercised (in shares)	129,906
Proceeds Received	$ 1,401,801
Number of Common Shares Issued (in shares)	129,906
Share-based Payment Arrangement, Tranche Three [Member]
Exercise price (in dollars per share)	$ 7.50
Number of Options Exercised (in shares)	25,000
Proceeds Received	$ 187,500
Number of Common Shares Issued (in shares)	25,000

Note 4 - Stock Compensation (De

Note 4 - Stock Compensation (Details Textual) - USD ($)	Sep. 24, 2019	Feb. 28, 2019	Aug. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement, Noncash Expense, Total				$ 400,000	$ 1,300,000		$ 2,947,000	$ 2,024,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total				$ 10,700,000			$ 10,700,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition							2 years 255 days
Class of Warrant or Right, Issued During Period							228,607
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 6.08			$ 6.08				$ 4.71
Warrants Related to Investor Relations Services [Member]
Class of Warrant or Right, Issued During Period				0		0	4,167	24,000
Horizon Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights										40,279
Class of Warrant or Right, Exercise Price of Warrants or Rights										$ 9.93
Horizon Warrants [Member] | Loan Agreement [Member] | Revolving Loan [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									51,185	51,185
Lender Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	173,255
Proceeds from Issuance of Warrants	$ 25,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 17.32
Performance Shares [Member]
Reversal of Compensation Expense				$ 1,100,000
Share-based Payment Arrangement, Expense							$ 0
The 2017 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				2,333,334			2,333,334
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized		552,884	1,400,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period							10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number				4,268,337			4,268,337
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance				50,000			50,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant				47,349			47,349
The 2017 Stock Incentive Plan [Member] | Nonemployees [Member]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total				$ 300,000			$ 300,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition							2 years 109 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross				0			50,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price							$ 9.93	$ 0
The 2017 Stock Incentive Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							3 years
The 2017 Stock Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							5 years
The 2010 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				243,853			243,853

Note 4 - Stock Compensation - E

Note 4 - Stock Compensation - Employee and Director Stock Option Activity (Details) - Employees and Directors [Member] - $ / shares	9 Months Ended
	Sep. 30, 2019
Outstanding, shares (in shares)	3,761,259
Outstanding, weighted average exercise price (in dollars per share)	$ 9.44
Granted, shares (in shares)	740,929
Granted, weighted average exercise price (in dollars per share)	$ 12.59
Forfeited, shares (in shares)	(69,466)
Forfeited, weighted average exercise price (in dollars per share)	$ 7.50
Exercised, shares (in shares)	(164,385)
Exercise price (in dollars per share)	$ 10.10
Outstanding, shares (in shares)	4,268,337
Outstanding, weighted average exercise price (in dollars per share)	$ 10.02
Options vested and expected to vest, share (in shares)	4,268,337
Options vested and expected to vest, weighted average exercise price (in dollars per share)	$ 10.02
Options vested and exercisable, share (in shares)	875,024
Options vested and exercisable, weighted average exercise price (in dollars per share)	$ 15.39

Note 4 - Stock Compensation - P

Note 4 - Stock Compensation - Performance-based and Market-based Awards (Details) - $ / shares	1 Months Ended
	Aug. 31, 2018	Apr. 30, 2018	Dec. 31, 2017
Fully Vest On January 1, 2023 [Member] | Market Based Options [Member]
Granted, shares (in shares)	397,693		642,307
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 7.50
Vest Annually On December 31 for One Fifth of Each Tranche [Member] | Performance Shares [Member]
Granted, shares (in shares)	397,693	642,307
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 7.50	$ 7.50

Note 4 - Stock Compensation -_2

Note 4 - Stock Compensation - Performance-based and Market-based Awards (Details) (Parentheticals)	Aug. 31, 2018$ / shares
Market Based Options [Member]
Common Stock, share price (in dollars per share)	$ 15

Note 4 - Share Compensation - S

Note 4 - Share Compensation - Summary of Warrant Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2019
Outstanding, number of warrants (in shares)	1,608,996
Outstanding, weighted average exercise price (in dollars per share)	$ 4.71
Class of Warrant or Right, Issued During Period	228,607
Warrants issued, weighted average exercise price (in dollars per share)	$ 16
Warrants expired, number of warrants (in shares)	(54,167)
Warrants expired, weighted average exercise price (in dollars per share)	$ 12.46
Warrants exercised, number of warrants (in shares)	(232,461)
Warrants exercised, weighted average exercise price (in dollars per share)	$ 4.85
Outstanding, number of warrants (in shares)	1,550,975
Outstanding, weighted average exercise price (in dollars per share)	$ 6.08
Warrants exercisable, number of warrants (in shares)	1,550,975
Warrants exercisable, weighted average exercise price (in dollars per share)	$ 6.08

Note 5 - Leases (Details Textua

Note 5 - Leases (Details Textual) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)ft²	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)ft²
Area of Real Estate Property | ft²		7,869		7,869
Lessee, Operating Lease, Base Rent			$ 600
Operating Lease, Liability, Total	$ 2,295		2,295
Operating Lease, Right-of-Use Asset	2,500		2,500
Operating Lease, Expense	110	$ 100	277	$ 200
Computer Equipment [Member]
Finance Lease, Right-of-Use Asset	$ 300		$ 300
Lessee, Finance Lease, Interest Expense Amortization Period			3 years

Note 5 - Leases - Operating Lea

Note 5 - Leases - Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating lease expense	$ 110	$ 100	$ 277	$ 200
Short-term lease rent expense	19		36
Total rent expense	$ 129		$ 313

Note 5 - Leases - Operating L_2

Note 5 - Leases - Operating Lease Information (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Operating cash flows from operating leases	$ 75	$ 238
Weighted-average remaining lease term – operating leases (Year)	4 years 255 days	4 years 255 days
Weighted-average discount rate – operating leases	10.15%	10.15%

Note 5 - Leases - Maturities of

Note 5 - Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Remaining three months ended December 31, 2019	$ 143
Year ended December 31, 2020	581
Year ended December 31, 2021	603
Year ended December 31, 2022	623
Year ended December 31, 2023	644
Year ended December 31, 2024	328
Total	2,922
Less present value discount	(627)
Operating lease liabilities	$ 2,295

Note 6 - Debt (Details Textual)

Note 6 - Debt (Details Textual) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	9 Months Ended
	Sep. 30, 2019	Mar. 31, 2019	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2018
Payment for Debt Extinguishment or Debt Prepayment Cost				$ 1,956
Write off of Deferred Debt Issuance Cost				1,505
Corporate Finance [Member] | A/R Facility [Member]
Debt Instrument, Term, Cash Proceeds From Sale of Equity Securities	$ 10,000
Note 2024 [Member]
Debt Instrument, Face Amount	45,000			$ 45,000
Proceeds from Issuance of Long-term Debt, Total	$ 35,000
Loan Agreement [Member]
Debt Instrument, Interest Rate, Stated Percentage		9.75%	9.75%
Payment for Debt Extinguishment or Debt Prepayment Cost		$ 1,100
Loan Agreement [Member] | Other Nonoperating Income (Expense) [Member]
Write off of Deferred Debt Issuance Cost		1,500
Loan Agreement [Member] | Maximum [Member]
Debt Instrument, Face Amount		$ 15,000	$ 15,000			$ 7,500
Loan Agreement [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate, Threshold Percent			2.00%

Note 6 - Debt - Net Carrying Am

Note 6 - Debt - Net Carrying Amounts (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Principal amount	$ 35,000	$ 7,950
Unamortized debt discount	(5,132)	(478)
Net carrying amount	$ 29,868	$ 7,472

Note 6 - Debt - Interest Expens

Note 6 - Debt - Interest Expense (Details) - USD ($) $ in Thousands	6 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Contractual interest expense	$ 434	$ 205	$ 967	$ 210
Amortization of debt issuance costs	102		248
Accretion of debt discount	54	36	167	68
Total Interest	$ 590	$ 241	$ 1,382	$ 278

Note 7 - Fair Value Measureme_3

Note 7 - Fair Value Measurements (Details Textual) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended
	Jun. 30, 2019	May 31, 2019	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Fair Value Adjustment of Warrants				$ (173,000)	$ 65,000	$ 38,000	$ 94,000
Class of Warrant Or Right Value of Securities Called By Warrants Or Rights			$ 600,000
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 6.08		$ 6.08		$ 4.71
Class of Warrant or Right, Issued During Period						228,607
Loan Agreement [Member] | Revolving Loan [Member]
Debt Instrument, Second Billings Threshold for Additional Loan		$ 7,000,000
Proceeds from Issuance of Long-term Debt, Total	$ 2,500,000	$ 2,500,000
Debt Instrument, Third Billings Threshold for Additional Loan	$ 8,000,000
Horizon Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			40,279
Warrants and Rights Outstanding, Term			7 years
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 9.93
Horizon Warrants [Member] | Maximum [Member]
Maximum Percentage of Outstanding Common Stock To Be Issued For Warrants				19.90%		19.90%
Horizon Warrants [Member] | Loan Agreement [Member] | Revolving Loan [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	51,185		51,185
Warrant Issued in May 2019 [Member]
Warrants and Rights Outstanding, Term	7 years	7 years
Class of Warrant Or Right Value of Securities Called By Warrants Or Rights	$ 100,000	$ 100,000
Class of Warrant or Right, Issued During Period		5,561
Warrant Issued in May 2019 [Member] | Maximum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 18.71	$ 17.98
Warrant Issued in June 2019 [Member]
Class of Warrant or Right, Issued During Period	5,345
Noncurrent Restricted Cash [Member[
Certificates of Deposit, at Carrying Value				$ 408,000		$ 408,000		$ 408,000
Cash, Cash Equivalents and Restricted Cash [Member]
Certificates of Deposit, at Carrying Value								$ 71,000

Note 7 - Fair Value Measureme_4

Note 7 - Fair Value Measurements - Fair Value, Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019		Dec. 31, 2018
Total assets	$ 408		$ 479
Warrant liabilities	670		86
Total liabilities	670		86
Certificates of Deposit [Member]
Certificates of deposits	408	[1]	479	[2]
Fair Value, Inputs, Level 1 [Member]
Total assets	408		479
Warrant liabilities
Total liabilities
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member]
Certificates of deposits	408	[1]	479	[2]
Fair Value, Inputs, Level 2 [Member]
Total assets
Warrant liabilities
Total liabilities
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member]
Certificates of deposits		[1]		[2]
Fair Value, Inputs, Level 3 [Member]
Total assets
Warrant liabilities	670		86
Total liabilities	670		86
Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member]
Certificates of deposits		[1]		[2]
[1]	$408,000 is included in restricted cash, long-term on our balance sheet as of June 30, 2019.
[2]	$71,000 is included in cash and restricted cash and $408,000 is included in restricted cash, long term on our balance sheet as of December 31, 2018.

Note 7 - Fair Value Measureme_5

Note 7 - Fair Value Measurements - Fair Value Measurements Using Significant Level III Inputs (Details) - Warrants [Member] - Fair Value, Inputs, Level 3 [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Balance	$ 86
Issuance of new warrant liability	632
Change in fair value of warrant liability	38
Reclassification of warrant liability	(86)
Balance	$ 670

Note 7 - Fair Value Measureme_6

Note 7 - Fair Value Measurements - Fair Value Assumptions, Warrant Liabilities (Details)	Sep. 30, 2019yr
Measurement Input, Price Volatility [Member] | Minimum [Member]
Expected price volatility	0.98
Measurement Input, Price Volatility [Member] | Maximum [Member]
Expected price volatility	1.002
Measurement Input, Expected Term [Member]
Expected price volatility
Measurement Input, Expected Term [Member] | Minimum [Member]
Expected price volatility	6.5
Measurement Input, Expected Term [Member] | Maximum [Member]
Expected price volatility	7
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member]
Expected price volatility	0.016
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member]
Expected price volatility	0.023
Measurement Input, Expected Dividend Rate [Member]
Expected price volatility	0

Note 8 - Variable Interest En_3

Note 8 - Variable Interest Entities - Summary of Amounts and Classification of Assets and Liabilities of the VIE in Our Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Cash and cash equivalents	$ 15,900	$ 3,162
Prepaid and other current assets	791	1,108
Total assets	24,450	6,323
Accounts payable	1,111	497
Total liabilities	42,171	15,288
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | TIH [Member]
Cash and cash equivalents	469	45
Accounts receivable	104	94
Prepaid and other current assets		29
Total assets	573	168
Accounts payable	15	7
Accrued liabilities	42	14
Intercompany payable	603	147
Total liabilities	$ 660	$ 168