Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | IRADIMED CORP | |
Entity Central Index Key | 1,325,618 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 10,656,327 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 20,093,133 | $ 18,205,976 |
Accounts receivable, net of allowance for doubtful accounts of $46,067 as of March 31, 2018 and $37,225 as of December 31, 2017 | 3,279,940 | 3,778,929 |
Investments | 7,828,379 | 8,135,123 |
Inventory, net | 4,308,321 | 4,210,846 |
Prepaid expenses and other current assets | 628,346 | 648,881 |
Prepaid income taxes | 63,541 | 127,855 |
Total current assets | 36,201,660 | 35,107,610 |
Property and equipment, net | 1,910,408 | 1,868,851 |
Intangible assets, net | 863,940 | 885,502 |
Deferred income taxes, net | 1,088,278 | 950,375 |
Other assets | 196,451 | 200,196 |
Total assets | 40,260,737 | 39,012,534 |
Current liabilities: | ||
Accounts payable | 692,289 | 656,723 |
Accrued payroll and benefits | 1,180,546 | 1,512,336 |
Other accrued taxes | 34,137 | 109,502 |
Warranty reserve | 70,952 | 60,538 |
Deferred revenue | 1,496,117 | 1,617,571 |
Other current liability | 108,571 | 108,571 |
Accrued income taxes | 358,462 | 12,731 |
Total current liabilities | 3,941,074 | 4,077,972 |
Deferred revenue | 2,082,795 | 2,003,685 |
Total liabilities | 6,023,869 | 6,081,657 |
Stockholders' equity: | ||
Common stock; $0.0001 par value; 31,500,000 shares authorized; 10,622,042 shares issued and outstanding as of March 31, 2018 and 10,596,566 shares issued and outstanding as of December 31, 2017 | 1,062 | 1,060 |
Additional paid-in capital | 13,131,054 | 12,623,181 |
Retained earnings | 21,207,237 | 20,355,545 |
Accumulated other comprehensive loss | (102,485) | (48,909) |
Total stockholders' equity | 34,236,868 | 32,930,877 |
Total liabilities and stockholders' equity | $ 40,260,737 | $ 39,012,534 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
CONDENSED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts | $ 46,067 | $ 37,225 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 31,500,000 | 31,500,000 |
Common stock, shares issued | 10,622,042 | 10,596,566 |
Common stock, shares outstanding | 10,622,042 | 10,596,566 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CONDENSED STATEMENTS OF OPERATIONS | ||
Revenue | $ 7,108,151 | $ 5,162,560 |
Cost of revenue | 1,691,535 | 1,387,618 |
Gross profit | 5,416,616 | 3,774,942 |
Operating expenses: | ||
General and administrative | 2,303,532 | 2,107,257 |
Sales and marketing | 1,645,936 | 1,364,776 |
Research and development | 379,826 | 541,290 |
Total operating expenses | 4,329,294 | 4,013,323 |
Income (loss) from operations | 1,087,322 | (238,381) |
Other income, net | 40,072 | 29,524 |
Income (loss) before provision for income taxes | 1,127,394 | (208,857) |
Provision for income tax expense | 286,198 | 24,483 |
Net income (loss) | $ 841,196 | $ (233,340) |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ 0.08 | $ (0.02) |
Diluted (in dollars per share) | $ 0.07 | $ (0.02) |
Weighted average shares outstanding: | ||
Basic (in shares) | 10,608,387 | 10,740,979 |
Diluted (in shares) | 11,879,889 | 10,740,979 |
CONDENSED STATEMENTS OF COMPREH
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income (loss) | $ 841,196 | $ (233,340) |
Other comprehensive (loss) income: | ||
Change in fair value of available-for-sale securities, net of tax (benefit) expense of $(14,128) and $110, respectively | (42,651) | 2,124 |
Realized loss on available-for-sale securities reclassified to net income, net of tax expense (benefit) of $86 and $(2,043), respectively | (429) | 3,056 |
Other comprehensive (loss) income | (43,080) | 5,180 |
Comprehensive income (loss) | $ 798,116 | $ (228,160) |
CONDENSED STATEMENTS OF COMPRE6
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Change in fair value of available-for-sale securities, tax (benefit) expense | $ (14,128) | $ 110 |
Reclassification to net income, tax expense (benefit) | $ 86 | $ (2,043) |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net income (loss) | $ 841,196 | $ (233,340) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Change in allowance for doubtful accounts | 8,842 | (8,533) |
Change in provision for excess and obsolete inventory | 61,011 | (7,171) |
Depreciation and amortization | 427,747 | 287,116 |
Stock-based compensation | 416,327 | 376,424 |
Deferred income taxes, net | (123,689) | (176,659) |
(Gain) loss on maturities of investments | (550) | 5,099 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 490,147 | 47,115 |
Inventory | (155,234) | (321,552) |
Prepaid expenses and other current assets | (254,051) | (201,029) |
Other assets | (18,185) | 3,665 |
Accounts payable | (80,631) | (320,124) |
Accrued payroll and benefits | (331,790) | (30,495) |
Other accrued taxes | (75,365) | 501 |
Warranty reserve | 10,414 | 23,169 |
Deferred revenue | (42,344) | 170,026 |
Accrued income taxes, net of prepaid income taxes | 410,045 | 201,143 |
Net cash provided by (used in) operating activities | 1,583,890 | (184,645) |
Investing activities: | ||
Purchases of investments | (1,321,257) | |
Proceeds from maturity of investments | 250,000 | 1,500,050 |
Purchases of property and equipment | (37,983) | (240,400) |
Capitalized intangible assets | (298) | (111) |
Net cash provided by (used in) investing activities | 211,719 | (61,718) |
Financing activities: | ||
Proceeds from stock option exercises | 95,924 | 33,086 |
Taxes paid related to the net share settlement of equity awards | (4,376) | (43,953) |
Net cash provided by (used in) financing activities | 91,548 | (10,867) |
Net increase (decrease) in cash and cash equivalents | 1,887,157 | (257,230) |
Cash and cash equivalents, beginning of period | 18,205,976 | 17,713,871 |
Cash and cash equivalents, end of period | $ 20,093,133 | $ 17,456,641 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Basis of Presentation | |
Basis of Presentation | 1 — Basis of Presentation The accompanying interim condensed financial statements of IRADIMED CORPORATION (“IRADIMED”, the “Company”, “we”, “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The interim financial information is unaudited, but reflects all normal adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. These accompanying interim condensed financial statements should be read with the financial statements and related footnotes to financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017. The accounting policies followed in the preparation of these interim condensed financial statements are consistent in all material respects with those described in Note 1 of our Form 10-K. Certain prior year amounts have been reclassified to conform to current year presentation. We operate in one reportable segment which is the development, manufacture and sale of MRI compatible medical devices, related accessories, disposables and services for use by hospitals and acute care facilities during MRI procedures. FDA Warning Letter The FDA conducted a routine inspection of our prior facility between April 7 and April 16, 2014. This was the first FDA inspection of our facility since the voluntary product recall in August 2012 of certain infusion sets and the voluntary recall in July 2013 of our DERS software. The FDA issued a Form 483 on April 16, 2014 that identified eight observations. The majority of the observations related to procedural and documentation issues associated with the design, development, validation testing and documentation of software used in certain of our products. Other observations were related to the design validation of pump labeling, design analysis of tube stretching, procedures for post-market design review, and control and procedures related to handling certain reported complaints. We submitted responses to the Form 483 in May 2014 and June 2014 in which we described our proposed corrective and preventative actions to address each of the FDA’s observations. On September 2, 2014, we received a warning letter from the FDA relating to this inspection (the “Warning Letter”). The Warning Letter states that the FDA accepted as adequate several of our responses to Form 483 observations, identified two responses whose accuracy will be determined in the next scheduled inspection of our facility and identified issues for which our response was determined to be inadequate. The issues identified as inadequate concern our procedures for validating device design primarily related to software quality assurance. Also, the Warning Letter raised a new issue. The Warning Letter states that modifications made to software on our previously cleared infusion pumps, the MRidium 3860 and MRidium 3850, were “significant” and required submission of new premarket notifications under Section 510(k) (a “510(k) submission”) of the FDC Act. These modifications had been made over time. We believed they were insignificant and did not require premarket notification submissions. However, the FDA indicated that the modifications of the software for the MRidium 3860 and the software for the MRidium 3850 were “significant” modifications because they could significantly affect the safety or effectiveness of these devices. As a result, the Warning Letter states that the products being sold by us are “adulterated” and “misbranded” under the FDC Act. The Warning Letter also indicates that the MRidium 3860+ infusion pump requires separate FDA clearance from the MRidium 3860 and MRidium 3850. The Warning Letter requested that we immediately cease activities that result in the misbranding or adulteration of the MRidium 3860 MRI infusion pump, MRidium 3850 MRI infusion pump, and the MRidium 3860+ MRI infusion pump, including the commercial distribution of the devices. We immediately complied with the Warning Letter and ceased sale and distribution of the identified products in the United States. On September 4, 2014, we submitted to the FDA our initial response to the Warning Letter and on September 17, 2014 we sent an additional response that included supplemental information related to the Form 483 inspection observations for which the FDA considered our initial responses inadequate. On November 25, 2014, we announced that we filed the 510(k) submission related to our MRidium 3860+ MRI IV infusion pumps and on December 12, 2014 we were notified that our 510(k) submission had been formally accepted for review by the FDA. On December 22, 2014, under FDA enforcement discretion, we announced that we resumed domestic distribution of our MRI compatible MRidium 3860+ MRI IV infusion pump systems, without the DERS option. On January 28, 2015, under FDA enforcement discretion, we announced that we resumed domestic distribution of our DERS option. On December 9, 2015, we met with the FDA to review responses to the agency’s additional information letter. Between July 11 and July 18, 2016, the FDA conducted a routine inspection of our facility. This was the first FDA inspection of our facility since the receipt of the Warning Letter. During this inspection, the updated documents and actions implemented in response to the Warning Letter findings were reviewed, and the FDA determined that no further actions were necessary. On December 15, 2016, we received FDA 510(k) clearance for our MRidium 3860+ MRI IV infusion pump system, including the DERS software feature. As of March 31, 2018, the Warning Letter remains open. Certain Significant Risks and Uncertainties We market our products to end users in the United States and to distributors internationally. Sales to end users in the United States are generally made on open credit terms. Management maintains an allowance for potential credit losses. Recent Accounting Pronouncements Accounting Pronouncements Implemented in 2018 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides guidance on the recognition of revenue based upon the entity’s contracts with customers to transfer goods or services at an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. We adopted the new guidance effective January 1, 2018 using the modified retrospective method to contracts that were not completed as of January 1, 2018. We have evaluated each of the five steps in the new revenue recognition model, which are: 1) Identify the contract with the customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations; and 5) Recognize revenue when (or as) performance obligations are satisfied. We have concluded that the adoption of this guidance did not require any adjustment to the opening balance of retained earnings and did not have a material impact to our financial statements. Additionally, our method and timing for recognizing revenue after the implementation this guidance does not vary significantly from our revenue recognition practices under the previous revenue recognition guidance. Disclosure requirements under Topic 606 have been significantly expanded in comparison to the disclosure requirements under the previous guidance. See Note 2. In February 2016, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. We adopted the new guidance on January 1, 2018 and reclassified an immaterial amount from accumulated other comprehensive income to beginning retained earnings. Recently Issued Accounting Pronouncements to be Implemented In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by all leases not considered short-term leases. For short-term leases, lessees may elect an accounting policy by class of underlying assets under which right-of-use assets and lease liabilities are not recognized and lease payments are generally recognized as expense over the lease term on a straight-line basis. The accounting by lessors will remain largely unchanged from current U.S. GAAP. This update is effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period, which will require us to adopt this update in the first quarter of 2019. Early adoption is permitted. We have only one material lease contract outstanding, for our sole facility. We are in the process of determining the method and date of adoption and assessing the impact of the update on our financial condition and results of operations. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition | |
Revenue Recognition | 2 — Revenue Recognition On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective method applied to contracts which were incomplete as of January 1, 2018. Results from reporting periods beginning after January 1, 2018 are presented under this new guidance, while prior period amounts are unadjusted and continue to be reported under previous revenue recognition guidance. We generate revenue from the one-time sale of MRI compatible medical devices and accessories, extended warranty agreements and the sale of disposable products used with our devices. The principal customers for our MRI compatible products include hospitals and acute care facilities, both in the U.S. and internationally. In the U.S., we sell our products through our direct sales force and outside of the U.S. we sell our products through distributors who resell our products to end users. For domestic sales, we enter into agreements with healthcare supply contracting companies, commonly referred to as Group Purchasing Organizations (“GPOs”), which enable us to sell and distribute our products to their member hospitals. Our agreements with GPOs typically include the following relevant provisions: · Negotiated pricing for all group members established at time of GPO contract execution, and; · Volume discounts and other preferential terms on their members’ purchases from us. We do not sell to GPOs. Hospitals, group practices and other acute care facilities that are members of a GPO, purchase products directly from us under the terms negotiated by the GPO. We recognize revenue when all of the following criteria are met: we have a contract with a customer that creates enforceable rights and obligations; promised products or services are identified; the transaction price, or the amount we expect to receive, is determinable and we have transferred control of the promised products or services to the customer. We consider transfer of control evidenced upon the passage of title and risks and rewards of ownership to the customer. We allocate the transaction price using the relative standalone selling price method. Customer sale prices for our MRI compatible IV infusion pump systems and related disposables and services are contractually fixed over the contract term. We recognize a receivable at the point in time we have an unconditional right to payment. Payment terms are typically within 45 days after transferring control to U.S. customers. Most international distributors are required to pay a portion of the transaction price in advance and the remaining amount within 30 days of receiving the related products. Shipping and handling charges billed to customers are included in revenue and shipping and handling related expenses are charged to cost of revenue. In certain U.S. states we are required to collect sales taxes from our customers. These amounts are excluded from revenue and recorded as a liability until remitted to the taxing authority. Disaggregation of Revenue We disaggregate revenue from contracts with customers by geographic region and revenue type as we believe it best depicts the nature, amount, timing and uncertainty of our revenue and cash flow. Revenue information by geographic region is as follows: Three Months Ended 2018 2017 (unaudited) United States $ $ International Total revenue $ $ Revenue information by type is as follows: Three Months Ended 2018 2017 (unaudited) Devices: MRI compatible IV infusion pump system $ $ MRI compatible patient vital signs monitoring systems Total Devices revenue Disposables and services Amortization of extended warranty agreements Total revenue $ $ Contract Liabilities We record contract liabilities, or deferred revenue, when we have an obligation to provide a product or service to the customer and payment is received in advance of our performance. When we sell a product or service with a future performance obligation, we defer revenue allocated to the unfulfilled performance obligation and recognize this revenue when (or as) the performance obligation is satisfied. Our deferred revenue consists of advance payments received from customers prior to the transfer of products or services, shipments that are in-transit at the end of a period and sales of extended warranty agreements. Advanced payments received from customers and shipments in-transit are recognized in revenue at the time control of the related products has been transferred to the customer or services have been delivered. Amounts related to extended warranty agreements are deferred and recognized in revenue ratably over the agreement period, which is typically one to four years after control of the related products is transferred to the customer, as we believe this recognition pattern best depicts the transfer of services being provided. Deferred revenue is classified as current or long-term deferred revenue in our Balance Sheets, depending on the expected timing of satisfying the related performance obligations. Our contract liabilities consist of: As of December 31, March 31, December 31, (unaudited) Advance payments from customers $ $ Shipments in-transit Extended warranty agreements Total $ $ Changes in the contract liabilities during the period are as follows: Deferred Contract liabilities, December 31, 2017 $ Increases due to cash received from customers Decreases due to recognition of revenue ) Contract liabilities, March 31, 2018 $ Capitalized Contract Costs We capitalize commissions paid to our sales managers related to contracts with customers when the associated revenue is expected to be earned over a period of time. Deferred commissions are primarily related to the sale of extended warranty agreements. Capitalized commissions are included in Prepaid Expenses and Other Current Assets in our Balance Sheets when the associated expense is expected to be recognized in one year or less, or Other Assets when the associated expense is expected to be recognized in greater than one year. The associated expense is included in Sales and Marketing expenses in our Statements of Operations. Our total capitalized contract costs as of March 31, 2018 and December 31, 2017 were $186,843 and $168,757, respectively. Expense for the three months ended March 31, 2018 and 2017 related to the amortization of capitalized contract costs were immaterial to our financial statements. Variable Consideration Most of our sales are subject to 30 to 60 day customer-specified acceptance provisions primarily for purposes of ensuring products were not damaged during the shipping process. Historically, we have experienced immaterial product returns and, when experienced, we typically exchange the affected products with new products. Accordingly, variable consideration from contracts with customers is immaterial to our financial statements. |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) per Share | 3 Months Ended |
Mar. 31, 2018 | |
Basic and Diluted Net Income (Loss) per Share | |
Basic and Diluted Net Income (Loss) per Share | 3 — Basic and Diluted Net Income (Loss) per Share Basic net income (loss) per share is based upon the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The underwriters’ warrants, stock options and restricted stock units granted by us represent the only dilutive effect reflected in diluted weighted-average shares outstanding. The following table presents the computation of basic and diluted net income per share: Three Months Ended March 31, 2018 2017 (unaudited) Net income (loss) $ $ ) Weighted-average shares outstanding — Basic Effect of dilutive securities: Underwriters’ warrants — Stock options — Restricted stock units — Weighted-average shares outstanding — Diluted Basic net income (loss) per share $ $ ) Diluted net income (loss) per share $ $ ) Stock options and warrants to purchase shares of our common stock and restricted stock units excluded from the calculation of diluted net income (loss) per share because the effect would have been anti-dilutive are as follows: Three Months Ended 2018 2017 (unaudited) Anti-dilutive stock options, restricted stock units and warrants |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2018 | |
Inventory | |
Inventory | 4 — Inventory Inventory consists of: March 31, December 31, (unaudited) Raw materials $ $ Work in process Finished goods Inventory before allowance for excess and obsolete Allowance for excess and obsolete ) ) Total $ $ |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property and Equipment | |
Property and Equipment | 5 — Property and Equipment Property and equipment consist of: March 31, December 31, (unaudited) Computer software and hardware $ $ Furniture and fixtures Leasehold improvements Machinery and equipment Tooling in-process Accumulated depreciation ) ) Total $ $ Depreciation and amortization expense of property and equipment was $109,371 and $63,469 for the three months ended March 31, 2018 and 2017, respectively. Property and equipment, net, information by geographic region is as follows: March 31, December 31, (unaudited) United States $ $ International Total property and equipment, net $ $ Long-lived assets held outside of the United States consist principally of tooling, which is a component of property and equipment, net. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Intangible Assets | |
Intangible Assets | 6 — Intangible Assets The following table summarizes the components of intangible asset balances: March 31, December 31, (unaudited) Patents — in use $ $ Patents — in process Internally developed software Trademarks Accumulated amortization ) ) Total $ $ Amortization expense of intangible assets was $21,860 and $20,600 for the three months ended March 31, 2018 and 2017, respectively. Expected annual amortization expense for the remaining portion of 2018 and the next five years related to intangible assets is as follows: Nine months ending December 31, 2018 $ 2019 2020 2021 2022 2023 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Stock-Based Compensation | |
Stock-Based Compensation | 7 — Stock-Based Compensation Stock-based compensation was recognized as follows in the Condensed Statements of Operations: Three Months Ended 2018 2017 (unaudited) Cost of revenue $ $ General and administrative Sales and marketing Research and development Total $ $ As of March 31, 2018, we had $374,290 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 1.0 years. As of March 31, 2018, we had $2,835,279 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.7 years. The following table presents a summary of our stock-based compensation activity for the three months ended March 31, 2018: Stock Restricted Outstanding beginning of period Awards granted — Awards exercised/vested ) ) Awards canceled ) ) Outstanding end of period |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments | |
Investments | 8 — Investments Our investments consisted of corporate bonds that we have classified as available-for-sale and are summarized in the following tables: March 31, 2018 Cost Gross Gross Fair Corporate bonds: U.S. corporations $ $ $ $ International corporations — Total $ $ $ $ December 31, 2017 Cost Gross Gross Fair Corporate bonds: U.S. corporations $ $ $ $ International corporations Total $ $ $ $ Unrealized losses from the above investments for all periods presented are attributable to changes in interest rates. We do not believe any of these unrealized losses represent other-than-temporary impairments based on our evaluation of available evidence as of March 31, 2018. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | 9 — Fair Value Measurements The fair value of our assets and liabilities subject to recurring fair value measurements are as follows: Fair Value at March 31, 2018 Fair Quoted Prices Significant Significant Corporate bonds: U.S. corporations $ $ — $ $ — International corporations — — Total $ $ — $ $ — Fair Value at December 31, 2017 Fair Quoted Prices Significant Significant Corporate bonds: U.S. corporations $ $ — $ $ — International corporations — — Total $ $ — $ $ — Our corporate bonds are valued by a third-party custodian at closing prices from national exchanges or pricing vendors on the valuation date. There were no transfers into or out of any Levels during the three months ended March 31, 2018 or the year ended December 31, 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | 10 — Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2018 and 2017 are as follows: Unrealized (Losses) Balance at December 31, 2017 $ ) Losses, net ) Reclassification realized in net earnings ) Cumulative effect from adoption of accounting standard update ) Balance at March 31, 2018 $ ) Balance at December 31, 2016 $ ) Gains, net Reclassification realized in net earnings Balance at March 31, 2017 $ ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes | |
Income Taxes | 11 — Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (“2017 Act”) was enacted. The 2017 Act includes a number of changes to U.S. tax laws that impact us, most notably a reduction of the U.S. corporate income tax from 34 percent to 21 percent effective January 1, 2018. The 2017 Act also provides for the acceleration of depreciation for certain assets placed into service after September 27, 2017 as well as prospective changes beginning in 2018, including repeal of the domestic production activities deduction, acceleration of tax revenue recognition, capitalization of research and development expenditures and additional limitations on executive compensation. We recognized the income tax effects of the 2017 Act in our 2017 financial statements reported on Form 10-K in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes , in the reporting period in which the 2017 Act was signed into law. As such, our 2017 financial results reported on Form 10-K reflected the income tax effects of the 2017 Act for which the accounting under ASC Topic 740 is complete and provisional amounts for those specific income tax effects of the 2017 Act for which the accounting under ASC Topic 740 is incomplete but a reasonable estimate could be determined. We did not identify items for which the income tax effects of the 2017 Act have not been completed and a reasonable estimate could not be determined as of December 31, 2017. No subsequent adjustments have been made to the amounts recorded as of December 31, 2017, which continue to represent a provisional estimate of the impact of the 2017 Act. The estimate of the impact of the 2017 Act is based on certain assumptions and our current interpretation, and may change, as we receive additional clarification and implementation guidance and as the interpretation of the 2017 Act evolves over time. For the three months ended March 31, 2018, we recorded a provision for income tax expense of $286,198. Our effective tax rate was 25.4 percent and differed from the U.S. Federal statutory rate primarily due to research and development credits, partially offset by U.S. state tax expense. For the three months ended March 31, 2017, we recorded a provision for income tax expense of $24,483. Our effective tax rate was (11.7) percent and differed from the U.S. Federal statutory rate primarily due to discrete items associated with the adoption of Accounting Standard Update (ASU) 2016-09, Compensation — Stock Compensation (Topic 718), which requires all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the income statement. Additionally, our effective tax rate differed from the U.S. Federal statutory rate due to higher research and development credits and the domestic production activities deduction relative to our loss before provision from income tax expense. As of March 31, 2018 and December 31, 2017, we have not identified or accrued for any uncertain tax positions. We are currently unaware of any uncertain tax positions that could result in significant payments, accruals or other material deviations in this estimate over the next 12 months. We file tax returns in the United States Federal jurisdiction and many state jurisdictions. Our returns are not currently under examination by the Internal Revenue Service or other taxing authorities. The Company is subject to income tax examinations for our United States Federal and State income taxes for 2013 and subsequent years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12 — Commitments and Contingencies Leases. In January 2014, we entered into a non-cancelable operating lease, commencing July 1, 2014, for a new manufacturing and headquarters facility in Winter Springs, Florida owned by Susi, LLC, an entity controlled by our President and CEO, Roger Susi. Pursuant to the terms of our lease for this property, the monthly base rent is $33,171, adjusted annually for changes in the consumer price index. Under the terms of the lease, we are responsible for property taxes, insurance and maintenance expenses. The term of the lease expires on May 31, 2019. Unless advance written notice of termination is timely provided, the lease will automatically renew for two successive terms of five years each beginning in 2019 and again in 2024, and thereafter, will be renewed for successive terms of one year each. A summary of our non-cancelable operating lease commitments of March 31, 2018 is as follows: Nine months ending December 31, 2018 $ 2019 2020 — 2021 — 2022 — Total non-cancelable operating lease commitments $ Rent expense under our operating leases was $101,505 and $101,505 for the three months ended March 31, 2018 and 2017, respectively. Leasehold improvements are amortized over the shorter of the initial lease term or the estimated useful life. Purchase commitments. We had various purchase orders for goods or services totaling approximately $2,298,857 at March 31, 2018 and $2,219,818 at December 31, 2017. No amounts related to these purchase orders have been recognized in our balance sheet. Legal matters. We may from time to time become party to various legal proceedings or claims that arise in the ordinary course of business. |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2018 | |
Common Stock | |
Common Stock | 13 — Common Stock The table below summarizes our common stock activity (shares): Balance, December 31, 2017 Option exercises Vesting of restricted stock units, net of shares withheld for taxes Balance, March 31, 2018 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Basis of Presentation | |
FDA Warning Letter | FDA Warning Letter The FDA conducted a routine inspection of our prior facility between April 7 and April 16, 2014. This was the first FDA inspection of our facility since the voluntary product recall in August 2012 of certain infusion sets and the voluntary recall in July 2013 of our DERS software. The FDA issued a Form 483 on April 16, 2014 that identified eight observations. The majority of the observations related to procedural and documentation issues associated with the design, development, validation testing and documentation of software used in certain of our products. Other observations were related to the design validation of pump labeling, design analysis of tube stretching, procedures for post-market design review, and control and procedures related to handling certain reported complaints. We submitted responses to the Form 483 in May 2014 and June 2014 in which we described our proposed corrective and preventative actions to address each of the FDA’s observations. On September 2, 2014, we received a warning letter from the FDA relating to this inspection (the “Warning Letter”). The Warning Letter states that the FDA accepted as adequate several of our responses to Form 483 observations, identified two responses whose accuracy will be determined in the next scheduled inspection of our facility and identified issues for which our response was determined to be inadequate. The issues identified as inadequate concern our procedures for validating device design primarily related to software quality assurance. Also, the Warning Letter raised a new issue. The Warning Letter states that modifications made to software on our previously cleared infusion pumps, the MRidium 3860 and MRidium 3850, were “significant” and required submission of new premarket notifications under Section 510(k) (a “510(k) submission”) of the FDC Act. These modifications had been made over time. We believed they were insignificant and did not require premarket notification submissions. However, the FDA indicated that the modifications of the software for the MRidium 3860 and the software for the MRidium 3850 were “significant” modifications because they could significantly affect the safety or effectiveness of these devices. As a result, the Warning Letter states that the products being sold by us are “adulterated” and “misbranded” under the FDC Act. The Warning Letter also indicates that the MRidium 3860+ infusion pump requires separate FDA clearance from the MRidium 3860 and MRidium 3850. The Warning Letter requested that we immediately cease activities that result in the misbranding or adulteration of the MRidium 3860 MRI infusion pump, MRidium 3850 MRI infusion pump, and the MRidium 3860+ MRI infusion pump, including the commercial distribution of the devices. We immediately complied with the Warning Letter and ceased sale and distribution of the identified products in the United States. On September 4, 2014, we submitted to the FDA our initial response to the Warning Letter and on September 17, 2014 we sent an additional response that included supplemental information related to the Form 483 inspection observations for which the FDA considered our initial responses inadequate. On November 25, 2014, we announced that we filed the 510(k) submission related to our MRidium 3860+ MRI IV infusion pumps and on December 12, 2014 we were notified that our 510(k) submission had been formally accepted for review by the FDA. On December 22, 2014, under FDA enforcement discretion, we announced that we resumed domestic distribution of our MRI compatible MRidium 3860+ MRI IV infusion pump systems, without the DERS option. On January 28, 2015, under FDA enforcement discretion, we announced that we resumed domestic distribution of our DERS option. On December 9, 2015, we met with the FDA to review responses to the agency’s additional information letter. Between July 11 and July 18, 2016, the FDA conducted a routine inspection of our facility. This was the first FDA inspection of our facility since the receipt of the Warning Letter. During this inspection, the updated documents and actions implemented in response to the Warning Letter findings were reviewed, and the FDA determined that no further actions were necessary. On December 15, 2016, we received FDA 510(k) clearance for our MRidium 3860+ MRI IV infusion pump system, including the DERS software feature. As of March 31, 2018, the Warning Letter remains open. |
Certain Significant Risks and Uncertainties | Certain Significant Risks and Uncertainties We market our products to end users in the United States and to distributors internationally. Sales to end users in the United States are generally made on open credit terms. Management maintains an allowance for potential credit losses. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Implemented in 2018 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides guidance on the recognition of revenue based upon the entity’s contracts with customers to transfer goods or services at an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. We adopted the new guidance effective January 1, 2018 using the modified retrospective method to contracts that were not completed as of January 1, 2018. We have evaluated each of the five steps in the new revenue recognition model, which are: 1) Identify the contract with the customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations; and 5) Recognize revenue when (or as) performance obligations are satisfied. We have concluded that the adoption of this guidance did not require any adjustment to the opening balance of retained earnings and did not have a material impact to our financial statements. Additionally, our method and timing for recognizing revenue after the implementation this guidance does not vary significantly from our revenue recognition practices under the previous revenue recognition guidance. Disclosure requirements under Topic 606 have been significantly expanded in comparison to the disclosure requirements under the previous guidance. See Note 2. In February 2016, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. We adopted the new guidance on January 1, 2018 and reclassified an immaterial amount from accumulated other comprehensive income to beginning retained earnings. Recently Issued Accounting Pronouncements to be Implemented In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by all leases not considered short-term leases. For short-term leases, lessees may elect an accounting policy by class of underlying assets under which right-of-use assets and lease liabilities are not recognized and lease payments are generally recognized as expense over the lease term on a straight-line basis. The accounting by lessors will remain largely unchanged from current U.S. GAAP. This update is effective for annual periods beginning after December 15, 2018, including interim periods within that reporting period, which will require us to adopt this update in the first quarter of 2019. Early adoption is permitted. We have only one material lease contract outstanding, for our sole facility. We are in the process of determining the method and date of adoption and assessing the impact of the update on our financial condition and results of operations. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition | |
Schedule of disaggregation of revenue by geographic region and type | Revenue information by geographic region is as follows: Three Months Ended 2018 2017 (unaudited) United States $ $ International Total revenue $ $ Revenue information by type is as follows: Three Months Ended 2018 2017 (unaudited) Devices: MRI compatible IV infusion pump system $ $ MRI compatible patient vital signs monitoring systems Total Devices revenue Disposables and services Amortization of extended warranty agreements Total revenue $ $ |
Schedule of deferred revenue and changes in the contract liabilities | Deferred revenue is classified as current or long-term deferred revenue in our Balance Sheets, depending on the expected timing of satisfying the related performance obligations. Our contract liabilities consist of: As of December 31, March 31, December 31, (unaudited) Advance payments from customers $ $ Shipments in-transit Extended warranty agreements Total $ $ Changes in the contract liabilities during the period are as follows: Deferred Contract liabilities, December 31, 2017 $ Increases due to cash received from customers Decreases due to recognition of revenue ) Contract liabilities, March 31, 2018 $ |
Basic and Diluted Net Income 23
Basic and Diluted Net Income (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Basic and Diluted Net Income (Loss) per Share | |
Schedule of computation of basic and diluted net income per share | Three Months Ended March 31, 2018 2017 (unaudited) Net income (loss) $ $ ) Weighted-average shares outstanding — Basic Effect of dilutive securities: Underwriters’ warrants — Stock options — Restricted stock units — Weighted-average shares outstanding — Diluted Basic net income (loss) per share $ $ ) Diluted net income (loss) per share $ $ ) |
Schedule of stock options and warrants to purchase shares of our common stock and restricted stock units excluded from the calculation of diluted net income (loss) per share | Three Months Ended 2018 2017 (unaudited) Anti-dilutive stock options, restricted stock units and warrants |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory | |
Schedule of inventory | March 31, December 31, (unaudited) Raw materials $ $ Work in process Finished goods Inventory before allowance for excess and obsolete Allowance for excess and obsolete ) ) Total $ $ |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property and Equipment | |
Schedule of property and equipment | March 31, December 31, (unaudited) Computer software and hardware $ $ Furniture and fixtures Leasehold improvements Machinery and equipment Tooling in-process Accumulated depreciation ) ) Total $ $ |
Schedule of property and equipment, net, information by geographic region | March 31, December 31, (unaudited) United States $ $ International Total property and equipment, net $ $ |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Intangible Assets | |
Summary of the components of intangible asset balances | March 31, December 31, (unaudited) Patents — in use $ $ Patents — in process Internally developed software Trademarks Accumulated amortization ) ) Total $ $ |
Schedule of expected annual amortization expense related to intangible assets | Nine months ending December 31, 2018 $ 2019 2020 2021 2022 2023 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stock-Based Compensation | |
Schedule of stock-based compensation | Three Months Ended 2018 2017 (unaudited) Cost of revenue $ $ General and administrative Sales and marketing Research and development Total $ $ |
Summary of stock options and restricted stock units activity | Stock Restricted Outstanding beginning of period Awards granted — Awards exercised/vested ) ) Awards canceled ) ) Outstanding end of period |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments | |
Summary of available-for-sale securities | March 31, 2018 Cost Gross Gross Fair Corporate bonds: U.S. corporations $ $ $ $ International corporations — Total $ $ $ $ December 31, 2017 Cost Gross Gross Fair Corporate bonds: U.S. corporations $ $ $ $ International corporations Total $ $ $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements | |
Schedule of the fair value of assets and liabilities subject to recurring fair value measurements | Fair Value at March 31, 2018 Fair Quoted Prices Significant Significant Corporate bonds: U.S. corporations $ $ — $ $ — International corporations — — Total $ $ — $ $ — Fair Value at December 31, 2017 Fair Quoted Prices Significant Significant Corporate bonds: U.S. corporations $ $ — $ $ — International corporations — — Total $ $ — $ $ — |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Loss | |
Schedule of components of accumulated other comprehensive loss, net of tax | Unrealized (Losses) Balance at December 31, 2017 $ ) Losses, net ) Reclassification realized in net earnings ) Cumulative effect from adoption of accounting standard update ) Balance at March 31, 2018 $ ) Balance at December 31, 2016 $ ) Gains, net Reclassification realized in net earnings Balance at March 31, 2017 $ ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies | |
Schedule of non-cancelable operating lease commitments | A summary of our non-cancelable operating lease commitments of March 31, 2018 is as follows: Nine months ending December 31, 2018 $ 2019 2020 — 2021 — 2022 — Total non-cancelable operating lease commitments $ |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Common Stock | |
Summary of common stock activity | Balance, December 31, 2017 Option exercises Vesting of restricted stock units, net of shares withheld for taxes Balance, March 31, 2018 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Basis of Presentation | |
Number of reportable segment | 1 |
Basis of Presentation - FDA War
Basis of Presentation - FDA Warning Letter (Details) - item | Sep. 02, 2014 | Apr. 16, 2014 |
FDA Warning Letter | ||
Number of observations | 8 | |
Number of identified responses whose accuracy will be determined | 2 |
Revenue Recognition - Informati
Revenue Recognition - Information by Geographic Region (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue | ||
Total revenue | $ 7,108,151 | $ 5,162,560 |
United States | ||
Disaggregation of Revenue | ||
Payment term to U.S. customers | 45 days | |
Total revenue | $ 5,977,107 | 4,316,894 |
International | ||
Disaggregation of Revenue | ||
Payment term of remaining amount to international distributors | 30 days | |
Total revenue | $ 1,131,044 | $ 845,666 |
Revenue Recognition - Informa36
Revenue Recognition - Information by Type (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue | ||
Disposables and services | $ 1,939,091 | $ 1,595,247 |
Amortization of extended warranty agreements | 339,582 | 175,000 |
Total revenue | 7,108,151 | 5,162,560 |
Devices | ||
Disaggregation of Revenue | ||
Total Devices revenue | 4,829,478 | 3,392,313 |
MRI compatible IV infusion pump system | ||
Disaggregation of Revenue | ||
Total Devices revenue | 3,625,622 | 3,002,611 |
MRI compatible patient vital signs monitoring systems | ||
Disaggregation of Revenue | ||
Total Devices revenue | $ 1,203,856 | $ 389,702 |
Revenue Recognition - Contract
Revenue Recognition - Contract Liabilities (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Deferred revenue | |||
Advance payments from customers | $ 21,019 | $ 251,087 | |
Shipments in-transit | 37,517 | 13,326 | |
Extended warranty agreements | 3,520,376 | 3,356,843 | |
Total | $ 3,621,256 | $ 3,578,912 | $ 3,621,256 |
Changes in contract liabilities | |||
Contract liabilities at beginning of the period | 3,621,256 | ||
Increases due to cash received from customers | 549,032 | ||
Decreases due to recognition of revenue | (591,376) | ||
Contract liabilities at end of the year period | $ 3,578,912 | ||
Minimum | |||
Contract Liabilities | |||
Extended warranty agreement period | 1 year | ||
Maximum | |||
Contract Liabilities | |||
Extended warranty agreement period | 4 years |
Revenue Recognition - Capitaliz
Revenue Recognition - Capitalized Contract Costs and Variable Consideration (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Capitalized Contract Costs | ||
Total capitalized contract costs | $ 186,843 | $ 168,757 |
Minimum | ||
Variable Consideration | ||
Term of customer-specified acceptance provisions | 30 days | |
Maximum | ||
Variable Consideration | ||
Term of customer-specified acceptance provisions | 60 days |
Basic and Diluted Net Income 39
Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Basic and Diluted Net Income (Loss) per Share | ||
Net income (loss) | $ 841,196 | $ (233,340) |
Weighted-average shares outstanding - Basic (in shares) | 10,608,387 | 10,740,979 |
Effect of dilutive securities: | ||
Underwriters' warrants | 53,434 | |
Stock options | 1,155,708 | |
Restricted stock units | 62,360 | |
Weighted-average shares outstanding - Diluted (in shares) | 11,879,889 | 10,740,979 |
Basic net income (loss) per share (in dollars per share) | $ 0.08 | $ (0.02) |
Diluted net income (loss) per share (in dollars per share) | $ 0.07 | $ (0.02) |
Anti-dilutive stock | ||
Anti-dilutive stock options, restricted stock units and warrants (in shares) | 64,382 | 1,423,854 |
Inventory (Details)
Inventory (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory | ||
Raw materials | $ 3,509,041 | $ 3,593,136 |
Work in process | 362,074 | 280,443 |
Finished goods | 617,306 | 537,466 |
Inventory before allowance for excess and obsolete | 4,488,421 | 4,411,045 |
Allowance for excess and obsolete | (180,100) | (200,199) |
Total | $ 4,308,321 | $ 4,210,846 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Property and equipment | |||
Property and equipment, gross | $ 3,581,635 | $ 3,430,707 | |
Accumulated depreciation | (1,671,227) | (1,561,856) | |
Total | 1,910,408 | 1,868,851 | |
Depreciation and amortization expense of property and equipment | 109,371 | $ 63,469 | |
Computer software and hardware | |||
Property and equipment | |||
Property and equipment, gross | 505,130 | 490,272 | |
Furniture and fixtures | |||
Property and equipment | |||
Property and equipment, gross | 769,031 | 655,518 | |
Leasehold improvements | |||
Property and equipment | |||
Property and equipment, gross | 191,139 | 191,139 | |
Machinery and equipment | |||
Property and equipment | |||
Property and equipment, gross | 2,082,499 | 2,046,808 | |
Tooling in-process | |||
Property and equipment | |||
Property and equipment, gross | $ 33,836 | $ 46,970 |
Property and Equipment - Geogra
Property and Equipment - Geographic information (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Property and equipment | ||
Property and equipment, net | $ 1,910,408 | $ 1,868,851 |
United States | ||
Property and equipment | ||
Property and equipment, net | 1,409,755 | 1,349,897 |
International | ||
Property and equipment | ||
Property and equipment, net | $ 500,653 | $ 518,954 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Intangible assets | |||
Intangible Assets, gross | $ 1,245,691 | $ 1,175,229 | |
Accumulated amortization | (381,751) | (289,727) | |
Total | 863,940 | 885,502 | |
Amortization expense of intangible assets | 21,860 | $ 20,600 | |
Expected annual amortization expense | |||
Nine months ending December 31, 2018 | 67,472 | ||
2,019 | 89,963 | ||
2,020 | 89,963 | ||
2,021 | 89,963 | ||
2,022 | 89,392 | ||
2,023 | 88,740 | ||
Patents - in use | |||
Intangible assets | |||
Intangible Assets, gross | 304,269 | 168,383 | |
Patents - in process | |||
Intangible assets | |||
Intangible Assets, gross | 50,836 | 116,260 | |
Internally developed software | |||
Intangible assets | |||
Intangible Assets, gross | 867,569 | 867,569 | |
Trademarks | |||
Intangible assets | |||
Intangible Assets, gross | $ 23,017 | $ 23,017 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock-Based Compensation | ||
Total stock-based compensation expense | $ 416,327 | $ 376,424 |
Cost of revenue | ||
Stock-Based Compensation | ||
Total stock-based compensation expense | 68,259 | 50,561 |
General and administrative | ||
Stock-Based Compensation | ||
Total stock-based compensation expense | 226,771 | 195,845 |
Sales and marketing | ||
Stock-Based Compensation | ||
Total stock-based compensation expense | 83,616 | 111,961 |
Research and development | ||
Stock-Based Compensation | ||
Total stock-based compensation expense | $ 37,681 | $ 18,057 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options and Restricted Stock Units Activity (Details) | 3 Months Ended |
Mar. 31, 2018USD ($)shares | |
Stock Options | |
Stock-Based Compensation | |
Total unrecognized compensation expense | $ | $ 374,290 |
Weighted-average period expected to be recognized | 1 year |
Stock Options | |
Outstanding beginning of period (in shares) | 1,430,962 |
Awards exercised/vested (in shares) | (22,313) |
Awards canceled (in shares) | (875) |
Outstanding end of period (in shares) | 1,407,774 |
Restricted Stock Units | |
Stock-Based Compensation | |
Total unrecognized compensation expense | $ | $ 2,835,279 |
Weighted-average period expected to be recognized | 2 years 8 months 12 days |
Restricted Stock Units | |
Outstanding beginning of period (in shares) | 252,733 |
Awards granted (in shares) | 7,007 |
Awards exercised/vested (in shares) | (3,452) |
Awards canceled (in shares) | (1,933) |
Outstanding end of period (in shares) | 254,355 |
Investments (Details)
Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Investments | ||
Cost | $ 7,966,408 | $ 8,215,858 |
Gross Unrealized Gains | 311 | 1,453 |
Gross Unrealized Losses | 138,340 | 82,188 |
Fair Value | 7,828,379 | 8,135,123 |
U.S. corporations | ||
Investments | ||
Cost | 6,995,321 | 7,244,771 |
Gross Unrealized Gains | 311 | 746 |
Gross Unrealized Losses | 117,495 | 63,575 |
Fair Value | 6,878,137 | 7,181,942 |
International corporations | ||
Investments | ||
Cost | 971,087 | 971,087 |
Gross Unrealized Gains | 707 | |
Gross Unrealized Losses | 20,845 | 18,613 |
Fair Value | $ 950,242 | $ 953,181 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Measurements | ||
Fair value assets, amount transferred between measurement levels | $ 0 | $ 0 |
Fair value liabilities, amount transferred between measurement levels | 0 | 0 |
Recurring | ||
Fair Value Measurements | ||
Total | 7,828,379 | 8,135,123 |
Recurring | U.S. corporations | ||
Fair Value Measurements | ||
Total | 6,878,137 | 7,181,942 |
Recurring | International corporations | ||
Fair Value Measurements | ||
Total | 950,242 | 953,181 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Total | 7,828,379 | 8,135,123 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. corporations | ||
Fair Value Measurements | ||
Total | 6,878,137 | 7,181,942 |
Recurring | Significant Other Observable Inputs (Level 2) | International corporations | ||
Fair Value Measurements | ||
Total | $ 950,242 | $ 953,181 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Component of accumulated other comprehensive loss | ||
Balance at the beginning | $ (48,909) | $ (36,849) |
Gains (Losses), net | (42,651) | 2,124 |
Reclassification realized in net earnings | (429) | 3,056 |
Cumulative effect from adoption of accounting standard update | (10,496) | |
Balance at the end | $ (102,485) | $ (31,669) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Taxes | |||
Federal statutory rate (as a percent) | 21.00% | 34.00% | |
Provisions for income taxes | $ 286,198 | $ 24,483 | |
Effective tax rate (as a percent) | 25.40% | (11.70%) |
Commitments and Contingencies50
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2014USD ($)item | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Purchase commitments | ||||
Purchase commitments | $ 2,298,857 | $ 2,219,818 | ||
Susi, LLC | Winter Springs, Florida Facility | ||||
Leases | ||||
Monthly base rent | $ 33,171 | |||
Number of successive renewal terms of lease | item | 2 | |||
Renewal term of lease beginning in 2019 | 5 years | |||
Renewal term of lease beginning in 2024 | 5 years | |||
Renewal term lease thereafter | 1 year | |||
Rent expense | 101,505 | $ 101,505 | ||
Summary of non-cancelable operating lease commitments | ||||
Nine months ending December 31, 2018 | 298,538 | |||
2,019 | 165,855 | |||
Total non-cancelable operating lease commitments | $ 464,393 |
Common Stock (Details)
Common Stock (Details) | 3 Months Ended |
Mar. 31, 2018shares | |
Common stock activity | |
Balances at the beginning | 10,596,566 |
Balances at the end | 10,622,042 |
Common Stock | |
Common stock activity | |
Balances at the beginning | 10,596,566 |
Option exercises | 22,313 |
Vesting of restricted stock units, net of shares withheld for taxes | 3,163 |
Balances at the end | 10,622,042 |