IRadimed (IRMD) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Document and Entity Information
Entity Registrant Name	IRADIMED CORPORATION
Entity Central Index Key	0001325618
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		11,484,583
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 38,637,408	$ 28,027,688
Accounts receivable, net of allowance for doubtful accounts of $67,837 as of September 30, 2019 and $42,443 as of December 31, 2018	6,924,977	4,209,992
Investments	3,926,904	6,349,915
Inventory, net	4,351,040	4,059,443
Prepaid expenses and other current assets	566,375	526,787
Prepaid income taxes	1,106,087	1,367,892
Total current assets	55,512,791	44,541,717
Property and equipment, net	1,973,131	1,869,561
Intangible assets, net	824,959	832,519
Operating lease right-of-use asset	3,013,865
Deferred income taxes, net	1,038,833	1,088,702
Other assets	207,759	109,759
Total assets	62,571,338	48,442,258
Current liabilities:
Accounts payable	1,173,930	772,470
Accrued payroll and benefits	2,236,649	1,802,321
Other accrued taxes	84,784	133,000
Warranty reserve	77,497	74,524
Deferred revenue	1,734,799	1,798,784
Current portion of operating lease liability	237,266
Other current liability	108,421	108,421
Total current liabilities	5,653,346	4,689,520
Deferred revenue	2,368,495	1,807,005
Operating lease liability, less current portion	2,776,599
Total liabilities	10,798,440	6,496,525
Stockholders' equity:
Common stock; $0.0001 par value; 31,500,000 shares authorized; 11,431,467 shares issued and outstanding as of September 30, 2019 and 10,989,111 shares issued and outstanding as of December 31, 2018	1,143	1,099
Additional paid-in capital	18,683,848	15,317,335
Retained earnings	33,058,767	26,669,491
Accumulated other comprehensive income (loss)	29,140	(42,192)
Total stockholders' equity	51,772,898	41,945,733
Total liabilities and stockholders' equity	$ 62,571,338	$ 48,442,258

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
CONDENSED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts	$ 67,837	$ 42,443
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	11,431,467	10,989,111
Common stock, shares outstanding	11,431,467	10,989,111

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONDENSED STATEMENTS OF OPERATIONS
Revenue	$ 9,963,299	$ 7,614,655	$ 27,626,488	$ 22,099,591
Cost of revenue	2,168,208	1,826,716	6,074,323	5,229,141
Gross profit	7,795,091	5,787,939	21,552,165	16,870,450
Operating expenses:
General and administrative	2,609,722	2,181,839	7,482,790	6,563,727
Sales and marketing	2,297,002	1,784,418	6,607,477	4,946,398
Research and development	369,526	373,583	1,053,409	1,149,397
Total operating expenses	5,276,250	4,339,840	15,143,676	12,659,522
Income from operations	2,518,841	1,448,099	6,408,489	4,210,928
Other income, net	110,064	42,555	280,663	110,465
Income before provision for income taxes	2,628,905	1,490,654	6,689,152	4,321,393
Provision for income tax expense (benefit)	174,035	(909,619)	299,876	(275,044)
Net income	$ 2,454,870	$ 2,400,273	$ 6,389,276	$ 4,596,437
Net income per share:
Basic (in dollars per share)	$ 0.22	$ 0.22	$ 0.57	$ 0.43
Diluted (in dollars per share)	$ 0.20	$ 0.20	$ 0.52	$ 0.38
Weighted average shares outstanding:
Basic (in shares)	11,369,404	10,824,421	11,188,761	10,695,601
Diluted (in shares)	12,309,948	12,195,870	12,248,102	12,059,694

CONDENSED STATEMENTS OF COMPREH

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 2,454,870	$ 2,400,273	$ 6,389,276	$ 4,596,437
Other comprehensive income (loss):
Change in fair value of available-for-sale securities, net of tax expense (benefit) of $4,429 and $2,299 for the three months ended September 30, 2019 and 2018, respectively, and $24,756 and $(10,714) for the nine months ended September 30, 2019 and 2018, respectively	11,615	6,566	74,233	(32,180)
Realized (gain) loss on available-for-sale securities reclassified to net income, net of tax expense (benefit) of $1,895 and $(5,601) for the three months ended September 30, 2019 and 2018, respectively, and $958 and $(6,103) for the nine months ended September 30, 2019 and 2018, respectively	(5,742)	16,099	(2,901)	16,926
Other comprehensive income (loss)	5,873	22,665	71,332	(15,254)
Comprehensive income	$ 2,460,743	$ 2,422,938	$ 6,460,608	$ 4,581,183

CONDENSED STATEMENTS OF COMPR_2

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Change in fair value of available-for-sale securities, net of tax expense (benefit)	$ 4,429	$ 2,299	$ 24,756	$ (10,714)
Realized (gain) loss on available-for-sale securities reclassified to net income, net of tax expense (benefit)	$ 1,895	$ (5,601)	$ 958	$ (6,103)

CONDENSED STATEMENTS OF STOCKHO

CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated other comprehensive income (loss):	Total
Balances at Dec. 31, 2017	$ 1,060	$ 12,623,181	$ 20,355,545	$ (48,909)
Increase (Decrease) in Stockholders' Equity
Net income			4,596,437		$ 4,596,437
Other comprehensive income (loss)				(15,254)
Stock compensation expense		1,361,964
Net share settlement of restricted stock units	2	(16,416)
Exercise of stock options and warrants	31	1,234,534
Cumulative effect from adoption of accounting standard update			10,496	(10,496)
Balances at Sep. 30, 2018	1,093	15,203,263	24,962,478	(74,659)	40,092,175
Balances at Jun. 30, 2018	1,067	13,701,066	22,562,205	(97,324)
Increase (Decrease) in Stockholders' Equity
Net income			2,400,273		2,400,273
Other comprehensive income (loss)				22,665
Stock compensation expense		503,556
Net share settlement of restricted stock units		(818)
Exercise of stock options and warrants	26	999,459
Balances at Sep. 30, 2018	1,093	15,203,263	24,962,478	(74,659)	40,092,175
Balances at Dec. 31, 2018	1,099	15,317,335	26,669,491	(42,192)	41,945,733
Increase (Decrease) in Stockholders' Equity
Net income			6,389,276		6,389,276
Other comprehensive income (loss)				71,332
Stock compensation expense		1,306,430
Net share settlement of restricted stock units	3	(149,401)
Exercise of stock options and warrants	41	2,209,484
Balances at Sep. 30, 2019	1,143	18,683,848	33,058,767	29,140	51,772,898
Balances at Jun. 30, 2019	1,120	16,520,138	30,603,897	23,267
Increase (Decrease) in Stockholders' Equity
Net income			2,454,870		2,454,870
Other comprehensive income (loss)				5,873
Stock compensation expense		455,641
Net share settlement of restricted stock units		(1,186)
Exercise of stock options and warrants	23	1,709,255
Balances at Sep. 30, 2019	$ 1,143	$ 18,683,848	$ 33,058,767	$ 29,140	$ 51,772,898

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities:
Net income	$ 6,389,276	$ 4,596,437
Adjustments to reconcile net income to net cash provided by operating activities:
Change in allowance for doubtful accounts	27,532	26,146
Change in provision for excess and obsolete inventory	104,407	97,901
Depreciation and amortization	961,597	844,885
Stock-based compensation	1,306,430	1,361,964
Deferred income taxes, net	26,071	(272,056)
(Gain) loss on maturities of investments	(3,859)	22,486
Changes in operating assets and liabilities:
Accounts receivable	(2,742,517)	(1,466,476)
Inventory	(570,242)	(257,884)
Prepaid expenses and other current assets	(547,694)	(430,889)
Other assets	(150,386)	(19,833)
Accounts payable	293,810	203,918
Accrued payroll and benefits	434,328	298,646
Other accrued taxes	(48,216)	(23,221)
Warranty reserve	2,973	(20,587)
Deferred revenue	537,700	166,344
Other current liability		(150)
Prepaid income taxes, net of accrued income taxes	261,805	(1,293,989)
Other	859
Net cash provided by operating activities	6,283,874	3,833,642
Investing activities:
Purchases of investments		(1,124,512)
Proceeds from maturity of investments	2,522,000	1,730,000
Purchases of property and equipment	(196,369)	(150,609)
Capitalized intangible assets	(59,912)	(13,484)
Net cash provided by investing activities	2,265,719	441,395
Financing activities:
Proceeds from exercises of stock options and warrants	2,209,525	1,234,565
Taxes paid related to the net share settlement of equity awards	(149,398)	(16,414)
Net cash provided by financing activities	2,060,127	1,218,151
Net increase in cash and cash equivalents	10,609,720	5,493,188
Cash and cash equivalents, beginning of period	28,027,688	18,205,976
Cash and cash equivalents, end of period	38,637,408	23,699,164
Supplemental disclosure of cash flow information:
Cash paid for income taxes	12,000	1,291,160
Right-of-use asset recognized in exchange for new lease obligation	3,182,724
Operating and short-term lease payments recorded within cash flow from operating activities	$ 320,907	$ 355,125

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2019
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 and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2018. The accounting policies followed in the preparation of these interim condensed financial statements, except as described in Note 1, are consistent in all material respects with those described in Note 1 of our Form 10-K. 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. Close-Out of FDA Warning Letter As announced on October 8, 2019, we received a close-out letter from the FDA with respect to the FDA warning letter previously received in August 2014. We received this warning letter following a routine inspection of our prior facility between April 7 and April 16, 2014. The close-out letter confirmed that all issues cited in the August 2014 warning letter have been resolved. CE Mark for Products On January 16, 2019, we were notified by the U.K. Notified Body, UL International Ltd. (“UL”) that their recent technical file review of our 3880 MRI compatible patient vital signs monitoring system could not be completed as aspects of clinical evaluation reporting, as required by newly issued guidance from the European Union, was not acceptable, resulting in a technical non-conformity. Accordingly, UL issued temporary EC Certificates that include our MRI compatible IV infusion pump system and related IV tubing sets and excludes our 3880 patient vital signs monitoring system. These temporary EC Certificates extended through July 27, 2019. We immediately suspended shipments of our 3880 patient vital signs monitor to all markets requiring a CE Mark. On July 3, 2019, during the process of addressing the technical non-conformity associated with the review of our 3880 MRI compatible patient vital signs monitoring system, UL notified its customers of their decision to cease operations as a notified body and would continue the process of transferring all customers to the Polish Center for Testing and Certification (Polskie Centrum Badań i Certyfikacji S.A.) (“PCBC”) based in Warsaw, Poland. UL notified us that they transferred our EC Certificates to PCBC and, in August 2019, we received renewed EC Certificates for our MRI compatible IV infusion pump system and related IV tubing sets with an additional 4-year term. UL’s decision to cease operations as a medical device notified body caused us to seek a new notified body for certification of our 3880 MRI compatible patient vital signs monitoring system. Concurrent to UL’s announcement, we engaged Ente Certificazione Macchine (“ECM”) as our notified body for the 3880 MRI compatible patient vital signs monitoring system. We are actively working through the recertification process with ECM and expect to complete this process and resume shipments into all markets requiring a CE Mark during our fiscal fourth quarter 2019, however, there can be no assurance that these efforts will be successful. 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 2019 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. We adopted this update on January 1, 2019 and, as part of that process, made the following elections: · We elected to use the hindsight practical expedient. · We elected the package of practical expedients in transition for leases that commenced prior to January 1, 2019 whereby contracts were not reassessed or reclassified from their previous assessment as of December 31, 2018. · In March 2018, the FASB approved an optional transition method that allows companies to use the effective date as the date of initial application on transition. We elected this transition method, and as a result, did not adjust comparative period financial information or make the newly required lease disclosures for periods before the effective date. · We elected to make the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. · We elected to not separate lease and nonlease components, for all leases. · We did not elect the land easement practical expedient. The impact of Topic 842 on our Balance Sheet beginning January 1, 2019 was through the recognition of an operating lease right-of-use asset and operating lease liability. Amounts recognized at January 1, 2109 for operating leases were as follows: January 1, 2019 Operating lease right-of-use asset $ 3,182,724 Current portion of operating lease liability $ 226,852 Operating lease liability, less current portion $ 2,955,872 There was no impact to our Condensed Statements of Operations, Condensed Statements of Cash Flows or beginning retained earnings related to the adoption of Topic 842. Recently Issued Accounting Pronouncements to be Implemented In August 2018, the FASB issued ASU 2018-03, Fair Value Measurement (Topic 820). This update modifies disclosure requirements related to fair value measurements. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The ASU also allows for early adoption of any removed or modified disclosures upon issuance of this ASU, while delaying adoption of the additional disclosures until their effective date. We do not expect the adoption of this guidance will have a material impact upon our footnote disclosures. In June 2016, the FASB issued 2016-03, Financial Instruments – Credit Losses (Topic 326). This update requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In addition, for available-for-sale debt securities, this ASU replaces the other-than-temporary impairment model and requires the recognition of an allowance for reductions in a security’s fair value attributable to declines in credit quality, instead of a direct write-down of the security, when a valuation decline is determined to be other-than-temporary. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein. Companies may choose to adopt this ASU as of its fiscal year beginning after December 15, 2018. We did not early adopt this standard. We do not believe this ASU will have a material impact on our financial condition or statements of operations.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2019
Revenue Recognition
Revenue Recognition	2 — Revenue Recognition 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 Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) United States $ 8,281,854 $ 6,099,767 $ 22,916,642 $ 17,808,918 International 1,681,445 1,514,888 4,709,846 4,290,673 Total revenue $ 9,963,299 $ 7,614,655 $ 27,626,488 $ 22,099,591 Revenue information by type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Devices: MRI Compatible IV Infusion Pump Systems $ 4,769,252 $ 3,532,670 $ 13,512,548 $ 10,748,830 MRI Compatible Patient Vital Signs Monitoring Systems 2,557,889 1,817,361 6,215,528 4,526,735 Total Devices Revenue 7,327,141 5,350,031 19,728,076 15,275,565 Disposables and Services 2,162,602 1,874,439 6,513,030 5,722,573 Amortization of extended warranty agreements 473,556 390,185 1,385,382 1,101,453 Total revenue $ 9,963,299 $ 7,614,655 $ 27,626,488 $ 22,099,591 Contract Liabilities Our contract liabilities consist of: September 30, December 31, 2019 2018 (unaudited) Advance payments from customers $ 40,726 $ 180,425 Shipments in-transit 40,195 9,582 Extended warranty agreements 4,022,373 3,415,782 Total $ 4,103,294 $ 3,605,789 Changes in the contract liabilities during the periods presented are as follows: Deferred Revenue Contract liabilities, December 31, 2018 $ 3,605,789 Increases due to cash received from customers 2,530,978 Decreases due to recognition of revenue (2,033,473) Contract liabilities, September 30, 2019 $ 4,103,294 Deferred Revenue Contract liabilities, December 31, 2017 $ 3,621,256 Increases due to cash received from customers 1,764,735 Decreases due to recognition of revenue (1,683,256) Contract liabilities, September 30, 2018 $ 3,702,735 Capitalized Contract Costs Our capitalized contract costs consist of: September 30, December 31, 2019 2018 (unaudited) Capitalized contract costs $ 331,633 $ 181,248 Expense for the three and nine months ended September 30, 2019 and 2018 related to the amortization of capitalized contract costs were immaterial to our financial statements.

Basic and Diluted Net Income pe

Basic and Diluted Net Income per Share	9 Months Ended
	Sep. 30, 2019
Basic and Diluted Net Income per Share
Basic and Diluted Net Income per Share	3 — Basic and Diluted Net Income per Share Basic net income 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. See the Warrants portion of Note 10. The following table presents the computation of basic and diluted net income per share: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Net income $ 2,454,870 $ 2,400,273 $ 6,389,276 $ 4,596,437 Weighted-average shares outstanding — Basic 11,369,404 10,824,421 11,188,761 10,695,601 Effect of dilutive securities: Underwriters' warrants 41,124 107,820 69,183 86,469 Stock Options 822,128 1,115,986 899,311 1,167,050 Restricted Stock Units 77,292 147,643 90,847 110,574 Weighted-average shares outstanding — Diluted 12,309,948 12,195,870 12,248,102 12,059,694 Basic net income per share $ 0.22 $ 0.22 $ 0.57 $ 0.43 Diluted net income per share $ 0.20 $ 0.20 $ 0.52 $ 0.38 Stock options and warrants to purchase shares of our common stock and restricted stock units excluded from the calculation of diluted net income per share because the effect would have been anti-dilutive are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Anti-dilutive stock options and restricted stock units 117,584 10,196 14,991 39,869

Inventory

Inventory	9 Months Ended
	Sep. 30, 2019
Inventory
Inventory	4 — Inventory Inventory consists of: September 30, December 31, 2019 2018 (unaudited) Raw materials $ 3,444,132 $ 3,408,158 Work in process 287,274 305,562 Finished goods 836,803 557,566 Inventory before allowance for excess and obsolete 4,568,209 4,271,286 Allowance for excess and obsolete (217,169) (211,843) Total $ 4,351,040 $ 4,059,443

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2019
Property and Equipment
Property and Equipment	5 — Property and Equipment Property and equipment consist of: September 30, December 31, 2019 2018 (unaudited) Computer software and hardware $ 562,984 $ 555,292 Furniture and fixtures 1,129,000 901,415 Leasehold improvements 217,893 202,026 Machinery and equipment 2,293,304 2,184,015 Tooling in-process 86,141 58,263 4,289,322 3,901,011 Accumulated depreciation (2,316,191) (2,031,450) Total $ 1,973,131 $ 1,869,561 Depreciation expense of property and equipment was $122,834 and $121,133 for the three months ended September 30, 2019 and 2018, respectively, and $373,828 and $345,592 for the nine months ended September 30, 2019 and 2018, respectively. Property and equipment, net, information by geographic region is as follows: September 30, December 31, 2019 2018 (unaudited) United States $ 1,587,554 $ 1,439,545 International 385,577 430,016 Total property and equipment, net $ 1,973,131 $ 1,869,561 Long-lived assets held outside of the United States consist principally of tooling and machinery and equipment, which are components of property and equipment, net.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2019
Intangible Assets
Intangible Assets	6 — Intangible Assets The following table summarizes the components of intangible asset balances: September 30, December 31, 2019 2018 (unaudited) Patents — in use $ 304,270 $ 304,270 Patents — in process 100,050 73,164 Internally developed software — in use 867,569 867,569 Internally developed software — in process 46,749 13,723 Trademarks 23,017 23,017 1,341,655 1,281,743 Accumulated amortization (516,696) (449,224) Total $ 824,959 $ 832,519 Amortization expense of intangible assets was $22,491 and $22,491 for the three months ended September 30, 2019 and 2018, respectively, and $67,472 and $66,842 for the nine months ended September 30, 2019 and 2018, respectively. Expected annual amortization expense for the remaining portion of 2019 and the next five years related to intangible assets is as follows (excludes in process intangible assets): Three months ending December 31, 2019 $ 22,491 2020 89,963 2021 89,963 2022 89,392 2023 88,740 2024 88,439

Investments

Investments	9 Months Ended
	Sep. 30, 2019
Investments
Investments	7 — Investments Our investments consist of corporate bonds that we have classified as available-for-sale and are summarized in the following tables: September 30, 2019 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value Corporate bonds: U.S. corporations $ 2,969,503 $ 26,967 $ — $ 2,996,470 International corporations 918,417 12,017 — 930,434 Total $ 3,887,920 $ 38,984 $ — $ 3,926,904 December 31, 2018 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value Corporate bonds: U.S. corporations $ 5,487,645 $ — $ 58,309 $ 5,429,336 International corporations 918,417 2,162 — 920,579 Total $ 6,406,062 $ 2,162 $ 58,309 $ 6,349,915 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 September 30, 2019.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Fair Value Measurements
Fair Value Measurements	8 — Fair Value Measurements The fair values of cash equivalents, accounts receivables, net and accounts payable approximate their carrying amounts due to their short duration. The fair value of our assets and liabilities subject to recurring fair value measurements are as follows: Fair Value at September 30, 2019 Quoted Prices Significant in Active Other Significant Market for Observable Unobservable Fair Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Corporate bonds: U.S. corporations $ 2,996,470 $ — $ 2,996,470 $ — International corporations 930,434 — 930,434 — Total $ 3,926,904 $ — $ 3,926,904 $ — Fair Value at December 31, 2018 Quoted Prices Significant in Active Other Significant Market for Observable Unobservable Fair Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Corporate bonds: U.S. corporations $ 5,429,336 $ — $ 5,429,336 $ — International corporations 920,579 — 920,579 — Total $ 6,349,915 $ — $ 6,349,915 $ — Our corporate bonds are valued by a third-party custodian at closing prices from secondary exchanges or pricing vendors on the valuation date. There were no transfers into or out of any Levels during the nine months ended September 30, 2019 or the year ended December 31, 2018.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	9 — Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive loss, net of tax, for the three months ended September 30, 2019 and 2018 are as follows: Unrealized (Losses) Gains on Available-For-Sale Securities Balance at June 30, 2019 $ 23,267 Gains on available-for-sale securities, net 11,615 Reclassification realized in net earnings (5,742) Balance at September 30, 2019 $ 29,140 Balance at June 30, 2018 $ (97,324) Gains on available-for-sale securities, net 6,566 Reclassification realized in net earnings 16,099 Balance at September 30, 2018 $ (74,659) The components of accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2019 and 2018 are as follows: Unrealized (Losses) Gains on Available-For-Sale Securities Balance at December 31, 2018 $ (42,192) Gains on available-for-sale securities, net 74,233 Reclassification realized in net earnings (2,901) Balance at September 30, 2019 $ 29,140 Balance at December 31, 2017 $ (48,909) Losses on available-for-sale securities, net (32,180) Reclassification realized in net earnings 16,926 Cumulative effect from adoption of accounting standard update (10,496) Balance at September 30, 2018 $ (74,659)

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2019
Stock-Based Compensation
Stock-Based Compensation	10 — Stock-Based Compensation Stock-based compensation was recognized as follows in the Condensed Statements of Operations: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Cost of revenue $ 67,452 $ 70,000 $ 188,295 $ 207,498 General and administrative 279,125 312,043 802,205 795,280 Sales and marketing 89,274 82,994 258,573 244,887 Research and development 19,790 38,519 57,357 114,299 Total $ 455,641 $ 503,556 $ 1,306,430 $ 1,361,964 As of September 30, 2019, we had $581,768 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 3.8 years. As of September 30, 2019, we had $4,138,350 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 3.1 years. The following table presents a summary of our stock-based compensation activity for the nine months ended September 30, 2019 (shares): Stock Restricted Options Stock Units Outstanding beginning of period 1,129,463 226,501 Awards granted 50,000 106,823 Awards exercised/vested (252,551) (33,144) Awards canceled (750) (13,246) Outstanding end of period 926,162 286,934 The weighted-average grant-date fair value of options granted during the nine months ended September 30, 2019 was $11.84. Warrants Associated with our IPO completed on July 21, 2014, we issued Underwriters Warrants (the "Warrants") to purchase up to a total of 201,600 shares of our common stock. The grant date aggregate fair value of the Warrants was $611,000. The Warrants were exercisable, in whole or in part, commencing July 21, 2015 through July 21, 2017. The Warrants were exercisable at $8.125 per share, or 130 percent of the public offering price per share of our common stock in the IPO. On the grant date, we classified the Warrants as equity and incremental direct costs associated with our IPO. Accordingly, the issuance of the Warrants had no impact our financial statements. The exercise price and number of Warrant shares may be adjusted (1) voluntarily at our discretion, or (2) if we undertake a stock split, stock dividend, recapitalization or reorganization of our common stock into a lesser / greater number of shares, the Warrant exercise price will be proportionately reduced / increased and the number of Warrant shares will be proportionately increased / decreased. The Warrant may only be settled through the issuance of our common stock in exchange for cash. On July 17, 2017, our Board of Directors approved a modification to the Warrants. This modification extended the expiration date of the Warrants from July 17, 2017 to July 17, 2019 and revised the strike price from $8.125 to $10.05. The fair value of the amended Warrants was $2.42 per share as measured using the Black-Scholes options pricing model. During the three months ended September 30, 2019, 162,031 warrants were exercised. As of September 30, 2019, no Warrants remained outstanding.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Taxes
Income Taxes	11 — Income Taxes For the three and nine months ended September 30, 2019, we recorded a provision for income tax expense of $174,035 and $299,876, respectively. Our effective tax rate was 6.6 percent and 4.5 percent and differed from the U.S. Federal statutory rate primarily due to discrete items related to tax benefits associated with stock-based compensation and the foreign derived intangible income deduction, partially offset by U.S. state tax expense. For the three and nine months ended September 30, 2018, we recorded a provision for income tax benefit of $(909,619) and $(275,044), respectively. Our effective tax rate was (61.0) percent and (6.4) percent and differed from the U.S. Federal statutory rate primarily due to discrete items related to tax benefits associated with the exercise and sale of employee options and underwriters' warrants, partially offset by U.S. state tax expense. As of September 30, 2019 and December 31, 2018, we had 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 believe that our tax positions comply in all material respects with applicable tax law. However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from ours, which could result in the imposition of additional taxes and penalties. We file tax returns in the United States Federal jurisdiction and many U.S. state jurisdictions. The Company is subject to income tax examinations for our United States Federal and certain U.S. state income taxes for 2015 and subsequent years and various other U.S. state income taxes for 2014 and subsequent years.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases
Leases	12 — Leases Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate, unless the rate implicit in the lease is readily determinable. Lease assets also include any upfront lease payments made and exclude lease incentives. Lease terms include options to extend or terminate leases when it is reasonably certain that those options will be exercised. Variable lease payments are expensed as incurred and include annual rent adjustments based on the consumer price index. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term. Lease agreements with lease and nonlease components are combined as a single lease component. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term. We have only one material lease contract outstanding. In January 2014, we entered into a non-cancelable operating lease, commencing July 1, 2014, for our manufacturing and headquarters facility in Winter Springs, Florida owned by Susi, LLC, an entity controlled by our Chairman of the Board and Chief Technology Officer, Roger Susi. Pursuant to the terms of our lease for this property, the monthly base rent is $34,133, 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. Prior to May 31, 2019, the expiration date of the initial lease term, and pursuant to the terms of the lease contract, we renewed the lease for an additional five years, resulting in a new lease expiration date of May 31, 2024. Unless advance written notice of termination is timely provided, the lease will automatically renew for one additional successive term of five years each beginning in 2024, and thereafter, will be renewed for successive terms of one year each. For purposes of Topic 842, we concluded that we will exercise both of the five-year options, resulting in a remaining lease term of 9.7 years as of September 30, 2019. This lease agreement does not contain any residual value guarantee or material restrictive covenants. Operating lease cost recognized in the Condensed Statements of Operations is as follows: Three Months Nine Months Ended Ended September 30, 2019 September 30, 2019 Cost of revenue $ 46,535 $ 139,604 General and administrative 46,044 138,133 Sales and marketing 2,604 7,813 Research and development 7,215 21,646 Total $ 102,398 $ 307,196 Lease costs for short-term leases were immaterial for the three and nine months ended September 30, 2019. Maturity of Operating Lease Liability as of September 30, 2019 is as follows: Three months ending December 31, 2019 $ 102,399 2020 409,596 2021 409,596 2022 409,596 2023 409,596 Thereafter 2,218,646 Total lease payments 3,959,429 Imputed interest (945,564) Present value of lease liability $ 3,013,865 We used a discount rate of 6.0% to determine the present value of the operating lease liability on January 1, 2019. Undiscounted future minimum lease payments under noncancelable operating leases as of December 31, 2018 as determined prior to the adoption of ASC 842 are as follows: 2019 $ 170,664 2020 — 2021 — 2022 — 2023 — Thereafter — Total minimum lease payments $ 170,664

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies
Commitments and Contingencies	13 — Commitments and Contingencies Purchase commitments. We had various purchase orders for goods or services totaling $3,172,831 and $2,674,691 as of September 30, 2019 and December 31, 2018, respectively. 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.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2019
Basis of Presentation
FDA Warning Letter	Close-Out of FDA Warning Letter As announced on October 8, 2019, we received a close-out letter from the FDA with respect to the FDA warning letter previously received in August 2014. We received this warning letter following a routine inspection of our prior facility between April 7 and April 16, 2014. The close-out letter confirmed that all issues cited in the August 2014 warning letter have been resolved.
CE Mark for Products	CE Mark for Products On January 16, 2019, we were notified by the U.K. Notified Body, UL International Ltd. (“UL”) that their recent technical file review of our 3880 MRI compatible patient vital signs monitoring system could not be completed as aspects of clinical evaluation reporting, as required by newly issued guidance from the European Union, was not acceptable, resulting in a technical non-conformity. Accordingly, UL issued temporary EC Certificates that include our MRI compatible IV infusion pump system and related IV tubing sets and excludes our 3880 patient vital signs monitoring system. These temporary EC Certificates extended through July 27, 2019. We immediately suspended shipments of our 3880 patient vital signs monitor to all markets requiring a CE Mark. On July 3, 2019, during the process of addressing the technical non-conformity associated with the review of our 3880 MRI compatible patient vital signs monitoring system, UL notified its customers of their decision to cease operations as a notified body and would continue the process of transferring all customers to the Polish Center for Testing and Certification (Polskie Centrum Badań i Certyfikacji S.A.) (“PCBC”) based in Warsaw, Poland. UL notified us that they transferred our EC Certificates to PCBC and, in August 2019, we received renewed EC Certificates for our MRI compatible IV infusion pump system and related IV tubing sets with an additional 4-year term. UL’s decision to cease operations as a medical device notified body caused us to seek a new notified body for certification of our 3880 MRI compatible patient vital signs monitoring system. Concurrent to UL’s announcement, we engaged Ente Certificazione Macchine (“ECM”) as our notified body for the 3880 MRI compatible patient vital signs monitoring system. We are actively working through the recertification process with ECM and expect to complete this process and resume shipments into all markets requiring a CE Mark during our fiscal fourth quarter 2019, however, there can be no assurance that these efforts will be successful.
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 2019 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. We adopted this update on January 1, 2019 and, as part of that process, made the following elections: · We elected to use the hindsight practical expedient. · We elected the package of practical expedients in transition for leases that commenced prior to January 1, 2019 whereby contracts were not reassessed or reclassified from their previous assessment as of December 31, 2018. · In March 2018, the FASB approved an optional transition method that allows companies to use the effective date as the date of initial application on transition. We elected this transition method, and as a result, did not adjust comparative period financial information or make the newly required lease disclosures for periods before the effective date. · We elected to make the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. · We elected to not separate lease and nonlease components, for all leases. · We did not elect the land easement practical expedient. The impact of Topic 842 on our Balance Sheet beginning January 1, 2019 was through the recognition of an operating lease right-of-use asset and operating lease liability. Amounts recognized at January 1, 2109 for operating leases were as follows: January 1, 2019 Operating lease right-of-use asset $ 3,182,724 Current portion of operating lease liability $ 226,852 Operating lease liability, less current portion $ 2,955,872 There was no impact to our Condensed Statements of Operations, Condensed Statements of Cash Flows or beginning retained earnings related to the adoption of Topic 842. Recently Issued Accounting Pronouncements to be Implemented In August 2018, the FASB issued ASU 2018-03, Fair Value Measurement (Topic 820). This update modifies disclosure requirements related to fair value measurements. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The ASU also allows for early adoption of any removed or modified disclosures upon issuance of this ASU, while delaying adoption of the additional disclosures until their effective date. We do not expect the adoption of this guidance will have a material impact upon our footnote disclosures. In June 2016, the FASB issued 2016-03, Financial Instruments – Credit Losses (Topic 326). This update requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In addition, for available-for-sale debt securities, this ASU replaces the other-than-temporary impairment model and requires the recognition of an allowance for reductions in a security’s fair value attributable to declines in credit quality, instead of a direct write-down of the security, when a valuation decline is determined to be other-than-temporary. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 and for interim periods therein. Companies may choose to adopt this ASU as of its fiscal year beginning after December 15, 2018. We did not early adopt this standard. We do not believe this ASU will have a material impact on our financial condition or statements of operations.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2019
Basis of Presentation
Schedule of new accounting pronouncements and changes in accounting principles	January 1, 2019 Operating lease right-of-use asset $ 3,182,724 Current portion of operating lease liability $ 226,852 Operating lease liability, less current portion $ 2,955,872

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue Recognition
Schedule of disaggregation of revenue by geographic region and type	Revenue information by geographic region is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) United States $ 8,281,854 $ 6,099,767 $ 22,916,642 $ 17,808,918 International 1,681,445 1,514,888 4,709,846 4,290,673 Total revenue $ 9,963,299 $ 7,614,655 $ 27,626,488 $ 22,099,591 Revenue information by type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Devices: MRI Compatible IV Infusion Pump Systems $ 4,769,252 $ 3,532,670 $ 13,512,548 $ 10,748,830 MRI Compatible Patient Vital Signs Monitoring Systems 2,557,889 1,817,361 6,215,528 4,526,735 Total Devices Revenue 7,327,141 5,350,031 19,728,076 15,275,565 Disposables and Services 2,162,602 1,874,439 6,513,030 5,722,573 Amortization of extended warranty agreements 473,556 390,185 1,385,382 1,101,453 Total revenue $ 9,963,299 $ 7,614,655 $ 27,626,488 $ 22,099,591
Schedule of deferred revenue and changes in the contract liabilities	Our contract liabilities consist of: September 30, December 31, 2019 2018 (unaudited) Advance payments from customers $ 40,726 $ 180,425 Shipments in-transit 40,195 9,582 Extended warranty agreements 4,022,373 3,415,782 Total $ 4,103,294 $ 3,605,789 Changes in the contract liabilities during the periods presented are as follows: Deferred Revenue Contract liabilities, December 31, 2018 $ 3,605,789 Increases due to cash received from customers 2,530,978 Decreases due to recognition of revenue (2,033,473) Contract liabilities, September 30, 2019 $ 4,103,294 Deferred Revenue Contract liabilities, December 31, 2017 $ 3,621,256 Increases due to cash received from customers 1,764,735 Decreases due to recognition of revenue (1,683,256) Contract liabilities, September 30, 2018 $ 3,702,735
Schedule of capitalized contract costs	September 30, December 31, 2019 2018 (unaudited) Capitalized contract costs $ 331,633 $ 181,248

Basic and Diluted Net Income _2

Basic and Diluted Net Income per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Basic and Diluted Net Income per Share
Schedule of computation of basic and diluted net income per share	Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Net income $ 2,454,870 $ 2,400,273 $ 6,389,276 $ 4,596,437 Weighted-average shares outstanding — Basic 11,369,404 10,824,421 11,188,761 10,695,601 Effect of dilutive securities: Underwriters' warrants 41,124 107,820 69,183 86,469 Stock Options 822,128 1,115,986 899,311 1,167,050 Restricted Stock Units 77,292 147,643 90,847 110,574 Weighted-average shares outstanding — Diluted 12,309,948 12,195,870 12,248,102 12,059,694 Basic net income per share $ 0.22 $ 0.22 $ 0.57 $ 0.43 Diluted net income per share $ 0.20 $ 0.20 $ 0.52 $ 0.38
Schedule of stock options and warrants to purchase shares of our commons stock and restricted stock units excluded from the calculation of diluted net income per share	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Anti-dilutive stock options and restricted stock units 117,584 10,196 14,991 39,869

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory
Schedule of inventory	September 30, December 31, 2019 2018 (unaudited) Raw materials $ 3,444,132 $ 3,408,158 Work in process 287,274 305,562 Finished goods 836,803 557,566 Inventory before allowance for excess and obsolete 4,568,209 4,271,286 Allowance for excess and obsolete (217,169) (211,843) Total $ 4,351,040 $ 4,059,443

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2019
Property and Equipment
Schedule of property and equipment	September 30, December 31, 2019 2018 (unaudited) Computer software and hardware $ 562,984 $ 555,292 Furniture and fixtures 1,129,000 901,415 Leasehold improvements 217,893 202,026 Machinery and equipment 2,293,304 2,184,015 Tooling in-process 86,141 58,263 4,289,322 3,901,011 Accumulated depreciation (2,316,191) (2,031,450) Total $ 1,973,131 $ 1,869,561
Schedule of property and equipment, net, information by geographic region	September 30, December 31, 2019 2018 (unaudited) United States $ 1,587,554 $ 1,439,545 International 385,577 430,016 Total property and equipment, net $ 1,973,131 $ 1,869,561

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Intangible Assets
Summary of the components of intangible asset balances	September 30, December 31, 2019 2018 (unaudited) Patents — in use $ 304,270 $ 304,270 Patents — in process 100,050 73,164 Internally developed software — in use 867,569 867,569 Internally developed software — in process 46,749 13,723 Trademarks 23,017 23,017 1,341,655 1,281,743 Accumulated amortization (516,696) (449,224) Total $ 824,959 $ 832,519
Schedule of expected annual amortization expense related to intangible assets (excludes in process intangible assets)	Three months ending December 31, 2019 $ 22,491 2020 89,963 2021 89,963 2022 89,392 2023 88,740 2024 88,439

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2019
Investments
Summary of available-for-sale securities	September 30, 2019 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value Corporate bonds: U.S. corporations $ 2,969,503 $ 26,967 $ — $ 2,996,470 International corporations 918,417 12,017 — 930,434 Total $ 3,887,920 $ 38,984 $ — $ 3,926,904 December 31, 2018 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value Corporate bonds: U.S. corporations $ 5,487,645 $ — $ 58,309 $ 5,429,336 International corporations 918,417 2,162 — 920,579 Total $ 6,406,062 $ 2,162 $ 58,309 $ 6,349,915

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Measurements
Schedule of the fair value of assets and liabilities subject to recurring fair value measurements	Fair Value at September 30, 2019 Quoted Prices Significant in Active Other Significant Market for Observable Unobservable Fair Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Corporate bonds: U.S. corporations $ 2,996,470 $ — $ 2,996,470 $ — International corporations 930,434 — 930,434 — Total $ 3,926,904 $ — $ 3,926,904 $ — Fair Value at December 31, 2018 Quoted Prices Significant in Active Other Significant Market for Observable Unobservable Fair Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Corporate bonds: U.S. corporations $ 5,429,336 $ — $ 5,429,336 $ — International corporations 920,579 — 920,579 — Total $ 6,349,915 $ — $ 6,349,915 $ —

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss)
Schedule of components of accumulated other comprehensive loss, net of tax	The components of accumulated other comprehensive loss, net of tax, for the three months ended September 30, 2019 and 2018 are as follows: Unrealized (Losses) Gains on Available-For-Sale Securities Balance at June 30, 2019 $ 23,267 Gains on available-for-sale securities, net 11,615 Reclassification realized in net earnings (5,742) Balance at September 30, 2019 $ 29,140 Balance at June 30, 2018 $ (97,324) Gains on available-for-sale securities, net 6,566 Reclassification realized in net earnings 16,099 Balance at September 30, 2018 $ (74,659) The components of accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2019 and 2018 are as follows: Unrealized (Losses) Gains on Available-For-Sale Securities Balance at December 31, 2018 $ (42,192) Gains on available-for-sale securities, net 74,233 Reclassification realized in net earnings (2,901) Balance at September 30, 2019 $ 29,140 Balance at December 31, 2017 $ (48,909) Losses on available-for-sale securities, net (32,180) Reclassification realized in net earnings 16,926 Cumulative effect from adoption of accounting standard update (10,496) Balance at September 30, 2018 $ (74,659)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Stock-Based Compensation
Schedule of stock-based compensation	Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (unaudited) (unaudited) Cost of revenue $ 67,452 $ 70,000 $ 188,295 $ 207,498 General and administrative 279,125 312,043 802,205 795,280 Sales and marketing 89,274 82,994 258,573 244,887 Research and development 19,790 38,519 57,357 114,299 Total $ 455,641 $ 503,556 $ 1,306,430 $ 1,361,964
Summary of stock options and restricted stock units activity	The following table presents a summary of our stock-based compensation activity for the nine months ended September 30, 2019 (shares): Stock Restricted Options Stock Units Outstanding beginning of period 1,129,463 226,501 Awards granted 50,000 106,823 Awards exercised/vested (252,551) (33,144) Awards canceled (750) (13,246) Outstanding end of period 926,162 286,934

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases
Schedule of lease cost	Three Months Nine Months Ended Ended September 30, 2019 September 30, 2019 Cost of revenue $ 46,535 $ 139,604 General and administrative 46,044 138,133 Sales and marketing 2,604 7,813 Research and development 7,215 21,646 Total $ 102,398 $ 307,196
Schedule of maturity of lease liabilities	Three months ending December 31, 2019 $ 102,399 2020 409,596 2021 409,596 2022 409,596 2023 409,596 Thereafter 2,218,646 Total lease payments 3,959,429 Imputed interest (945,564) Present value of lease liability $ 3,013,865
Schedule of future minimum operating lease payments	2019 $ 170,664 2020 — 2021 — 2022 — 2023 — Thereafter — Total minimum lease payments $ 170,664

Basis of Presentation (Details)

Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2019segment
Basis of Presentation
Number of reportable segment	1

Basis of Presentation - Recent

Basis of Presentation - Recent Accounting Pronouncements (Details) - USD ($)	Jan. 01, 2019	Sep. 30, 2019
Leases
Lease, practical expedient, use of hindsight	true
Lease, practical expedients, package	true
Operating lease right-of-use asset		$ 3,013,865
Current portion of operating lease liability		237,266
Operating lease liability, less current portion		$ 2,776,599
ASU 2016-02
Leases
Operating lease right-of-use asset	$ 3,182,724
Current portion of operating lease liability	226,852
Operating lease liability, less current portion	$ 2,955,872

Revenue Recognition - Informati

Revenue Recognition - Information by Geographic Region (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Contract Liabilities
Total revenue	$ 9,963,299	$ 7,614,655	$ 27,626,488	$ 22,099,591
United States
Contract Liabilities
Total revenue	8,281,854	6,099,767	22,916,642	17,808,918
International
Contract Liabilities
Total revenue	$ 1,681,445	$ 1,514,888	$ 4,709,846	$ 4,290,673

Revenue Recognition - Informa_2

Revenue Recognition - Information by Type (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue
Total Devices Revenue	$ 7,327,141	$ 5,350,031	$ 19,728,076	$ 15,275,565
Disposables and Services	2,162,602	1,874,439	6,513,030	5,722,573
Amortization of extended warranty agreements	473,556	390,185	1,385,382	1,101,453
Total revenue	9,963,299	7,614,655	27,626,488	22,099,591
MRI Compatible IV Infusion Pump Systems
Disaggregation of Revenue
Total Devices Revenue	4,769,252	3,532,670	13,512,548	10,748,830
MRI Compatible Patient Vital Signs Monitoring Systems
Disaggregation of Revenue
Total Devices Revenue	$ 2,557,889	$ 1,817,361	$ 6,215,528	$ 4,526,735

Revenue Recognition - Contract

Revenue Recognition - Contract Liabilities (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Dec. 31, 2018
Deferred revenue
Advance payments from customers			$ 40,726	$ 180,425
Shipments in-transit			40,195	9,582
Extended warranty agreements			4,022,373	3,415,782
Total	$ 3,605,789	$ 3,621,256	$ 4,103,294	$ 3,605,789
Changes in contract liabilities
Contract liabilities at beginning of the year	3,605,789	3,621,256
Increases due to cash received from customers	2,530,978	1,764,735
Decreases due to recognition of revenue	(2,033,473)	(1,683,256)
Contract liabilities at end of the year	$ 4,103,294	$ 3,702,735

Revenue Recognition - Capitaliz

Revenue Recognition - Capitalized Contract Costs (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Revenue Recognition
Capitalized contract costs	$ 331,633	$ 181,248

Basic and Diluted Net Income _3

Basic and Diluted Net Income per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Basic and Diluted Net Income per Share
Net income	$ 2,454,870	$ 2,400,273	$ 6,389,276	$ 4,596,437
Weighted-average shares outstanding - Basic (in shares)	11,369,404	10,824,421	11,188,761	10,695,601
Effect of dilutive securities:
Underwriters' warrants	41,124	107,820	69,183	86,469
Stock Options	822,128	1,115,986	899,311	1,167,050
Restricted Stock Units	77,292	147,643	90,847	110,574
Weighted-average shares outstanding - Diluted (in shares)	12,309,948	12,195,870	12,248,102	12,059,694
Basic net income per share (in dollars per share)	$ 0.22	$ 0.22	$ 0.57	$ 0.43
Diluted net income per share (in dollars per share)	$ 0.20	$ 0.20	$ 0.52	$ 0.38
Anti-dilutive stock
Anti-dilutive stock options and restricted stock units	117,584	10,196	14,991	39,869

Inventory (Details)

Inventory (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Inventory
Raw materials	$ 3,444,132	$ 3,408,158
Work in process	287,274	305,562
Finished goods	836,803	557,566
Inventory before allowance for excess and obsolete	4,568,209	4,271,286
Allowance for excess and obsolete	(217,169)	(211,843)
Total	$ 4,351,040	$ 4,059,443

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Property and equipment
Property and equipment, gross	$ 4,289,322		$ 4,289,322		$ 3,901,011
Accumulated depreciation	(2,316,191)		(2,316,191)		(2,031,450)
Total	1,973,131		1,973,131		1,869,561
Depreciation expense of property and equipment	122,834	$ 121,133	373,828	$ 345,592
Computer software and hardware
Property and equipment
Property and equipment, gross	562,984		562,984		555,292
Furniture and fixtures
Property and equipment
Property and equipment, gross	1,129,000		1,129,000		901,415
Leasehold improvements
Property and equipment
Property and equipment, gross	217,893		217,893		202,026
Machinery and equipment
Property and equipment
Property and equipment, gross	2,293,304		2,293,304		2,184,015
Tooling in-process
Property and equipment
Property and equipment, gross	$ 86,141		$ 86,141		$ 58,263

Property and Equipment - Geogra

Property and Equipment - Geographic information (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Property and equipment
Property and equipment, net	$ 1,973,131	$ 1,869,561
United States
Property and equipment
Property and equipment, net	1,587,554	1,439,545
International
Property and equipment
Property and equipment, net	$ 385,577	$ 430,016

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Intangible assets
Intangible Assets, gross	$ 1,341,655		$ 1,341,655		$ 1,281,743
Accumulated amortization	(516,696)		(516,696)		(449,224)
Total	824,959		824,959		832,519
Amortization expense of intangible assets	22,491	$ 22,491	67,472	$ 66,842
Expected annual amortization expense
Three months ending December 31, 2019	22,491		22,491
2020	89,963		89,963
2021	89,963		89,963
2022	89,392		89,392
2023	88,740		88,740
2024	88,439		88,439
Patents - in use
Intangible assets
Intangible Assets, gross	304,270		304,270		304,270
Patents - in process
Intangible assets
Intangible Assets, gross	100,050		100,050		73,164
Internally developed software - in use
Intangible assets
Intangible Assets, gross	867,569		867,569		867,569
Internally developed software - in process
Intangible assets
Intangible Assets, gross	46,749		46,749		13,723
Trademarks
Intangible assets
Intangible Assets, gross	$ 23,017		$ 23,017		$ 23,017

Investments (Details)

Investments (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Investments
Cost	$ 3,887,920	$ 6,406,062
Gross Unrealized Gains	38,984	2,162
Gross Unrealized Losses		58,309
Fair Value	3,926,904	6,349,915
U.S. corporations
Investments
Cost	2,969,503	5,487,645
Gross Unrealized Gains	26,967
Gross Unrealized Losses		58,309
Fair Value	2,996,470	5,429,336
International corporations
Investments
Cost	918,417	918,417
Gross Unrealized Gains	12,017	2,162
Fair Value	$ 930,434	$ 920,579

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
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	3,926,904	6,349,915
Recurring | U.S. corporations
Fair Value Measurements
Total	2,996,470	5,429,336
Recurring | International corporations
Fair Value Measurements
Total	930,434	920,579
Recurring | Significant Other Observable Inputs (Level 2)
Fair Value Measurements
Total	3,926,904	6,349,915
Recurring | Significant Other Observable Inputs (Level 2) | U.S. corporations
Fair Value Measurements
Total	2,996,470	5,429,336
Recurring | Significant Other Observable Inputs (Level 2) | International corporations
Fair Value Measurements
Total	$ 930,434	$ 920,579

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Component of accumulated other comprehensive loss
Balance at the beginning	$ 23,267	$ (97,324)	$ (42,192)	$ (48,909)
Gains (Losses) on available-for-sale securities, net	11,615	6,566	74,233	(32,180)
Reclassification realized in net earnings	(5,742)	16,099	2,901	(16,926)
Cumulative effect from adoption of accounting standard update				(10,496)
Balance at the end	$ 29,140	$ (74,659)	$ 29,140	$ (74,659)

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Stock-Based Compensation
Total stock-based compensation expense	$ 455,641	$ 503,556	$ 1,306,430	$ 1,361,964
Cost of revenue
Stock-Based Compensation
Total stock-based compensation expense	67,452	70,000	188,295	207,498
General and administrative
Stock-Based Compensation
Total stock-based compensation expense	279,125	312,043	802,205	795,280
Sales and marketing
Stock-Based Compensation
Total stock-based compensation expense	89,274	82,994	258,573	244,887
Research and development
Stock-Based Compensation
Total stock-based compensation expense	$ 19,790	$ 38,519	$ 57,357	$ 114,299

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options and Restricted Stock Units Activity (Details)	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Restricted Stock Units
Weighted-average grant-date fair value of options granted (in dollars per share) | $ / shares	$ 11.84
Stock Options
Stock-Based Compensation
Total unrecognized compensation expense | $	$ 581,768
Weighted-average period expected to be recognized	3 years 9 months 18 days
Stock Options
Outstanding beginning of period (in shares)	1,129,463
Awards granted (in shares)	50,000
Awards exercised/vested (in shares)	(252,551)
Awards cancelled (in shares)	(750)
Outstanding end of period (in shares)	926,162
Restricted Stock Units
Stock-Based Compensation
Total unrecognized compensation expense | $	$ 4,138,350
Weighted-average period expected to be recognized	3 years 1 month 6 days
Restricted Stock Units
Outstanding beginning of period (in shares)	226,501
Awards granted (in shares)	106,823
Awards exercised/vested (in shares)	(33,144)
Awards cancelled (in shares)	(13,246)
Outstanding end of period (in shares)	286,934

Stock-Based Compensation - Warr

Stock-Based Compensation - Warrants (Details) - IPO - Warrants - USD ($)	3 Months Ended
	Sep. 30, 2019	Jul. 17, 2017	Jul. 16, 2017	Jul. 21, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants up to the number of shares, underwriters can be purchase	0			201,600
Fair value of warrants				$ 611,000
Exercise price of IPO warrants (in dollars per share)		$ 2.42		$ 8.125
Exercise price expressed as a percent of original issue price				130.00%
Strike price (in dollars per share)		$ 10.05	$ 8.125
Warrants exercised	$ 162,031

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Reconciliation of the statutory U.S. federal tax rate to effective rate
Provision for income tax (benefit) expense	$ 174,035	$ (909,619)	$ 299,876	$ (275,044)
Effective tax rate (as a percent)	6.60%	(61.00%)	4.50%	(6.40%)

Leases (Details)

Leases (Details)	1 Months Ended	9 Months Ended
	Jan. 31, 2014USD ($)	Sep. 30, 2019
Lessee, Lease, Description [Line Items]
Lessee, operating lease, existence of option to extend		true
Lessee, operating lease, existence of option to terminate		true
Lessee, operating lease, existence of residual value guarantee		false
Susi, LLC | Winter Springs, Florida Facility
Lessee, Lease, Description [Line Items]
Monthly base rent	$ 34,133
Number of successive renewal terms of lease	1
Renewal term of lease beginning in 2019	5 years
Renewal term of lease beginning in 2024	5 years
Renewal term lease thereafter	1 year
Remaining lease term (in years)		9 years 8 months 12 days

Leases - Operating Lease Cost (

Leases - Operating Lease Cost (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases
Operating lease cost	$ 102,398	$ 307,196
Cost of revenue
Leases
Operating lease cost	46,535	139,604
General and administrative
Leases
Operating lease cost	46,044	138,133
Sales and marketing
Leases
Operating lease cost	2,604	7,813
Research and development
Leases
Operating lease cost	$ 7,215	$ 21,646

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) - USD ($)	Sep. 30, 2019	Jan. 01, 2019
Operating leases
Three months ending December 31, 2019	$ 102,399
2020	409,596
2021	409,596
2022	409,596
2023	409,596
Thereafter	2,218,646
Total lease payments	3,959,429
Imputed interest	(945,564)
Present value of lease liability	$ 3,013,865
Discount rate		6.00%

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details)	Dec. 31, 2018USD ($)
Operating leases, future minimum payments due, fiscal year maturity
2019	$ 170,664
Total minimum lease payments	$ 170,664

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Purchase commitments
Purchase commitments	$ 3,172,831	$ 2,674,691