Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 01, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | IRADIMED CORP | |
Entity Central Index Key | 0001325618 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-36534 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-1408526 | |
Entity Address, Address Line One | 1025 Willa Springs Drive | |
Entity Address, City or Town | Winter Springs | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32708 | |
City Area Code | 407 | |
Local Phone Number | 677-8022 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | IRMD | |
Title of 12(b) Security | Common stock, par value $0.0001 | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 12,269,524 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 47,549,619 | $ 43,481,781 |
Accounts receivable, net of allowance for doubtful accounts of $43,286 as of September 30, 2020 and $69,093 as of December 31, 2019 | 4,252,329 | 7,293,303 |
Investments | 2,320,407 | 2,768,287 |
Inventory, net | 4,589,741 | 3,641,561 |
Prepaid expenses and other current assets | 475,039 | 407,802 |
Prepaid income taxes | 3,716,442 | 1,370,947 |
Total current assets | 62,903,577 | 58,963,681 |
Property and equipment, net | 2,164,391 | 2,053,806 |
Intangible assets, net | 975,879 | 860,087 |
Operating lease right-of-use asset | 2,776,599 | 2,955,873 |
Deferred income taxes, net | 1,346,214 | 1,663,415 |
Other assets | 258,457 | 232,002 |
Total assets | 70,425,117 | 66,728,864 |
Current liabilities: | ||
Accounts payable | 580,309 | 993,742 |
Accrued payroll and benefits | 1,642,772 | 2,166,209 |
Other accrued taxes | 123,196 | 596,576 |
Warranty reserve | 87,059 | 81,761 |
Deferred revenue | 1,956,180 | 1,671,420 |
Current portion of operating lease liability | 251,901 | 240,843 |
Other current liability | 108,421 | 108,421 |
Accrued income taxes | 10,390 | |
Total current liabilities | 4,760,228 | 5,858,972 |
Deferred revenue | 2,423,733 | 2,630,467 |
Operating lease liability, less current portion | 2,524,698 | 2,715,030 |
Total liabilities | 9,708,659 | 11,204,469 |
Stockholders' equity: | ||
Common stock; $0.0001 par value; 31,500,000 shares authorized; 12,269,123 shares issued and outstanding as of September 30, 2020 and 11,765,875 shares issued and outstanding as of December 31, 2019 | 1,227 | 1,177 |
Additional paid-in capital | 23,636,433 | 19,192,394 |
Retained earnings | 37,032,037 | 36,300,450 |
Accumulated other comprehensive income | 46,761 | 30,374 |
Total stockholders' equity | 60,716,458 | 55,524,395 |
Total liabilities and stockholders' equity | $ 70,425,117 | $ 66,728,864 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
CONDENSED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts | $ 43,286 | $ 69,093 |
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 | 12,269,123 | 11,765,875 |
Common stock, shares outstanding | 12,269,123 | 11,765,875 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONDENSED STATEMENTS OF OPERATIONS | ||||
Revenue | $ 7,699,096 | $ 9,963,299 | $ 23,171,329 | $ 27,626,488 |
Cost of revenue | 1,958,036 | 2,168,208 | 6,036,353 | 6,074,323 |
Gross profit | 5,741,060 | 7,795,091 | 17,134,976 | 21,552,165 |
Operating expenses: | ||||
General and administrative | 2,196,935 | 2,609,722 | 10,062,089 | 7,482,790 |
Sales and marketing | 2,282,491 | 2,297,002 | 7,090,192 | 6,607,477 |
Research and development | 476,876 | 369,526 | 1,389,812 | 1,053,409 |
Total operating expenses | 4,956,302 | 5,276,250 | 18,542,093 | 15,143,676 |
Income (loss) from operations | 784,758 | 2,518,841 | (1,407,117) | 6,408,489 |
Other income, net | 9,352 | 110,064 | 125,706 | 280,663 |
Income (loss) before provision for income taxes | 794,110 | 2,628,905 | (1,281,411) | 6,689,152 |
Provision for income tax (benefit) expense | (280,536) | 174,035 | (2,012,998) | 299,876 |
Net income | $ 1,074,646 | $ 2,454,870 | $ 731,587 | $ 6,389,276 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.09 | $ 0.22 | $ 0.06 | $ 0.57 |
Diluted (in dollars per share) | $ 0.09 | $ 0.20 | $ 0.06 | $ 0.52 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 12,243,362 | 11,369,404 | 12,071,027 | 11,188,761 |
Diluted (in shares) | 12,493,309 | 12,309,948 | 12,414,932 | 12,248,102 |
CONDENSED STATEMENTS OF COMPREH
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 1,074,646 | $ 2,454,870 | $ 731,587 | $ 6,389,276 |
Other comprehensive (loss) income: | ||||
Change in fair value of available-for-sale securities, net of tax (benefit) expense of $(1,402) and $4,429 for the three months ended September 30, 2020 and 2019, respectively, and $9,071 and $24,756 for the nine months ended September 30, 2020 and 2019, respectively | (7,181) | 11,615 | 23,049 | 74,233 |
Realized gain on available-for-sale securities reclassified to net income, net of tax expense of $0 and $1,895 for the three months ended September 30, 2020 and 2019, respectively, and $2,199 and $958 for the nine months ended September 30, 2020 and 2019, respectively | (5,742) | (6,662) | (2,901) | |
Other comprehensive (loss) income | (7,181) | 5,873 | 16,387 | 71,332 |
Comprehensive income | $ 1,067,465 | $ 2,460,743 | $ 747,974 | $ 6,460,608 |
CONDENSED STATEMENTS OF COMPR_2
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Change in fair value of available-for-sale securities, net of tax expense | $ (1,402) | $ 4,429 | $ 9,071 | $ 24,756 |
Realized loss on available-for-sale securities reclassified to net income, net of tax expense (benefit) | $ 0 | $ 1,895 | $ 2,199 | $ 958 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Balances at Dec. 31, 2018 | $ 1,099 | $ 15,317,335 | $ 26,669,491 | $ (42,192) | $ 41,945,733 |
Balance (in shares) at Dec. 31, 2018 | 10,989,111 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 1,845,565 | 1,845,565 | |||
Other comprehensive income | 38,194 | 38,194 | |||
Stock-based compensation expense | 382,353 | 382,353 | |||
Net share settlement of restricted stock units | (22,507) | (22,507) | |||
Net share settlement of restricted stock units (in shares) | 4,322 | ||||
Exercise of stock options | $ 15 | 456,724 | 456,739 | ||
Exercise of stock options (in Shares) | 150,763 | ||||
Balances at Mar. 31, 2019 | $ 1,114 | 16,133,905 | 28,515,056 | (3,998) | 44,646,077 |
Balance (in shares) at Mar. 31, 2019 | 11,144,196 | ||||
Balances at Dec. 31, 2018 | $ 1,099 | 15,317,335 | 26,669,491 | (42,192) | 41,945,733 |
Balance (in shares) at Dec. 31, 2018 | 10,989,111 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 6,389,276 | ||||
Balances at Sep. 30, 2019 | $ 1,143 | 18,683,848 | 33,058,767 | 29,140 | 51,772,898 |
Balance (in shares) at Sep. 30, 2019 | 11,431,467 | ||||
Balances at Mar. 31, 2019 | $ 1,114 | 16,133,905 | 28,515,056 | (3,998) | 44,646,077 |
Balance (in shares) at Mar. 31, 2019 | 11,144,196 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 2,088,841 | 2,088,841 | |||
Other comprehensive income | 27,265 | 27,265 | |||
Stock-based compensation expense | 468,436 | 468,436 | |||
Net share settlement of restricted stock units | $ 3 | (125,708) | (125,705) | ||
Net share settlement of restricted stock units (in shares) | 23,331 | ||||
Exercise of stock options | $ 3 | 43,505 | 43,508 | ||
Exercise of stock options (in Shares) | 28,875 | ||||
Balances at Jun. 30, 2019 | $ 1,120 | 16,520,138 | 30,603,897 | 23,267 | 47,148,422 |
Balance (in shares) at Jun. 30, 2019 | 11,196,402 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 2,454,870 | 2,454,870 | |||
Other comprehensive income | 5,873 | 5,873 | |||
Stock-based compensation expense | 455,641 | 455,641 | |||
Net share settlement of restricted stock units | (1,186) | (1,186) | |||
Net share settlement of restricted stock units (in shares) | 121 | ||||
Exercise of stock options | $ 23 | 1,709,255 | 1,709,278 | ||
Exercise of stock options (in Shares) | 234,944 | ||||
Balances at Sep. 30, 2019 | $ 1,143 | 18,683,848 | 33,058,767 | 29,140 | 51,772,898 |
Balance (in shares) at Sep. 30, 2019 | 11,431,467 | ||||
Balances at Dec. 31, 2019 | $ 1,177 | 19,192,394 | 36,300,450 | 30,374 | 55,524,395 |
Balance (in shares) at Dec. 31, 2019 | 11,765,875 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 1,769,211 | 1,769,211 | |||
Other comprehensive income | 10,433 | 10,433 | |||
Stock-based compensation expense | 568,958 | 568,958 | |||
Net share settlement of restricted stock units | $ 1 | (133,873) | (133,872) | ||
Net share settlement of restricted stock units (in shares) | 14,521 | ||||
Exercise of stock options | $ 19 | 322,160 | 322,179 | ||
Exercise of stock options (in Shares) | 190,541 | ||||
Balances at Mar. 31, 2020 | $ 1,197 | 19,949,639 | 38,069,661 | 40,807 | 58,061,304 |
Balance (in shares) at Mar. 31, 2020 | 11,970,937 | ||||
Balances at Dec. 31, 2019 | $ 1,177 | 19,192,394 | 36,300,450 | 30,374 | 55,524,395 |
Balance (in shares) at Dec. 31, 2019 | 11,765,875 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 731,587 | ||||
Balances at Sep. 30, 2020 | $ 1,227 | 23,636,433 | 37,032,037 | 46,761 | 60,716,458 |
Balance (in shares) at Sep. 30, 2020 | 12,269,123 | ||||
Balances at Mar. 31, 2020 | $ 1,197 | 19,949,639 | 38,069,661 | 40,807 | 58,061,304 |
Balance (in shares) at Mar. 31, 2020 | 11,970,937 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | (2,112,270) | (2,112,270) | |||
Other comprehensive income | 13,135 | 13,135 | |||
Stock-based compensation expense | 2,658,632 | 2,658,632 | |||
Net share settlement of restricted stock units | $ 8 | (725,393) | (725,385) | ||
Net share settlement of restricted stock units (in shares) | 76,381 | ||||
Exercise of stock options | $ 15 | 468,795 | 468,810 | ||
Exercise of stock options (in Shares) | 150,519 | ||||
Balances at Jun. 30, 2020 | $ 1,220 | 22,351,673 | 35,957,391 | 53,942 | 58,364,226 |
Balance (in shares) at Jun. 30, 2020 | 12,197,837 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 1,074,646 | 1,074,646 | |||
Other comprehensive income | (7,181) | (7,181) | |||
Stock-based compensation expense | 416,525 | 416,525 | |||
Net share settlement of restricted stock units | $ 1 | (63,491) | (63,490) | ||
Net share settlement of restricted stock units (in shares) | 8,245 | ||||
Exercise of stock options | $ 6 | 931,726 | 931,732 | ||
Exercise of stock options (in Shares) | 63,041 | ||||
Balances at Sep. 30, 2020 | $ 1,227 | $ 23,636,433 | $ 37,032,037 | $ 46,761 | $ 60,716,458 |
Balance (in shares) at Sep. 30, 2020 | 12,269,123 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities: | ||
Net income | $ 731,587 | $ 6,389,276 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Change in allowance for doubtful accounts | 41,786 | 27,532 |
Change in provision for excess and obsolete inventory | 29,209 | 104,407 |
Depreciation and amortization | 999,812 | 961,597 |
Stock-based compensation | 3,644,115 | 1,306,430 |
Deferred income taxes, net | 310,329 | 26,071 |
Gain on maturities of investments | (8,861) | (3,859) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,999,188 | (2,742,517) |
Inventory | (1,062,455) | (570,242) |
Prepaid expenses and other current assets | (642,982) | (547,694) |
Other assets | (40,899) | (150,386) |
Accounts payable | (468,615) | 293,810 |
Accrued payroll and benefits | (523,437) | 434,328 |
Other accrued taxes | (473,380) | (48,216) |
Warranty reserve | 5,298 | 2,973 |
Deferred revenue | 119,658 | 537,700 |
(Prepaid) accrued income taxes | (2,335,105) | 261,805 |
Other | (3,820) | 859 |
Net cash provided by operating activities | 3,321,428 | 6,283,874 |
Investing activities: | ||
Proceeds from maturity of investments | 480,000 | 2,522,000 |
Purchases of property and equipment | (349,283) | (196,369) |
Capitalized intangible assets | (184,281) | (59,912) |
Net cash (used in) provided by investing activities | (53,564) | 2,265,719 |
Financing activities: | ||
Proceeds from exercises of stock options | 1,722,721 | 2,209,525 |
Taxes paid related to the net share settlement of equity awards | (922,747) | (149,398) |
Net cash provided by financing activities | 799,974 | 2,060,127 |
Net increase in cash and cash equivalents | 4,067,838 | 10,609,720 |
Cash and cash equivalents, beginning of period | 43,481,781 | 28,027,688 |
Cash and cash equivalents, end of period | 47,549,619 | 38,637,408 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 12,000 | |
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 | $ 321,856 | $ 320,907 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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 SEC. Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") 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, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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, We operate in one reportable segment which is the development, manufacture and sale of MRI compatible medical devices, related accessories, disposables and service for use by hospitals and acute care facilities during MRI procedures. Certain Significant Risks and Uncertainties We market our products to end users in the U.S. and to distributors internationally. Sales to end users in the U.S. are generally made on open credit terms. Management maintains an allowance for potential credit losses. COVID-19 Considerations We are subject to risks and uncertainties as a result of the spread of COVID-19. We have experienced a decline in operating results, which has limited our generation of capital resources. The extent of the impact of COVID-19 on our business is highly uncertain and difficult to predict. Our future results of operations and liquidity could be adversely impacted by, among other things, delays in payments from customers, supply chain disruptions, and uncertain demand. As of the date of the issuance of these financial statements, the extent to which COVID-19 may materially impact our financial condition, liquidity, or results of operations in future periods is uncertain. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements to be Implemented In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments - Credit Losses Codification Improvements to Topic 326, Financial Instruments - Credit Losses Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2020 2019 (unaudited) (unaudited) United States $ 6,465,184 $ 8,281,854 $ 17,430,206 $ 22,916,642 International 1,233,912 1,681,445 5,741,123 4,709,846 Total revenue $ 7,699,096 $ 9,963,299 $ 23,171,329 $ 27,626,488 Revenue information by type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Devices: MRI Compatible IV Infusion Pump Systems $ 2,153,699 $ 4,769,252 $ 6,693,692 $ 13,512,548 MRI Compatible Patient Vital Signs Monitoring Systems 2,282,943 2,557,889 6,829,932 6,215,528 Total Devices revenue 4,436,642 7,327,141 13,523,624 19,728,076 Disposables, service and other 2,802,039 2,162,602 8,269,487 6,513,030 Amortization of extended warranty agreements 460,415 473,556 1,378,218 1,385,382 Total revenue $ 7,699,096 $ 9,963,299 $ 23,171,329 $ 27,626,488 Contract Liabilities Our contract liabilities consist of: September 30, December 31, 2020 2019 (unaudited) Advance payments from customers $ 103,669 $ 12,765 Shipments in-transit 41,632 4,250 Extended warranty agreements 4,234,612 4,284,872 Total $ 4,379,913 $ 4,301,887 Changes in the contract liabilities during the periods presented are as follows: Deferred Revenue Contract liabilities, December 31, 2019 $ 4,301,887 Increases due to cash received from customers 1,655,021 Decreases due to recognition of revenue (1,576,995) Contract liabilities, September 30, 2020 $ 4,379,913 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 Capitalized Contract Costs Our capitalized contract costs consist of: September 30, December 31, 2020 2019 (unaudited) Capitalized contract costs $ 362,123 $ 352,250 |
Basic and Diluted Net Income pe
Basic and Diluted Net Income per Share | 9 Months Ended |
Sep. 30, 2020 | |
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. 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Net income $ 1,074,646 $ 2,454,870 $ 731,587 $ 6,389,276 Weighted-average shares outstanding — Basic 12,243,362 11,369,404 12,071,027 11,188,761 Effect of dilutive securities: Underwriters’ warrants — 41,124 — 69,183 Stock Options 204,108 822,128 294,202 899,311 Restricted Stock Units 45,839 77,292 49,703 90,847 Weighted-average shares outstanding — Diluted 12,493,309 12,309,948 12,414,932 12,248,102 Basic net income per share $ 0.09 $ 0.22 $ 0.06 $ 0.57 Diluted net income per share $ 0.09 $ 0.20 $ 0.06 $ 0.52 Stock options 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, 2020 2019 2020 2019 (unaudited) (unaudited) Anti-dilutive stock options and restricted stock units 10,024 117,584 48,706 14,991 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2020 | |
Inventory | |
Inventory | 4 — Inventory Inventory consists of: September 30, December 31, 2020 2019 (unaudited) Raw materials $ 3,734,471 $ 2,939,451 Work in process 246,227 229,479 Finished goods 778,085 697,483 Inventory before allowance for excess and obsolete 4,758,783 3,866,413 Allowance for excess and obsolete (169,042) (224,852) Total $ 4,589,741 $ 3,641,561 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property and Equipment | |
Property and Equipment | 5 — Property and Equipment Property and equipment consist of: September 30, December 31, 2020 2019 (unaudited) Computer software and hardware $ 673,576 $ 627,624 Furniture and fixtures 1,246,566 1,112,550 Leasehold improvements 225,841 225,841 Machinery and equipment 1,818,023 1,778,524 Tooling in-process 433,168 163,105 4,397,174 3,907,644 Accumulated depreciation (2,232,783) (1,853,838) Total $ 2,164,391 $ 2,053,806 Depreciation expense of property and equipment was $128,513 and $122,834 for the three months ended September 30, 2020 and 2019, respectively, and $382,766 and $373,828 for the nine months ended September 30, 2020 and 2019, respectively. Property and equipment, net, information by geographic region is as follows: September 30, December 31, 2020 2019 (unaudited) United States $ 1,857,493 $ 1,689,740 International 306,898 364,066 Total property and equipment, net $ 2,164,391 $ 2,053,806 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, 2020 | |
Intangible Assets | |
Intangible Assets | 6 — Intangible Assets The following table summarizes the components of intangible asset balances: September 30, December 31, 2020 2019 (unaudited) Patents — in use $ 325,434 $ 304,270 Patents — in process 139,595 120,581 Internally developed software — in use 867,569 867,569 Internally developed software — in process 223,710 80,721 Trademarks 27,247 26,133 1,583,555 1,399,274 Accumulated amortization (607,676) (539,187) Total $ 975,879 $ 860,087 Amortization expense of intangible assets was $22,999 and $22,491 for the three months ended September 30, 2020 and 2019, respectively, and $68,489 and $67,472 for the nine months ended September 30, 2020 and 2019, respectively. Expected annual amortization expense for the remaining portion of 2020 and the next five years related to intangible assets is as follows (excludes in process intangible assets): Three months ending December 31, 2020 $ 22,999 2021 $ 91,998 2022 $ 91,427 2023 $ 90,775 2024 $ 90,474 2025 $ 89,481 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments | |
Investments | 7 — Investments Our investments consist of bonds that we have classified as available-for-sale and are summarized in the following tables: September 30, 2020 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value U.S. corporate bonds $ 2,258,686 $ 61,721 $ — $ 2,320,407 December 31, 2019 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value Corporate bonds: U.S. corporations $ 2,258,686 $ 29,123 $ — $ 2,287,809 International corporations 471,139 9,339 — 480,478 Total $ 2,729,825 $ 38,462 $ — $ 2,768,287 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 Quoted Prices Significant in Active Other Significant Market for Observable Unobservable Fair Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) U.S. corporate bonds $ 2,320,407 $ — $ 2,320,407 $ — Fair Value at December 31, 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 $ 2,287,809 $ — $ 2,287,809 $ — International corporations 480,478 — 480,478 — Total $ 2,768,287 $ — $ 2,768,287 $ — 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, 2020 or the year ended December 31, 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 9 — Accumulated Other Comprehensive Income The components of accumulated other comprehensive income, net of tax, for the three months ended September 30, 2020 and 2019 are as follows: Unrealized (Losses) Gains on Available-For-Sale Securities Balance at June 30, 2020 $ 53,942 Loss on available-for-sale securities, net (7,181) Reclassification realized in net earnings — Balance at September 30, 2020 $ 46,761 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 The components of accumulated other comprehensive income, net of tax, for the nine months ended September 30, 2020 and 2019 are as follows: Unrealized (Losses) Gains on Available-For-Sale Securities Balance at December 31, 2019 $ 30,374 Gains on available-for-sale securities, net 23,049 Reclassification realized in net earnings (6,662) Balance at September 30, 2020 $ 46,761 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 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2020 2019 (unaudited) (unaudited) Cost of revenue $ 28,751 $ 67,452 $ 145,258 $ 188,295 General and administrative 291,100 279,125 3,153,886 802,205 Sales and marketing 77,607 89,274 286,134 258,573 Research and development 19,067 19,790 58,837 57,357 Total $ 416,525 $ 455,641 $ 3,644,115 $ 1,306,430 As of September 30, 2020, we had $2,074,580 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.6 years. The following table presents a summary of our stock-based compensation activity for the nine months ended September 30, 2020 (shares): Stock Restricted Options Stock Units Outstanding beginning of period 638,860 297,048 Awards granted — 18,129 Awards exercised/vested (404,100) (139,890) Awards canceled (3,500) (33,443) Outstanding end of period 231,260 141,844 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
Income Taxes | 11 — Income Taxes For the three and nine months ended September 30, 2020, we recorded a provision for income tax benefit of $(280,536) and $(2,012,998), respectively. Our effective tax rate was (35.3) percent and 157.1 percent, respectively, and differed from the U.S. Federal statutory rate primarily due to discrete items related to tax benefits associated with stock-based compensation and a U.S. state tax benefit, partially offset by a limitation on the deductibility of certain executive compensation associated with the separation of our former Chief Executive Officer. Additionally, we recognized a benefit in our effective tax rate resulting from the Coronavirus Aid, Relief, and Economic Security Act, which allowed us to carryback net operating losses to years prior to the enactment of the Tax Cuts and Jobs Act. 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, respectively, 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. As of September 30, 2020, and December 31, 2019, 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 U.S. Federal jurisdiction and many U.S. state jurisdictions. The Company is subject to income tax examinations for our U.S. Federal and certain U.S. state income taxes for 2016 and subsequent years and various other U.S. state income taxes for 2015 and subsequent years. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Leases | 12 — Leases We have 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 President, Chief Executive Officer, and Chairman of the Board, 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 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 residual value guarantee Operating lease cost recognized in the Condensed Statements of Operations is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Cost of revenue $ 46,533 $ 46,535 $ 139,603 $ 139,604 General and administrative 46,045 46,044 138,133 138,133 Sales and marketing 2,605 2,604 7,813 7,813 Research and development 7,216 7,215 21,646 21,646 Total $ 102,399 $ 102,398 $ 307,195 $ 307,196 Lease costs for short-term leases were immaterial for the three and nine months ended September 30, 2020 and 2019. Maturity of operating lease liability as of September 30, 2020 is as follows: Three months ending December 31, 2020 $ 102,399 2021 409,596 2022 409,596 2023 409,596 2024 409,596 Thereafter 1,809,050 Total lease payments 3,549,833 Imputed interest (773,234) Present value of lease liability $ 2,776,599 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 13 — Commitments and Contingencies Purchase commitments. Legal matters. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation | |
Certain Significant Risks and Uncertainties | Certain Significant Risks and Uncertainties We market our products to end users in the U.S. and to distributors internationally. Sales to end users in the U.S. are generally made on open credit terms. Management maintains an allowance for potential credit losses. COVID-19 Considerations We are subject to risks and uncertainties as a result of the spread of COVID-19. We have experienced a decline in operating results, which has limited our generation of capital resources. The extent of the impact of COVID-19 on our business is highly uncertain and difficult to predict. Our future results of operations and liquidity could be adversely impacted by, among other things, delays in payments from customers, supply chain disruptions, and uncertain demand. As of the date of the issuance of these financial statements, the extent to which COVID-19 may materially impact our financial condition, liquidity, or results of operations in future periods is uncertain. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements to be Implemented In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments - Credit Losses Codification Improvements to Topic 326, Financial Instruments - Credit Losses Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition | |
Schedule of disaggregation of revenue by geographic region and revenue type | Revenue information by geographic region is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (unaudited) (unaudited) United States $ 6,465,184 $ 8,281,854 $ 17,430,206 $ 22,916,642 International 1,233,912 1,681,445 5,741,123 4,709,846 Total revenue $ 7,699,096 $ 9,963,299 $ 23,171,329 $ 27,626,488 Revenue information by type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Devices: MRI Compatible IV Infusion Pump Systems $ 2,153,699 $ 4,769,252 $ 6,693,692 $ 13,512,548 MRI Compatible Patient Vital Signs Monitoring Systems 2,282,943 2,557,889 6,829,932 6,215,528 Total Devices revenue 4,436,642 7,327,141 13,523,624 19,728,076 Disposables, service and other 2,802,039 2,162,602 8,269,487 6,513,030 Amortization of extended warranty agreements 460,415 473,556 1,378,218 1,385,382 Total revenue $ 7,699,096 $ 9,963,299 $ 23,171,329 $ 27,626,488 |
Schedule of contract liabilities and changes in the contract liabilities | Our contract liabilities consist of: September 30, December 31, 2020 2019 (unaudited) Advance payments from customers $ 103,669 $ 12,765 Shipments in-transit 41,632 4,250 Extended warranty agreements 4,234,612 4,284,872 Total $ 4,379,913 $ 4,301,887 Changes in the contract liabilities during the periods presented are as follows: Deferred Revenue Contract liabilities, December 31, 2019 $ 4,301,887 Increases due to cash received from customers 1,655,021 Decreases due to recognition of revenue (1,576,995) Contract liabilities, September 30, 2020 $ 4,379,913 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 |
Schedule of capitalized contract costs | September 30, December 31, 2020 2019 (unaudited) Capitalized contract costs $ 362,123 $ 352,250 |
Basic and Diluted Net Income _2
Basic and Diluted Net Income per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2020 2019 (unaudited) (unaudited) Net income $ 1,074,646 $ 2,454,870 $ 731,587 $ 6,389,276 Weighted-average shares outstanding — Basic 12,243,362 11,369,404 12,071,027 11,188,761 Effect of dilutive securities: Underwriters’ warrants — 41,124 — 69,183 Stock Options 204,108 822,128 294,202 899,311 Restricted Stock Units 45,839 77,292 49,703 90,847 Weighted-average shares outstanding — Diluted 12,493,309 12,309,948 12,414,932 12,248,102 Basic net income per share $ 0.09 $ 0.22 $ 0.06 $ 0.57 Diluted net income per share $ 0.09 $ 0.20 $ 0.06 $ 0.52 |
Schedule of stock options and restricted stock units excluded from the calculation of diluted net income per share | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Anti-dilutive stock options and restricted stock units 10,024 117,584 48,706 14,991 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory | |
Schedule of inventory | September 30, December 31, 2020 2019 (unaudited) Raw materials $ 3,734,471 $ 2,939,451 Work in process 246,227 229,479 Finished goods 778,085 697,483 Inventory before allowance for excess and obsolete 4,758,783 3,866,413 Allowance for excess and obsolete (169,042) (224,852) Total $ 4,589,741 $ 3,641,561 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property and Equipment | |
Schedule of property and equipment | September 30, December 31, 2020 2019 (unaudited) Computer software and hardware $ 673,576 $ 627,624 Furniture and fixtures 1,246,566 1,112,550 Leasehold improvements 225,841 225,841 Machinery and equipment 1,818,023 1,778,524 Tooling in-process 433,168 163,105 4,397,174 3,907,644 Accumulated depreciation (2,232,783) (1,853,838) Total $ 2,164,391 $ 2,053,806 |
Schedule of property and equipment, net, information by geographic region | September 30, December 31, 2020 2019 (unaudited) United States $ 1,857,493 $ 1,689,740 International 306,898 364,066 Total property and equipment, net $ 2,164,391 $ 2,053,806 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Intangible Assets | |
Summary of the components of intangible asset balances | September 30, December 31, 2020 2019 (unaudited) Patents — in use $ 325,434 $ 304,270 Patents — in process 139,595 120,581 Internally developed software — in use 867,569 867,569 Internally developed software — in process 223,710 80,721 Trademarks 27,247 26,133 1,583,555 1,399,274 Accumulated amortization (607,676) (539,187) Total $ 975,879 $ 860,087 |
Schedule of expected annual amortization expense related to intangible assets (excludes in process intangible assets) | Three months ending December 31, 2020 $ 22,999 2021 $ 91,998 2022 $ 91,427 2023 $ 90,775 2024 $ 90,474 2025 $ 89,481 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments | |
Summary of available-for-sale securities | September 30, 2020 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value U.S. corporate bonds $ 2,258,686 $ 61,721 $ — $ 2,320,407 December 31, 2019 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value Corporate bonds: U.S. corporations $ 2,258,686 $ 29,123 $ — $ 2,287,809 International corporations 471,139 9,339 — 480,478 Total $ 2,729,825 $ 38,462 $ — $ 2,768,287 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Measurements | |
Schedule of the fair value of assets and liabilities subject to recurring fair value measurements | Fair Value at September 30, 2020 Quoted Prices Significant in Active Other Significant Market for Observable Unobservable Fair Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) U.S. corporate bonds $ 2,320,407 $ — $ 2,320,407 $ — Fair Value at December 31, 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 $ 2,287,809 $ — $ 2,287,809 $ — International corporations 480,478 — 480,478 — Total $ 2,768,287 $ — $ 2,768,287 $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income | |
Schedule of components of accumulated other comprehensive loss, net of tax | The components of accumulated other comprehensive income, net of tax, for the three months ended September 30, 2020 and 2019 are as follows: Unrealized (Losses) Gains on Available-For-Sale Securities Balance at June 30, 2020 $ 53,942 Loss on available-for-sale securities, net (7,181) Reclassification realized in net earnings — Balance at September 30, 2020 $ 46,761 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 The components of accumulated other comprehensive income, net of tax, for the nine months ended September 30, 2020 and 2019 are as follows: Unrealized (Losses) Gains on Available-For-Sale Securities Balance at December 31, 2019 $ 30,374 Gains on available-for-sale securities, net 23,049 Reclassification realized in net earnings (6,662) Balance at September 30, 2020 $ 46,761 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 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stock-Based Compensation | |
Schedule of stock-based compensation | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Cost of revenue $ 28,751 $ 67,452 $ 145,258 $ 188,295 General and administrative 291,100 279,125 3,153,886 802,205 Sales and marketing 77,607 89,274 286,134 258,573 Research and development 19,067 19,790 58,837 57,357 Total $ 416,525 $ 455,641 $ 3,644,115 $ 1,306,430 |
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, 2020 (shares): Stock Restricted Options Stock Units Outstanding beginning of period 638,860 297,048 Awards granted — 18,129 Awards exercised/vested (404,100) (139,890) Awards canceled (3,500) (33,443) Outstanding end of period 231,260 141,844 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Schedule of operating lease cost | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Cost of revenue $ 46,533 $ 46,535 $ 139,603 $ 139,604 General and administrative 46,045 46,044 138,133 138,133 Sales and marketing 2,605 2,604 7,813 7,813 Research and development 7,216 7,215 21,646 21,646 Total $ 102,399 $ 102,398 $ 307,195 $ 307,196 |
Schedule of maturity of operating lease liability | Three months ending December 31, 2020 $ 102,399 2021 409,596 2022 409,596 2023 409,596 2024 409,596 Thereafter 1,809,050 Total lease payments 3,549,833 Imputed interest (773,234) Present value of lease liability $ 2,776,599 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Basis of Presentation | |
Number of reportable segment | 1 |
Revenue Recognition - Informati
Revenue Recognition - Information by geographic region (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Contract Liabilities | ||||
Total revenue | $ 7,699,096 | $ 9,963,299 | $ 23,171,329 | $ 27,626,488 |
United States | ||||
Contract Liabilities | ||||
Total revenue | 6,465,184 | 8,281,854 | 17,430,206 | 22,916,642 |
International | ||||
Contract Liabilities | ||||
Total revenue | $ 1,233,912 | $ 1,681,445 | $ 5,741,123 | $ 4,709,846 |
Revenue Recognition - Informa_2
Revenue Recognition - Information by Type (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue | ||||
Total Devices revenue | $ 4,436,642 | $ 7,327,141 | $ 13,523,624 | $ 19,728,076 |
Disposables, service and other | 2,802,039 | 2,162,602 | 8,269,487 | 6,513,030 |
Amortization of extended warranty agreements | 460,415 | 473,556 | 1,378,218 | 1,385,382 |
Total revenue | 7,699,096 | 9,963,299 | 23,171,329 | 27,626,488 |
MRI Compatible IV Infusion Pump Systems | ||||
Disaggregation of Revenue | ||||
Total Devices revenue | 2,153,699 | 4,769,252 | 6,693,692 | 13,512,548 |
MRI Compatible Patient Vital Signs Monitoring Systems | ||||
Disaggregation of Revenue | ||||
Total Devices revenue | $ 2,282,943 | $ 2,557,889 | $ 6,829,932 | $ 6,215,528 |
Revenue Recognition - Contract
Revenue Recognition - Contract Liabilities (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Deferred revenue | ||||
Advance payments from customers | $ 103,669 | $ 12,765 | ||
Shipments in-transit | 41,632 | 4,250 | ||
Extended warranty agreements | 4,234,612 | 4,284,872 | ||
Total | $ 4,301,887 | $ 4,103,294 | $ 4,379,913 | $ 4,301,887 |
Changes in contract liabilities | ||||
Contract liabilities at beginning of the year | 4,301,887 | 3,605,789 | ||
Increases due to cash received from customers | 1,655,021 | 2,530,978 | ||
Decreases due to recognition of revenue | (1,576,995) | (2,033,473) | ||
Contract liabilities at end | $ 4,379,913 | $ 4,103,294 |
Revenue Recognition - Capitaliz
Revenue Recognition - Capitalized Contract Costs (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue Recognition | ||
Capitalized contract costs | $ 362,123 | $ 352,250 |
Basic and Diluted Net Income _3
Basic and Diluted Net Income per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic and Diluted Net Income per Share | ||||||||
Net income | $ 1,074,646 | $ (2,112,270) | $ 1,769,211 | $ 2,454,870 | $ 2,088,841 | $ 1,845,565 | $ 731,587 | $ 6,389,276 |
Weighted-average shares outstanding - Basic (in shares) | 12,243,362 | 11,369,404 | 12,071,027 | 11,188,761 | ||||
Effect of dilutive securities: | ||||||||
Underwriters' warrants | 41,124 | 69,183 | ||||||
Stock Options | 204,108 | 822,128 | 294,202 | 899,311 | ||||
Restricted Stock Units | 45,839 | 77,292 | 49,703 | 90,847 | ||||
Weighted-average shares outstanding - Diluted (in shares) | 12,493,309 | 12,309,948 | 12,414,932 | 12,248,102 | ||||
Basic net income per share (in dollars per share) | $ 0.09 | $ 0.22 | $ 0.06 | $ 0.57 | ||||
Diluted net income per share (in dollars per share) | $ 0.09 | $ 0.20 | $ 0.06 | $ 0.52 | ||||
Anti-dilutive stock | ||||||||
Anti-dilutive stock options and restricted stock units | 10,024 | 117,584 | 48,706 | 14,991 |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory | ||
Raw materials | $ 3,734,471 | $ 2,939,451 |
Work in process | 246,227 | 229,479 |
Finished goods | 778,085 | 697,483 |
Inventory before allowance for excess and obsolete | 4,758,783 | 3,866,413 |
Allowance for excess and obsolete | (169,042) | (224,852) |
Total | $ 4,589,741 | $ 3,641,561 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Property and equipment | |||||
Property and equipment, gross | $ 4,397,174 | $ 4,397,174 | $ 3,907,644 | ||
Accumulated depreciation | (2,232,783) | (2,232,783) | (1,853,838) | ||
Total | 2,164,391 | 2,164,391 | 2,053,806 | ||
Depreciation expense of property and equipment | 128,513 | $ 122,834 | 382,766 | $ 373,828 | |
Computer software and hardware | |||||
Property and equipment | |||||
Property and equipment, gross | 673,576 | 673,576 | 627,624 | ||
Furniture and fixtures | |||||
Property and equipment | |||||
Property and equipment, gross | 1,246,566 | 1,246,566 | 1,112,550 | ||
Leasehold improvements | |||||
Property and equipment | |||||
Property and equipment, gross | 225,841 | 225,841 | 225,841 | ||
Machinery and equipment | |||||
Property and equipment | |||||
Property and equipment, gross | 1,818,023 | 1,818,023 | 1,778,524 | ||
Tooling in-process | |||||
Property and equipment | |||||
Property and equipment, gross | $ 433,168 | $ 433,168 | $ 163,105 |
Property and Equipment - Geogra
Property and Equipment - Geographic information (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Property and equipment | ||
Property and equipment, net | $ 2,164,391 | $ 2,053,806 |
United States | ||
Property and equipment | ||
Property and equipment, net | 1,857,493 | 1,689,740 |
International | ||
Property and equipment | ||
Property and equipment, net | $ 306,898 | $ 364,066 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Intangible assets | |||||
Intangible Assets, gross | $ 1,583,555 | $ 1,583,555 | $ 1,399,274 | ||
Accumulated amortization | (607,676) | (607,676) | (539,187) | ||
Total | 975,879 | 975,879 | 860,087 | ||
Amortization expense of intangible assets | 22,999 | $ 22,491 | 68,489 | $ 67,472 | |
Expected annual amortization expense | |||||
Three months ending December 31, 2020 | 22,999 | 22,999 | |||
2021 | 91,998 | 91,998 | |||
2022 | 91,427 | 91,427 | |||
2023 | 90,775 | 90,775 | |||
2024 | 90,474 | 90,474 | |||
2025 | 89,481 | 89,481 | |||
Patents - in use | |||||
Intangible assets | |||||
Intangible Assets, gross | 325,434 | 325,434 | 304,270 | ||
Patents - in process | |||||
Intangible assets | |||||
Intangible Assets, gross | 139,595 | 139,595 | 120,581 | ||
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 | 223,710 | 223,710 | 80,721 | ||
Trademarks | |||||
Intangible assets | |||||
Intangible Assets, gross | $ 27,247 | $ 27,247 | $ 26,133 |
Investments (Details)
Investments (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Investments | ||
Cost | $ 2,729,825 | |
Gross Unrealized Gains | 38,462 | |
Fair Value | 2,768,287 | |
U.S. corporations | ||
Investments | ||
Cost | $ 2,258,686 | 2,258,686 |
Gross Unrealized Gains | 61,721 | 29,123 |
Fair Value | $ 2,320,407 | 2,287,809 |
International corporations | ||
Investments | ||
Cost | 471,139 | |
Gross Unrealized Gains | 9,339 | |
Fair Value | $ 480,478 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
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 | 2,768,287 | |
Recurring | U.S. corporations | ||
Fair Value Measurements | ||
Total | 2,320,407 | 2,287,809 |
Recurring | International corporations | ||
Fair Value Measurements | ||
Total | 480,478 | |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Total | 2,768,287 | |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. corporations | ||
Fair Value Measurements | ||
Total | $ 2,320,407 | 2,287,809 |
Recurring | Significant Other Observable Inputs (Level 2) | International corporations | ||
Fair Value Measurements | ||
Total | $ 480,478 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Component of accumulated other comprehensive loss | ||||
Balance at the beginning | $ 53,942 | $ 23,267 | $ 30,374 | $ (42,192) |
Gains (Loss) on available-for-sale securities, net | (7,181) | 11,615 | 23,049 | 74,233 |
Reclassification realized in net earnings | (5,742) | (6,662) | (2,901) | |
Balance at the end | $ 46,761 | $ 29,140 | $ 46,761 | $ 29,140 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock-Based Compensation | ||||
Total stock-based compensation expense | $ 416,525 | $ 455,641 | $ 3,644,115 | $ 1,306,430 |
Cost of revenue | ||||
Stock-Based Compensation | ||||
Total stock-based compensation expense | 28,751 | 67,452 | 145,258 | 188,295 |
General and administrative | ||||
Stock-Based Compensation | ||||
Total stock-based compensation expense | 291,100 | 279,125 | 3,153,886 | 802,205 |
Sales and marketing | ||||
Stock-Based Compensation | ||||
Total stock-based compensation expense | 77,607 | 89,274 | 286,134 | 258,573 |
Research and development | ||||
Stock-Based Compensation | ||||
Total stock-based compensation expense | $ 19,067 | $ 19,790 | $ 58,837 | $ 57,357 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options and Restricted Stock Units Activity (Details) - USD ($) | 9 Months Ended |
Sep. 30, 2020 | |
Stock Options | |
Stock Options | |
Outstanding beginning of period (in shares) | 638,860 |
Awards exercised/vested (in shares) | (404,100) |
Awards cancelled (in shares) | (3,500) |
Outstanding end of period (in shares) | 231,260 |
Restricted Stock Units | |
Restricted Stock Units | |
Outstanding beginning of period (in shares) | 297,048 |
Awards granted (in shares) | 18,129 |
Awards exercised/vested (in shares) | (139,890) |
Awards cancelled (in shares) | (33,443) |
Outstanding end of period (in shares) | 141,844 |
Unrecognized compensation cost related to unvested restricted stock units | $ 2,074,580 |
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 7 months 6 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation of the statutory U.S. federal tax rate to effective rate | ||||
Provision for income tax benefit | $ (280,536) | $ 174,035 | $ (2,012,998) | $ 299,876 |
Effective tax rate (as a percent) | (35.30%) | 6.60% | 157.10% | 4.50% |
Leases (Details)
Leases (Details) | May 31, 2019 | Jan. 31, 2014USD ($) | Sep. 30, 2020item |
Leases | |||
Number of material lease contract outstanding | item | 1 | ||
Lessee, operating lease, existence of option to extend | true | ||
Lessee, operating lease, existence of residual value guarantee | false | ||
Susi, LLC | Winter Springs, Florida Facility | |||
Leases | |||
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) | 8 years 8 months 12 days |
Leases - Operating Lease Cost (
Leases - Operating Lease Cost (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases | ||||
Operating lease cost | $ 102,399 | $ 102,398 | $ 307,195 | $ 307,196 |
Cost of revenue | ||||
Leases | ||||
Operating lease cost | 46,533 | 46,535 | 139,603 | 139,604 |
General and administrative | ||||
Leases | ||||
Operating lease cost | 46,045 | 46,044 | 138,133 | 138,133 |
Sales and marketing | ||||
Leases | ||||
Operating lease cost | 2,605 | 2,604 | 7,813 | 7,813 |
Research and development | ||||
Leases | ||||
Operating lease cost | $ 7,216 | $ 7,215 | $ 21,646 | $ 21,646 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) | Sep. 30, 2020USD ($) |
Operating leases | |
Three months ending December 31, 2020 | $ 102,399 |
2021 | 409,596 |
2022 | 409,596 |
2023 | 409,596 |
2024 | 409,596 |
Thereafter | 1,809,050 |
Total lease payments | 3,549,833 |
Imputed interest | (773,234) |
Present value of lease liability | $ 2,776,599 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Purchase commitments | ||
Purchase commitments | $ 2,596,996 | $ 3,208,174 |