Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-36534 | ||
Entity Registrant Name | IRADIMED CORPORATION | ||
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 | ||
Title of 12(b) Security | Common stock, par value $0.0001 | ||
Trading Symbol | IRMD | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 242,425,071 | ||
Entity Common Stock, Shares Outstanding | 12,593,245 | ||
Entity Central Index Key | 0001325618 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Auditor Name | RSM US LLP | ||
Auditor Firm ID | 49 | ||
Auditor Location | Orlando, Florida | ||
Amendment Flag | false |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 57,960,864 | $ 61,999,550 |
Investments | 501,855 | |
Accounts receivable, net | 13,274,521 | 5,136,599 |
Inventory, net | 5,369,233 | 4,299,799 |
Prepaid expenses and other current assets | 630,960 | 1,000,716 |
Prepaid income taxes | 254,093 | 3,306,438 |
Total current assets | 77,489,671 | 76,244,957 |
Property and equipment, net | 2,399,812 | 2,069,376 |
Intangible assets, net | 2,069,439 | 1,118,584 |
Operating lease right-of-use asset, net | 2,205,286 | 2,482,084 |
Deferred tax asset, net | 700,867 | 765,096 |
Other assets | 648,672 | 201,325 |
Total assets | 85,513,747 | 82,881,422 |
Current liabilities: | ||
Accounts payable | 1,799,316 | 782,903 |
Accrued payroll and benefits | 2,871,890 | 2,814,560 |
Other accrued taxes | 121,919 | 140,315 |
Warranty reserve | 94,030 | 108,880 |
Deferred revenue | 3,373,122 | 2,553,096 |
Current portion of operating lease liability | 293,466 | 276,568 |
Other current liability | 146,435 | |
Total current liabilities | 8,553,743 | 6,822,757 |
Deferred revenue | 1,375,197 | 1,679,343 |
Operating lease liability, less current portion | 1,911,820 | 2,205,516 |
Total liabilities | 11,840,760 | 10,707,616 |
Stockholders' equity: | ||
Common Stock | 1,259 | 1,254 |
Additional paid-in capital | 26,407,446 | 25,160,618 |
Retained earnings | 47,264,282 | 46,994,922 |
Accumulated other comprehensive income | 17,012 | |
Total stockholders' equity | 73,672,987 | 72,173,806 |
Total liabilities and stockholders' equity | $ 85,513,747 | $ 82,881,422 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
STATEMENTS OF OPERATIONS | ||
Revenue | $ 53,303,145 | $ 41,814,581 |
Cost of revenue | 12,020,742 | 9,764,656 |
Gross profit | 41,282,403 | 32,049,925 |
Operating expenses: | ||
General and administrative | 10,697,067 | 9,771,462 |
Sales and marketing | 12,679,610 | 10,555,738 |
Research and development | 2,278,081 | 1,905,043 |
Total operating expenses | 25,654,758 | 22,232,243 |
Income from operations | 15,627,645 | 9,817,682 |
Other income, net | 553,104 | 18,605 |
Income before income taxes | 16,180,749 | 9,836,287 |
Provision for income tax expense | 3,352,262 | 510,816 |
Net income | $ 12,828,487 | $ 9,325,471 |
Net income per share | ||
Basic | $ 1.02 | $ 0.76 |
Diluted | $ 1.02 | $ 0.74 |
Weighted average shares outstanding | ||
Basic | 12,562,856 | 12,346,173 |
Diluted | 12,635,971 | 12,590,853 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 12,828,487 | $ 9,325,471 |
Other comprehensive (loss): | ||
Change in fair value of available-for-sale securities, net of tax expense (benefit) of $9,098 and $(11,486), respectively | (10,953) | (6,027) |
Realized gain on available-for-sale securities reclassified to net income, net of tax expense of $1,966 and $4,545, respectively | (6,059) | (14,048) |
Other comprehensive loss | (17,012) | (20,075) |
Comprehensive income | $ 12,811,475 | $ 9,305,396 |
STATEMENTS OF COMPREHENSIVE I_2
STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
STATEMENTS OF COMPREHENSIVE INCOME | ||
Change in fair value of available-for-sale securities, net of tax expense (benefit) | $ 9,098 | $ (11,486) |
Realized gain on available-for-sale securities reclassified to net income, net of tax expense | $ 1,966 | $ 4,545 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total |
Beginning balances at Dec. 31, 2020 | $ 1,231 | $ 23,676,843 | $ 37,669,451 | $ 37,087 | $ 61,384,612 |
Beginning balances (in shares) at Dec. 31, 2020 | 12,308,432 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 9,325,471 | 9,325,471 | |||
Other comprehensive loss | (20,075) | (20,075) | |||
Stock-based compensation | 1,459,373 | 1,459,373 | |||
Net share settlement of restricted stock units | $ 4 | (598,821) | (598,817) | ||
Net share settlement of restricted stock units (in shares) | 44,658 | ||||
Exercise of stock options | $ 19 | 623,223 | 623,242 | ||
Exercise of stock options (in shares) | 190,934 | ||||
Ending balances at Dec. 31, 2021 | $ 1,254 | 25,160,618 | 46,994,922 | 17,012 | 72,173,806 |
Ending balances (in shares) at Dec. 31, 2021 | 12,544,024 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 12,828,487 | 12,828,487 | |||
Dividends paid | (12,559,127) | (12,559,127) | |||
Other comprehensive loss | $ (17,012) | (17,012) | |||
Stock-based compensation | 1,394,106 | 1,394,106 | |||
Net share settlement of restricted stock units | $ 3 | (293,984) | (293,981) | ||
Net share settlement of restricted stock units (in shares) | 31,414 | ||||
Exercise of stock options | $ 2 | 146,706 | 146,708 | ||
Exercise of stock options (in shares) | 15,566 | ||||
Ending balances at Dec. 31, 2022 | $ 1,259 | $ 26,407,446 | $ 47,264,282 | $ 73,672,987 | |
Ending balances (in shares) at Dec. 31, 2022 | 12,591,004 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities: | ||
Net income | $ 12,828,487 | $ 9,325,471 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Change in allowance for doubtful accounts | 102,767 | 13,876 |
Change in provision for excess and obsolete inventory | 55,737 | 118,217 |
Depreciation and amortization | 670,673 | 1,406,823 |
Disposal of property and equipment | (1,741) | 5,544 |
Stock-based compensation | 1,394,106 | 1,459,373 |
Deferred income taxes, net | 57,097 | 523,607 |
Gain on maturity of investments | (8,025) | (18,593) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,240,688) | (575,543) |
Inventory | (1,308,956) | (393,316) |
Prepaid expenses and other current assets | 305,936 | (1,038,047) |
Other assets | (398,224) | 26,557 |
Accounts payable | 1,124,972 | 30,414 |
Accrued payroll and benefits | 57,330 | 1,099,778 |
Other accrued taxes | (18,396) | 36,334 |
Warranty reserve | (14,850) | 18,826 |
Deferred revenue | 530,576 | 48,062 |
Other current liabilities | (146,435) | |
Prepaid income taxes | 3,052,345 | (829,227) |
Net cash provided by operating activities | 10,042,711 | 11,258,156 |
Investing activities: | ||
Proceeds from maturity of investments | 500,000 | 1,390,000 |
Purchases of property and equipment | (823,019) | (482,325) |
Capitalized intangible assets | (1,051,978) | (259,434) |
Net cash (used in) provided by investing activities | (1,374,997) | 648,241 |
Financing activities: | ||
Dividends | (12,559,127) | |
Proceeds from stock option exercises | 146,708 | 623,242 |
Taxes paid for net share settlement of restricted stock units | (293,981) | (598,817) |
Net cash (used in) provided by financing activities | (12,706,400) | 24,425 |
Net (decrease) increase in cash and cash equivalents | (4,038,686) | 11,930,822 |
Cash and cash equivalents, beginning of year | 61,999,550 | 50,068,728 |
Cash and cash equivalents, end of year | 57,960,864 | 61,999,550 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 1,711,500 | 970,000 |
Right-of-use asset recognized in exchange for new lease obligation | 27,713 | |
Operating and short-term lease payments recorded within cash flow from operating activities | $ 534,469 | $ 490,108 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization and Significant Accounting Policies | |
Organization and Significant Accounting Policies | 1 — Organization and Significant Accounting Policies Organization IRADIMED CORPORATION (“IRADIMED”, the “Company”, “we”, “our”) was incorporated in Oklahoma in July 1992 and reincorporated in Delaware in April 2014. We develop, manufacture, market and distribute a Magnetic Resonance Imaging (“MRI”) compatible intravenous (“IV”) infusion pump system and MRI compatible patient vital signs monitoring systems and related accessories, disposables and services. We are a leader in the development of innovative MRI compatible medical devices. We are the only known provider of a non-magnetic IV infusion pump system that is specifically designed to be safe for use during MRI procedures. We were the first to develop an infusion delivery system that largely eliminates many of the dangers and problems present during MRI procedures. Standard infusion pumps contain magnetic and electronic components which can create radio frequency interference and are dangerous to operate in the presence of the powerful magnet that drives an MRI system. Our patented MRidium® MRI compatible IV infusion pump system has been designed with a non-magnetic ultrasonic motor, uniquely designed non-ferrous parts and other special features to safely and predictably deliver anesthesia and other IV fluids during various MRI procedures. Our pump solution provides a seamless approach that enables accurate, safe and dependable fluid delivery before, during and after an MRI scan, which is important to critically ill patients who cannot be removed from their vital medications, and children and infants who must generally be sedated to remain immobile during an MRI scan. Each IV infusion pump system consists of an MRidium® MRI compatible IV infusion pump, non-magnetic mobile stand, proprietary disposable IV tubing sets and many of these systems contain additional optional upgrade accessories. Our 3880 MRI compatible patient vital signs monitoring system has been designed with non-magnetic components and other special features to safely and accurately monitor a patient’s vital signs during various MRI procedures. The IRADIMED 3880 system operates dependably in magnetic fields up to 30,000 gauss, which means it can operate virtually anywhere in the MRI scanner room. The IRADIMED 3880 has a compact, lightweight design allowing it to travel with the patient from their critical care unit, to the MRI and back, resulting in increased patient safety through uninterrupted vital signs monitoring and decreasing the amount of time critically ill patients are away from critical care units. The features of the IRADIMED 3880 include: wireless ECG with dynamic gradient filtering; wireless SpO2 using Masimo® algorithms; non-magnetic respiratory CO2; invasive and non-invasive blood pressure; patient temperature, and optional advanced multi-gas anesthetic agent unit featuring continuous Minimum Alveolar Concentration measurements. The IRADIMED 3880 MRI compatible patient vital signs monitoring system has an easy-to-use design and allows for the effective communication of patient vital signs information to clinicians. Our headquarters is located in Winter Springs, Florida. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities in the financial statements and the reported amount of revenue and expenses during the reporting period. Such estimates include allowances for potentially uncollectible accounts receivable, valuation of inventory, intangible assets, stock-based compensation, deferred income taxes, reserves for warranty obligations, and the provision for income taxes. Actual results could differ from those estimates. Revenue Recognition We generate revenue from the sale of MRI compatible medical devices and accessories, extended warranty agreements, services related to maintaining our products and the sale of disposable products used with our devices. The principal customers for our MRI compatible products include hospitals and acute care facilities, both in the U.S. and internationally. In the U.S. we sell our products through our direct sales force and outside of the U.S. we sell our products through third-party distributors who resell our products to end users. For many domestic sales, we enter into agreements with integrated delivery health systems and healthcare supply contracting companies, commonly referred to as Group Purchasing Organizations (“GPOs”). GPO agreements enable us to sell and distribute our products to their member hospitals. Our agreements with GPOs typically include negotiated pricing for all group members established at the time of GPO contract execution. Under these agreements, we are required to pay the GPOs a fee of three percent of the sales of our products to members of the GPO. We do not sell to GPOs. Hospitals, group practices and other acute care facilities that are members of a GPO, purchase products directly from us under the terms of our GPO agreements. We recognize revenue when all of the following criteria are met: we have a contract with a customer that creates enforceable rights and obligations; promised products or services are identified; the transaction price, or the amount we expect to receive, is determinable and we have transferred control of the promised products or services to the customer. We consider transfer of control evidenced upon the passage of title and risks and rewards of ownership to the customer, which is typically at a point in time, except for our extended warranty agreements. We allocate the transaction price using the relative standalone selling price method. Customer sale prices for our medical devices and related disposables and services are contractually fixed over the contract term. We recognize a receivable at the point in time we have an unconditional right to payment. Payment terms are typically within 45 days after transferring control to U.S. customers. Most international distributors are required to pay a portion of the transaction price in advance and the remaining amount within 30 days of receiving the related products. Accordingly, we have elected to use the practical expedient that allows us to ignore the possible existence of a significant financing component within the contract. We have elected to account for shipping and handling charges billed to customers as revenue and shipping and handling related expenses as cost of revenue. In certain U.S. states we are required to collect sales taxes from our customers. We have elected to exclude the amounts collected for these taxes from revenue and record them as a liability until remitted to the taxing authority. Contract Liabilities We record contract liabilities, or deferred revenue, when we have an obligation to provide a product or service to the customer and payment is received in advance of our performance. When we sell a product or service with a future performance obligation, we defer revenue allocated to the unfulfilled performance obligation and recognize this revenue when, or as, the performance obligation is satisfied. Our deferred revenue consists of advance payments received from customers prior to the transfer of products or services, shipments that are in-transit at the end of a period and sales of extended warranty agreements. Advance payments received from customers and shipments in-transit are recognized in revenue at the time control of the related products has been transferred to the customer or services have been delivered. Amounts related to extended warranty agreements are deferred and recognized in revenue ratably over the agreement period, which is typically one Deferred revenue is classified as current or long-term deferred revenue in our Balance Sheets, depending on the expected timing of satisfying the related performance obligations. Capitalized Contract Costs We capitalize commissions paid to our sales managers related to contracts with customers when the associated revenue is expected to be earned over a period of time. Deferred commissions are primarily related to the sale of extended warranty agreements. Capitalized commissions are included in Prepaid Expenses and Other Current Assets in our Balance Sheets when the associated expense is expected to be recognized in one year or less, or in Other Assets when the associated expense is expected to be recognized in greater than one year. The associated expense is included in Sales and Marketing expenses in our Statements of Operations. Variable Consideration Our sales are typically subject to 30 to 60-day customer-specified acceptance provisions primarily for purposes of ensuring products were not damaged during the shipping process. Historically, we have experienced immaterial product returns and, when experienced, we typically exchange the affected products with new products. Accordingly, variable consideration from contracts with customers is immaterial to our financial statements. Cash Equivalents All highly liquid instruments purchased with an original maturity of three months or less are classified as cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable is recorded at the transaction price of the related products and services. We regularly assess the sufficiency of the allowance for estimated uncollectible accounts receivable. Estimates are based on historical collection experience and other customer-specific information, such as bankruptcy filings or known liquidity problems of our customers. When it is determined that an account receivable is uncollectible, it is written off and relieved from the allowance. Any future determination that the allowance for estimated uncollectible accounts receivable is not properly stated could result in changes in operating expense and results of operations. As of December 31, 2022 and 2021, our allowance for doubtful accounts was $160,498 and $60,361, respectively. Investments Our investments consisted of corporate debt securities and are considered available-for-sale. The specific identification method is used to determine the cost basis of investments sold. Our investments are recorded in our Balance Sheets at fair value. We classified our investments as current based on the nature of the investments and their availability for use in current operations. Unrealized gains and losses on our investments are included in accumulated other comprehensive income (loss), net of tax. Realized gains or losses and impairment losses that are determined to be other-than-temporary are recorded in other income, net in our Statements of Operations. We currently do not own any corporate bonds but should direct debt securities be utilized in the future, we would treat them as described above. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. A three-level valuation hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels of inputs are: ● Level 1 — quoted prices (unadjusted) in active markets for an identical asset or liability. ● Level 2 — quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. ● Level 3 — unobservable and significant to the fair value measurement of the asset or liability. Financial instruments include cash and cash equivalents, investments, accounts receivable, accounts payable and accrued expenses. Cash and cash equivalents and investments are reported at their respective fair values on the balance sheet dates. The recorded carrying amount of accounts receivable, accounts payable and accrued expenses approximates their fair values due to their short-term nature. Inventory Inventory is stated at the lower of standard cost, which approximates actual cost on a first-in, first-out basis, or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. We may be exposed to a number of factors that could result in portions of our inventory becoming either obsolete or in excess of anticipated usage. These factors include, but are not limited to, technological changes, competitive pressures in products and prices, and the introduction of new product lines. We regularly evaluate our ability to realize the value of inventory based on a combination of factors, including historical usage rates, forecasted sales, product life cycles, and market acceptance of new products. When inventory that is obsolete or in excess of anticipated usage is identified, it is written down to net realizable value or an inventory valuation allowance is established. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over estimated useful lives of the respective assets, which are generally three five machinery equipment Repair and maintenance costs that do not extend the useful life of our property and equipment are expensed as incurred. Intangible Assets Intangible assets include application and legal costs incurred to obtain patents. We capitalize these costs when we determine that probable future economic benefits exist. In making this determination, we consider the projected future operating results associated with the patents, industry and economic trends, and the entry of new products in the market. Costs incurred prior to this determination are expensed in the period they are incurred. We amortize capitalized patent costs using the straight-line method over their useful lives, which is typically 20 years. Periodic costs incurred to maintain existing patents are expensed as incurred. Research & Development and Capitalized Software Development Costs Research and development costs are expensed as incurred. Some of our products include embedded software which is essential to the products’ functionality. Costs incurred in the research and development of new software components and enhancements to existing software components are expensed as incurred until technological feasibility has been established. We capitalize software development costs when the project reaches technological feasibility and cease capitalization when the project is ready for release. Capitalized software development costs are included in intangible assets and are amortized on a straight-line basis over the estimated useful life of the product and included in cost of revenue. Amortization begins when the product is available for general release to the customer. Long-lived Assets Long-lived assets, including right-of-use assets, are tested for impairment whenever changes in circumstances indicate the carrying value of these assets may be impaired. Impairment indicators include, but are not limited to, technological obsolescence, unfavorable court rulings, significant negative industry and economic trends, and significant underperformance relative to historical and projected future operating results. Impairment is considered to have occurred when the estimated undiscounted future cash flows related to the asset groups are less than its carrying value. Estimates of future cash flows involve consideration of many factors including the marketability of new products, product acceptance and lifecycle, competition, appropriate discount rates and operating margins. An impairment is recognized as the amount by which the carrying value is greater than the fair value of the asset or asset group. Warranty The Company provides for the estimated cost of product warranties at the time revenue is recognized. While we engage in product quality programs and processes, including actively monitoring and evaluating the quality of our suppliers, the estimated warranty obligation is affected by ongoing product failure rates, material usage costs and direct labor incurred in correcting a product failure. Actual product failure rates, material usage costs and the amount of labor required to repair products that differ from estimates result in revisions to the estimated liability. We warrant for a limited period of time that our products will be free from defects in materials and workmanship. We estimate warranty allowances based on historical warranty experience. The estimates we use in projecting future product warranty costs may prove to be incorrect. Any future determination that our provision for product warranty is understated could result in increases to our cost of revenue and a reduction in our operating profits and results of operations. Historically, warranty expenses have not been material to our financial statements. Stock-Based Compensation Historically, we have granted three types of employee equity awards, stock options, restricted stock units and performance-based restricted stock units. We recognize stock-based compensation expense associated with employee equity awards on a straight-line basis over the requisite service period for stock options and restricted stock units, which is generally four years for employees and two years for the board of directors. Expense related to our performance-based restricted stock units is recognized straight-line over the requisite performance period, which is three years. The grant date fair value of our restricted stock units is based on the closing price of our common stock on the date of grant. In December 2022 and 2021, the Company granted Performance-Based Restricted Stock Units (“PSUs”) to certain employees under the Company’s Long-Term Incentive Pan (“LTIP”), which was adopted under the Company’s Amended and Restated 2014 Equity Incentive Plan. Payouts of the PSUs will be based on the Company’s total shareholder return compared to a peer group or index total shareholder return. For purposes of the LTIP, total shareholder return is calculated as the share price at the end of the performance period, which is three years, including the reinvestment of any dividends during the performance period, as compared to the share price at the beginning of the performance period. The payout range for participants will be between 0 percent and 200 percent, depending on the Company’s performance. The grant date fair value of our PSUs is based on a Monte Carlo simulation, the closing price of our common stock, and other pertinent factors on the grant date. Compensation expense for the PSUs is recognized on a straight-line basis over the requisite performance period, which is three years from the grant date. We elect to recognize forfeitures as they occur. We issue new shares of common stock upon exercise of stock options or vesting of restricted stock units and PSUs. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. A valuation allowance is recorded to offset net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We recognize the tax benefit of uncertain tax positions in the financial statements based on the technical merits of the position. When the tax position is deemed more likely than not of being sustained, we recognize the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. Foreign Currency Gains and losses from transactions denominated in currencies other than our functional currency are included in other income, net. Foreign currency gains and losses result primarily from fluctuations in the exchange rate between the U.S. Dollar and the Japanese Yen. Comprehensive Income Comprehensive income includes net income and other comprehensive income items that are excluded from net income under U.S. GAAP. Comprehensive income included unrealized gains and losses on our investments classified as available for sale while those investments were held. Basic and Diluted Net Income per Share Basic net income per share is based on 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 stock options, restricted stock units, and performance-based 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: For the Years Ended December 31, 2022 2021 Net income $ 12,828,487 $ 9,325,471 Weighted-average shares outstanding — Basic 12,562,856 12,346,173 Effect of dilutive securities: Stock options 20,106 172,792 Restricted stock units 43,037 59,996 Performance-based restricted stock units 9,972 11,892 Weighted-average shares outstanding — Diluted 12,635,971 12,590,853 Basic net income per share $ 1.02 $ 0.76 Diluted net income per share $ 1.02 $ 0.74 Stock options 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: As of December 31, 2022 2021 Anti-dilutive stock options and restricted stock units 22,744 4,597 Certain Significant Risks and Uncertainties We market our products to end users in the United States and to third-party 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. We have deposited our cash and cash equivalents with various financial institutions. Our cash and cash equivalents balances exceed federally insured limits periodically throughout the year. We have not incurred any losses related to these balances. Our medical devices require clearance from the Food and Drug Administration and international regulatory agencies prior to commercialized sales. Our future products may not receive required approvals. If we were denied such approvals, or if such approvals were revoked or delayed or if we were unable to timely renew certain approvals for existing products, it would have a materially adverse impact on our business, results of operations and financial condition. Certain key components of our products essential to their functionality are sole-sourced. Any disruption in the availability of these components would have a materially adverse impact on our business, results of operations and financial condition. Pandemic Considerations We continue to monitor developments associated with the recent evolving pandemic and its effects on our employees, customers, supply chain and distribution channels. The ongoing impact of the recent and potential future pandemics depends on several factors including the severity and duration of the pandemic and the extent and severity of the impact on our customers, which is uncertain and unpredictable. Our future results of operations and cash flows may suffer adverse effects from disruptions in our supply chain and manufacturing operations, delays in payments on outstanding accounts receivable, uncertain demand for our products, and effects of any actions we may take to address financial and operational challenges our customers may face. Our future results may potentially be heavily determined by global vaccination rates, duration of the pandemic, its geographic spread, further business disruptions and the overall impact on the global economy. We are actively managing our response to the recent pandemic and continue to work with our customers, distributors, vendors, and suppliers and assessing the potential effects to our financial position, results of operations and cash flows. As of the date of the issuance of these financial statements, the extent to which a pandemic, may materially impact our financial condition, liquidity, or results of operations in future periods remains uncertain. Recent Accounting Pronouncements Accounting Pronouncements Implemented in 2022 Beginning in 2022, the Tax Cuts and Jobs Act of 2017 (“TCJA”) eliminated the option to deduct research and experimental expenditures in the current year and requires taxpayers to amortize them over five years pursuant to IRC Section 174. This change is applied from 2022 onward prospectively and impacts the timing of the related cash tax payments as the deductions are disallowed for tax in the year incurred but allowed for tax purposes to be amortized and deducted over . The mandatory capitalization requirement increases our deferred tax assets and cash tax liabilities by approximately $ million . In the future, Congress may consider legislation that would defer the amortization requirement to later years, possibly with a retroactive effect. In the meantime, we expect to continue to make additional Federal tax payments based on current Section 174 tax law. The impact on Section 174 on our cash from operations depends on the amount of research and experimental expenditures incurred by the company and whether the IRS issues guidance on the provision which differs from current interpretation, among other things. Recently Issued Accounting Pronouncements to be Implemented 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
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue | |
Revenue | 2 - Revenue 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: For the Years Ended December 31, 2022 2021 United States $ 43,898,735 $ 33,462,659 International 9,404,410 8,351,922 Total revenue $ 53,303,145 $ 41,814,581 Revenue information by type is as follows: For the Years Ended December 31, 2022 2021 Devices: MRI compatible IV infusion pump system $ 14,526,017 $ 13,289,064 MRI compatible patient vital signs monitoring systems 21,721,720 13,781,098 Ferro Magnetic Detection Systems 257,112 — Total Devices revenue 36,504,849 27,070,162 Disposables, service and other 14,622,327 12,797,605 Amortization of extended warranty agreements 2,175,969 1,946,814 Total revenue $ 53,303,145 $ 41,814,581 Contract Liabilities Our contract liabilities consist of: As of December 31, 2022 2021 Advance payments from customers $ 896,617 $ 551,267 Shipments in-transit 14,696 70,295 Extended warranty agreements 3,837,006 3,610,877 Total $ 4,748,319 $ 4,232,439 Changes in the contract liabilities during the period are as follows: Deferred Revenue Contract liabilities, December 31, 2020 $ 4,254,672 Increases due to cash received from customers 4,421,712 Decreases due to recognition of revenue (4,443,945) Contract liabilities, December 31, 2021 $ 4,232,439 Increases due to cash received from customers 5,094,184 Decreases due to recognition of revenue (4,578,304) Contract liabilities, December 31, 2022 $ 4,748,319 Capitalized Contract Costs Our capitalized contract costs totaled $340,044 and $357,810 as of December 31, 2022 and 2021, respectively. |
Inventory, net
Inventory, net | 12 Months Ended |
Dec. 31, 2022 | |
Inventory, net. | |
Inventory, net | 3 — Inventory, net Inventory consists of: As of December 31, 2022 2021 Raw materials $ 4,827,113 $ 3,777,846 Work in process 369,761 191,722 Finished goods 411,647 513,782 Inventory before allowance for excess and obsolete 5,608,521 4,483,350 Allowance for excess and obsolete (239,288) (183,551) Total $ 5,369,233 $ 4,299,799 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, net | |
Property and Equipment, net | 4 — Property and Equipment, net Property and equipment consist of: As of December 31, 2022 2021 Computer software and hardware $ 1,121,455 $ 837,826 Furniture and fixtures 1,573,587 1,252,434 Leasehold improvements 259,146 237,086 Machinery and equipment 2,210,181 2,066,003 Tooling in-process 665,773 537,043 5,830,142 4,930,392 Accumulated depreciation (3,430,330) (2,861,016) Total $ 2,399,812 $ 2,069,376 Depreciation and amortization expense of property and equipment was $569,551 and $532,275 for the years ended December 31, 2022 and 2021, respectively. Property and equipment, net by geographic region is as follows: As of December 31, 2022 2021 United States $ 2,248,308 $ 1,855,012 International 151,504 214,364 Total property and equipment, net $ 2,399,812 $ 2,069,376 Long-lived assets held outside of the United States consist principally of tooling, which is a component of machinery and equipment, net. |
Intangible Assets, net
Intangible Assets, net | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, net | |
Intangible Assets, net | 5 — Intangible Assets, net The following table summarizes the components of intangible asset balances: As of December 31, 2022 2021 Patents — in use $ 321,873 $ 302,338 Patents — Fully Amortized 70,164 70,164 Patents — in process 123,153 111,593 Internally developed software — in use 872,218 872,218 Internally developed software — in process 1,489,322 468,441 Trademarks 27,697 27,697 2,904,427 1,852,451 Accumulated amortization (834,988) (733,867) Total $ 2,069,439 $ 1,118,584 Amortization expense of intangible assets was $101,122 and $101,735 for the two years ended December 31, 2022, and 2021, respectively. Expected annual amortization expense for the next five years related to intangible assets is as follows (excludes in-process intangible assets): 2023 $ 100,946 2024 $ 100,544 2025 $ 97,374 2026 $ 85,658 2027 $ 11,945 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments | |
Investments | 6 — Investments Our investments consist of bonds that we have classified as available-for-sale and are summarized in the following tables: As of December 31, 2022 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value U.S. corporations $ — $ — $ — $ — As of December 31, 2021 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value U.S. corporations $ 491,975 $ 9,880 $ — $ 501,855 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | 7 — Fair Value Measurements The fair value of our assets and liabilities subject to recurring fair value measurements are as follows: Fair Value at December 31, 2022 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. corporations $ — $ — $ — $ — Fair Value at December 31, 2021 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. corporations $ 501,855 $ — $ 501,855 $ — Our corporate bonds are valued by the third-party custodian at closing prices from national exchanges or pricing vendors on the valuation date. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 8 — Accumulated Other Comprehensive Income The only component of accumulated other comprehensive income related to unrealized gains and (losses) on our investments was as follows: Unrealized Gains (Losses) on Available-For-Sale Securities Balance at December 31, 2020 $ 37,087 Losses, net (6,027) Reclassification realized in net earnings (14,048) Balance at December 31, 2021 $ 17,012 Losses, net (10,953) Reclassification realized in net earnings (6,059) Balance at December 31, 2022 $ — |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | 9 — Stock-Based Compensation In April 2014, our Board of Directors adopted and our shareholders approved the 2014 Equity Incentive Plan (“2014 Plan”). Upon adoption and approval of the 2014 Plan, the previous equity incentive plan was terminated and the remaining shares available for future awards were canceled. The 2014 Plan initially reserved 1,000,000 shares of our common stock for awards of incentive stock options, non-qualified stock option, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based and cash awards. On June 12, 2020, the shareholders approved an amendment to the 2014 Plan, which reserved an additional 1,000,000 shares of our common stock for the various equity awards mentioned above. As of December 31, 2022, there were 1,030,987 shares available for future awards under the 2014 Plan. Stock-based compensation was recognized as follows in the Statements of Operations: For the Years Ended December 31, 2022 2021 Cost of revenue $ 195,574 $ 249,227 General and administrative 604,626 681,557 Sales and marketing 438,864 372,046 Research and development 155,042 156,543 Total stock-based compensation expense $ 1,394,106 $ 1,459,373 Stock Options The following table presents a summary of our stock option activity as of and for the year ended December 31, 2022: Weighted-Average Weighted-Average Remaining Aggregate Exercise Price Contractual Intrinsic Options Per Share Life (Yrs.) Value Outstanding beginning of period 39,576 $ 8.92 — $ — Options granted — — — — Options exercised (15,566) 9.42 — — Options cancelled — — — — Options expired — — — — Outstanding end of period 24,010 $ 8.59 1.87 $ 472,885 Exercisable 24,010 $ 8.59 1.87 $ 472,885 The total intrinsic value of options exercised during the year ended December 31, 2022 and 2021 was $598,967 and $7,104,183 respectively. No options were granted during the years ended December 31, 2022 and December 31, 2021. Restricted Stock Units The following table presents a summary of our restricted stock unit activity as of and for the year ended December 31, 2022: Restricted Weighted-Average Stock Grant Date Units Fair Value Unvested at December 31, 2021 131,182 $ 30.18 Granted 90,084 $ 29.85 Vested (40,758) $ 27.98 Cancelled/Forfeited (29,171) $ 30.23 Unvested at December 31, 2022 151,337 $ 30.57 As of December 31, 2022, we had $4,122,217 of unrecognized compensation cost related to the unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.8 years. Performance-Based Restricted Stock Units The following table presents a summary of our Performance-Based Restricted Stock Unit (“PSU”) activity as of and for the year ended December 31, 2022: Performance-Based Weighted-Average Restricted Grant Date Stock Units Fair Value Unvested at December 31, 2021 18,301 $ 43.31 Granted 18,819 $ 28.56 Vested — $ — Cancelled/Forfeited (9,236) $ 42.16 Unvested at December 31, 2022 27,884 $ 33.74 During the year ended December 31, 2022, the Company awarded 18,819 PSUs. The awards will vest three years from the award date based on the achievement of certain performance criteria approved by the Compensation Committee. During the year ended December 31, 2021, the Company awarded 8,956 PSUs. The awards will vest three years from the award date based on the achievement of certain performance criteria approved by the Compensation Committee. Based on the level of achievement of the performance criteria at the end of the three years for each of the PSUs awarded, the number of shares earned can range from 0 percent to 200 percent of the remaining shares outstanding; therefore, the maximum number of shares that can be issued under these awards is twice the original remaining outstanding awards of 27,884 PSUs, or 55,768 shares. Currently, for accounting purposes, we assume the full 55,768 are probable. For the year ended December 31, 2022, the Company recognized $12,249 in stock compensation expense related to the 18,819 PSUs granted in December 2022 compared to $11,775 in stock compensation expense for the same period recognized in 2021 related to the 8,956 PSUs granted in December 2021. The fair value of the December 2022 grants will be calculated using a Monte-Carlo simulation model with a three-year term and an applicable risk-free interest rate. The resulting difference in stock compensation expense is expected to be immaterial and will be recorded in the first quarter of 2023. For the year ended December 31, 2021, the grant date fair value of the PSUs was $57.69 per unit, which was calculated using a Monte-Carlo simulation model with an expected term of three years and a risk-free interest rate of 1.0%. The Monte-Carlo simulation incorporated the volatility and dividend yield for the Company and each member of the peer group individually. Peer group volatilities ranged from 38.4% to 94.0% and dividend yields ranged from 0.0% to 1.1%. The volatility and dividend yield used for the Company was 50.7% and 0.0%, respectively. As of December 31, 2022, we had $743,237 of unrecognized compensation cost related to the unvested PSUs, which is expected to be recognized over a weighted-average period of 2.59 years. |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income, Net | |
Other Income, Net | 10 — Other Income, Net Other income, net consists of: For the Years Ended December 31, 2022 2021 Interest income $ 581,852 $ 34,806 Realized gains on maturities of investments 8,025 18,593 Foreign currency exchange losses (36,773) (34,794) Total other income, net $ 553,104 $ 18,605 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | 11 — Income Taxes The components of the provision for income taxes are as follows: For the Years Ended December 31, 2022 2021 Current taxes: U.S. federal $ 2,936,394 $ — State 349,669 14,632 Foreign 1,789 1,439 Total current tax expense 3,287,852 16,071 Deferred taxes: U.S. federal (105,068) 399,512 State 169,478 95,233 Total deferred tax expense 64,410 494,745 Provision for income tax expense $ 3,352,262 $ 510,816 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the deferred tax assets and liabilities were as follows: As of December 31, 2022 2021 Deferred income tax assets (liabilities): Stock compensation $ 227,682 $ 208,149 Deferred revenue 533,600 570,156 Reserves and allowances 258,016 232,967 Research and development credits carryforward — 195,481 Net operating loss carryforward — 215,133 Depreciation and amortization (400,869) (496,981) Accrued expenses (16,565) (33,340) Other, net 99,005 (126,469) Total deferred income taxes, net $ 700,869 $ 765,096 At December 31, 2022 the Company expects to fully utilize their carryforward net operating losses for state tax purposes. Many states follow the A reconciliation of the statutory U.S. federal tax rate to our effective rate is as follows: For the Years Ended December 31, 2022 2021 Statutory U.S. federal tax rate 21.0 % 21.0 % CARES Act NOL carryback (0.1) (0.2) Incentive stock options — — Stock compensation expense and tax windfalls upon exercises and vesting (0.7) (15.2) State taxes, net of federal benefit 3.2 1.1 Permanent items 0.4 0.3 Provision to return adjustments (0.3) (0.8) Compensation limitations — — Foreign taxes — — Foreign derived intangible income (1.3) (0.2) Research and development credits (1.1) (0.8) Other (0.4) — Effective rate 20.7 % 5.2 % As of December 31, 2022 and December 31, 2021, we did not identify or accrue for any uncertain tax positions. We are currently not aware of any uncertain tax positions that could result in significant payments, accruals or other material deviations in this estimate over the next 12 months. The Company does not have any outstanding U.S. federal income tax or material state and local tax matters for years through 2022. There are no federal income tax returns currently under examination by the Internal Revenue Service. The Company remains subject to income tax examinations for our United States Federal and certain U.S. state income taxes for 2018 and subsequent years and various other U.S. state income taxes for 2017 and subsequent years. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized. Management has evaluated the need for a valuation allowance for deferred tax assets, considering the reversal of temporary differences, and believes it is more likely than not that the Company will realize the net deferred income tax assets as of December 31, 2022. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
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. For the year ended December 31, 2022 and 2021, the Company paid Susi, LLC $492,643 and $461,874 respectively related to this lease. 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. At the time we adopted ASU 2016-02, Leases (Topic 842), we concluded that we will exercise the remaining five-year option, resulting in a remaining lease term of 7.4 years as of December 31, 2022. This lease agreement does not contain any residual value guarantee Operating lease cost recognized in the Statements of Operations is as follows: For the Years Ended December 31, 2022 2021 Cost of revenue $ 223,880 $ 209,897 General and administrative 263,346 213,383 Sales and marketing 12,529 11,747 Research and development 34,713 32,545 Total $ 534,468 $ 467,572 Lease costs for short-term leases were immaterial for the years ended December 31, 2022 and 2021. Maturity of Operating lease liability as of December 31, 2022, is as follows: 2023 $ 415,294 2024 415,294 2025 415,294 2026 409,596 2027 409,596 Thereafter 989,856 Total lease payments 3,054,930 Imputed interest (441,230) Present value of lease liability $ 2,613,700 We used a discount rate of 6.0% to determine the present value of the operating lease liability on January 1, 2019. We will reassess the lease accounting terms and assumptions once the details regarding completion of new manufacturing facility and planned departure of the current facility is finalized. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plan | |
Employee Benefit Plan | 13 — Employee Benefit Plan We sponsor a 401(k) tax-deferred savings plan under which eligible employees may elect to have a portion of their salary deferred and contributed to the plan. Employer matching contributions are determined by management and are discretionary. Employer matching contributions were $479,155 and $434,904, respectively, for the years ended December 31, 2022, and 2021. Employer contributions vest immediately. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 14 — Commitments and Contingencies Purchase commitments. Indemnifications. In addition, in the normal course of business, we enter into contracts that contain indemnification clauses whereby the Company indemnifies our customers against damages associated with product failures. We have determined that these agreements fall within the scope of ASC 460, Guarantees Legal matters. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2022 | |
Capital Stock | |
Capital Stock | 15 — Capital Stock The rights and privileges of our Series A Preferred Stock and Common Stock are as follows: Series A Preferred Stock We are authorized to issue 3,500,000 shares of preferred stock, of which 800,000 of these shares shall be designated as Series A Preferred Stock (“Preferred Stock”) with a par value of $0.0001 per share. As of December 31, 2022, there was no preferred stock issued or outstanding Voting and Dividends. Liquidation. Conversion. Redemption. Common Stock We are authorized to issue 31,500,000 shares of Common Stock with a par value of $0.0001 per share. Voting and Dividends. Liquidation. Redemption. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Event | |
Subsequent Event | 16 — Subsequent Events On February 2, 2023, the Board of Directors declared a special cash dividend of $1.05 per share on the Company’s common stock. On February 21, 2023, we paid $13,222,907 to shareholders of record at the close of business on February 17, 2023. On February 2, 2023, the Company entered into a reinstatement and amendment to the previously announced sale and purchase agreement with O Property, Ltd., a Florida limited partnership dated as of November 1, 2022, pursuant to which the parties agreed to consummate a sale of real property located in Orange County, Florida. Pursuant to the terms of the Reinstatement, the parties consummated the sale of approximately 26.518 acres of land to the Company for a purchase price of $6,200,000. The property was acquired as a site for future office space development to accommodate our increased operations and anticipated growth. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization and Significant Accounting Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities in the financial statements and the reported amount of revenue and expenses during the reporting period. Such estimates include allowances for potentially uncollectible accounts receivable, valuation of inventory, intangible assets, stock-based compensation, deferred income taxes, reserves for warranty obligations, and the provision for income taxes. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition We generate revenue from the sale of MRI compatible medical devices and accessories, extended warranty agreements, services related to maintaining our products and the sale of disposable products used with our devices. The principal customers for our MRI compatible products include hospitals and acute care facilities, both in the U.S. and internationally. In the U.S. we sell our products through our direct sales force and outside of the U.S. we sell our products through third-party distributors who resell our products to end users. For many domestic sales, we enter into agreements with integrated delivery health systems and healthcare supply contracting companies, commonly referred to as Group Purchasing Organizations (“GPOs”). GPO agreements enable us to sell and distribute our products to their member hospitals. Our agreements with GPOs typically include negotiated pricing for all group members established at the time of GPO contract execution. Under these agreements, we are required to pay the GPOs a fee of three percent of the sales of our products to members of the GPO. We do not sell to GPOs. Hospitals, group practices and other acute care facilities that are members of a GPO, purchase products directly from us under the terms of our GPO agreements. We recognize revenue when all of the following criteria are met: we have a contract with a customer that creates enforceable rights and obligations; promised products or services are identified; the transaction price, or the amount we expect to receive, is determinable and we have transferred control of the promised products or services to the customer. We consider transfer of control evidenced upon the passage of title and risks and rewards of ownership to the customer, which is typically at a point in time, except for our extended warranty agreements. We allocate the transaction price using the relative standalone selling price method. Customer sale prices for our medical devices and related disposables and services are contractually fixed over the contract term. We recognize a receivable at the point in time we have an unconditional right to payment. Payment terms are typically within 45 days after transferring control to U.S. customers. Most international distributors are required to pay a portion of the transaction price in advance and the remaining amount within 30 days of receiving the related products. Accordingly, we have elected to use the practical expedient that allows us to ignore the possible existence of a significant financing component within the contract. We have elected to account for shipping and handling charges billed to customers as revenue and shipping and handling related expenses as cost of revenue. In certain U.S. states we are required to collect sales taxes from our customers. We have elected to exclude the amounts collected for these taxes from revenue and record them as a liability until remitted to the taxing authority. Contract Liabilities We record contract liabilities, or deferred revenue, when we have an obligation to provide a product or service to the customer and payment is received in advance of our performance. When we sell a product or service with a future performance obligation, we defer revenue allocated to the unfulfilled performance obligation and recognize this revenue when, or as, the performance obligation is satisfied. Our deferred revenue consists of advance payments received from customers prior to the transfer of products or services, shipments that are in-transit at the end of a period and sales of extended warranty agreements. Advance payments received from customers and shipments in-transit are recognized in revenue at the time control of the related products has been transferred to the customer or services have been delivered. Amounts related to extended warranty agreements are deferred and recognized in revenue ratably over the agreement period, which is typically one Deferred revenue is classified as current or long-term deferred revenue in our Balance Sheets, depending on the expected timing of satisfying the related performance obligations. Capitalized Contract Costs We capitalize commissions paid to our sales managers related to contracts with customers when the associated revenue is expected to be earned over a period of time. Deferred commissions are primarily related to the sale of extended warranty agreements. Capitalized commissions are included in Prepaid Expenses and Other Current Assets in our Balance Sheets when the associated expense is expected to be recognized in one year or less, or in Other Assets when the associated expense is expected to be recognized in greater than one year. The associated expense is included in Sales and Marketing expenses in our Statements of Operations. Variable Consideration Our sales are typically subject to 30 to 60-day customer-specified acceptance provisions primarily for purposes of ensuring products were not damaged during the shipping process. Historically, we have experienced immaterial product returns and, when experienced, we typically exchange the affected products with new products. Accordingly, variable consideration from contracts with customers is immaterial to our financial statements. |
Cash Equivalents | Cash Equivalents All highly liquid instruments purchased with an original maturity of three months or less are classified as cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable is recorded at the transaction price of the related products and services. We regularly assess the sufficiency of the allowance for estimated uncollectible accounts receivable. Estimates are based on historical collection experience and other customer-specific information, such as bankruptcy filings or known liquidity problems of our customers. When it is determined that an account receivable is uncollectible, it is written off and relieved from the allowance. Any future determination that the allowance for estimated uncollectible accounts receivable is not properly stated could result in changes in operating expense and results of operations. As of December 31, 2022 and 2021, our allowance for doubtful accounts was $160,498 and $60,361, respectively. |
Investments | Investments Our investments consisted of corporate debt securities and are considered available-for-sale. The specific identification method is used to determine the cost basis of investments sold. Our investments are recorded in our Balance Sheets at fair value. We classified our investments as current based on the nature of the investments and their availability for use in current operations. Unrealized gains and losses on our investments are included in accumulated other comprehensive income (loss), net of tax. Realized gains or losses and impairment losses that are determined to be other-than-temporary are recorded in other income, net in our Statements of Operations. We currently do not own any corporate bonds but should direct debt securities be utilized in the future, we would treat them as described above. |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. A three-level valuation hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels of inputs are: ● Level 1 — quoted prices (unadjusted) in active markets for an identical asset or liability. ● Level 2 — quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. ● Level 3 — unobservable and significant to the fair value measurement of the asset or liability. Financial instruments include cash and cash equivalents, investments, accounts receivable, accounts payable and accrued expenses. Cash and cash equivalents and investments are reported at their respective fair values on the balance sheet dates. The recorded carrying amount of accounts receivable, accounts payable and accrued expenses approximates their fair values due to their short-term nature. |
Inventory | Inventory Inventory is stated at the lower of standard cost, which approximates actual cost on a first-in, first-out basis, or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. We may be exposed to a number of factors that could result in portions of our inventory becoming either obsolete or in excess of anticipated usage. These factors include, but are not limited to, technological changes, competitive pressures in products and prices, and the introduction of new product lines. We regularly evaluate our ability to realize the value of inventory based on a combination of factors, including historical usage rates, forecasted sales, product life cycles, and market acceptance of new products. When inventory that is obsolete or in excess of anticipated usage is identified, it is written down to net realizable value or an inventory valuation allowance is established. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over estimated useful lives of the respective assets, which are generally three five machinery equipment Repair and maintenance costs that do not extend the useful life of our property and equipment are expensed as incurred. |
Intangible Assets | Intangible Assets Intangible assets include application and legal costs incurred to obtain patents. We capitalize these costs when we determine that probable future economic benefits exist. In making this determination, we consider the projected future operating results associated with the patents, industry and economic trends, and the entry of new products in the market. Costs incurred prior to this determination are expensed in the period they are incurred. We amortize capitalized patent costs using the straight-line method over their useful lives, which is typically 20 years. Periodic costs incurred to maintain existing patents are expensed as incurred. |
Research & Development and Capitalized Software Development Costs | Research & Development and Capitalized Software Development Costs Research and development costs are expensed as incurred. Some of our products include embedded software which is essential to the products’ functionality. Costs incurred in the research and development of new software components and enhancements to existing software components are expensed as incurred until technological feasibility has been established. We capitalize software development costs when the project reaches technological feasibility and cease capitalization when the project is ready for release. Capitalized software development costs are included in intangible assets and are amortized on a straight-line basis over the estimated useful life of the product and included in cost of revenue. Amortization begins when the product is available for general release to the customer. |
Long-lived Assets | Long-lived Assets Long-lived assets, including right-of-use assets, are tested for impairment whenever changes in circumstances indicate the carrying value of these assets may be impaired. Impairment indicators include, but are not limited to, technological obsolescence, unfavorable court rulings, significant negative industry and economic trends, and significant underperformance relative to historical and projected future operating results. Impairment is considered to have occurred when the estimated undiscounted future cash flows related to the asset groups are less than its carrying value. Estimates of future cash flows involve consideration of many factors including the marketability of new products, product acceptance and lifecycle, competition, appropriate discount rates and operating margins. An impairment is recognized as the amount by which the carrying value is greater than the fair value of the asset or asset group. |
Warranty | Warranty The Company provides for the estimated cost of product warranties at the time revenue is recognized. While we engage in product quality programs and processes, including actively monitoring and evaluating the quality of our suppliers, the estimated warranty obligation is affected by ongoing product failure rates, material usage costs and direct labor incurred in correcting a product failure. Actual product failure rates, material usage costs and the amount of labor required to repair products that differ from estimates result in revisions to the estimated liability. We warrant for a limited period of time that our products will be free from defects in materials and workmanship. We estimate warranty allowances based on historical warranty experience. The estimates we use in projecting future product warranty costs may prove to be incorrect. Any future determination that our provision for product warranty is understated could result in increases to our cost of revenue and a reduction in our operating profits and results of operations. Historically, warranty expenses have not been material to our financial statements. |
Stock-Based Compensation | Stock-Based Compensation Historically, we have granted three types of employee equity awards, stock options, restricted stock units and performance-based restricted stock units. We recognize stock-based compensation expense associated with employee equity awards on a straight-line basis over the requisite service period for stock options and restricted stock units, which is generally four years for employees and two years for the board of directors. Expense related to our performance-based restricted stock units is recognized straight-line over the requisite performance period, which is three years. The grant date fair value of our restricted stock units is based on the closing price of our common stock on the date of grant. In December 2022 and 2021, the Company granted Performance-Based Restricted Stock Units (“PSUs”) to certain employees under the Company’s Long-Term Incentive Pan (“LTIP”), which was adopted under the Company’s Amended and Restated 2014 Equity Incentive Plan. Payouts of the PSUs will be based on the Company’s total shareholder return compared to a peer group or index total shareholder return. For purposes of the LTIP, total shareholder return is calculated as the share price at the end of the performance period, which is three years, including the reinvestment of any dividends during the performance period, as compared to the share price at the beginning of the performance period. The payout range for participants will be between 0 percent and 200 percent, depending on the Company’s performance. The grant date fair value of our PSUs is based on a Monte Carlo simulation, the closing price of our common stock, and other pertinent factors on the grant date. Compensation expense for the PSUs is recognized on a straight-line basis over the requisite performance period, which is three years from the grant date. We elect to recognize forfeitures as they occur. We issue new shares of common stock upon exercise of stock options or vesting of restricted stock units and PSUs. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. A valuation allowance is recorded to offset net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We recognize the tax benefit of uncertain tax positions in the financial statements based on the technical merits of the position. When the tax position is deemed more likely than not of being sustained, we recognize the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. |
Foreign Currency | Foreign Currency Gains and losses from transactions denominated in currencies other than our functional currency are included in other income, net. Foreign currency gains and losses result primarily from fluctuations in the exchange rate between the U.S. Dollar and the Japanese Yen. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net income and other comprehensive income items that are excluded from net income under U.S. GAAP. Comprehensive income included unrealized gains and losses on our investments classified as available for sale while those investments were held. |
Basic and Diluted Net Income per Share | Basic and Diluted Net Income per Share Basic net income per share is based on 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 stock options, restricted stock units, and performance-based 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: For the Years Ended December 31, 2022 2021 Net income $ 12,828,487 $ 9,325,471 Weighted-average shares outstanding — Basic 12,562,856 12,346,173 Effect of dilutive securities: Stock options 20,106 172,792 Restricted stock units 43,037 59,996 Performance-based restricted stock units 9,972 11,892 Weighted-average shares outstanding — Diluted 12,635,971 12,590,853 Basic net income per share $ 1.02 $ 0.76 Diluted net income per share $ 1.02 $ 0.74 Stock options 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: As of December 31, 2022 2021 Anti-dilutive stock options and restricted stock units 22,744 4,597 |
Certain Significant Risks and Uncertainties | Certain Significant Risks and Uncertainties We market our products to end users in the United States and to third-party 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. We have deposited our cash and cash equivalents with various financial institutions. Our cash and cash equivalents balances exceed federally insured limits periodically throughout the year. We have not incurred any losses related to these balances. Our medical devices require clearance from the Food and Drug Administration and international regulatory agencies prior to commercialized sales. Our future products may not receive required approvals. If we were denied such approvals, or if such approvals were revoked or delayed or if we were unable to timely renew certain approvals for existing products, it would have a materially adverse impact on our business, results of operations and financial condition. Certain key components of our products essential to their functionality are sole-sourced. Any disruption in the availability of these components would have a materially adverse impact on our business, results of operations and financial condition. Pandemic Considerations We continue to monitor developments associated with the recent evolving pandemic and its effects on our employees, customers, supply chain and distribution channels. The ongoing impact of the recent and potential future pandemics depends on several factors including the severity and duration of the pandemic and the extent and severity of the impact on our customers, which is uncertain and unpredictable. Our future results of operations and cash flows may suffer adverse effects from disruptions in our supply chain and manufacturing operations, delays in payments on outstanding accounts receivable, uncertain demand for our products, and effects of any actions we may take to address financial and operational challenges our customers may face. Our future results may potentially be heavily determined by global vaccination rates, duration of the pandemic, its geographic spread, further business disruptions and the overall impact on the global economy. We are actively managing our response to the recent pandemic and continue to work with our customers, distributors, vendors, and suppliers and assessing the potential effects to our financial position, results of operations and cash flows. As of the date of the issuance of these financial statements, the extent to which a pandemic, may materially impact our financial condition, liquidity, or results of operations in future periods remains uncertain. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Implemented in 2022 Beginning in 2022, the Tax Cuts and Jobs Act of 2017 (“TCJA”) eliminated the option to deduct research and experimental expenditures in the current year and requires taxpayers to amortize them over five years pursuant to IRC Section 174. This change is applied from 2022 onward prospectively and impacts the timing of the related cash tax payments as the deductions are disallowed for tax in the year incurred but allowed for tax purposes to be amortized and deducted over . The mandatory capitalization requirement increases our deferred tax assets and cash tax liabilities by approximately $ million . In the future, Congress may consider legislation that would defer the amortization requirement to later years, possibly with a retroactive effect. In the meantime, we expect to continue to make additional Federal tax payments based on current Section 174 tax law. The impact on Section 174 on our cash from operations depends on the amount of research and experimental expenditures incurred by the company and whether the IRS issues guidance on the provision which differs from current interpretation, among other things. Recently Issued Accounting Pronouncements to be Implemented 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 |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization and Significant Accounting Policies | |
Schedule of computation of basic and diluted net income per share | For the Years Ended December 31, 2022 2021 Net income $ 12,828,487 $ 9,325,471 Weighted-average shares outstanding — Basic 12,562,856 12,346,173 Effect of dilutive securities: Stock options 20,106 172,792 Restricted stock units 43,037 59,996 Performance-based restricted stock units 9,972 11,892 Weighted-average shares outstanding — Diluted 12,635,971 12,590,853 Basic net income per share $ 1.02 $ 0.76 Diluted net income per share $ 1.02 $ 0.74 |
Schedule of stock options and warrants to purchase shares of common stock and restricted stock units excluded from the calculation of diluted net income per share | As of December 31, 2022 2021 Anti-dilutive stock options and restricted stock units 22,744 4,597 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue | |
Schedule of disaggregation of revenue by geographic region and revenue type | For the Years Ended December 31, 2022 2021 United States $ 43,898,735 $ 33,462,659 International 9,404,410 8,351,922 Total revenue $ 53,303,145 $ 41,814,581 For the Years Ended December 31, 2022 2021 Devices: MRI compatible IV infusion pump system $ 14,526,017 $ 13,289,064 MRI compatible patient vital signs monitoring systems 21,721,720 13,781,098 Ferro Magnetic Detection Systems 257,112 — Total Devices revenue 36,504,849 27,070,162 Disposables, service and other 14,622,327 12,797,605 Amortization of extended warranty agreements 2,175,969 1,946,814 Total revenue $ 53,303,145 $ 41,814,581 |
Schedule of contract liabilities and changes in the contract liabilities | As of December 31, 2022 2021 Advance payments from customers $ 896,617 $ 551,267 Shipments in-transit 14,696 70,295 Extended warranty agreements 3,837,006 3,610,877 Total $ 4,748,319 $ 4,232,439 Deferred Revenue Contract liabilities, December 31, 2020 $ 4,254,672 Increases due to cash received from customers 4,421,712 Decreases due to recognition of revenue (4,443,945) Contract liabilities, December 31, 2021 $ 4,232,439 Increases due to cash received from customers 5,094,184 Decreases due to recognition of revenue (4,578,304) Contract liabilities, December 31, 2022 $ 4,748,319 |
Inventory, net (Tables)
Inventory, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory, net. | |
Schedule of inventory | As of December 31, 2022 2021 Raw materials $ 4,827,113 $ 3,777,846 Work in process 369,761 191,722 Finished goods 411,647 513,782 Inventory before allowance for excess and obsolete 5,608,521 4,483,350 Allowance for excess and obsolete (239,288) (183,551) Total $ 5,369,233 $ 4,299,799 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, net | |
Schedule of property and equipment | As of December 31, 2022 2021 Computer software and hardware $ 1,121,455 $ 837,826 Furniture and fixtures 1,573,587 1,252,434 Leasehold improvements 259,146 237,086 Machinery and equipment 2,210,181 2,066,003 Tooling in-process 665,773 537,043 5,830,142 4,930,392 Accumulated depreciation (3,430,330) (2,861,016) Total $ 2,399,812 $ 2,069,376 |
Schedule of property and equipment, net, information by geographic region | As of December 31, 2022 2021 United States $ 2,248,308 $ 1,855,012 International 151,504 214,364 Total property and equipment, net $ 2,399,812 $ 2,069,376 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, net | |
Summary of the components of intangible asset balances | As of December 31, 2022 2021 Patents — in use $ 321,873 $ 302,338 Patents — Fully Amortized 70,164 70,164 Patents — in process 123,153 111,593 Internally developed software — in use 872,218 872,218 Internally developed software — in process 1,489,322 468,441 Trademarks 27,697 27,697 2,904,427 1,852,451 Accumulated amortization (834,988) (733,867) Total $ 2,069,439 $ 1,118,584 |
Schedule of expected annual amortization expense related to intangible assets (excludes in process intangible assets) | 2023 $ 100,946 2024 $ 100,544 2025 $ 97,374 2026 $ 85,658 2027 $ 11,945 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments | |
Summary of available-for-sale securities | As of December 31, 2022 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value U.S. corporations $ — $ — $ — $ — As of December 31, 2021 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value U.S. corporations $ 491,975 $ 9,880 $ — $ 501,855 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements | |
Schedule of the fair value of assets and liabilities subject to recurring fair value measurements | Fair Value at December 31, 2022 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. corporations $ — $ — $ — $ — Fair Value at December 31, 2021 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. corporations $ 501,855 $ — $ 501,855 $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income | |
Schedule of component of accumulated other comprehensive income related to unrealized gains and (losses) | The only component of accumulated other comprehensive income related to unrealized gains and (losses) on our investments was as follows: Unrealized Gains (Losses) on Available-For-Sale Securities Balance at December 31, 2020 $ 37,087 Losses, net (6,027) Reclassification realized in net earnings (14,048) Balance at December 31, 2021 $ 17,012 Losses, net (10,953) Reclassification realized in net earnings (6,059) Balance at December 31, 2022 $ — |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation | |
Schedule of stock-based compensation | For the Years Ended December 31, 2022 2021 Cost of revenue $ 195,574 $ 249,227 General and administrative 604,626 681,557 Sales and marketing 438,864 372,046 Research and development 155,042 156,543 Total stock-based compensation expense $ 1,394,106 $ 1,459,373 |
Summary of stock option activity | Weighted-Average Weighted-Average Remaining Aggregate Exercise Price Contractual Intrinsic Options Per Share Life (Yrs.) Value Outstanding beginning of period 39,576 $ 8.92 — $ — Options granted — — — — Options exercised (15,566) 9.42 — — Options cancelled — — — — Options expired — — — — Outstanding end of period 24,010 $ 8.59 1.87 $ 472,885 Exercisable 24,010 $ 8.59 1.87 $ 472,885 |
Summary of restricted stock unit activity | Restricted Weighted-Average Stock Grant Date Units Fair Value Unvested at December 31, 2021 131,182 $ 30.18 Granted 90,084 $ 29.85 Vested (40,758) $ 27.98 Cancelled/Forfeited (29,171) $ 30.23 Unvested at December 31, 2022 151,337 $ 30.57 |
Performance-Based Restricted Stock Units ("PSUs") | |
Stock-Based Compensation | |
Schedule of stock-based compensation activity | Performance-Based Weighted-Average Restricted Grant Date Stock Units Fair Value Unvested at December 31, 2021 18,301 $ 43.31 Granted 18,819 $ 28.56 Vested — $ — Cancelled/Forfeited (9,236) $ 42.16 Unvested at December 31, 2022 27,884 $ 33.74 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income, Net | |
Schedule of components of other income, net | For the Years Ended December 31, 2022 2021 Interest income $ 581,852 $ 34,806 Realized gains on maturities of investments 8,025 18,593 Foreign currency exchange losses (36,773) (34,794) Total other income, net $ 553,104 $ 18,605 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Schedule of components of the provision for income taxes | For the Years Ended December 31, 2022 2021 Current taxes: U.S. federal $ 2,936,394 $ — State 349,669 14,632 Foreign 1,789 1,439 Total current tax expense 3,287,852 16,071 Deferred taxes: U.S. federal (105,068) 399,512 State 169,478 95,233 Total deferred tax expense 64,410 494,745 Provision for income tax expense $ 3,352,262 $ 510,816 |
Schedule of significant components of the deferred tax assets and liabilities | As of December 31, 2022 2021 Deferred income tax assets (liabilities): Stock compensation $ 227,682 $ 208,149 Deferred revenue 533,600 570,156 Reserves and allowances 258,016 232,967 Research and development credits carryforward — 195,481 Net operating loss carryforward — 215,133 Depreciation and amortization (400,869) (496,981) Accrued expenses (16,565) (33,340) Other, net 99,005 (126,469) Total deferred income taxes, net $ 700,869 $ 765,096 |
Schedule of reconciliation of statutory U.S. federal tax rate to effective rate | For the Years Ended December 31, 2022 2021 Statutory U.S. federal tax rate 21.0 % 21.0 % CARES Act NOL carryback (0.1) (0.2) Incentive stock options — — Stock compensation expense and tax windfalls upon exercises and vesting (0.7) (15.2) State taxes, net of federal benefit 3.2 1.1 Permanent items 0.4 0.3 Provision to return adjustments (0.3) (0.8) Compensation limitations — — Foreign taxes — — Foreign derived intangible income (1.3) (0.2) Research and development credits (1.1) (0.8) Other (0.4) — Effective rate 20.7 % 5.2 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of operating lease cost | For the Years Ended December 31, 2022 2021 Cost of revenue $ 223,880 $ 209,897 General and administrative 263,346 213,383 Sales and marketing 12,529 11,747 Research and development 34,713 32,545 Total $ 534,468 $ 467,572 |
Schedule of maturity of operating lease liability | Maturity of Operating lease liability as of December 31, 2022, is as follows: 2023 $ 415,294 2024 415,294 2025 415,294 2026 409,596 2027 409,596 Thereafter 989,856 Total lease payments 3,054,930 Imputed interest (441,230) Present value of lease liability $ 2,613,700 |
Organization and Significant _4
Organization and Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition | ||
GPOs fee as a percentage of sales of our products to members of GPO | 3% | |
Accounts Receivable and Allowance for Doubtful Accounts | ||
Accounts receivable, net of allowance for doubtful accounts | $ 160,498 | $ 60,361 |
Recent Accounting Pronouncements | ||
Deduction term for related cash tax payments | 5 years | |
Increase in deferred tax assets, mandatory capitalization requirement | $ 500,000 | |
Increase in cash tax liabilities, mandatory capitalization requirement | $ 500,000 | |
Employees | ||
Stock Based Compensation | ||
Requisite service period for recognizing stock based compensation expenses associated with employee stock options | 4 years | |
Board of directors | ||
Stock Based Compensation | ||
Requisite service period for recognizing stock based compensation expenses associated with employee stock options | 2 years | |
Patent | ||
Intangible Assets | ||
Estimated useful lives of intangible assets | 20 years | |
United States | ||
Revenue Recognition | ||
Payment term to U.S. customers | 45 days | |
International | ||
Revenue Recognition | ||
Payment term of remaining amount to international distributors | 30 days | |
Minimum | ||
Revenue Recognition | ||
Extended warranty agreement period | 1 year | |
Term of customer-specified acceptance provisions | 30 days | |
Minimum | Restricted stock units | ||
Stock Based Compensation | ||
Payout percentage for participants. | 0% | |
Minimum | Computer software and hardware | ||
Property and Equipment, net | ||
Estimated useful lives of assets | 3 years | |
Minimum | Furniture and fixtures | ||
Property and Equipment, net | ||
Estimated useful lives of assets | 5 years | |
Minimum | Machinery and equipment | ||
Property and Equipment, net | ||
Estimated useful lives of assets | 5 years | |
Maximum | ||
Revenue Recognition | ||
Extended warranty agreement period | 4 years | |
Term of customer-specified acceptance provisions | 60 days | |
Maximum | Restricted stock units | ||
Stock Based Compensation | ||
Payout percentage for participants. | 200% | |
Maximum | Computer software and hardware | ||
Property and Equipment, net | ||
Estimated useful lives of assets | 5 years | |
Maximum | Furniture and fixtures | ||
Property and Equipment, net | ||
Estimated useful lives of assets | 7 years | |
Maximum | Machinery and equipment | ||
Property and Equipment, net | ||
Estimated useful lives of assets | 7 years |
Organization and Significant _5
Organization and Significant Accounting Policies - Basic and diluted net income per share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Basic and Diluted Net Income Per Share | ||
Net income | $ 12,828,487 | $ 9,325,471 |
Weighted-average shares outstanding - Basic | 12,562,856 | 12,346,173 |
Effect of dilutive securities: | ||
Stock options | 20,106 | 172,792 |
Restricted stock units | 43,037 | 59,996 |
Performance-based restricted stock units | 9,972 | 11,892 |
Weighted-average shares outstanding - Diluted (in shares) | 12,635,971 | 12,590,853 |
Basic net income per share (in dollars per share) | $ 1.02 | $ 0.76 |
Diluted net income per share (in dollars per share) | $ 1.02 | $ 0.74 |
Anti-dilutive stock | ||
Anti-dilutive stock options and restricted stock units | 22,744 | 4,597 |
Revenue - Information by geogra
Revenue - Information by geographic region (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contract Liabilities | ||
Total revenue | $ 53,303,145 | $ 41,814,581 |
United States | ||
Contract Liabilities | ||
Total revenue | 43,898,735 | 33,462,659 |
International | ||
Contract Liabilities | ||
Total revenue | $ 9,404,410 | $ 8,351,922 |
Revenue - Information by type (
Revenue - Information by type (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue | ||
Total Devices revenue | $ 36,504,849 | $ 27,070,162 |
Disposables, service and other | 14,622,327 | 12,797,605 |
Amortization of extended warranty agreements | 2,175,969 | 1,946,814 |
Total revenue | 53,303,145 | 41,814,581 |
MRI compatible IV infusion pump system | ||
Disaggregation of Revenue | ||
Total Devices revenue | 14,526,017 | 13,289,064 |
MRI compatible patient vital signs monitoring systems | ||
Disaggregation of Revenue | ||
Total Devices revenue | 21,721,720 | $ 13,781,098 |
Ferro Magnetic Detection Systems | ||
Disaggregation of Revenue | ||
Total Devices revenue | $ 257,112 |
Revenue - Contract liabilities
Revenue - Contract liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Revenue | ||
Advance payments from customers | $ 896,617 | $ 551,267 |
Shipments in-transit | 14,696 | 70,295 |
Extended warranty agreements | 3,837,006 | 3,610,877 |
Total | 4,748,319 | 4,232,439 |
Changes in contract liabilities | ||
Contract liabilities, beginning balance | 4,232,439 | 4,254,672 |
Increases due to cash received from customers | 5,094,184 | 4,421,712 |
Decreases due to recognition of revenue | (4,578,304) | (4,443,945) |
Contract liabilities, ending balance | $ 4,748,319 | $ 4,232,439 |
Revenue - Capitalized contract
Revenue - Capitalized contract costs (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue | ||
Capitalized contract costs | $ 340,044 | $ 357,810 |
Inventory, net (Details)
Inventory, net (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory, net. | ||
Raw materials | $ 4,827,113 | $ 3,777,846 |
Work in process | 369,761 | 191,722 |
Finished goods | 411,647 | 513,782 |
Inventory before allowance for excess and obsolete | 5,608,521 | 4,483,350 |
Allowance for excess and obsolete | (239,288) | (183,551) |
Total | $ 5,369,233 | $ 4,299,799 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment, net | ||
Property and equipment, gross | $ 5,830,142 | $ 4,930,392 |
Accumulated depreciation | (3,430,330) | (2,861,016) |
Total | 2,399,812 | 2,069,376 |
Depreciation and amortization expense of property and equipment | 569,551 | 532,275 |
Computer software and hardware | ||
Property and equipment, net | ||
Property and equipment, gross | 1,121,455 | 837,826 |
Furniture and fixtures | ||
Property and equipment, net | ||
Property and equipment, gross | 1,573,587 | 1,252,434 |
Leasehold improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 259,146 | 237,086 |
Machinery and equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 2,210,181 | 2,066,003 |
Tooling in-process | ||
Property and equipment, net | ||
Property and equipment, gross | $ 665,773 | $ 537,043 |
Property and Equipment, net - g
Property and Equipment, net - geographic region (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property and equipment, net | ||
Total property and equipment, net | $ 2,399,812 | $ 2,069,376 |
United States | ||
Property and equipment, net | ||
Total property and equipment, net | 2,248,308 | 1,855,012 |
International | ||
Property and equipment, net | ||
Total property and equipment, net | $ 151,504 | $ 214,364 |
Intangible Assets, net (Details
Intangible Assets, net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets, net | ||
Intangible Assets, gross | $ 2,904,427 | $ 1,852,451 |
Accumulated amortization | (834,988) | (733,867) |
Total | 2,069,439 | 1,118,584 |
Amortization expense of intangible assets | 101,122 | 101,735 |
Expected annual amortization expense | ||
2023 | 100,946 | |
2024 | 100,544 | |
2025 | 97,374 | |
2026 | 85,658 | |
2027 | 11,945 | |
Patents - in use | ||
Intangible Assets, net | ||
Intangible Assets, gross | 321,873 | 302,338 |
Patents - Fully Amortized | ||
Intangible Assets, net | ||
Intangible Assets, gross | 70,164 | 70,164 |
Patents - in process | ||
Intangible Assets, net | ||
Intangible Assets, gross | 123,153 | 111,593 |
Internally developed software - in use | ||
Intangible Assets, net | ||
Intangible Assets, gross | 872,218 | 872,218 |
Internally developed software - in process | ||
Intangible Assets, net | ||
Intangible Assets, gross | 1,489,322 | 468,441 |
Trademarks | ||
Intangible Assets, net | ||
Intangible Assets, gross | $ 27,697 | $ 27,697 |
Investments (Details)
Investments (Details) - U.S. corporations | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Investments | |
Cost | $ 491,975 |
Gross Unrealized Gains | 9,880 |
Fair Value | $ 501,855 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - U.S. corporations | Dec. 31, 2021 USD ($) |
Fair Value Measurements | |
Total | $ 501,855 |
Significant Other Observable Inputs (Level 2) | |
Fair Value Measurements | |
Total | $ 501,855 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Component of accumulated other comprehensive income related to unrealized gains and (losses) | ||
Balance at the beginning | $ 17,012 | $ 37,087 |
Gains (Losses), net | (10,953) | (6,027) |
Reclassification realized in net earnings | $ (6,059) | (14,048) |
Balance at the end | $ 17,012 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - Equity Incentive Plan 2014 - shares | Jun. 12, 2020 | Dec. 31, 2022 | Apr. 30, 2014 |
Stock-Based Compensation | |||
Common shares authorized for issuance | 1,000,000 | ||
Additional common stock shares reserved | 1,000,000 | ||
Shares available for future awards | 1,030,987 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation | ||
Total stock-based compensation expense | $ 1,394,106 | $ 1,459,373 |
Cost of revenue | ||
Stock-Based Compensation | ||
Total stock-based compensation expense | 195,574 | 249,227 |
General and administrative | ||
Stock-Based Compensation | ||
Total stock-based compensation expense | 604,626 | 681,557 |
Sales and marketing | ||
Stock-Based Compensation | ||
Total stock-based compensation expense | 438,864 | 372,046 |
Research and development | ||
Stock-Based Compensation | ||
Total stock-based compensation expense | $ 155,042 | $ 156,543 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options and Restricted Stock Units Activity (Details) - Stock Options - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Options | |||
Outstanding beginning of period (in shares) | 39,576 | ||
Options granted (in shares) | 0 | 0 | |
Options exercised (in shares) | (15,566) | ||
Outstanding end of period (in shares) | 24,010 | 39,576 | |
Exercisable (in shares) | 24,010 | ||
Weighted-Average Exercise Price Per Share | |||
Outstanding beginning of period (in dollars per share) | $ 8.92 | ||
Options exercised (in dollars per share) | 9.42 | ||
Outstanding end of period (in dollars per share) | 8.59 | $ 8.92 | |
Exercisable (in dollars per share) | $ 8.59 | ||
Weighted-Average Remaining Contractual Life (Yrs.) | |||
Weighted-Average Remaining Contractual Life, Beginning Outstanding (in years) | 1 year 10 months 13 days | 0 years | |
Weighted-Average Remaining Contractual Life, Ending Outstanding (in years) | 1 year 10 months 13 days | 0 years | |
Weighted-Average Remaining Contractual Life, Exercisable (in years) | 1 year 10 months 13 days | ||
Aggregate Intrinsic Value | |||
Outstanding end of period (in dollars) | $ 472,885 | ||
Exercisable (in dollars) | 472,885 | ||
Total intrinsic value of options exercised | $ 598,967 | $ 7,104,183 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - RSU | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Restricted Stock Units | |
Unvested outstanding beginning of period (in shares) | shares | 131,182 |
Granted (in shares) | shares | 90,084 |
Vested (in shares) | shares | (40,758) |
Cancelled/Forfeited (in shares) | shares | (29,171) |
Unvested outstanding end of period (in shares) | shares | 151,337 |
Weighted-Average Grant Date Fair Value | |
Unvested at the beginning of year (in dollars per share) | $ / shares | $ 30.18 |
Granted (in dollars per share) | $ / shares | 29.85 |
Vested (in dollars per share) | $ / shares | 27.98 |
Cancelled/Forfeited (in dollars per share) | $ / shares | 30.23 |
Unvested at the end of year (in dollars per share) | $ / shares | $ 30.57 |
Unrecognized compensation cost | $ | $ 4,122,217 |
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 9 months 18 days |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance-Based Restricted Stock Units (Details) - Performance Based Restricted Stock Units ("PSUs") - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Performance-Based Restricted Stock Units | ||
Unvested outstanding beginning of period (in shares) | 18,301 | |
Granted (in shares) | 18,819 | 8,956 |
Cancelled/Forfeited (in shares) | (9,236) | |
Unvested outstanding end of period (in shares) | 27,884 | 18,301 |
Weighted-Average Grant Date Fair Value | ||
Unvested at the beginning of year (in dollars per share) | $ 43.31 | |
Granted (in dollars per share) | 28.56 | $ 57.69 |
Cancelled/Forfeited (in dollars per share) | 42.16 | |
Unvested at the end of year (in dollars per share) | $ 33.74 | $ 43.31 |
Stock-Based Compensation - Pe_2
Stock-Based Compensation - Performance-Based Restricted Stock Units - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation | ||
Stock compensation expenses | $ 1,394,106 | $ 1,459,373 |
Performance Based Restricted Stock Units ("PSUs") | ||
Stock-Based Compensation | ||
Stock compensation expenses | $ 12,249 | $ 11,775 |
Number of Units awarded | 18,819 | 8,956 |
Vesting period | 3 years | 3 years |
Original remaining outstanding awards (in shares) | 27,884 | 18,301 |
Number of shares issued under these awards | 55,768 | |
Grant date fair value of the PSU's | $ 28.56 | $ 57.69 |
Expected term (years) | 3 years | 3 years |
Risk- free interest rate (as a percent) | 1% | |
Volatility (as a percent) | 50.70% | |
Dividend yield (as a percent) | 0% | |
Unrecognized compensation cost | $ 743,237 | |
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 7 months 2 days | |
Performance Based Restricted Stock Units ("PSUs") | Minimum [Member] | ||
Stock-Based Compensation | ||
Number of shares from shares outstanding (in Percentage) | 0% | |
Volatility (as a percent) | 38.40% | |
Dividend yield (as a percent) | 0% | |
Performance Based Restricted Stock Units ("PSUs") | Maximum [Member] | ||
Stock-Based Compensation | ||
Number of shares from shares outstanding (in Percentage) | 200% | |
Volatility (as a percent) | 94% | |
Dividend yield (as a percent) | 1.10% |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other income, net | ||
Interest income | $ 581,852 | $ 34,806 |
Realized gain on maturities of investments | 8,025 | 18,593 |
Foreign currency exchange losses | 36,773 | 34,794 |
Total other income, net | $ 553,104 | $ 18,605 |
Income Taxes - Components of th
Income Taxes - Components of the provision for income taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current taxes: | ||
U.S. federal | $ 2,936,394 | |
State | 349,669 | $ 14,632 |
Foreign | 1,789 | 1,439 |
Total current tax expense | 3,287,852 | 16,071 |
Deferred taxes: | ||
U.S. federal | (105,068) | 399,512 |
State | 169,478 | 95,233 |
Total current tax expense | 64,410 | 494,745 |
Provision for income tax expense | $ 3,352,262 | $ 510,816 |
Income Taxes - Significant comp
Income Taxes - Significant components of deferred taxes (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax assets (liabilities): | ||
Stock compensation | $ 227,682 | $ 208,149 |
Deferred revenue | 533,600 | 570,156 |
Reserves and allowances | 258,016 | 232,967 |
Research and development credits carryforward | 195,481 | |
Net operating loss carryforward | 215,133 | |
Depreciation and amortization | (400,869) | (496,981) |
Accrued expenses | (16,565) | (33,340) |
Other, net | 99,005 | (126,469) |
Total deferred income taxes, net | $ 700,869 | $ 765,096 |
Income Taxes - Operating loss (
Income Taxes - Operating loss (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Carryforward period for net operating losses | 20 years |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the statutory U.S. federal tax rate to effective rate (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of the statutory U.S. federal tax rate to effective rate | ||
Statutory U.S. federal tax rate | 21% | 21% |
CARES Act NOL carryback | (0.10%) | (0.20%) |
Stock compensation expense and tax windfalls upon exercises and vesting | (0.70%) | (15.20%) |
State taxes, net of federal benefit | 3.20% | 1.10% |
Permanent items | 0.40% | 0.30% |
Provision to return adjustments | (0.30%) | (0.80%) |
Foreign derived intangible income | 1.30% | 0.20% |
Research and development credits | (1.10%) | (0.80%) |
Other | (0.40%) | |
Effective rate (as a percent) | 20.70% | 5.20% |
Leases (Details)
Leases (Details) | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2014 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Leases | |||
Lease cost paid | $ 534,468 | $ 467,572 | |
Lessee, operating lease, existence of residual value guarantee | false | ||
Susi, LLC | |||
Leases | |||
Lease cost paid | $ 492,643 | $ 461,874 | |
Susi, LLC | Winter Springs, Florida Facility | |||
Leases | |||
Monthly base rent | $ 34,133 | ||
Renewal term of lease beginning in 2019 | 5 years | ||
Number of successive renewal terms of lease | item | 1 | ||
Renewal term of lease beginning in 2024 | 5 years | ||
Renewal term lease thereafter | 1 year | ||
Remaining lease term (in years) | 7 years 4 months 24 days |
Leases - Operating lease cost (
Leases - Operating lease cost (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | ||
Operating lease cost | $ 534,468 | $ 467,572 |
Cost of revenue | ||
Leases | ||
Operating lease cost | 223,880 | 209,897 |
General and administrative | ||
Leases | ||
Operating lease cost | 263,346 | 213,383 |
Sales and marketing | ||
Leases | ||
Operating lease cost | 12,529 | 11,747 |
Research and development | ||
Leases | ||
Operating lease cost | $ 34,713 | $ 32,545 |
Leases - Maturity of operating
Leases - Maturity of operating lease liability (Details) - USD ($) | Dec. 31, 2022 | Jan. 01, 2019 |
Operating leases | ||
2023 | $ 415,294 | |
2024 | 415,294 | |
2025 | 415,294 | |
2026 | 409,596 | |
2027 | 409,596 | |
Thereafter | 989,856 | |
Total lease payments | 3,054,930 | |
Imputed interest | (441,230) | |
Present value of lease liability | $ 2,613,700 | |
Discount rate | 6% |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefit Plan | ||
Employer matching contributions | $ 479,155 | $ 434,904 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Purchase commitments | ||
Purchase commitments | $ 8,021,403 | $ 5,604,456 |
Capital Stock (Details)
Capital Stock (Details) | 12 Months Ended |
Dec. 31, 2022 item $ / shares shares | |
Preferred Stock | |
Capital Stock | |
Preferred stock, shares authorized | shares | 3,500,000 |
Number of voting right on each preferred stock | item | 1 |
Dividend on each share of Preferred Stock (in dollars per share) | $ / shares | $ 0.06429 |
Amount per preferred stock to be paid in the event of liquidation, dissolution, or winding up (in dollars per share) | $ / shares | 1.07143 |
Conversion price (in dollars per share) | $ / shares | $ 1.07143 |
Series A Preferred Stock | |
Capital Stock | |
Preferred stock, shares authorized | shares | 800,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Preferred stock, shares issued | shares | 0 |
Preferred stock, shares outstanding | shares | 0 |
Common Stock | |
Capital Stock | |
Common stock, shares authorized | shares | 31,500,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Number of voting right on each common stock | item | 1 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent event | Feb. 21, 2023 USD ($) | Feb. 02, 2023 USD ($) a $ / shares |
Subsequent Event | ||
Special cash dividend per share declared | $ / shares | $ 1.05 | |
Common stock dividend paid | $ 13,222,907 | |
Acres of land | a | 26.518 | |
Purchase price of land | $ 6,200,000 |