Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 $0.0001 | |
Trading Symbol | IRMD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,605,577 | |
Entity Central Index Key | 0001325618 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 46,745,124 | $ 57,960,864 |
Accounts receivable, net of allowance for doubtful accounts of $331,403 as of September 30, 2023, and $160,498 as of December 31, 2022 | 12,783,263 | 13,274,521 |
Inventory, net | 11,667,713 | 5,369,233 |
Prepaid expenses and other current assets | 735,124 | 630,960 |
Prepaid income taxes | 254,093 | |
Total current assets | 71,931,224 | 77,489,671 |
Property and equipment, net | 8,887,884 | 2,399,812 |
Intangible assets, net | 2,459,475 | 2,069,439 |
Operating lease right-of-use asset | 2,146,117 | 2,205,286 |
Deferred tax asset, net | 1,803,733 | 700,867 |
Other assets | 177,663 | 648,672 |
Total assets | 87,406,096 | 85,513,747 |
Current liabilities: | ||
Accounts payable | 2,782,878 | 1,799,316 |
Accrued payroll and benefits | 2,290,191 | 2,871,890 |
Other accrued taxes | 103,223 | 121,919 |
Warranty reserve | 110,304 | 94,030 |
Deferred revenue | 1,924,133 | 3,373,122 |
Current portion of operating lease liabilities | 421,379 | 293,466 |
Other current liabilities | 250,000 | |
Total current liabilities | 7,882,108 | 8,553,743 |
Deferred revenue | 3,231,250 | 1,375,197 |
Operating lease liabilities, less current portion | 1,724,738 | 1,911,820 |
Total liabilities | 12,838,096 | 11,840,760 |
Stockholders' equity: | ||
Common stock; $0.0001 par value; 31,500,000 shares authorized; 12,601,541 shares issued and outstanding as of September 30, 2023, and 12,591,004 shares issued and outstanding as of December 31, 2022 | 1,260 | 1,259 |
Additional paid-in capital | 27,872,275 | 26,407,446 |
Retained earnings | 46,694,465 | 47,264,282 |
Accumulated other comprehensive income | 0 | |
Total Stockholders' Equity | 74,568,000 | 73,672,987 |
Total liabilities and stockholders' equity | $ 87,406,096 | $ 85,513,747 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
CONDENSED BALANCE SHEETS | ||
Accounts receivable, net of allowance for doubtful accounts | $ 297,328 | $ 160,498 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 31,500,000 | 31,500,000 |
Common stock, shares issued | 12,602,851 | 12,591,004 |
Common stock, shares outstanding | 12,602,851 | 12,591,004 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED STATEMENTS OF OPERATIONS | ||||
Revenue | $ 16,504,640 | $ 13,407,272 | $ 48,110,120 | $ 38,439,551 |
Cost of revenue | 3,667,256 | 2,864,534 | 11,364,791 | 8,377,526 |
Gross profit | 12,837,384 | 10,542,738 | 36,745,329 | 30,062,025 |
Operating expenses: | ||||
General and administrative | 3,615,020 | 2,881,590 | 10,848,611 | 8,000,335 |
Sales and marketing | 2,864,469 | 3,037,209 | 8,812,872 | 9,014,553 |
Research and development | 452,555 | 491,643 | 2,208,221 | 1,673,337 |
Total operating expenses | 6,932,044 | 6,410,442 | 21,869,704 | 18,688,225 |
Income from operations | 5,905,340 | 4,132,296 | 14,875,625 | 11,373,800 |
Other income, net | 503,192 | 105,183 | 1,180,988 | 103,371 |
Income before provision for income taxes | 6,408,532 | 4,237,479 | 16,056,613 | 11,477,171 |
Provision for income tax expense | 1,341,352 | 810,375 | 3,403,523 | 2,322,301 |
Net income | $ 5,067,180 | $ 3,427,104 | $ 12,653,090 | $ 9,154,870 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.40 | $ 0.27 | $ 1 | $ 0.73 |
Diluted (in dollars per share) | $ 0.40 | $ 0.27 | $ 0.99 | $ 0.72 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 12,602,581 | 12,564,636 | 12,597,250 | 12,559,465 |
Diluted (in shares) | 12,735,837 | 12,631,129 | 12,716,988 | 12,637,325 |
CONDENSED STATEMENTS OF COMPREH
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 5,067,180 | $ 3,427,104 | $ 12,653,090 | $ 9,154,870 |
Other comprehensive (loss) income: | ||||
Change in fair value of available-for-sale securities, net of tax expense (benefit) of $0 and $(22), respectively | (10,953) | |||
Realized gain on available-for-sale securities reclassified to net income, net of tax expense of $0 and $0 respectively | (6,059) | |||
Other comprehensive loss | (17,012) | |||
Comprehensive income | $ 5,067,180 | $ 3,427,104 | $ 12,653,090 | $ 9,137,858 |
CONDENSED STATEMENTS OF COMPR_2
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Change in fair value of available-for-sale securities, net of tax expense (benefit) | $ 0 | $ 0 | $ 0 | $ 9,098 |
Realized gain on available-for-sale securities reclassified to net income, net of tax expense | $ 0 | $ 0 | $ 0 | $ 1,966 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Beginning balances at Dec. 31, 2021 | $ 1,254 | $ 25,160,618 | $ 46,994,922 | $ 17,012 | $ 72,173,806 |
Beginning balances (in shares) at Dec. 31, 2021 | 12,544,024 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 2,486,713 | 2,486,713 | |||
Dividends paid | (12,559,127) | (12,559,127) | |||
Other comprehensive loss | (10,885) | (10,885) | |||
Stock-based compensation expense | 453,360 | 453,360 | |||
Net share settlement of restricted stock units | $ 1 | (67,381) | (67,380) | ||
Net share settlement of restricted stock units (in shares) | 3,879 | ||||
Exercise of stock options | $ 1 | 71,947 | 71,948 | ||
Exercise of stock options (in shares) | 12,566 | ||||
Ending balances at Mar. 31, 2022 | $ 1,256 | 25,618,544 | 36,922,508 | 6,127 | 62,548,435 |
Ending balances (in shares) at Mar. 31, 2022 | 12,560,469 | ||||
Beginning balances at Dec. 31, 2021 | $ 1,254 | 25,160,618 | 46,994,922 | 17,012 | 72,173,806 |
Beginning balances (in shares) at Dec. 31, 2021 | 12,544,024 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 9,154,870 | ||||
Ending balances at Sep. 30, 2022 | $ 1,256 | 26,179,351 | 43,590,664 | 69,771,271 | |
Ending balances (in shares) at Sep. 30, 2022 | 12,565,290 | ||||
Beginning balances at Mar. 31, 2022 | $ 1,256 | 25,618,544 | 36,922,508 | 6,127 | 62,548,435 |
Beginning balances (in shares) at Mar. 31, 2022 | 12,560,469 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 3,241,052 | 3,241,052 | |||
Other comprehensive loss | $ (6,127) | (6,127) | |||
Stock-based compensation expense | 121,003 | 121,003 | |||
Net share settlement of restricted stock units | (5,726) | (5,726) | |||
Net share settlement of restricted stock units (in shares) | 556 | ||||
Ending balances at Jun. 30, 2022 | $ 1,256 | 25,733,821 | 40,163,560 | 65,898,637 | |
Ending balances (in shares) at Jun. 30, 2022 | 12,561,025 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 3,427,104 | 3,427,104 | |||
Stock-based compensation expense | 393,187 | 393,187 | |||
Net share settlement of restricted stock units | (22,417) | (22,417) | |||
Net share settlement of restricted stock units (in shares) | 1,265 | ||||
Exercise of stock options | 74,760 | 74,760 | |||
Exercise of stock options (in shares) | 3,000 | ||||
Ending balances at Sep. 30, 2022 | $ 1,256 | 26,179,351 | 43,590,664 | 69,771,271 | |
Ending balances (in shares) at Sep. 30, 2022 | 12,565,290 | ||||
Beginning balances at Dec. 31, 2022 | $ 1,259 | 26,407,446 | 47,264,282 | 73,672,987 | |
Beginning balances (in shares) at Dec. 31, 2022 | 12,591,004 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 3,406,070 | 3,406,070 | |||
Dividends paid | (13,222,907) | (13,222,907) | |||
Stock-based compensation expense | 533,643 | 533,643 | |||
Net share settlement of restricted stock units | (49,878) | (49,878) | |||
Net share settlement of restricted stock units (in shares) | 3,572 | ||||
Ending balances at Mar. 31, 2023 | $ 1,259 | 26,891,211 | 37,447,445 | 64,339,915 | |
Ending balances (in shares) at Mar. 31, 2023 | 12,594,576 | ||||
Beginning balances at Dec. 31, 2022 | $ 1,259 | 26,407,446 | 47,264,282 | 73,672,987 | |
Beginning balances (in shares) at Dec. 31, 2022 | 12,591,004 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 12,653,090 | ||||
Ending balances at Sep. 30, 2023 | $ 1,260 | 27,872,275 | 46,694,465 | 74,568,000 | |
Ending balances (in shares) at Sep. 30, 2023 | 12,602,851 | ||||
Beginning balances at Mar. 31, 2023 | $ 1,259 | 26,891,211 | 37,447,445 | 64,339,915 | |
Beginning balances (in shares) at Mar. 31, 2023 | 12,594,576 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 4,179,840 | 4,179,840 | |||
Stock-based compensation expense | 568,453 | 568,453 | |||
Net share settlement of restricted stock units | $ 1 | (97,106) | (97,105) | ||
Net share settlement of restricted stock units (in shares) | 5,965 | ||||
Exercise of stock options | 7,339 | 7,339 | |||
Exercise of stock options (in shares) | 1,000 | ||||
Ending balances at Jun. 30, 2023 | $ 1,260 | 27,369,898 | 41,627,285 | 68,998,442 | |
Ending balances (in shares) at Jun. 30, 2023 | 12,601,541 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 5,067,180 | 5,067,180 | |||
Stock-based compensation expense | 533,749 | 533,749 | |||
Net share settlement of restricted stock units | (31,372) | (31,372) | |||
Net share settlement of restricted stock units (in shares) | 1,310 | ||||
Ending balances at Sep. 30, 2023 | $ 1,260 | $ 27,872,275 | $ 46,694,465 | $ 74,568,000 | |
Ending balances (in shares) at Sep. 30, 2023 | 12,602,851 |
CONDENSED STATEMENTS OF STOCK_2
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY | ||
Dividends Paid Amount Per Share | $ 1.05 | $ 1 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities: | ||
Net income | $ 12,653,090 | $ 9,154,870 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Change in allowance for doubtful accounts | 136,830 | 56,118 |
Change in provision for excess and obsolete inventory | 219,928 | 29,227 |
Depreciation and amortization | 559,805 | 1,363,578 |
Loss (Gain) on disposal of property and equipment | 12,535 | (3,000) |
Stock-based compensation | 1,635,845 | 967,551 |
Deferred income taxes, net | (1,102,866) | (227,133) |
Loss on maturities of investments | (8,025) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 343,054 | (5,570,783) |
Inventory | (6,130,592) | (903,792) |
Prepaid expenses and other current assets | (40,055) | (306,031) |
Other assets | 418,274 | 6,660 |
Accounts payable | 519,648 | 37,338 |
Accrued payroll and benefits | (581,699) | (464,788) |
Other accrued taxes | (18,696) | 3,395 |
Warranty reserve | 16,274 | (13,593) |
Deferred revenue | 407,064 | (452,822) |
Other current liabilities | 250,000 | (9,508) |
Prepaid income taxes | 254,093 | 3,344,605 |
Net cash provided by operating activities | 9,552,532 | 7,003,867 |
Investing activities: | ||
Proceeds from maturities of investments | 500,000 | |
Purchases of property and equipment | (6,908,607) | (564,883) |
Capitalized intangible assets | (465,744) | (838,438) |
Net cash used in investing activities | (7,374,351) | (903,321) |
Financing activities: | ||
Dividends paid | (13,222,907) | (12,559,127) |
Proceeds from exercises of stock options | 7,341 | 146,707 |
Taxes paid related to the net share settlement of equity awards | (178,355) | (95,523) |
Net cash used in financing activities | (13,393,921) | (12,507,943) |
Net decrease in cash and cash equivalents | (11,215,740) | (6,407,398) |
Cash and cash equivalents, beginning of period | 57,960,864 | 61,999,550 |
Cash and cash equivalents, end of period | 46,745,124 | 55,592,152 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 4,136,152 | 757,137 |
ROU asset recognized in exchange for new lease obligation | 227,983 | |
Operating and short-term lease payments recorded within cash flow provided by operating activities | $ 492,528 | $ 364,825 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation | |
Basis of Presentation | 1 — Basis of Presentation The accompanying interim condensed financial statements of IRADIMED CORPORATION (“IRADIMED”, the “Company”, “we”, “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The interim financial information is unaudited, but reflects all normal adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, and other interim periods, or future years or periods. The accompanying interim condensed financial statements should be read in conjunction with the financial statements and related footnotes to financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022. The accounting policies followed in the preparation of these interim condensed financial statements, except as described in Note 1, are consistent in all material respects with those described in Note 1 of our Form 10-K. We operate in one reportable segment which is the development, manufacture and sale of Magnetic Resonance Imaging (“MRI”) compatible medical devices, related accessories, disposables and service for use primarily by hospitals and acute care facilities during MRI procedures. 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 regularly throughout the year. We have not incurred any losses related to these balances. Our medical devices require clearance from the FDA 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. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments - Credit Losses Codification Improvements to Topic 326, Financial Instruments - Credit Losses Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition | |
Revenue Recognition | 2 — Revenue Recognition Disaggregation of Revenue We disaggregate revenue from contracts with customers by geographic region and revenue type as we believe it best depicts the nature, amount, timing and uncertainty of our revenue and cash flow. Revenue information by geographic region is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (unaudited) (unaudited) United States $ 13,948,368 $ 10,810,370 $ 38,876,418 $ 31,606,401 International 2,556,272 2,596,902 9,233,702 6,833,150 Total revenue $ 16,504,640 $ 13,407,272 $ 48,110,120 $ 38,439,551 Revenue information by type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (unaudited) (unaudited) Devices: MRI Compatible IV Infusion Pump Systems $ 3,905,520 $ 3,866,535 $ 13,966,905 $ 11,001,490 MRI Compatible Patient Vital Signs Monitoring Systems 7,738,549 5,519,045 18,564,085 15,635,415 Ferro Magnetic Detection Systems 138,760 62,982 619,539 62,982 Total Devices revenue 11,782,829 9,448,562 33,150,529 26,699,887 Disposables, services and other 4,213,666 3,410,015 13,464,278 10,158,922 Amortization of extended warranty agreements 508,145 548,695 1,495,313 1,580,742 Total revenue $ 16,504,640 $ 13,407,272 $ 48,110,120 $ 38,439,551 Contract Liabilities Our contract liabilities consist of: September 30, December 31, 2023 2022 (unaudited) Advance payments from customers $ 519,835 $ 896,617 Shipments in-transit 11,374 14,696 Extended warranty agreements 4,624,174 3,837,006 Total $ 5,155,383 $ 4,748,319 Changes in the contract liabilities during the periods presented are as follows: Deferred Revenue (unaudited) Contract liabilities, December 31, 2022 $ 4,748,319 Increases due to cash received from customers 3,716,326 Decreases due to recognition of revenue (3,309,262) Contract liabilities, September 30, 2023 $ 5,155,383 Deferred Revenue (unaudited) Contract liabilities, December 31, 2021 $ 4,232,439 Increases due to cash received from customers 2,927,868 Decreases due to recognition of revenue (3,391,557) Contract liabilities, September 30, 2022 $ 3,768,750 Capitalized Contract Costs Our capitalized contract costs totaled $125,278 and $340,044 as of September 30, 2023 and December 31, 2022, respectively, and are classified as other assets on the unaudited condensed balance sheets. |
Basic and Diluted Net Income pe
Basic and Diluted Net Income per Share | 9 Months Ended |
Sep. 30, 2023 | |
Basic and Diluted Net Income per Share | |
Basic and Diluted Net Income per Share | 3 — Basic and Diluted Net Income per Share Basic net income per share is based upon the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Stock options, 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: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (unaudited) (unaudited) Net income $ 5,067,180 $ 3,427,104 $ 12,653,090 $ 9,154,870 Weighted-average shares outstanding — Basic 12,602,581 12,564,636 12,597,250 12,559,465 Effect of dilutive securities: Stock options 18,727 18,196 18,860 21,198 Restricted stock units 73,478 48,297 63,300 56,662 Performance-based restricted stock units 41,051 — 37,578 — Weighted-average shares outstanding — Diluted 12,735,837 12,631,129 12,716,988 12,637,325 Basic net income per share $ 0.40 $ 0.27 $ 1.00 $ 0.73 Diluted net income per share $ 0.40 $ 0.27 $ 0.99 $ 0.72 Stock options and restricted stock units excluded from the calculation of diluted net income per share because the effect would have been anti-dilutive are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (unaudited) (unaudited) Anti-dilutive stock options and restricted stock units 438 26,402 352 31,254 |
Inventory, net
Inventory, net | 9 Months Ended |
Sep. 30, 2023 | |
Inventory, net. | |
Inventory, net | 4 — Inventory, net Inventory consists of: September 30, December 31, 2023 2022 (unaudited) Raw materials $ 9,508,117 $ 4,827,113 Work in process 938,534 369,761 Finished goods 1,680,277 411,647 Inventory before allowance for excess and obsolete 12,126,928 5,608,521 Allowance for excess and obsolete (459,215) (239,288) Total $ 11,667,713 $ 5,369,233 |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment, net | |
Property and Equipment, net | 5 — Property and Equipment, net Property and equipment consist of: September 30, December 31, 2023 2022 (unaudited) Land $ 6,253,790 $ — Computer software and hardware 1,332,580 1,121,455 Furniture and fixtures 1,721,860 1,573,587 Leasehold improvements 270,486 259,146 Machinery and equipment 2,430,448 2,210,181 Fixed assets in-process 784,513 665,773 12,793,677 5,830,142 Accumulated depreciation (3,905,793) (3,430,330) Total $ 8,887,884 $ 2,399,812 Depreciation expense of property and equipment was $164,595 and $142,389 for the three months ended September 30, 2023 and 2022, respectively, and $484,094 and $419,970 for the nine months ended September 30, 2023 and 2022, respectively. Land Acquisition On February 2, 2023, the Company entered into a reinstatement and amendment (“Reinstatement”) 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 26.5 acres of land to the Company for a purchase price of $6,200,000 . Property and equipment, net, information by geographic region is as follows: September 30, December 31, 2023 2022 (unaudited) United States $ 8,541,457 $ 2,248,308 International 346,427 151,504 Total property and equipment, net $ 8,887,884 $ 2,399,812 Long-lived assets held outside of the United States consist principally of tooling and machinery and equipment, which are components of property and equipment, net. |
Intangible Assets, net
Intangible Assets, net | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, net | |
Intangible Assets, net | 6 — Intangible Assets, net The following table summarizes the components of intangible asset balances: September 30, December 31, 2023 2022 (unaudited) Patents — in use $ 321,874 $ 321,873 Patents — fully amortized 70,164 70,164 Patents — in process 127,785 123,153 Internally developed software — in use 872,218 872,218 Internally developed software — in process 1,950,434 1,489,322 Trademarks 27,697 27,697 3,370,172 2,904,427 Accumulated amortization (910,697) (834,988) Total $ 2,459,475 $ 2,069,439 Amortization expense of intangible assets was $25,236 and $25,236 for the three months ended September 30, 2023 and 2022, respectively, and $75,708 and $75,886 for the nine months ended September 30, 2023 and 2022, respectively. Expected annual amortization expense for the remaining portion of 2023 and the next five years related to intangible assets is as follows (excludes in process intangible assets): Three months ending December 31, 2023 $ 25,236 2024 $ 100,544 2025 $ 97,374 2026 $ 85,658 2027 $ 11,945 2028 $ 9,343 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | 7 — Fair Value Measurements The fair values of cash equivalents, accounts receivables, net and accounts payable approximate their carrying amounts due to their short duration. As of September 30, 2023, we did not have any asset or liabilities subject to recurring fair value measurements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 8 — Accumulated Other Comprehensive Income There was no accumulated other comprehensive income for the three months ended September 30, 2023 and 2022. There was no accumulated other comprehensive income for the nine months ended September 30, 2023. Unrealized (Losses) Gains on Available-For-Sale Securities (unaudited) Balance at December 31, 2021 $ 17,012 (Gain) Loss on available-for-sale securities, net (10,953) Reclassification realized in net earnings (6,059) Balance at September 30, 2022 $ — |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation | |
Stock-Based Compensation | 9 — Stock-Based Compensation Stock-based compensation was recognized as follows in the unaudited Condensed Statements of Operations: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (unaudited) (unaudited) Cost of revenue $ 63,119 $ 50,007 $ 187,292 $ 137,386 General and administrative 290,370 186,293 871,100 393,668 Sales and marketing 129,340 116,255 435,707 315,929 Research and development 50,919 40,633 141,746 120,568 Total $ 533,748 $ 393,188 $ 1,635,845 $ 967,551 As of September 30, 2023, we had $2,908,549 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.31 years. As of September 30, 2023, we had $636,992 of unrecognized compensation cost related to unvested performance-based restricted stock units, which is expected to be recognized over a weighted-average period of 1.99 years. The following table presents a summary of our equity award activity for the nine months ended September 30, 2023 (shares): Performance Based Stock Restricted Restricted Options Stock Units Stock Units Outstanding beginning of period 24,010 151,337 27,884 Awards granted — 4,272 — Awards exercised/vested (1,000) (14,982) — Awards canceled/ forfeited — (240) — Outstanding end of period 23,010 140,387 27,884 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes | |
Income Taxes | 10 — Income Taxes For the three and nine months ended September 30, 2023, we recorded a provision for income tax expense of $1,341,352 and $3,403,523, respectively. Our effective tax rate was 20.9 percent and 21.2 percent, respectively, and differed from the U.S. Federal statutory rate primarily due to U.S. state income tax expense, partially offset by benefits from research and development tax credits. For the three and nine months ended September 30, 2022, we recorded a provision for income tax expense of $810,375 and $2,322,301 respectively. Our effective tax rate was 19.1 percent and 20.2 percent respectively and differed from the U.S. Federal statutory rate primarily due to U.S. Federal income tax expense, partially offset by benefits from foreign derived intangible income and research and development tax credits. As of September 30, 2023 and December 31, 2022, we had not identified or accrued for any uncertain tax positions. We are currently unaware of any uncertain tax positions that could result in significant payments, accruals, or other material deviations in this estimate over the next 12 months. We believe that our tax positions comply in all material respects with applicable tax law. However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from ours, which could result in the imposition of additional taxes and penalties. We file tax returns in the United States Federal jurisdiction and many U.S. state jurisdictions. Our returns are not 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 2019 and subsequent years. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Leases | 11 — Leases We have entered into operating lease contracts for our manufacturing plant, office space, and various office equipment with 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. The Company paid Susi, LLC $127,817 for the three months ended September 30, 2023 and 2022. For the nine months ended September 30, 2023 and 2022, the Company paid Susi, LLC Leases In February 2023, we entered into two, two-year, non-cancelable operating leases with non-related parties for additional office space in Winter Springs, Florida. Pursuant to the lease terms the total monthly base rent is $10,055. For the three months ended September 30, 2023 and 2022, the Company paid $30,165 and $0 respectively. For the nine months ended September 30, 2023 and 2022, the Company paid $83,140 and $0 respectively. Under the terms of the leases, we are responsible for insurance and maintenance expenses. Pursuant to the contract terms, the leases will expire February 2025 and do not contain any residual value guarantee or material restrictive covenants. We will reassess the lease accounting terms and assumptions once the details regarding completion of a new manufacturing facility and planned departure of the current primary facility is finalized. Operating lease cost recognized in the unaudited Condensed Statements of Operations is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (unaudited) (unaudited) Cost of revenue $ 58,086 $ 58,086 $ 174,258 $ 165,794 General and administrative 87,639 57,474 255,562 164,046 Sales and marketing 3,251 3,251 9,752 9,279 Research and development 9,006 9,006 27,019 25,706 Total $ 157,982 $ 127,817 $ 466,591 $ 364,825 Lease costs for short-term leases were immaterial for the three and nine months ended September 30, 2023, and 2022. Maturity of our operating lease liability as of September 30, 2023, is as follows: Three months ending December 31, 2023 $ 133,988 2024 535,954 2025 415,294 2026 409,596 2027 409,596 Thereafter 596,127 Total lease payments 2,500,555 Imputed interest (354,440) Present value of lease liability $ 2,146,115 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12 — Commitments and Contingencies Purchase commitments. Legal matters. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation | |
Basis of Presentation | The accompanying interim condensed financial statements of IRADIMED CORPORATION (“IRADIMED”, the “Company”, “we”, “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The interim financial information is unaudited, but reflects all normal adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, and other interim periods, or future years or periods. The accompanying interim condensed financial statements should be read in conjunction with the financial statements and related footnotes to financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022. The accounting policies followed in the preparation of these interim condensed financial statements, except as described in Note 1, are consistent in all material respects with those described in Note 1 of our Form 10-K. We operate in one reportable segment which is the development, manufacture and sale of Magnetic Resonance Imaging (“MRI”) compatible medical devices, related accessories, disposables and service for use primarily by hospitals and acute care facilities during MRI procedures. |
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 regularly throughout the year. We have not incurred any losses related to these balances. Our medical devices require clearance from the FDA 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments - Credit Losses Codification Improvements to Topic 326, Financial Instruments - Credit Losses Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition | |
Schedule of disaggregation of revenue by geographic region and revenue type | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (unaudited) (unaudited) United States $ 13,948,368 $ 10,810,370 $ 38,876,418 $ 31,606,401 International 2,556,272 2,596,902 9,233,702 6,833,150 Total revenue $ 16,504,640 $ 13,407,272 $ 48,110,120 $ 38,439,551 Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (unaudited) (unaudited) Devices: MRI Compatible IV Infusion Pump Systems $ 3,905,520 $ 3,866,535 $ 13,966,905 $ 11,001,490 MRI Compatible Patient Vital Signs Monitoring Systems 7,738,549 5,519,045 18,564,085 15,635,415 Ferro Magnetic Detection Systems 138,760 62,982 619,539 62,982 Total Devices revenue 11,782,829 9,448,562 33,150,529 26,699,887 Disposables, services and other 4,213,666 3,410,015 13,464,278 10,158,922 Amortization of extended warranty agreements 508,145 548,695 1,495,313 1,580,742 Total revenue $ 16,504,640 $ 13,407,272 $ 48,110,120 $ 38,439,551 |
Schedule of contract liabilities and changes in the contract liabilities | September 30, December 31, 2023 2022 (unaudited) Advance payments from customers $ 519,835 $ 896,617 Shipments in-transit 11,374 14,696 Extended warranty agreements 4,624,174 3,837,006 Total $ 5,155,383 $ 4,748,319 Deferred Revenue (unaudited) Contract liabilities, December 31, 2022 $ 4,748,319 Increases due to cash received from customers 3,716,326 Decreases due to recognition of revenue (3,309,262) Contract liabilities, September 30, 2023 $ 5,155,383 Deferred Revenue (unaudited) Contract liabilities, December 31, 2021 $ 4,232,439 Increases due to cash received from customers 2,927,868 Decreases due to recognition of revenue (3,391,557) Contract liabilities, September 30, 2022 $ 3,768,750 |
Basic and Diluted Net Income _2
Basic and Diluted Net Income per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Basic and Diluted Net Income per Share | |
Schedule of computation of basic and diluted net income per share | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (unaudited) (unaudited) Net income $ 5,067,180 $ 3,427,104 $ 12,653,090 $ 9,154,870 Weighted-average shares outstanding — Basic 12,602,581 12,564,636 12,597,250 12,559,465 Effect of dilutive securities: Stock options 18,727 18,196 18,860 21,198 Restricted stock units 73,478 48,297 63,300 56,662 Performance-based restricted stock units 41,051 — 37,578 — Weighted-average shares outstanding — Diluted 12,735,837 12,631,129 12,716,988 12,637,325 Basic net income per share $ 0.40 $ 0.27 $ 1.00 $ 0.73 Diluted net income per share $ 0.40 $ 0.27 $ 0.99 $ 0.72 |
Schedule of stock options and restricted stock units excluded from the calculation of diluted net income per share | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (unaudited) (unaudited) Anti-dilutive stock options and restricted stock units 438 26,402 352 31,254 |
Inventory, net (Tables)
Inventory, net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory, net. | |
Schedule of inventory | September 30, December 31, 2023 2022 (unaudited) Raw materials $ 9,508,117 $ 4,827,113 Work in process 938,534 369,761 Finished goods 1,680,277 411,647 Inventory before allowance for excess and obsolete 12,126,928 5,608,521 Allowance for excess and obsolete (459,215) (239,288) Total $ 11,667,713 $ 5,369,233 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property and Equipment, net | |
Schedule of property and equipment | September 30, December 31, 2023 2022 (unaudited) Land $ 6,253,790 $ — Computer software and hardware 1,332,580 1,121,455 Furniture and fixtures 1,721,860 1,573,587 Leasehold improvements 270,486 259,146 Machinery and equipment 2,430,448 2,210,181 Fixed assets in-process 784,513 665,773 12,793,677 5,830,142 Accumulated depreciation (3,905,793) (3,430,330) Total $ 8,887,884 $ 2,399,812 |
Schedule of property and equipment, net, information by geographic region | September 30, December 31, 2023 2022 (unaudited) United States $ 8,541,457 $ 2,248,308 International 346,427 151,504 Total property and equipment, net $ 8,887,884 $ 2,399,812 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Intangible Assets, net | |
Summary of the components of intangible asset balances | September 30, December 31, 2023 2022 (unaudited) Patents — in use $ 321,874 $ 321,873 Patents — fully amortized 70,164 70,164 Patents — in process 127,785 123,153 Internally developed software — in use 872,218 872,218 Internally developed software — in process 1,950,434 1,489,322 Trademarks 27,697 27,697 3,370,172 2,904,427 Accumulated amortization (910,697) (834,988) Total $ 2,459,475 $ 2,069,439 |
Schedule of expected annual amortization expense related to intangible assets (excludes in process intangible assets) | Three months ending December 31, 2023 $ 25,236 2024 $ 100,544 2025 $ 97,374 2026 $ 85,658 2027 $ 11,945 2028 $ 9,343 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income | |
Schedule of component of accumulated other comprehensive income related to unrealized gains and (losses) | Unrealized (Losses) Gains on Available-For-Sale Securities (unaudited) Balance at December 31, 2021 $ 17,012 (Gain) Loss on available-for-sale securities, net (10,953) Reclassification realized in net earnings (6,059) Balance at September 30, 2022 $ — |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation | |
Schedule of stock-based compensation | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (unaudited) (unaudited) Cost of revenue $ 63,119 $ 50,007 $ 187,292 $ 137,386 General and administrative 290,370 186,293 871,100 393,668 Sales and marketing 129,340 116,255 435,707 315,929 Research and development 50,919 40,633 141,746 120,568 Total $ 533,748 $ 393,188 $ 1,635,845 $ 967,551 |
Schedule of stock-based compensation activity | Performance Based Stock Restricted Restricted Options Stock Units Stock Units Outstanding beginning of period 24,010 151,337 27,884 Awards granted — 4,272 — Awards exercised/vested (1,000) (14,982) — Awards canceled/ forfeited — (240) — Outstanding end of period 23,010 140,387 27,884 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases | |
Schedule of operating lease cost | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (unaudited) (unaudited) Cost of revenue $ 58,086 $ 58,086 $ 174,258 $ 165,794 General and administrative 87,639 57,474 255,562 164,046 Sales and marketing 3,251 3,251 9,752 9,279 Research and development 9,006 9,006 27,019 25,706 Total $ 157,982 $ 127,817 $ 466,591 $ 364,825 |
Schedule of maturity of operating lease liability | Three months ending December 31, 2023 $ 133,988 2024 535,954 2025 415,294 2026 409,596 2027 409,596 Thereafter 596,127 Total lease payments 2,500,555 Imputed interest (354,440) Present value of lease liability $ 2,146,115 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Basis of Presentation | |
Number of Reportable Segments | 1 |
Revenue Recognition - Informati
Revenue Recognition - Information by geographic region (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Contract Liabilities | ||||
Total revenue | $ 16,504,640 | $ 13,407,272 | $ 48,110,120 | $ 38,439,551 |
United States | ||||
Contract Liabilities | ||||
Total revenue | 13,948,368 | 10,810,370 | 38,876,418 | 31,606,401 |
International | ||||
Contract Liabilities | ||||
Total revenue | $ 2,556,272 | $ 2,596,902 | $ 9,233,702 | $ 6,833,150 |
Revenue Recognition - Informa_2
Revenue Recognition - Information by type (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue | ||||
Total Devices revenue | $ 11,782,829 | $ 9,448,562 | $ 33,150,529 | $ 26,699,887 |
Disposables, service and other | 4,213,666 | 3,410,015 | 13,464,278 | 10,158,922 |
Amortization of extended warranty agreements | 508,145 | 548,695 | 1,495,313 | 1,580,742 |
Total revenue | 16,504,640 | 13,407,272 | 48,110,120 | 38,439,551 |
MRI compatible IV infusion pump system | ||||
Disaggregation of Revenue | ||||
Total Devices revenue | 3,905,520 | 3,866,535 | 13,966,905 | 11,001,490 |
MRI compatible patient vital signs monitoring systems | ||||
Disaggregation of Revenue | ||||
Total Devices revenue | 7,738,549 | 5,519,045 | 18,564,085 | 15,635,415 |
Ferro Magnetic Detection Systems | ||||
Disaggregation of Revenue | ||||
Total Devices revenue | $ 138,760 | $ 62,982 | $ 619,539 | $ 62,982 |
Revenue Recognition - Contract
Revenue Recognition - Contract liabilities (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Deferred Revenue | |||
Advance payments from customers | $ 519,835 | $ 896,617 | |
Shipments in-transit | 11,374 | 14,696 | |
Extended warranty agreements | 4,624,174 | 3,837,006 | |
Total | 5,155,383 | $ 3,768,750 | $ 4,748,319 |
Changes in contract liabilities | |||
Contract liabilities, beginning balance | 4,748,319 | 4,232,439 | |
Increases due to cash received from customers | 3,716,326 | 2,927,868 | |
Decreases due to recognition of revenue | (3,309,262) | (3,391,557) | |
Contract liabilities, ending balance | $ 5,155,383 | $ 3,768,750 |
Revenue Recognition - Capitaliz
Revenue Recognition - Capitalized contract costs (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue Recognition | ||
Capitalized contract costs | $ 125,278 | $ 340,044 |
Basic and diluted net income _3
Basic and diluted net income per share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic and Diluted Net Income Per Share | ||||||||
Net income | $ 5,067,180 | $ 4,179,840 | $ 3,406,070 | $ 3,427,104 | $ 3,241,052 | $ 2,486,713 | $ 12,653,090 | $ 9,154,870 |
Weighted-average shares outstanding - Basic | 12,602,581 | 12,564,636 | 12,597,250 | 12,559,465 | ||||
Effect of dilutive securities: | ||||||||
Stock options | 18,727 | 18,196 | 18,860 | 21,198 | ||||
Restricted stock units | 73,478 | 48,297 | 63,300 | 56,662 | ||||
Performance-based restricted stock units | 41,051 | 37,578 | ||||||
Weighted-average shares outstanding - Diluted (in shares) | 12,735,837 | 12,631,129 | 12,716,988 | 12,637,325 | ||||
Basic net income per share (in dollars per share) | $ 0.40 | $ 0.27 | $ 1 | $ 0.73 | ||||
Diluted net income per share (in dollars per share) | $ 0.40 | $ 0.27 | $ 0.99 | $ 0.72 | ||||
Anti-dilutive stock | ||||||||
Anti-dilutive stock options and restricted stock units | 438 | 26,402 | 352 | 31,254 |
Inventory, net (Details)
Inventory, net (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory, net. | ||
Raw materials | $ 9,508,117 | $ 4,827,113 |
Work in process | 938,534 | 369,761 |
Finished goods | 1,680,277 | 411,647 |
Inventory before allowance for excess and obsolete | 12,126,928 | 5,608,521 |
Allowance for excess and obsolete | (459,215) | (239,288) |
Total | $ 11,667,713 | $ 5,369,233 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property and equipment, net | |||||
Property and equipment, gross | $ 12,793,677 | $ 12,793,677 | $ 5,830,142 | ||
Accumulated depreciation | (3,905,793) | (3,905,793) | (3,430,330) | ||
Total | 8,887,884 | 8,887,884 | 2,399,812 | ||
Depreciation expense of property and equipment | 164,595 | $ 142,389 | 484,094 | $ 419,970 | |
Land | |||||
Property and equipment, net | |||||
Property and equipment, gross | 6,253,790 | 6,253,790 | |||
Computer software and hardware | |||||
Property and equipment, net | |||||
Property and equipment, gross | 1,332,580 | 1,332,580 | 1,121,455 | ||
Furniture and fixtures | |||||
Property and equipment, net | |||||
Property and equipment, gross | 1,721,860 | 1,721,860 | 1,573,587 | ||
Leasehold improvements | |||||
Property and equipment, net | |||||
Property and equipment, gross | 270,486 | 270,486 | 259,146 | ||
Machinery and equipment | |||||
Property and equipment, net | |||||
Property and equipment, gross | 2,430,448 | 2,430,448 | 2,210,181 | ||
Fixed assets in-process | |||||
Property and equipment, net | |||||
Property and equipment, gross | $ 784,513 | $ 784,513 | $ 665,773 |
Property and Equipment, net - L
Property and Equipment, net - Land Acquisition (Details) | Feb. 02, 2023 USD ($) a |
Property and Equipment, net | |
Purchase of land | a | 26.5 |
Total purchase price of the property | $ | $ 6,200,000 |
Property and Equipment, net - g
Property and Equipment, net - geographic region (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property and equipment, net | ||
Total property and equipment, net | $ 8,887,884 | $ 2,399,812 |
United States | ||
Property and equipment, net | ||
Total property and equipment, net | 8,541,457 | 2,248,308 |
International | ||
Property and equipment, net | ||
Total property and equipment, net | $ 346,427 | $ 151,504 |
Intangible Assets, net (Details
Intangible Assets, net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Intangible Assets, net | |||||
Intangible Assets, gross | $ 3,370,172 | $ 3,370,172 | $ 2,904,427 | ||
Accumulated amortization | (910,697) | (910,697) | (834,988) | ||
Total | 2,459,475 | 2,459,475 | 2,069,439 | ||
Amortization expense of intangible assets | 25,236 | $ 25,236 | 75,708 | $ 75,886 | |
Expected annual amortization expense | |||||
Three months ended December 31, 2023 | 25,236 | 25,236 | |||
2024 | 100,544 | 100,544 | |||
2025 | 97,374 | 97,374 | |||
2026 | 85,658 | 85,658 | |||
2027 | 11,945 | 11,945 | |||
2028 | 9,343 | 9,343 | |||
Patents - in use | |||||
Intangible Assets, net | |||||
Intangible Assets, gross | 321,874 | 321,874 | 321,873 | ||
Patents - fully amortized | |||||
Intangible Assets, net | |||||
Intangible Assets, gross | 70,164 | 70,164 | 70,164 | ||
Patents - in process | |||||
Intangible Assets, net | |||||
Intangible Assets, gross | 127,785 | 127,785 | 123,153 | ||
Internally developed software - in use | |||||
Intangible Assets, net | |||||
Intangible Assets, gross | 872,218 | 872,218 | 872,218 | ||
Internally developed software - in process | |||||
Intangible Assets, net | |||||
Intangible Assets, gross | 1,950,434 | 1,950,434 | 1,489,322 | ||
Trademarks | |||||
Intangible Assets, net | |||||
Intangible Assets, gross | $ 27,697 | $ 27,697 | $ 27,697 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Component of accumulated other comprehensive income related to unrealized gains and (losses) | |
Balance at the beginning | $ 17,012 |
(Gain) Loss on available-for-sale securities, net | (10,953) |
Reclassification realized in net earnings | $ (6,059) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock-Based Compensation | ||||
Total stock-based compensation expense | $ 533,748 | $ 393,188 | $ 1,635,845 | $ 967,551 |
Cost of revenue | ||||
Stock-Based Compensation | ||||
Total stock-based compensation expense | 63,119 | 50,007 | 187,292 | 137,386 |
General and administrative | ||||
Stock-Based Compensation | ||||
Total stock-based compensation expense | 290,370 | 186,293 | 871,100 | 393,668 |
Sales and marketing | ||||
Stock-Based Compensation | ||||
Total stock-based compensation expense | 129,340 | 116,255 | 435,707 | 315,929 |
Research and development | ||||
Stock-Based Compensation | ||||
Total stock-based compensation expense | $ 50,919 | $ 40,633 | $ 141,746 | $ 120,568 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options and Restricted Stock Units Activity (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) shares | |
Stock Options | |
Stock Options | |
Outstanding beginning of period (in shares) | 24,010 |
Awards exercised/vested (in shares) | (1,000) |
Outstanding end of period (in shares) | 23,010 |
Restricted Stock Units | |
Stock Options | |
Outstanding beginning of period (in shares) | 151,337 |
Awards granted (in shares) | 4,272 |
Awards exercised/vested (in shares) | (14,982) |
Awards canceled/ forfeited (in shares) | (240) |
Outstanding end of period (in shares) | 140,387 |
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 3 months 21 days |
Unrecognized compensation cost for unvested award | $ | $ 2,908,549 |
Performance Based Restricted Stock Units | |
Stock Options | |
Outstanding beginning of period (in shares) | 27,884 |
Outstanding end of period (in shares) | 27,884 |
Weighted-average period of unrecognized compensation cost expected to be recognized | 1 year 11 months 26 days |
Unrecognized compensation cost for unvested award | $ | $ 636,992 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Taxes | ||||
Provision for income tax expense | $ 1,341,352 | $ 810,375 | $ 3,403,523 | $ 2,322,301 |
Effective rate (as a percent) | 20.90% | 19.10% | 21.20% | 20.20% |
Leases (Details)
Leases (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Feb. 28, 2023 USD ($) item | Jan. 31, 2014 USD ($) item | Sep. 30, 2023 USD ($) item | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) item | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Leases | |||||||
Number of material lease contracts outstanding | item | 1 | 1 | |||||
Number of non-cancelable operating leases entered | item | 2 | ||||||
Lessee, operating lease, existence of residual value guarantee | false | ||||||
Winter Springs, Florida Facility | |||||||
Leases | |||||||
Monthly base rent | $ 10,055 | ||||||
Operating lease paid | $ 30,165 | $ 0 | $ 83,140 | $ 0 | |||
Non-cancelable operating lease term | 2 years | ||||||
Susi, LLC | Winter Springs, Florida Facility | |||||||
Leases | |||||||
Monthly base rent | $ 34,133 | ||||||
Operating lease paid | $ 127,817 | $ 127,817 | $ 386,958 | $ 364,825 | $ 492,643 | ||
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) | 6 years 6 months | 6 years 6 months |
Leases - Operating lease cost (
Leases - Operating lease cost (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases | ||||
Operating lease cost | $ 157,982 | $ 127,817 | $ 466,591 | $ 364,825 |
Cost of revenue | ||||
Leases | ||||
Operating lease cost | 58,086 | 58,086 | 174,258 | 165,794 |
General and administrative | ||||
Leases | ||||
Operating lease cost | 87,639 | 57,474 | 255,562 | 164,046 |
Sales and marketing | ||||
Leases | ||||
Operating lease cost | 3,251 | 3,251 | 9,752 | 9,279 |
Research and development | ||||
Leases | ||||
Operating lease cost | $ 9,006 | $ 9,006 | $ 27,019 | $ 25,706 |
Leases - Maturity of operating
Leases - Maturity of operating lease liability (Details) | Sep. 30, 2023 USD ($) |
Operating leases | |
Three months ended December 31, 2023 | $ 133,988 |
2024 | 535,954 |
2025 | 415,294 |
2026 | 409,596 |
2027 | 409,596 |
Thereafter | 596,127 |
Total lease payments | 2,500,555 |
Imputed interest | (354,440) |
Present value of lease liability | $ 2,146,115 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Purchase commitments | ||
Purchase commitments | $ 13,109,292 | $ 8,021,403 |
Legal matters accrued | $ 250,000 | $ 0 |