Semler Scientific (SMLR) 10-Q 6 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 05, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-36305
Entity Registrant Name	Semler Scientific, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-1367393
Entity Address, Address Line One	911 Bern Court, Suite 110
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95112
City Area Code	877
Local Phone Number	774-4211
Title of 12(b) Security	N/A
Trading Symbol	smlr
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		6,563,176
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001554859
Amendment Flag	false

Condensed Statements of Income

Condensed Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Condensed Statements of Income
Revenue	$ 6,373	$ 7,953	$ 15,803	$ 14,714
Operating expenses:
Cost of revenue	700	885	1,550	1,781
Engineering and product development	762	591	1,605	1,160
Sales and marketing	2,473	2,212	5,168	4,281
General and administrative	1,478	1,570	3,069	2,943
Total operating expenses	5,413	5,258	11,392	10,165
Income from operations	960	2,695	4,411	4,549
Interest income (expense)	(1)	(1)	(3)	(2)
Other income (expense)	29		26	(2)
Other expense	30	1	29
Pre-tax net income	990	2,696	4,440	4,549
Income tax (benefit) provision	(85)	77	692	77
Net income	$ 1,075	$ 2,619	$ 3,748	$ 4,472
Net income per share, basic	$ 0.16	$ 0.41	$ 0.57	$ 0.70
Weighted average number of shares used in computing basic income per share	6,548,215	6,411,606	6,540,755	6,368,905
Net income per share, diluted	$ 0.13	$ 0.32	$ 0.47	$ 0.55
Weighted average number of shares used in computing diluted income per share	8,035,048	8,086,140	8,050,394	8,128,241

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current Assets:
Cash	$ 13,646	$ 7,741
Trade accounts receivable, net of allowance for doubtful accounts of $56 and $36 respectively	982	3,486
Prepaid expenses and other current assets	639	216
Total current assets	15,267	11,443
Assets for lease, net	1,928	2,079
Property and equipment, net	287	249
Long-term deposits		15
Long-term deferred tax assets	3,905	4,501
Total assets	21,387	18,287
Current liabilities:
Accounts payable	207	338
Accrued expenses	3,343	3,914
Deferred revenue	813	955
Other short-term liabilities	5
Total current liabilities	4,368	5,207
Long-term liabilities:
Deferred Lease		7
Total long-term liabilities		7
Stockholders' equity:
Common stock, $0.001 par value; 50,000,000 shares authorized; 6,588,176, and 6,556,221 shares issued, and 6,563,176 and 6,531,221 shares outstanding (treasury shares of 25,000, and 25,000, respectively)	7	7
Additional paid-in capital	19,598	19,400
Accumulated deficit	(2,586)	(6,334)
Total stockholders' equity	17,019	13,073
Total liabilities and stockholders' equity	$ 21,387	$ 18,287

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Condensed Balance Sheets
Allowance for doubtful accounts on trade accounts receivable (in dollars)	$ 56	$ 36
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	6,588,176	6,556,221
Common stock, shares outstanding	6,563,176	6,531,221
Treasury stock, shares	25,000	25,000

Statements of Stockholders' Equ

Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2018	$ 6		$ 25,608	$ (21,418)	$ 4,196
Balance (in shares) at Dec. 31, 2018	6,349,985	(25,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Warrant Re-purchase			(2,687)		(2,687)
Warrant Exercises (in shares)	22,527
Stock Option Exercises			44		44
Stock Option Exercises (in shares)	111,902
Stock-based Compensation			196		196
Net income				4,472	4,472
Balance at Jun. 30, 2019	$ 6		23,161	(16,946)	6,221
Balance (in shares) at Jun. 30, 2019	6,484,414	(25,000)
Balance at Mar. 31, 2019	$ 6		25,719	(19,565)	6,160
Balance (in shares) at Mar. 31, 2019	6,356,147	(25,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Warrant Re-purchase			(2,687)		(2,687)
Warrant Exercises (in shares)	22,527
Stock Option Exercises			31		31
Stock Option Exercises (in shares)	105,740
Stock-based Compensation			98		98
Net income				2,619	2,619
Balance at Jun. 30, 2019	$ 6		23,161	(16,946)	6,221
Balance (in shares) at Jun. 30, 2019	6,484,414	(25,000)
Balance at Dec. 31, 2019	$ 7		19,400	(6,334)	13,073
Balance (in shares) at Dec. 31, 2019	6,556,221	(25,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Option Exercises			70		$ 70
Stock Option Exercises (in shares)	31,955				32,567
Stock-based Compensation			128		$ 128
Net income				3,748	3,748
Balance at Jun. 30, 2020	$ 7		19,598	(2,586)	17,019
Balance (in shares) at Jun. 30, 2020	6,588,176	(25,000)
Balance at Mar. 31, 2020	$ 7		19,470	(3,661)	15,816
Balance (in shares) at Mar. 31, 2020	6,559,076	(25,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Option Exercises			67		67
Stock Option Exercises (in shares)	29,100
Stock-based Compensation			61		61
Net income				1,075	1,075
Balance at Jun. 30, 2020	$ 7		$ 19,598	$ (2,586)	$ 17,019
Balance (in shares) at Jun. 30, 2020	6,588,176	(25,000)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 3,748	$ 4,472
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
Depreciation	235	307
Deferred tax expense	596
Loss on disposal of assets for lease	125	97
Allowance for bad debt	36	21
Stock-based compensation expense	128	196
Changes in Operating Assets and Liabilities:
Trade accounts receivable	2,468	(730)
Prepaid expenses and other assets	(408)	(60)
Accounts payable	(131)	125
Accrued expenses	(573)	(538)
Deferred revenue	(142)	493
Net Cash Provided by Operating Activities	6,082	4,383
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment	(100)	(63)
Purchase of assets for lease	(147)	(779)
Net Cash Used in Investing Activities	(247)	(842)
CASH FLOWS FROM FINANCING ACTIVITIES:
Re-purchase of warrants		(2,687)
Exercise of stock option	70	44
Net Cash Provided by (Used in) Financing Activities	70	(2,643)
INCREASE IN CASH	5,905	898
CASH, BEGINNING OF PERIOD	7,741	3,284
CASH, END OF PERIOD	$ 13,646	$ 4,182

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2020
Basis of Presentation
Basis of Presentation	1. Basis of Presentation Semler Scientific, Inc., a Delaware corporation (“Semler” or “the Company”), prepared the unaudited interim financial statements included in this report in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 9, 2020 (the “Annual Report”). In the opinion of management, these financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for any future period, including the full year. On January 30, 2020, the World Health Organization (“WHO”) declared the recent novel coronavirus (COVID-19) outbreak a global health emergency, which prompted national, state and local governments to begin putting actions in place to slow the spread of COVID-19. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic. The outbreak of COVID-19 has resulted in travel restrictions, quarantines, “stay-at-home” and “shelter-in-place” orders and extended shutdown of certain businesses around the world. For the three and six months ended June 30, 2020 the Company's revenues, primarily from variable-fee licenses were negatively impacted by the COVID-19 pandemic. The extent and duration of the pandemic is unknown, and the future effects on the Company's business are uncertain and difficult to predict. The Company is continuing to monitor the events and circumstances surrounding the COVID-19 pandemic, which may require adjustments to the Company's estimates and assumptions in the future. Recently Issued Accounting Pronouncements Accounting Pronouncements Recently Adopted In November 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-08 – Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customer (Topic 606) In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“Topic 326”) Codification Improvements to Topic 326 Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments – Credit Losses (Topic 326); Targeted Transition Relief In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) In March 2020, FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ​

Variable-fee Revenue

Variable-fee Revenue	6 Months Ended
	Jun. 30, 2020
Variable-fee Revenue
Variable-fee Revenue	2. Variable-fee Revenue Topic 606 affects revenue recognition for the Company’s variable-fee licenses (i.e., fee per test) and sales of hardware equipment and accessories. Total fees from variable-fee licenses represent approximately $290 and $2,250 of revenues for the three months ended June 30, 2020 and 2019, respectively. Total fees from variable-fee licenses represent approximately $2,992 and $3,506 for the six months ended June 30, 2020 and 2019, respectively. Total sales of hardware and equipment accessories represent approximately $129 and $307 of revenues for the three months ended June 30, 2020 and 2019, respectively. Total sales of hardware and equipment accessories represent approximately $400 and $552 of revenues for the six months ended June 30, 2020 and 2019, respectively. Essentially all of the variable-fee licenses are with large healthcare organizations. The remainder of the revenue is earned from leasing the Company's testing product for a fixed fee, which is not subject to Topic 606.

Assets for Lease, net

Assets for Lease, net	6 Months Ended
	Jun. 30, 2020
Assets for Lease, net
Assets for Lease, net	3. Assets for Lease, net The Company enters into contracts with customers for the Company’s QuantaFlo ® Assets for lease consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ ​ 2020 2019 Assets for lease ​ $ 3,308 ​ $ 3,374 ​ Less: accumulated depreciation ​ (1,380) ​ (1,295) ​ Assets for lease, net ​ $ 1,928 ​ $ 2,079 ​ ​ Depreciation expense amounted to $44 and $126 for the three months ended June 30, 2020 and 2019, respectively. Depreciation expense amounted to $172 and $236 for the six months ended June 30, 2020 and 2019, respectively. Reduction to accumulated depreciation for returned items was $22 and $42 for the three months ended June 30, 2020 and 2019, respectively. Reduction to accumulated depreciation for returned items was $87 and $77 for the six months ended June 30, 2020 and 2019, respectively. The Company recognized a loss on disposal of assets for lease in the amount of $59 and $63 for the three months ended June 30, 2020 and 2019, respectively. The Company recognized a loss on disposal of assets for lease in the amount of $125 and $97 for the six months ended June 30, 2020 and 2019, respectively.

Property and Equipment, net

Property and Equipment, net	6 Months Ended
	Jun. 30, 2020
Property and Equipment, net
Property and Equipment, net	4. Property and Equipment, net Capital assets consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ ​ 2020 2019 Capital assets ​ $ 737 ​ $ 636 ​ Less: accumulated depreciation ​ (450) ​ (387) ​ Capital assets, net ​ $ 287 ​ $ 249 ​ ​ Depreciation expense amounted to $32 and $37 for the three months ended June 30, 2020 and 2019, respectively. Depreciation expense amounted to $63 and $71 for the six months ended June 30, 2020 and 2019, respectively.

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2020
Accrued Expenses
Accrued Expenses	5. Accrued Expenses Accrued expenses consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ ​ 2020 2019 Compensation ​ $ 2,365 ​ $ 2,803 ​ Accrued taxes ​ ​ 615 ​ ​ 378 ​ Miscellaneous accruals ​ 363 ​ 733 ​ Total accrued expenses ​ $ 3,343 ​ $ 3,914 ​ ​

Concentration of Credit Risk

Concentration of Credit Risk	6 Months Ended
	Jun. 30, 2020
Concentration of Credit Risk
Concentration of Credit Risk	6. Concentration of Credit Risk Credit risk is the risk of loss from amounts owed by the financial counterparties. Credit risk can occur at multiple levels; as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash and accounts receivable. The Company maintains cash with major financial institutions. The Company’s cash consists of bank deposits held with banks that, at times, exceed federally insured limits. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of the relative credit standing of these financial institutions. Management periodically monitors the creditworthiness of its customers and believes that it has adequately provided for any exposure to potential credit loss. For the three months ended June 30, 2019, three customers accounted for 50.8%, 14.8% and 13.8% of the Company’s revenues, respectively. For the six months ended June 30, 2019, three customers accounted for 53.0%, 13.2%, and 11.1% of the Company’s revenues, respectively. For the three months ended June 30, 2020, one customer accounted for 62.1% of the Company’s revenues. For the six months ended June 30, 2020, two customers accounted for 52.5% and 14.0% of the Company’s revenues, respectively. As of December 31, 2019, three customers accounted for 55.9%, 17.6% and 12.0% of the Company’s accounts receivable, respectively. As of June 30, 2020, three customers accounted for 33.0%, 12.1% and 10.6% of the Company’s accounts receivable, respectively. The Company’s largest customer in terms of both revenues and accounts receivable in the three months ended June 30, 2020 is a U.S. diversified healthcare company and its affiliated plans. As of December 31, 2019, three vendors accounted for 23.3%, 20.3% and 11.1% of the Company’s accounts payable, respectively. As of June 30, 2020, two vendors accounted for 11.4%, and 10.3% of the Company’s accounts payable, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies.
Commitments and Contingencies	7. Commitments and Contingencies Facilities Leases The Company recognized facilities lease expenses of $18 and $17 for the three months ended June 30, 2020 and 2019, respectively. The Company recognized facilities lease expenses of $35 and $34 for the six months ended June 30, 2020 and 2019, respectively. Indemnification Obligations The Company enters into agreements with customers, partners, lenders, consultants, lessors, contractors, sales representatives and parties to certain transactions in the ordinary course of the Company’s business. These agreements may require the Company to indemnify the other party against third party claims alleging that its product infringes a patent or copyright. Certain of these agreements require the Company to indemnify the other party against losses arising from: a breach of representations or covenants, claims relating to property damage, personal injury or acts or omissions of the Company, its employees, agents or representatives. The Company has also agreed to indemnify the directors and certain of the officers and employees in accordance with the by-laws of the Company. These indemnification provisions will vary based upon the nature and terms of the agreements. In many cases, these indemnification provisions do not contain limits on the Company’s liability, and the occurrence of contingent events that will trigger payment under these indemnities is difficult to predict. As a result, the Company cannot estimate its potential liability under these indemnities. The Company believes that the likelihood of conditions arising that would trigger these indemnities is remote and, historically, the Company has not made any significant payment under such indemnification provisions. Accordingly, the Company has not recorded any liabilities relating to these agreements. In certain cases, the Company has recourse against third parties with respect to the aforesaid indemnities, and the Company believes it maintains adequate levels of insurance coverage to protect the Company with respect to potential claims arising from such agreements.

Stock Option Plan

Stock Option Plan	6 Months Ended
	Jun. 30, 2020
Stock Option Plan
Stock Option Plan	8. Stock Option Plan The Company’s stock-based compensation program is designed to attract and retain employees while also aligning employees’ interests with the interests of its stockholders. Stock options have been granted to employees under the stockholder-approved 2007 Key Person Stock Option Plan (“2007 Plan”) or the stockholder-approved 2014 Stock Incentive Plan (“2014 Plan”). Stockholder approval of the 2014 Plan became effective in September 2014. The 2014 Plan originally provided that the aggregate number of shares of common stock that may be issued pursuant to awards granted under the 2014 Plan may not exceed 450,000 shares (the “Share Reserve”), however in October 2015, the stockholders approved a 1,500,000 increase to the Share Reserve. In addition, the Share Reserve automatically increases on January 1st of each year, for a period of not more than 10 years, beginning on January 1st of the year following the year in which the 2014 Plan became effective and ending on (and including) January 1, 2024, in an amount equal to 4% of the total number of shares of common stock outstanding on December 31st of the preceding calendar year. The Company’s Board of Directors may act prior to January 1st of a given year to provide that there will be no January 1st increase in the Share Reserve for such year or that the increase in the Share Reserve for such year will be a lesser number of shares of common stock than would otherwise occur. On January 1, 2020, the Share Reserve increased by 261,249 shares due to the automatic 4% increase. The Share Reserve is currently 2,783,616 shares as of June 30, 2020. In light of stockholder approval of the 2014 Plan, the Company no longer grants equity awards under the 2007 Plan. As of June 30, 2020, 0 shares of an aggregate total of 407,500 shares were available for future stock-based compensation grants under the 2007 Plan and 1,258,557 shares of an aggregate total of 2,783,616 shares were available for future stock-based compensation grants under the 2014 Plan. Aggregate intrinsic value represents the difference between the closing market value as of June 30, 2020 of the underlying common stock and the exercise price of outstanding, in-the-money options. A summary of the Company’s stock option activity and related information for the six months ended June 30, 2020 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options Outstanding ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Number of ​ Weighted ​ Average ​ ​ ​ ​ ​ Stock ​ Average ​ Remaining ​ Aggregate ​ ​ Options ​ Exercise ​ Contractual ​ Intrinsic Value ​ Outstanding Price Term (In Years) (in thousands) Balance, January 1, 2020 1,581,582 ​ $ 3.23 5.86 ​ $ 70,827 Options exercised (32,567) ​ 3.01 — ​ — Balance, June 30, 2020 1,549,015 ​ $ 3.23 5.37 ​ $ 66,248 Exercisable as of June 30, 2020 1,482,272 ​ $ 3.10 5.28 ​ $ 63,588 ​ The total compensation cost related to unvested stock option awards not yet recognized was $307 as of June 30, 2020. The weighted average period over which the total unrecognized compensation cost related to these unvested stock awards will be recognized is 0.66 years. There were no options granted during the three or six months ended June 30, 2020 or 2019. The Company has recorded an expense of $61 and $98 $128 and $196 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ Six months ended June 30, ​ ​ 2020 2019 2020 2019 ​ Cost of Revenue ​ $ — ​ $ 1 ​ $ — ​ $ 1 ​ Engineering and Product Development ​ — ​ 5 ​ — ​ 12 ​ Sales and Marketing ​ — ​ 15 ​ — ​ 31 ​ General and Administrative ​ 61 ​ 77 ​ 128 ​ 152 ​ Total ​ $ 61 ​ $ 98 ​ $ 128 ​ $ 196 ​ ​

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Taxes
Income Taxes	9. Income Taxes The Company’s income tax provision for the three and six months ended June 30, 2020 and June 30, 2019, respectively, reflects its estimate of the effective tax rates expected to be applicable for the full year, adjusted for any discrete events that are recorded in the period in which they occur. The estimates are re-evaluated each quarter based on the estimated tax expense for the full year. The effective tax rate for the three and six months ended June 30, 2020 was (8.59%) and 15.59%, respectively, compared to 2.86% and 1.69%, respectively, in the same periods of the prior year. The increase in the effective tax rate for the six months ended June 30, 2020 is primarily related to the release of the entire valuation allowance against the deferred tax assets for federal and state net operating loss (“NOL”) carryforwards and other related deferred tax assets in quarter ended September 30, 2019. The decrease in the effective tax rate for the three months ended June 30, 2020 is primarily related to tax benefit from discrete events that occurred during the quarter. The effective tax rate for the three and six months ended June 30, 2020, respectively, differed from the U.S. federal statutory rate of 21% primarily due to state income taxes (net of federal benefit) partially offset by tax benefits associated with employee equity plans, federal and state research and development (“R&D”) credit benefit and the effect of changes in enacted tax laws. The difference between the U.S. federal statutory rate of 21% and the Company’s effective tax rate for the three and six months ended June 30, 2019, respectively, was primarily due to NOL carryforwards that offset potential current taxes for which a full valuation allowance had been previously provided. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act was signed into law. The Company has evaluated the impact of the new regulations and determined that there is no material impact to its financial statements.

Net Income Per Share, Basic and

Net Income Per Share, Basic and Diluted	6 Months Ended
	Jun. 30, 2020
Net Income Per Share, Basic and Diluted
Net Income Per Share, Basic and Diluted	10. Net Income Per Share, Basic and Diluted Basic earnings per share (“EPS”) represent net income attributable to common stockholders divided by the weighted average number of common shares outstanding during the measurement period. Diluted EPS represents net income attributable to common stockholders divided by the weighted average number of common shares outstanding during the measurement period while also giving effect to all potentially dilutive common shares that were outstanding during the period using the treasury stock method. Basic and diluted EPS is calculated as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ ​ 2020 ​ 2019 ​ ​ Shares Net Income EPS Shares Net Income EPS Basic ​ 6,548,215 ​ $ 1,075 ​ $ 0.16 6,411,606 ​ $ 2,619 ​ $ 0.41 Common stock warrants ​ 69,039 ​ — ​ ​ 168,099 ​ — ​ ​ Common stock options ​ 1,417,794 ​ — ​ ​ 1,506,435 ​ — ​ ​ Diluted ​ 8,035,048 ​ $ 1,075 ​ $ 0.13 8,086,140 ​ $ 2,619 ​ $ 0.32 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, ​ ​ 2020 ​ 2019 ​ ​ Shares Net Income EPS Shares Net Income EPS Basic ​ 6,540,755 ​ $ 3,748 ​ $ 0.57 6,368,905 ​ $ 4,472 ​ $ 0.70 Common stock warrants ​ 69,377 ​ — ​ ​ 207,471 ​ — ​ ​ Common stock options ​ 1,440,262 ​ — ​ ​ 1,551,865 ​ — ​ ​ Diluted ​ 8,050,394 ​ $ 3,748 ​ $ 0.47 8,128,241 ​ $ 4,472 ​ $ 0.55 ​ The were no weighted average shares outstanding of common stock equivalents excluded from the computation of diluted net loss per share for the three or six months ended June 30, 2020 and 2019.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2020
Subsequent Events
Subsequent Events	11. Subsequent Events None

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2020
Basis of Presentation
Basis of Presentation	Semler Scientific, Inc., a Delaware corporation (“Semler” or “the Company”), prepared the unaudited interim financial statements included in this report in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 9, 2020 (the “Annual Report”). In the opinion of management, these financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for any future period, including the full year. On January 30, 2020, the World Health Organization (“WHO”) declared the recent novel coronavirus (COVID-19) outbreak a global health emergency, which prompted national, state and local governments to begin putting actions in place to slow the spread of COVID-19. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic. The outbreak of COVID-19 has resulted in travel restrictions, quarantines, “stay-at-home” and “shelter-in-place” orders and extended shutdown of certain businesses around the world. For the three and six months ended June 30, 2020 the Company's revenues, primarily from variable-fee licenses were negatively impacted by the COVID-19 pandemic. The extent and duration of the pandemic is unknown, and the future effects on the Company's business are uncertain and difficult to predict. The Company is continuing to monitor the events and circumstances surrounding the COVID-19 pandemic, which may require adjustments to the Company's estimates and assumptions in the future.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Accounting Pronouncements Recently Adopted In November 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-08 – Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customer (Topic 606) In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“Topic 326”) Codification Improvements to Topic 326 Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments – Credit Losses (Topic 326); Targeted Transition Relief In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In January 2020, the FASB issued ASU No. 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) In March 2020, FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

Assets for Lease, net (Tables)

Assets for Lease, net (Tables)	6 Months Ended
	Jun. 30, 2020
Assets for Lease, net
Schedule of assets for lease	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ ​ 2020 2019 Assets for lease ​ $ 3,308 ​ $ 3,374 ​ Less: accumulated depreciation ​ (1,380) ​ (1,295) ​ Assets for lease, net ​ $ 1,928 ​ $ 2,079 ​

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	6 Months Ended
	Jun. 30, 2020
Property and Equipment, net
Schedule of capital assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ ​ 2020 2019 Capital assets ​ $ 737 ​ $ 636 ​ Less: accumulated depreciation ​ (450) ​ (387) ​ Capital assets, net ​ $ 287 ​ $ 249 ​

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2020
Accrued Expenses
Schedule of accrued expenses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ ​ 2020 2019 Compensation ​ $ 2,365 ​ $ 2,803 ​ Accrued taxes ​ ​ 615 ​ ​ 378 ​ Miscellaneous accruals ​ 363 ​ 733 ​ Total accrued expenses ​ $ 3,343 ​ $ 3,914 ​

Stock Option Plan (Tables)

Stock Option Plan (Tables)	6 Months Ended
	Jun. 30, 2020
Stock Option Plan
Schedule of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options Outstanding ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Number of ​ Weighted ​ Average ​ ​ ​ ​ ​ Stock ​ Average ​ Remaining ​ Aggregate ​ ​ Options ​ Exercise ​ Contractual ​ Intrinsic Value ​ Outstanding Price Term (In Years) (in thousands) Balance, January 1, 2020 1,581,582 ​ $ 3.23 5.86 ​ $ 70,827 Options exercised (32,567) ​ 3.01 — ​ — Balance, June 30, 2020 1,549,015 ​ $ 3.23 5.37 ​ $ 66,248 Exercisable as of June 30, 2020 1,482,272 ​ $ 3.10 5.28 ​ $ 63,588
Schedule of stock-based compensation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ Six months ended June 30, ​ ​ 2020 2019 2020 2019 ​ Cost of Revenue ​ $ — ​ $ 1 ​ $ — ​ $ 1 ​ Engineering and Product Development ​ — ​ 5 ​ — ​ 12 ​ Sales and Marketing ​ — ​ 15 ​ — ​ 31 ​ General and Administrative ​ 61 ​ 77 ​ 128 ​ 152 ​ Total ​ $ 61 ​ $ 98 ​ $ 128 ​ $ 196 ​

Net Income Per Share, Basic a_2

Net Income Per Share, Basic and Diluted (Tables)	6 Months Ended
	Jun. 30, 2020
Net Income Per Share, Basic and Diluted
Schedule of basic and diluted net EPS	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ ​ 2020 ​ 2019 ​ ​ Shares Net Income EPS Shares Net Income EPS Basic ​ 6,548,215 ​ $ 1,075 ​ $ 0.16 6,411,606 ​ $ 2,619 ​ $ 0.41 Common stock warrants ​ 69,039 ​ — ​ ​ 168,099 ​ — ​ ​ Common stock options ​ 1,417,794 ​ — ​ ​ 1,506,435 ​ — ​ ​ Diluted ​ 8,035,048 ​ $ 1,075 ​ $ 0.13 8,086,140 ​ $ 2,619 ​ $ 0.32 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, ​ ​ 2020 ​ 2019 ​ ​ Shares Net Income EPS Shares Net Income EPS Basic ​ 6,540,755 ​ $ 3,748 ​ $ 0.57 6,368,905 ​ $ 4,472 ​ $ 0.70 Common stock warrants ​ 69,377 ​ — ​ ​ 207,471 ​ — ​ ​ Common stock options ​ 1,440,262 ​ — ​ ​ 1,551,865 ​ — ​ ​ Diluted ​ 8,050,394 ​ $ 3,748 ​ $ 0.47 8,128,241 ​ $ 4,472 ​ $ 0.55

Variable-fee Revenue (Details)

Variable-fee Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Variable-fee Revenue
Revenue from variable-fee licenses	$ 290	$ 2,250	$ 2,992	$ 3,506
Revenue from sales of hardware and equipment accessories	$ 129	$ 307	$ 400	$ 552

Assets for Lease, net (Details)

Assets for Lease, net (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Assets for Lease, net
Assets for lease	$ 3,308	$ 3,374
Less: accumulated depreciation	(1,380)	(1,295)
Assets for lease, net	$ 1,928	$ 2,079

Assets for Lease, net - Additio

Assets for Lease, net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Assets for Lease, net
Lease revenue	$ 5,954	$ 5,396	$ 12,411	$ 10,656
Depreciation expense	44	126	172	236
Reduction to accumulated depreciation for returned items	22	42	87	77
Loss on disposal of assets for lease	$ (59)	$ (63)	$ (125)	$ (97)

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Property and Equipment, net
Capital assets	$ 737	$ 636
Less: accumulated depreciation	(450)	(387)
Capital assets, net	$ 287	$ 249

Property and Equipment, net - A

Property and Equipment, net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Property and Equipment, net
Depreciation expense	$ 32	$ 37	$ 63	$ 71

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Accrued Expenses
Compensation	$ 2,365	$ 2,803
Accrued taxes	615	378
Miscellaneous accruals	363	733
Total accrued expenses	$ 3,343	$ 3,914

Concentration of Credit Risk (D

Concentration of Credit Risk (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Customer concentration risk | Revenue
Concentration of Credit Risk
Number of customers	1	3	2	3
Customer concentration risk | Revenue | Customer one
Concentration of Credit Risk
Concentration risk percentage	62.10%	50.80%	52.50%	53.00%
Customer concentration risk | Revenue | Customer two
Concentration of Credit Risk
Concentration risk percentage		14.80%	14.00%	13.20%
Customer concentration risk | Revenue | Customer three
Concentration of Credit Risk
Concentration risk percentage		13.80%		11.10%
Customer concentration risk | Accounts receivable
Concentration of Credit Risk
Number of customers			3		3
Customer concentration risk | Accounts receivable | Customer one
Concentration of Credit Risk
Concentration risk percentage			33.00%		55.90%
Customer concentration risk | Accounts receivable | Customer two
Concentration of Credit Risk
Concentration risk percentage			12.10%		17.60%
Customer concentration risk | Accounts receivable | Customer three
Concentration of Credit Risk
Concentration risk percentage			10.60%		12.00%
Vendor concentration risk | Accounts payable
Concentration of Credit Risk
Number of vendors			2		3
Vendor concentration risk | Accounts payable | Vendor one
Concentration of Credit Risk
Concentration risk percentage			11.40%		23.30%
Vendor concentration risk | Accounts payable | Vendor two
Concentration of Credit Risk
Concentration risk percentage			10.30%		20.30%
Vendor concentration risk | Accounts payable | Vendor three
Concentration of Credit Risk
Concentration risk percentage					11.10%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Commitments and Contingencies.
Facilities lease expense	$ 18	$ 17	$ 35	$ 34

Stock Option Plan (Details)

Stock Option Plan (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares
Number of Stock Options Outstanding
Balance, Beginning | shares	1,581,582
Options exercised | shares	(32,567)
Balance, Ending | shares	1,549,015	1,581,582
Exercisable, Ending | shares	1,482,272
Weighted Average Exercise Price
Balance, Beginning | $ / shares	$ 3.23
Options exercised | $ / shares	3.01
Balance, Ending | $ / shares	3.23	$ 3.23
Exercisable, Ending | $ / shares	$ 3.10
Weighted Average Remaining Contractual Term, Options Outstanding (in years)	5 years 4 months 13 days	5 years 10 months 9 days
Weighted Average Remaining Contractual Term, Options Exercisable (in years)	5 years 3 months 10 days
Aggregate Intrinsic Value, Options Outstanding | $	$ 66,248	$ 70,827
Aggregate Intrinsic Value, Options Exercisable | $	$ 63,588

Stock Option Plan - Stock-based

Stock Option Plan - Stock-based compensation - Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 61	$ 98	$ 128	$ 196
Cost of Revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		1		1
Engineering and Product Development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		5		12
Sales and Marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		15		31
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 61	$ 77	$ 128	$ 152

Stock Option Plan - Additional

Stock Option Plan - Additional information (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2019	Oct. 31, 2015	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to non-vested stock options			$ 307		$ 307
Weighted average period of unvested stock awards					7 months 28 days
Stock-based compensation expense			$ 61	$ 98	$ 128	$ 196
Number of stock option granted			0	0	0	0
2007 Key Person Stock Option Plan | Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future stock-based compensation grants			0		0
Maximum number of shares issued pursuant to awards granted under plan			407,500		407,500
2014 Stock Incentive Plan | Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future stock-based compensation grants			1,258,557		1,258,557
Maximum number of shares issued pursuant to awards granted under plan			2,783,616		2,783,616		450,000
Maximum term of stock option grants		10 years
Number of share reserve increased	261,249	1,500,000
Percentage of shares reserve increased	4.00%	4.00%

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Taxes
Effective income tax rate	(8.59%)	2.86%	15.59%	1.69%
Federal statutory rate			21.00%	21.00%

Net Income Per Share, Basic a_3

Net Income Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net Income Per Share, Basic and Diluted
Basic EPS (in shares)	6,548,215	6,411,606	6,540,755	6,368,905
Common stock warrants (in shares)	69,039	168,099	69,377	207,471
Common stock options (in shares)	1,417,794	1,506,435	1,440,262	1,551,865
Diluted EPS (in shares)	8,035,048	8,086,140	8,050,394	8,128,241
Net Income - Basic EPS	$ 1,075	$ 2,619	$ 3,748	$ 4,472
Net Income - Common stock warrants	0	0	0	0
Net Income - Common stock options	0	0	0	0
Net Income - Diluted EPS	$ 1,075	$ 2,619	$ 3,748	$ 4,472
Basic EPS (in dollars per share)	$ 0.16	$ 0.41	$ 0.57	$ 0.70
Diluted EPS (in dollars per share)	$ 0.13	$ 0.32	$ 0.47	$ 0.55