Biotelemetry 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 01, 2017
Document and Entity Information
Entity Registrant Name	BioTelemetry, Inc.
Entity Central Index Key	1,574,774
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		32,408,118
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 26,242	$ 23,052
Healthcare accounts receivable, net of allowance for doubtful accounts of $14,498 and $12,198, at September 30, 2017 and December 31, 2016, respectively	23,651	14,594
Other accounts receivable, net of allowance for doubtful accounts of $567 and $665, at September 30, 2017 and December 31, 2016, respectively	13,109	12,261
Inventory	6,086	5,176
Prepaid expenses and other current assets	9,295	4,477
Total current assets	78,383	59,560
Property and equipment, net	56,680	25,823
Intangible assets, net	140,064	33,472
Goodwill	227,524	41,068
Deferred tax asset	15,498	36,636
Other assets	2,562	2,425
Total assets	520,711	198,984
Current liabilities:
Accounts payable	14,367	12,425
Accrued liabilities	23,048	13,698
Current portion of capital leases obligations	4,728	162
Current portion of long-term debt	1,546	1,250
Deferred revenue	5,171	3,972
Total current liabilities	48,860	31,507
Long-term capital lease obligations	2,480	126
Long-term debt	197,815	23,911
Other long-term liabilities	3,242	4,526
Total liabilities	252,397	60,070
Equity:
Common stock-$.001 par value as of September 30, 2017 and December 31, 2016; 200,000,000 shares authorized as of September 30, 2017 and December 31, 2016; 32,408,118 and 28,261,503 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	32	28
Paid-in capital	405,859	281,642
Accumulated other comprehensive income (loss)	1	(34)
Accumulated deficit	(143,085)	(142,722)
Total stockholders' equity	262,807	138,914
Noncontrolling interests	5,507
Total equity	268,314	138,914
Total liabilities and equity	$ 520,711	$ 198,984

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEETS
Accounts receivable, net of allowance for doubtful accounts (in dollars)	$ 14,498	$ 12,198
Other accounts receivable, net of allowance for doubtful accounts (in dollars)	$ 567	$ 665
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	32,408,118	28,261,503
Common stock, shares outstanding	32,408,118	28,261,503

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Healthcare	$ 69,528	$ 40,395	$ 156,109	$ 123,709
Research	9,313	10,420	28,199	23,709
Technology	2,182	2,240	10,725	6,957
Total revenues	81,023	53,055	195,033	154,375
Cost of revenues:
Healthcare	24,493	13,030	53,516	39,662
Research	5,581	5,604	16,733	13,306
Technology	1,880	1,555	6,839	4,993
Total cost of revenues	31,954	20,189	77,088	57,961
Gross profit	49,069	32,866	117,945	96,414
Operating expenses:
General and administrative	25,320	13,853	55,603	40,577
Sales and marketing	9,719	7,018	25,051	21,687
Bad debt expense	3,768	2,495	8,975	7,797
Research and development	3,277	2,137	8,225	5,888
Other charges	8,152	2,397	14,542	5,844
Total operating expenses	50,236	27,900	112,396	81,793
Income (loss) from operations	(1,167)	4,966	5,549	14,621
Other income (expense):
Interest Expense	(1,841)	(544)	(2,622)	(1,402)
Loss on extinguishment of debt	(543)		(543)
Loss on equity method investment	(106)	(69)	(302)	(184)
Other non-operating income (expense), net	658	(17)	(2,755)	(100)
Total other income (expense)	(1,832)	(630)	(6,222)	(1,686)
Income (loss) before income taxes	(2,999)	4,336	(673)	12,935
Benefit from (provision for) income taxes	435	(141)	31	54
Net income (loss)	(2,564)	4,195	(642)	12,989
Net loss attributable to noncontrolling interests	(279)		(279)
Net loss attributable to BioTelemetry, Inc	(2,285)	4,195	(363)	12,989
Other comprehensive income (loss):
Foreign currency translation gain	16	150	35	2
Comprehensive income (loss)	$ (2,269)	$ 4,345	$ (328)	$ 12,991
Net income (loss) per common share attributable to BioTelemetry, Inc.:
Basic (in dollars per share)	$ (0.07)	$ 0.15	$ (0.01)	$ 0.47
Diluted (in dollars per share)	$ (0.07)	$ 0.14	$ (0.01)	$ 0.43
Weighted average number of common shares outstanding:
Basic (in shares)	31,897,237	28,102,196	29,682,210	27,810,763
Diluted (in shares)	31,897,237	30,880,773	29,682,210	30,306,017

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
OPERATING ACTIVITIES
Net income (loss)	$ (642)	$ 12,989
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Bad debt expense	8,975	7,797
Depreciation	11,233	7,884
Amortization of intangibles	5,326	2,735
Stock-based compensation	5,685	3,757
Equity method investment loss	302	184
Change in fair value of acquisition-related contingent consideration	(2,005)
Write off of derivative premium	1,322
Accretion of discount on debt	369	163
Loss on extinguishment of debt	543
Non-cash gain on legal settlement	(1,333)
Non-cash lease (benefit) expense	(63)	111
Deferred income tax benefit	(563)	(476)
Changes in operating assets and liabilities:
Healthcare and other accounts receivables	(9,413)	(8,390)
Inventory	(89)	(1,221)
Prepaid expenses and other assets	365	(2,079)
Accounts payable	(8,724)	934
Accrued and other liabilities	(627)	2,017
Net cash provided by operating activities	10,661	26,405
INVESTING ACTIVITIES
Acquisition of businesses, net of cash acquired	(166,244)	(17,970)
Purchases of property and equipment and investment in internally developed software	(11,940)	(8,507)
Purchases of derivative instrument	(1,322)
Investment in equity method investee	(490)
Net cash used in investing activities	(179,996)	(26,477)
FINANCING ACTIVITIES
Proceeds related to the exercising of stock options and employee stock purchase plan	5,705	2,380
Tax payments related to the vesting of shares	(1,881)	(2,324)
Issuance of long-term debt	205,000
Borrowings under revolving loans		14,500
Repayments of revolving loans	(3,000)
Payment of debt issuance costs	(6,319)
Principal payments on long-term debt	(25,851)	(958)
Principal payments on capital lease obligations	(1,164)	(257)
Net cash provided by financing activities	172,490	13,341
Effect of exchange rate changes on cash	35
Net increase in cash and cash equivalents	3,190	13,269
Cash and cash equivalents - beginning of period	23,052	18,986
Cash and cash equivalents - end of period	26,242	32,255
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Non-cash purchases of property and equipment	498
Non-cash fair value of common stock returned in legal settlement	2,753
Non-cash fair value of equity issued for acquisition of business	117,440
Cash paid for interest	2,353	965
Cash paid for taxes	$ 1,355	$ 289

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands	Common Stock	Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Noncontrolling Interests	Total
Balance at Dec. 31, 2016	$ 28	$ 281,642	$ (34)	$ (142,722)		$ 138,914
Balance (in shares) at Dec. 31, 2016	28,261,503					28,261,503
Increase (Decrease) in Shareholders' Equity
Exercise of stock options and purchase of shares related to the employee stock purchase plan		5,705				$ 5,705
Exercise of stock options and purchase of shares related to the employee stock purchase plan (in shares)	480,433
Stock-based compensation		5,685				5,685
Stock-based compensation (in shares)	187,747
RSUs and PSUs withheld to cover taxes		(1,881)				(1,881)
RSUs and PSUs withheld to cover taxes ( in shares )	(77,878)
Business combination	$ 4	116,788			$ 11,224	128,016
Business combination (in shares)	3,615,840
Acquisition of noncontrolling interest		673			(5,438)	(4,765)
Acquisition of noncontrolling interest (in shares)	19,806
Common shares returned to Company in legal settlement		(2,753)				(2,753)
Common shares returned to Company in legal settlement (shares)	(79,333)
Currency translation adjustment			35			35
Net loss				(363)	(279)	(642)
Balance at Sep. 30, 2017	$ 32	$ 405,859	$ 1	$ (143,085)	$ 5,507	$ 268,314
Balance (in shares) at Sep. 30, 2017	32,408,118					32,408,118

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, these consolidated financial statements do not include all of the information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows. In the opinion of management, these consolidated financial statements reflect all adjustments which are of a normal recurring nature and necessary for a fair presentation of BioTelemetry, Inc.’s (“BioTelemetry,” “Company,” “we,” “our” or “us” ) financial position as of September 30, 2017 and December 31, 2016, the results of operations for the three months and nine months ended September 30, 2017 and 2016 and cash flows for the nine months ended September 30, 2017 and 2016. The financial data and other information disclosed in these notes to the consolidated financial statements related to the three and nine months ended September 30, 2017 and 2016 are unaudited. The results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for any future period. Net Income (Loss) Per Share We compute net income (loss) per share in accordance with Accounting Standards Codification (“ASC”) 260, Earnings Per Share. Basic net income (loss) per share is computed by dividing net income (loss) attributable to BioTelemetry by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential dilutive common shares, including stock options and restricted stock units, using the treasury stock method. The following table presents the calculation of basic and diluted net income (loss) per share: Three Months Ended Nine months Ended 2017 2016 2017 2016 Numerator: Net income (loss) attributable to BioTelemetry, Inc. $ ) $ $ ) $ Denominator: Weighted average shares used in computing basic net income (loss) per share Dilutive stock option and restricted stock units — — Weighted average shares used in computing diluted net income per share Net income (loss) per share attributable to BioTelemetry, Inc: Basic net income (loss) per share $ ) $ $ ) $ Diluted net income (loss) per share $ ) $ $ ) $ Certain stock options, which are priced higher than the market price of our shares as of September 30, 2017 and 2016, would be anti-dilutive and therefore have been excluded from the weighted average shares used in computing diluted net income (loss) per share. These options could become dilutive in future periods. Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. This consists of disaggregating the components within other income (expense) in the consolidated statements of operations. The reclassification had no impact on previously reported net income (loss), cash flows or accumulated deficit. Fair Value of Financial Instruments Fair value is defined as the exit price, the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as defined below. Observable inputs are inputs a market participant would use in valuing an asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the factors a market participant would use in valuing an asset or liability developed using the best information available in the circumstances. The classification of an asset’s or liability’s level within the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Level 1—Quoted prices in active markets for an identical asset or liability. Level 2—Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. Level 3—Inputs that are unobservable for the asset or liability, based on our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Our financial instruments consist primarily of cash and cash equivalents, Healthcare accounts receivable, other accounts receivable, accounts payable, short-term debt and long-term debt. With the exception of long-term debt, the carrying value of these financial instruments approximates their fair value because of their short-term nature (classified as Level 1). For long-term debt, based on the borrowing rates currently available, the fair value was determined to be $205,000 (classified as Level 2) as of September 30, 2017. The fair value of contingent consideration is measured on a recurring basis using unobservable inputs such as projected payment dates, probabilities of meeting specified milestones and other such variables resulting in payment amounts which are discounted back to present value using a probability-weighted discounted cash flow model (classified as Level 3). Adjustments to contingent consideration are recorded under other charges. In addition to the recurring fair value measurements, certain assets acquired and liabilities assumed in connection with a business combination are recorded at fair value primarily using a discounted cash flow model (classified as Level 3). This valuation technique requires us to make certain assumptions, including, but not limited to, future operating performance and cash flows, royalty rate and other such variables which are discounted to present value using a discount rate that reflects the risk factors associated with future cash flow, the characteristics of the assets acquired and liabilities assumed and the experience of the acquired business. Derivative Instruments During the second quarter of 2017, we purchased a foreign currency option with a notional value of $194,185 to mitigate the foreign exchange risk related to the Swiss Franc denominated purchase price of LifeWatch AG (“LifeWatch”). This derivative instrument was not designated as a hedge for accounting purposes. The derivative instrument was recorded at fair value in the consolidated balance sheet as a component of prepaid expenses and other current assets. We did not exercise this option and the contract expired during the third quarter of 2017, resulting in a write off of the premium of $1,322 which was recorded as a component of other non-operating income (expense), net in the consolidated statements of operations and comprehensive income (loss). Equity Method Investments We account for investments using the equity method of accounting if the investment provides us the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is recorded at cost in the consolidated balance sheet as a component of other assets and is periodically adjusted for capital contributions, dividends received and our share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded as loss on equity method investment in the consolidated statements of operations and comprehensive income (loss). Noncontrolling interests The consolidated financial statements reflect the application of ASC 810, Consolidations, which establishes accounting and reporting standards that require: (i) the ownership interest in subsidiaries held by parties other than the parent to be clearly identified and presented in the consolidated balance sheet within shareholder’s equity, but separate from the parent’s equity; (ii) the amount of consolidated net income attributable to the parent and the noncontrolling interest to be clearly identified and presented on the face of the consolidated statements of income; and (iii) changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary to be accounted for consistently. We acquired approximately 97.0% of LifeWatch AG on July 12, 2017. On that date, we acquired control of LifeWatch AG and began consolidating its financial statements. The interest represented by the shares not tendered or subsequently acquired through September 30, 2017 are presented as noncontrolling interests in our consolidated financial statements. The fair value of the noncontrolling interest was determined based on the observable quoted share price as of the acquisition date. As of September 30, 2017, we owned 98.5% of LifeWatch AG and expect to acquire the remaining outstanding shares in the fourth quarter of 2017 or shortly thereafter. LifeWatch AG owns 55% of LifeWatch Turkey Holding AG (“LifeWatch Turkey”) with their partner, IKSIR TEKNOLOJI SAGLIK VE KIMYA SAN. ve TIC. A.S., a company located in Ankara, Turkey, to provide digital health solutions to the Turkish market. Concurrent with our acquisition of LifeWatch AG, we acquired control of LifeWatch Turkey and began consolidating their financial statements. As of September 30, 2017, LifeWatch Turkey’s net assets were $3,097 and their loss since July 12, 2017 was $526. Amounts pertaining to the noncontrolling ownership interest of both LifeWatch AG and LifeWatch Turkey Holding AG held by third parties in the operating results of the Company are combined and reported as noncontrolling interests in the accompanying consolidated financial statements. Goodwill and Acquired Intangible Assets Goodwill is the excess of the purchase price of an acquired business over the amounts assigned to assets acquired and liabilities assumed in a business combination. In accordance with ASC 350 , Intangibles—Goodwill and Other (“ASC 350”), goodwill is reviewed for impairment annually, or when events arise that could indicate that an impairment exists. Initially, we qualitatively assess whether it is more-likely-than-not that an impairment exists for each reporting unit. Such qualitative factors can include, among others, industry and market conditions, present and anticipated sales and cost factors, overall financial performance and relevant entity-specific events. If we conclude based on our qualitative assessment that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, we perform a two-step impairment test in accordance with ASC 350. In the first step, we compare the fair value of our reporting units to the carrying value of the reporting units. If the carrying value of the net assets assigned to the reporting units exceeds the fair value of the reporting units, then the second step of the impairment test is performed in order to determine the implied fair value of the reporting units’ goodwill. If the carrying value of the reporting units’ goodwill exceeds the implied fair value of those reporting units, an impairment loss equal to the difference is recorded. For the purpose of performing our goodwill impairment analysis, we consider our business to be comprised of three reporting units: Healthcare, Research and Technology. We calculate the fair value of the reporting units utilizing a weighting of the income and market approaches. The income approach is based on a discounted cash flow methodology that includes assumptions for, among other things, forecasted income, cash flow, growth rates, income tax rates, expected tax benefits and long-term discount rates, all of which require significant judgment. The market approach utilizes our market data. There are inherent uncertainties related to these factors and the judgment applied in the analysis. We believe that the combination of an income and a market approach provides a reasonable basis to estimate the fair value of our reporting units. Acquired intangible assets are recorded at fair value on the acquisition date. The estimated fair values and useful lives of intangible assets are determined by assessing many factors including estimates of future operating performance and cash flow of the acquired business, the characteristics of the intangible assets acquired and the experience of the acquired business. Independent appraisal firms may assist with the valuation of acquired assets. The impairment test for indefinite-lived intangible assets other than goodwill consists of a comparison of the fair value of the indefinite-lived intangible asset to the carrying value of the asset. We estimate the fair value of the indefinite-lived intangibles using the relief from royalty method. Accounting Pronouncements Recently Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting . The standard revises the accounting for certain aspects of share-based compensation arrangements and requires any excess tax benefits or tax deficiencies to be recorded directly in the income statement when such awards vest or settle. In addition, the cash flows related to any excess tax benefits will no longer be separately classified as a financing activity, but will rather be classified as an operating activity, along with all other income tax cash flows. The standard also makes certain changes to the way the treasury stock method is applied when calculating diluted net income per share, as well as allows for a policy election to account for forfeitures as they occur, rather than using the estimation method currently prescribed by ASC 718, Compensation — Stock Compensation (“ASC 718”). The standard is effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. We elected to early adopt the standard during the fourth quarter of 2016. The standard requires the recognition of any pre-adoption date net operating loss (“NOL”) carryforwards from share-based compensation arrangements to be recognized on a modified retrospective basis, through an opening retained earnings adjustment on January 1, 2016. Any income tax effects from share-based compensation arrangements arising after January 1, 2016 will be recognized prospectively in the income statement during the period of adoption. Upon adoption, we recognized all previously unrecognized tax benefits which resulted in a cumulative-effect adjustment of $1,752 to our accumulated deficit. These previously unrecognized tax benefits were recorded as a deferred tax asset, which was fully offset by a valuation allowance on January 1, 2016, thus there was no net impact from the adoption of ASU 2016-09 as of the same date. In addition, we recognized excess tax benefits as an adjustment to our previously reported (provision for) income taxes of $94 and $583 for the three and nine months ended September 30, 2016, respectively. Corresponding adjustments were recorded in the operating section of our statement of cash flows for the nine months ended September 30, 2016. The weighted average number of common shares outstanding for calculating diluted net income per share increased by 547,196 and 448,792 for the three and nine months ended September 30, 2016. Our adoption of the standard did not have any impact to our consolidated statements of cash flows as no NOL carryforwards from share-based compensation arrangements were recognized prior to January 1, 2016, due to our use of the “with and without” method of accounting for equity-generated NOL carryforwards. We have elected to continue to estimate forfeitures under the true-up provision of ASC 718. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . The standard requires inventory to be measured at the lower of cost or net realizable value. The guidance will not apply to inventories for which cost is determined using the last-in, first-out method or the retail inventory method. Our adoption of this standard in the first quarter of 2017 did not have a material impact on our consolidated financial statements. Accounting Pronouncements Not Yet Adopted In January 2017, the FASB released ASU 2017-01, Business Combinations: Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this ASU should be applied prospectively and are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. No disclosures are required at transition. We will adopt this standard effective January 1, 2018 and do not expect the standard to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . The standard eliminates step two in the current two-step impairment test under ASC 350. Under the new standard, a goodwill impairment will be recorded for any excess of a reporting unit’s carrying value over its fair value. A prospective transition approach is required. The standard is effective for annual and interim reporting periods beginning after December 15, 2019 with early adoption permitted for annual and interim goodwill impairment testing dates after January 1, 2017. We plan to early adopt the standard at the time of our 2017 goodwill impairment testing date and do not expect the standard to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases . The standard will require lessees to recognize most leases on their balance sheet and makes selected changes to lessor accounting. The standard is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. A modified retrospective transition approach is required, with certain practical expedients available. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which has been updated through several revisions and clarifications since its original issuance. The standard will require revenue recognized to represent the transfer of promised goods or services to customers at an amount that reflects the consideration which a company expects to receive in exchange for those goods or services. The standard also requires new, expanded disclosures regarding revenue recognition. The standard will be effective January 1, 2018, with early adoption permissible beginning January 1, 2017. We have substantially completed the detailed review of our contract portfolio and revenue streams to identify potential differences in accounting as a result of the new standard. We expect that there will be an impact to our financial reporting disclosures as well as any related business operations processes and internal controls over financial reporting. As part of the assessment performed through the date of this filing, we have created an implementation working group, which includes internal and third-party resources. As part of our implementation plan, we have adopted implementation controls that will allow us to properly and timely adopt the new revenue accounting standard on its effective date. In particular, we implemented the following: · Developed a detailed project plan with key milestone dates; · Performed education of the new accounting standard; · Outlined our revenue generating activities that fall within the scope of ASU 2014-09, and assessed what impact the new accounting standard will have on those activities, and; · Monitored and assessed the impact of changes to ASU 2014-09 and its interpretations. Specific considerations made to date on the impact of adopting ASU 2014-09 include: · Healthcare Revenue —We continue to evaluate the valuation of our Healthcare revenue and accounts receivable with respect to adopting ASU 2014-09. This evaluation includes determining whether the Company has historical experience of collecting substantially all of the negotiated contractual rates or any implicit price concessions are provided. If the Company determines it has not provided an implicit price concession but, rather, that it has chosen to accept the risk of default by the patient, adjustments to the transaction price would be presented as bad debts. This impacts whether revenue will be recognized on a gross basis or a net basis. For this assessment, we combined LifeWatch revenue with the existing legacy Healthcare revenue streams. Our current accounting policy is such that revenue is recognized upon agreed upon reimbursement rates. If we do not have agreed upon reimbursement rates, we recognize revenue based on historical experience, or if no historical experience, when cash is received. Adjustments to the estimated net realizable value, based on final settlement with the third-party payors, are recorded upon settlement. · Research revenue — The Company has concluded that the majority of the clinical research arrangements in its Research segment will represent a single performance obligation. We expect to account for revenue for this single performance obligation over time using either an input or output method to measure progress. We are still evaluating the appropriate selection of the measure of progress for these arrangements. · Technology revenue — The Company has concluded that the standard will not have a material impact on Technology revenue. We will continue to recognize revenue in our Technology segment when products are shipped or as services are rendered. · Contract Costs — The Company has concluded that all material costs to acquire customer contracts will continue to be expensed as we have elected the practical expedient of expensing contract costs when incurred as the amortization period of the asset that we would have recognized is one year or less. We are evaluating the impact of fulfillment cost capitalization in conjunction with its measure of progress selection under the input or output method for Research revenue. We currently expense all contract costs. · Transition Method —We will be electing to adopt ASU 2014-09 using the modified retrospective approach. In addition to the open matters discussed above, significant implementation matters to be addressed prior to adopting ASU 2014-09 include determining the transition adjustment resulting from the new accounting standard on our consolidated financial statements, and updating, as needed, our business processes, systems and controls required to comply with ASU 2014-09 upon its effective date. We will make continuous updates to our year-end disclosures, with a focus on implementation status updates related to the impact ASU 2014-09 will have on our consolidated financial statements and related footnotes. We expect to complete our assessment of the full financial impact of ASU 2014-09 during the next three months and expect to adopt ASU 2014-09 when it becomes effective on January 1, 2018.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2017
Acquisitions
Acquisitions	Acquisitions LifeWatch AG On July 12, 2017, the Company, through its wholly-owned subsidiary Cardiac Monitoring Holding Company, LLC, acquired approximately 97.0% of the outstanding shares of LifeWatch AG for aggregate consideration of 3,615,840 shares of BioTelemetry common stock with a fair value of $116,792 and cash in the amount of $165,782. On that date, we acquired control of LifeWatch AG and began consolidating its financial statements. The interest represented by the shares not tendered or subsequently acquired through September 30, 2017 are presented as noncontrolling interests in our consolidated financial statements. The fair value of the noncontrolling interest was determined based on the observable quoted share price as of the acquisition date. Through September 30, 2017, we purchased 343,525 additional shares of LifeWatch for cash consideration of $4,765 and the issuance of 19,806 shares with a fair value of $648. We intend to acquire the remaining untendered LifeWatch shares pursuant to a squeeze-out procedure in accordance with Swiss law and takeover regulation. As of September 30, 2017, we owned 98.5% of LifeWatch AG and expect to acquire the remaining outstanding shares in the fourth quarter of 2017 or shortly thereafter. Also on July 12, 2017, in connection with the closing of the acquisition of LifeWatch, and refinancing of its existing debt, the Company entered into a Credit Agreement pursuant to which the Company obtained loans as follows; (i) a term loan (funded on July 12, 2017) in an aggregate principal amount equal to $205,000, the proceeds of which were used to (a) pay our existing General Electric Credit Agreement of $24,875 and acquired LifeWatch debt of $3,027, (b) pay a portion of the cash consideration for the acquisition of LifeWatch, and (c) pay related transaction fees and expenses of the acquisition of LifeWatch; and (ii) a $50,000 revolving credit facility for ongoing working capital purposes, which remains undrawn. The term loan will be repaid in quarterly installments beginning January 1, 2018, with the remaining principal balance repaid on or before July 12, 2022. The acquisition of LifeWatch strengthens our position as the leader in wireless medicine, creating the foremost connected health platform, significantly enhancing our ability to improve quality of life and reduce cost of care. We accounted for the transaction as a business combination, and as such, all assets acquired and liabilities assumed were recorded at their estimated fair values. The excess of the fair value of the purchase price over the fair value of the net assets acquired has been recognized as goodwill, which represents the expected future benefits arising from the assembled workforce and other synergies attributable to cost savings opportunities. The Company recognized $186,456 of goodwill as a result of the acquisition, all of which has been assigned to the Healthcare segment. The amounts below represent our preliminary fair value estimates as of September 30, 2017 and are subject to subsequent adjustment as additional information is obtained during the applicable measurement period. The primary areas of these preliminary estimates that are not yet finalized related to certain tangible assets acquired and liabilities assumed, including deferred taxes, identifiable intangible assets, as well as the determination of the amount of the goodwill that will be deductible for tax purposes. The Company expects to finalize all accounting for the acquisition of LifeWatch within one year of the acquisition date. Amount Weighted Fair value of assets acquired: Cash and cash equivalents $ Healthcare accounts receivable Inventory Prepaid expenses and other current assets Property and equipment Other assets Identifiable intangible assets: Customer relationships 10 Technology 5 Total identifiable intangible assets Total assets acquired Fair value of liabilities assumed: Accounts payable Accrued liabilities Current portion of capital lease obligations Current portion of long-term debt Long-term capital lease obligations Deferred tax liabilities Other liabilities Total liabilities assumed Total identifiable net assets Fair value of noncontrolling interest ) Goodwill Net assets acquired $ For the period from July 12, 2017 to September 30, 2017, LifeWatch contributed revenues of $27,386 and net loss of $1,998 to our consolidated results of operations and comprehensive income (loss), and are included as components of our Healthcare and Technology segments. We incurred $3,148 and $8,188 of acquisition-related costs related to LifeWatch for the three and nine month periods ended September 30, 2017, respectively. These costs were included in other charges in our consolidated statements of operations and comprehensive income (loss). The following unaudited pro forma financial information has been prepared using historical financial results of the Company and LifeWatch as if the acquisition had occurred as of January 1, 2016. Certain adjustments related to the elimination of transaction costs, as well as the addition of interest on the debt, depreciation and amortization related to fair value adjustments on the tangible and identifiable intangible assets acquired, and the change in the share count resulting from the share issuance have been reflected for the purposes of the unaudited pro forma financial information presented below. We believe the assumptions used in preparing the unaudited pro forma financial information are reasonable, but not necessarily indicative of actual results should the acquisition have occurred on January 1, 2016. Pro forma financial information for the periods presented is summarized as follows: Three Months Ended September 30, Nine months Ended September 30, 2017 2016 2017 2016 Revenue $ $ $ Net income (loss) attributable to BioTelemetry, Inc ) ) ) Net income (loss) per common share attributable to BioTelemetry, Inc: Basic $ ) $ $ ) $ ) Diluted $ ) $ $ ) $ ) Weighted average number of common shares outstanding: Basic Diluted Telcare, Inc. On December 1, 2016, the Company, through its wholly-owned subsidiary BioTelemetry Care Management, LLC, entered into the Agreement with Telcare pursuant to which the Company acquired the stock of Telcare Medical Supply, Inc. and certain assets of Telcare, Inc. The total consideration paid at closing amounted to $7,000 in cash, with the potential for a performance-based earn out up to $5,000 upon reaching certain financial milestones. The fair value of the total consideration transferred in the acquisition, including contingent consideration, was $9,700 at the acquisition date. The acquisition of Telcare provides us the opportunity to apply our expertise in remote monitoring to the diabetes market and increases our presence in the digital population health management market. We accounted for the transaction as a business combination, and as such, all assets acquired and liabilities assumed were recorded at their estimated fair values. The excess of the fair value of the purchase price over the fair value of the net assets acquired has been recognized as goodwill, which represents the expected future benefits arising from the assembled workforce and other synergies attributable to cost savings opportunities. The Company recognized $3,713 of goodwill as a result of the acquisition, all of which has been assigned to the Technology segment. We expect $668 of this goodwill will be deductible for tax purposes. The amounts below represent our preliminary fair value estimates as of September 30, 2017 and are subject to subsequent adjustment as additional information is obtained during the applicable measurement period. Measurement period adjustments reducing the valuation of inventory of $269 and $105 were recorded in the second and third quarters of 2017, respectively. The primary areas of these preliminary estimates that are not yet finalized related to deferred taxes. We expect to finalize all accounting for the acquisition of Telcare within one year of the acquisition date. The total consideration and related preliminary allocation for Telcare is summarized as follows: Amount Weighted Fair value of assets acquired: Other accounts receivable $ Inventory Prepaid expenses and other current assets Property and equipment Other assets Identifiable intangible assets: Customer relationships 5 Technology 5 Tradename Indefinite Total identifiable intangible assets Total assets acquired Fair value of liabilities assumed: Accounts payable Accrued liabilities Deferred revenue Total liabilities assumed Total identifiable net assets Goodwill Net assets acquired $ The following unaudited pro forma financial information has been prepared using historical financial results of the Company and Telcare as if the acquisition had occurred as of January 1, 2016. Certain adjustments related to the elimination of transaction costs, as well as the addition of depreciation and amortization related to fair value adjustments on the tangible and identifiable intangible assets acquired, have been reflected for the purposes of the unaudited pro forma financial information presented below. We believe the assumptions used in preparing the unaudited pro forma financial information are reasonable, but not necessarily indicative of actual results should the acquisition have occurred on January 1, 2016. Pro forma financial information for the periods presented is summarized as follows: Three Months Ended Nine Months Ended Revenue $ $ Net Income $ $ Net income per common share: Basic $ $ Diluted $ $ Weighted average number of common shares outstanding: Basic Diluted Contingent Consideration The Agreement includes the potential for a performance-based earn out up to $5,000 upon reaching certain milestones. The fair value of the contingent consideration associated with the Telcare acquisition was $2,700 as of the acquisition date and $1,300 at September 30, 2017. At September 30, 2017, contingent consideration is included as a component of accrued expenses and other long-term liabilities in the accompanying consolidated balance sheets in the amounts of $1,000 and $300 respectively. The following summarizes the changes in our contingent consideration during the nine months ended September 30, 2017: Total Contingent Balance at December 31, 2016 $ Change in fair value of acquisition-related contingent consideration ) Balance at September 30, 2017 $ VirtualScopics, Inc . On March 25, 2016, the Company, through its wholly-owned subsidiary BioTelemetry Research Acquisition Corporation, entered into a definitive Agreement and Plan of Merger with VirtualScopics, Inc. (“VirtualScopics”), a leading provider of clinical trial imaging solutions. Under the terms of the Merger Agreement, the Company purchased: (i) any and all outstanding shares of VirtualScopics’ $0.001 par value common stock for $4.05 per share; (ii) any and all outstanding shares of VirtualScopics’ $0.001 par value Series A and Series B Convertible Preferred Stock for $336.30 per share; and (iii) any and all outstanding shares of VirtualScopics’ $0.001 par value Series C-1 Convertible Preferred Stock for $920.00 per share. The all cash acquisition of VirtualScopics was completed on May 11, 2016. The total consideration paid at closing amounted to $14,970, net of cash acquired of $849. The acquisition of VirtualScopics expands the Company’s existing clinical research offerings and gives the Company further access to established customer relationships. We accounted for the transaction as a business combination, and as such, all assets acquired and liabilities assumed were recorded at their estimated fair values. The excess of the consideration paid over the fair value of the net assets acquired has been recognized as goodwill, which represents the expected future benefits arising from the assembled workforce and other synergies attributable to cost savings opportunities. The Company recognized $4,343 of goodwill as a result of the acquisition, all of which has been assigned to the Research segment. None of this goodwill will be deductible for tax purposes. The amounts below represent our final fair value estimates, which were completed in the second quarter of 2017. A measurement period adjustment was recorded in the second quarter of 2017 to recognize $292 of deferred tax assets resulting from state NOLs. The total consideration and related allocation for VirtualScopics is summarized as follows: Weighted Average Life Amount (Years) Fair value of assets acquired: Cash and cash equivalents $ Other accounts receivable Inventory Prepaid expenses and other current assets Property and equipment Deferred taxes Identifiable intangible assets: Customer relationships 12 Technology 10 Backlog 4 Total identifiable intangible assets Total assets acquired Fair value of liabilities assumed: Accounts payable Accrued liabilities Current portion of capital lease obligations Current portion of long-term debt Deferred revenue Long-term capital lease obligations Long-term debt Total liabilities assumed Total identifiable net assets Goodwill Net assets acquired $ The following unaudited pro forma financial information has been prepared using historical financial results of the Company and VirtualScopics as if the acquisition had occurred as of January 1, 2016. Certain adjustments related to the elimination of transaction costs and acquisition related indebtedness, as well as the addition of depreciation and amortization related to fair value adjustments on the tangible and identifiable intangible assets acquired, have been reflected for the purposes of the unaudited pro forma financial information presented below. No adjustments for synergies or certain other expected benefits of the acquisition have been included. We believe the assumptions used in preparing the unaudited pro forma financial information are reasonable, but not necessarily indicative of actual results should the acquisition have occurred on January 1, 2016. Pro forma financial information for the periods presented is summarized as follows: Nine Months Ended Revenue $ Net Income $ Net income per common share: Basic $ Diluted $ Weighted average number of common shares outstanding: Basic Diluted ePatch Division of DELTA Danish Electronics, Light, and Acoustics On April 1, 2016, the Company, through its wholly-owned subsidiary BioTelemetry Technology ApS, entered into an Asset Purchase Agreement (“APA”) with DELTA Danish Electronics, Light, and Acoustics (“DELTA”), pursuant to which the Company acquired substantially all of the assets of the ePatch division of DELTA, inclusive of all products and indications currently under development. The total consideration paid at closing amounted to $3,000 in cash and 244,519 shares of the Company’s common stock valued at $2,885. In addition, there is the potential for a performance based earn out up to $3,000 upon reaching certain milestones, as defined in the APA. The fair value of the total consideration transferred in the ePatch acquisition, including contingent consideration, was $6,490 at the acquisition date. The ePatch acquisition is expected to generate future cost savings for the Company and will provide control over proprietary components for the Company’s next generation Mobile Cardiac Outpatient Telemetry TM (“MCOT TM ”) device. We accounted for the transaction as a business combination, and as such, all assets acquired and liabilities assumed were recorded at their estimated fair values. The excess of the consideration paid over the fair value of the net assets acquired has been recognized as goodwill, which represents the expected future benefits arising from the assembled workforce and other synergies attributable to cost savings opportunities. The company recognized $3,181 of goodwill as a result of the acquisition, all of which has been assigned to the Technology segment. We expect all of this goodwill to be deductible for tax purposes. The amounts below represent our final fair value estimates, which were completed in the first quarter of 2017. The total consideration and related allocation for the ePatch acquisition is summarized as follows: Weighted Average Life Amount (Years) Fair value of assets acquired: Inventory $ Property and equipment Identifiable intangible assets: Customer relationships 10 Technology 10 Trade names Indefinite Total identifiable intangible assets Total assets acquired Fair value of liabilities assumed: Accrued liabilities Total liabilities assumed Total identifiable net assets Goodwill Net assets acquired $ While the ePatch acquisition provides control over proprietary components of our next generation cardiac monitoring device, the acquisition did not have a material effect on our consolidated results of operations. Contingent Consideration The APA includes the potential for a performance based earn out up to $3,000 upon reaching certain milestones. The fair value of the contingent consideration associated with the ePatch acquisition was $0 and $605 at September 30, 2017 and December 31, 2016, respectively, and is included as a component of other long-term liabilities in the accompanying consolidated balance sheets. The following summarizes the changes in our contingent consideration during the nine months ended September 30, 2017: Total Contingent Balance at December 31, 2016 $ Change in fair value of acquisition-related contingent consideration ) Balance at September 30, 2017 $ —

Inventory

Inventory	9 Months Ended
	Sep. 30, 2017
Inventory
Inventory	Inventory Inventory consists of the following: September 30, 2017 December 31, 2016 Raw materials $ $ Finished goods Total inventory $ $ Inventory, which includes purchased parts, materials, direct labor and applied manufacturing overhead, is stated at the lower of cost or net realizable value, with cost determined by use of the first-in, first-out method.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2017
Property and Equipment
Property and Equipment	Property and Equipment Property and equipment consists of the following: Estimated September December Cardiac monitoring devices, device parts and components 3 - 5 $ $ Computers 3 - 5 Equipment, tools and molds 3 - 5 Furniture, fixtures and other 5 - 7 Leasehold improvements Life of lease Capital leases 3 - 7 Total property and equipment, at cost Less accumulated depreciation ) ) Total property and equipment, net $ $ Depreciation expense associated with property and equipment, inclusive of amortization of assets recorded under capital leases, was $5,682 and $2,627 for the three months ended September 30, 2017 and 2016, respectively, and $11,233 and $7,884 for the nine months ended September 30, 2017 and 2016, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill was recognized at the time of our acquisitions. The carrying amount of goodwill as of September 30, 2017 and December 31, 2016 was $227,524 and $41,068, respectively. The increase in goodwill during the three and nine months ended September 30, 2017 was primarily due to the LifeWatch acquisition, partially offset by measurement period adjustments related to our 2016 acquisitions. The changes in the carrying amounts of goodwill by segment were as follows: Reporting Segment Healthcare Research Technology Total Balance at December 31, 2016 $ $ $ $ Goodwill adjustments related to 2016 acquisitions — ) — Goodwill acquired during the year — — Balance at September 30, 2017 $ $ $ $ The change to goodwill in the Research segment relate to measurement period changes in the first quarter of 2017 to accrued liabilities and in the second quarter of 2017 to accrued liabilities and deferred taxes for our VirtualScopics, Inc. acquisition. The change to goodwill in the Technology segement relate to measurement period changes in the first quarter of 2017 to inventory and accrued liabilities, and in the second and third quarters of 2017 for inventory for our Telcare, Inc. acquisition. The increase in the Healthcare segment is due to the LifeWatch acquisition. The gross carrying amounts and accumulated amortization of our intangible assets as of September 30, 2017 and December 31, 2016 are as follows: Estimated September December (Years) Customer relationships 5 - 15 $ $ Technology including internally developed software 3 - 10 Backlog 1 - 4 Covenants not to compete 5 - 7 Total intangible assets, gross Customer relationships ) ) Technology including internally developed software ) ) Backlog ) ) Covenants not to compete ) ) Total accumulated amortization ) ) Indefinite-lived trade names Total intangible assets, net $ $ The estimated amortization expense for remainder of 2017, the next four years and thereafter is summarized as follows at September 30, 2017: 2017 $ 2018 2019 2020 2021 Thereafter Total estimated amortization $ Amortization expense for the three months ended September 30, 2017 and 2016 was $3,337 and $1,062, respectively, and amortization expense for the nine months ended September 30, 2017 and 2016 was $5,326 and $2,735, respectively.

Equity Method Investment

Equity Method Investment	9 Months Ended
	Sep. 30, 2017
Equity Method Investment
Equity Method Investment	Equity Method Investment In December 2015, we acquired an ownership interest in Well Bridge Health, Inc. (“WellBridge”) through the conversion of an outstanding note receivable and the related accrued interest. The investment is accounted for under the equity method. In December 2015, the equity method basis difference of $891 was allocated to equity method goodwill. As of September 30, 2017, our investment in WellBridge represented 31% of its outstanding stock. A summary of our investment in Wellbridge is as follows: Three Months Ended September 30, Nine months Ended September 30, 2017 2016 2017 2016 Beginning balance $ $ $ $ Capital contributions Our share of the investee’s losses ) ) ) ) Ending balance $ $ $ $

Credit Agreement

Credit Agreement	9 Months Ended
	Sep. 30, 2017
Credit Agreement
Credit Agreement	Credit Agreement Concurrent with the acquisition of LifeWatch, as discussed in Note 2. Acquisitions, we entered into a credit agreement with SunTrust Bank, as a lender and an agent for the lenders (the “Lenders”). Pursuant to the credit agreement, the Lenders agreed to make loans to the Company as follows; (i) a term loan in an aggregate principal amount equal to $205,000; and (ii) a $50,000 revolving credit facility for ongoing working capital purposes, which remains undrawn. The proceeds of the loans were used to pay our existing General Electric Credit Agreement of $24,875 and acquired LifeWatch debt of $3,027, pay a portion of the consideration for the acquisition of LifeWatch and pay related transaction fees and expenses of the acquisition of LifeWatch. The loans bear interest at an annual rate, at the election of the Company, of (i) with respect to LIBOR rate loans, LIBOR plus the applicable margin and (ii) with respect to base rate loans, the Base Rate (the “prime rate” as published in the Wall Street Journal plus the applicable margin). The applicable margin is determined by reference to the Company’s Consolidated Total Net Leverage Ratio, as defined in the credit agreement. Currently, the applicable margin is 2.00% for LIBOR loans and 1.00% for base rate loans. The outstanding principal of the loan will be paid as follows: · Beginning January 1, 2018, the principal amount of the term loan will be repaid, on a quarterly basis, in installments of $513, plus accrued interest; · Beginning January 1, 2019, the principal amount of the term loan will be repaid, on a quarterly basis, in installments of $1,281, plus accrued interest; · Beginning January 1, 2020, the principal amount of the term loan will be repaid, on a quarterly basis, in installments of $3,844, plus accrued interest; · Beginning January 1, 2021, the principal amount of the term loan will be repaid, on a quarterly basis, in installments of $5,125, plus accrued interest; · The remaining principal balance will be repaid on or before July 12, 2022 (or such earlier date upon an acceleration of the loans by Lenders upon an event of default or termination by the Company). The loans are secured by substantially all of the assets of the Company and by a pledge of the capital stock of the Company’s U.S. based subsidiaries as well as a pledge of 65% of the capital stock of its first tier material foreign subsidiaries, including 65% of the capital stock the Company owns of LifeWatch. The carrying amount of the term loan was $199,047 as of September 30, 2017, which is the principal amount outstanding, net of $5,953 of unamortized deferred financing costs to be amortized over the remaining term of the credit facility. In connection with the SunTrust credit agreement, we paid the $24,875 outstanding indebtedness under the Credit Agreement between the Company and Healthcare Financial Solutions, LLC, previously the General Electric Capital Corporation, as agent for the lenders, and as a lender, and we terminated the General Electric Credit Agreement. We wrote-off the unamortized deferred financing fees related to the existing debt of $543, which is included in loss on extinguishment of debt in our consolidated statements of operations and comprehensive income (loss).

Equity

Equity	9 Months Ended
	Sep. 30, 2017
Equity
Equity	Equity Stock-Based Compensation In May 2017, the shareholders and Board of Directors approved the BioTelemetry, Inc. 2017 Omnibus Incentive Plan (“OIP”). The OIP plan replaces the previous stock plan, the BioTelemetry, Inc. 2008 Equity Incentive Plan. Stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”) and performance stock options (“PSOs”) are granted under the OIP. At September 30, 2017, 2,780,965 shares remain available for grant under the OIP. We recognized $1,485 and $1,138 of stock-based compensation expense for the three months ended September 30, 2017 and 2016, respectively. We recognized $5,685 and $3,757 of stock-based compensation expense for the nine months ended September 30, 2017 and 2016, respectively. Stock option and RSU activity is summarized as follows: Stock Options Restricted Stock Units Number of Weighted Number of Weighted Average Stock outstanding as of December 31, 2016 $ $ Granted Cancelled/forfeited — — — — Exercised/vested ) ) Stock outstanding as of March 31, 2017 $ $ Granted Cancelled/forfeited ) ) Exercised/vested ) ) Stock outstanding as of June 30, 2017 $ $ Granted — — Cancelled/forfeited ) ) Exercised/vested ) — — Stock outstanding as of September 30, 2017 $ $ PSO and PSU activity is summarized as follows: Performance Stock Options Performance Stock Units Number of Weighted Number of Weighted Average Stock outstanding as of December 31, 2016 $ $ Vested — — Cancelled/forfeited — — ) Exercised ) — — Stock outstanding as of March 31, 2017 $ — $ — Vested — — — — Cancelled/forfeited — — — — Exercised ) — — Stock outstanding as of June 30, 2017 $ — $ — Vested — — — — Cancelled/forfeited — — — — Exercised — — — — Stock outstanding as of September 30, 2017 $ — $ — Stock-based compensation expense is only recognized for outstanding PSUs where the performance conditions are deemed probable for achievement. For PSUs deemed probable for achievement, stock-based compensation expense is recognized ratably over the expected vesting period. For the three and nine months ended September 30, 2017, no stock-based compensation expense was recognized related to the PSUs. For the three and nine months ended September 30, 2016, we incurred stock-based compensation expense of $0 and $444, respectively, related to PSUs. PSOs are valued and stock-based compensation expense is only recognized once the performance conditions of the outstanding PSOs have been met. We incurred stock-based compensation expense of $0 and $1,533 for the three and nine months ended September 30, 2017 related to the PSOs. For the three and nine months ended September 30, 2016, no stock-based compensation expense was recognized related to the PSOs. Employee Stock Purchase Plan For the nine months ended September 30, 2017, 47,966 shares were purchased in accordance with the 2008 Employee Stock Purchase Plan (“2008 ESPP”). Net proceeds from the issuance of shares of common stock under the 2008 ESPP for the nine months ended September 30, 2017 were $636. In May 2017, the shareholders and Board of Directors approved the BioTelemetry, Inc. 2017 Employee Stock Purchase Plan (“2017 ESPP”), with 500,000 shares reserved for issuance under the 2017 ESPP, which will replace the 2008 ESPP. For the nine months ended September 30, 2017, 47,249 shares were purchased in accordance with the 2017 ESPP. Net proceeds from the issuance of shares of common stock under the 2017 ESPP for the nine months ended September 30, 2017 were $720. At September 30, 2017, 452,751 shares remain available for purchase under the 2017 ESPP.

Other Charges

Other Charges	9 Months Ended
	Sep. 30, 2017
Other Charges
Other Charges	Other Charges We account for expenses associated with exit or disposal activities in accordance with ASC 420, Exit or Disposal Cost Obligations, and record the expenses in other charges in our consolidated statements of operations and comprehensive income (loss) and record the related accrual in the accrued liabilities line on our consolidated balance sheets. These costs are primarily comprised of severance and employee related costs. We account for expenses associated with acquisition and integration related costs and certain litigation as other charges as incurred. These expenses were primarily a result of activities surrounding our acquisitions and legal fees related to patent litigation in which we are the plaintiff. Other charges are costs that are not considered necessary to the ongoing business operations. For the periods ending September 30, 2017, other charges have been partially offset by reductions in contingent consideration. A summary of these expenses is as follows: Three Months Ended September 30, Nine months Ended September 30, 2017 2016 2017 2016 Legal fees $ $ $ $ Professional fees Severance and employee related costs Change in contingent consideration ) — ) — Other costs Total $ $ $ $

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Taxes
Income Taxes	Income Taxes The income tax provision for interim periods is determined using an estimated annual effective tax rate adjusted for discrete items, if any, which are taken into account in the quarterly period in which they occur. We review and update our estimated annual effective tax rate each quarter. Income tax benefit of $435 and $31 was recorded for the three and nine months ended September 30, 2017, respectively, primarily due to a discrete benefit recorded for equity compensation deduction under ASU 2016-09. We recorded an income tax expense of $141 and an income tax benefit of $54 for the three and nine months ended September 30, 2016, respectively. These amounts have been recast to include excess tax benefits related to stock based compensation in association with the adoption of ASU 2016-09. At September 30, 2017 and December 31, 2016, we had deferred tax assets, net of deferred tax liabilities and valuation allowance, of $15,498 and $36,636, respectively. The net deferred tax asset as of September 30, 2017 reflects a preliminary estimate of the deferred taxes from the LifeWatch acquisition.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2017
Segment Information
Segment Information	Segment Information We operate under three segments: Healthcare, Research and Technology. The Healthcare segment is focused on the diagnosis and monitoring of cardiac arrhythmias or heart rhythm disorders with our comprehensive suite of cardiac monitoring solutions in a healthcare setting. Our Research segment is engaged in central core laboratory services providing cardiac monitoring, imaging, scientific consulting and data management services for drug and medical device trials. The Technology segment focuses on the development, manufacturing, testing and marketing of medical devices to medical companies, clinics and hospitals. Intercompany revenues relating to the manufacturing of devices by the Technology segment for the other segments is included on the intersegment revenues line. Expenses that can be specifically identified with a segment have been included as deductions in determining pre-tax segment income. Any remaining expenses, including research and development costs incurred by the Technology segment for the benefit of the other segments, as well as the elimination of costs associated with intercompany revenues are included in Corporate and Other. Also included in Corporate and Other is our net interest expense and other financing expenses as well as the loss from equity method investments. We do not allocate assets to the individual segments. For the three months ended: Healthcare Research Technology Corporate and Consolidated September 30, 2017 Revenues $ $ $ — $ Intersegment revenues — — $ ) — Income (loss) before income taxes ) ) Depreciation and amortization Capital expenditures — Healthcare Research Technology Corporate and Consolidated September 30, 2016 Revenues $ $ $ — $ Intersegment revenues — — $ ) — Income (loss) before income taxes ) Depreciation and amortization ) Capital expenditures — For the nine months ended: Healthcare Research Technology Corporate and Consolidated September 30, 2017 Revenues $ $ $ — $ Intersegment revenues — — $ ) — Income (loss) before income taxes ) ) Depreciation and amortization ) Capital expenditures — Healthcare Research Technology Corporate and Consolidated September 30, 2016 Revenues $ $ $ — $ Intersegment revenues — — $ ) — Income (loss) before income taxes ) Depreciation and amortization ) Capital expenditures —

Legal Proceedings

Legal Proceedings	9 Months Ended
	Sep. 30, 2017
Legal Proceedings
Legal Proceedings	Legal Proceedings The final outcome of any current or future litigation or governmental or internal investigations cannot be accurately predicted, nor can we predict any resulting penalties, fines or other sanctions that may be imposed at the discretion of federal or state regulatory authorities. We record accruals for such contingencies to the extent that we conclude it is probable that a liability has been incurred and the amount of the loss can be estimated. In the third quarter of 2017, a settlement was reached with the selling stockholder of Mednet Healthcare Technologies, Inc., Heartcare Corporation of America, Inc., Universal Medical, Inc., and Universal Medical Laboratory, Inc. (together, “Mednet”), whereby 79,333 shares of BioTelemetry common stock with a fair value of $2,753 were returned to the Company. These shares were part of the consideration paid in the January 31, 2014 acquisition of Mednet and had been subject to certain terms and conditions set forth in the Stock Purchase Agreement ( the “Agreement”). In accordance with the terms of the Agreement, BioTelemetry sought indemnification for alleged breaches of certain representations and warranties. Accordingly, in 2016 the company recorded a $1,420 indemnification asset. However, as a result of the settlement’s fair value exceeding the indemnification asset recorded, a gain of $1,333 was recorded as a component of other non-operating income (expense), net in the consolidated statements of operations for the nine months ended September 30, 2017. In 2011, we experienced the theft of two unencrypted laptop computers and, as a result, were required to provide notices under the HIPAA Breach Notification Rule to the United States Department of Health and Human Services’ Office for Civil Rights (“OCR”). During the first quarter of 2017, the OCR concluded its investigation into the matter and reached a settlement agreement with the Company. Per the agreement, BioTelemetry paid the OCR $2,500 and agreed to submit a two-year corrective action plan regarding our HIPAA compliance program. We did not admit any liability or wrongdoing. As a result of the settlement, we recorded a non-operating charge of $2,500 to other non-operating income (expense), net in the consolidated statements of operations and comprehensive income (loss) for the nine months ended September 30, 2017. In January 2017, ZTech, Inc., Biorita LLC, and the Cleveland Clinic Foundation (the “Claimants”) filed an arbitration demand against LifeWatch with the American Arbitration Association. Claimants allege that LifeWatch violated the 2015 Stock Purchase Agreement for the purchase of FlexLife Health, Inc., a remote international normalized ratio (“INR”) monitoring business. Claimants filed the pending demand after LifeWatch terminated the INR business in late 2016. The demand alleges LifeWatch did not make commercially reasonable efforts to achieve certain conditions precedent and did not have a reasonable basis for terminating the business line. Claimants seek liquidated damages and attorneys’ fees. We are vigorously defending against these claims and are seeking recovery of attorneys’ fees related to our defense. Discovery is ongoing, and the arbitration hearing is scheduled for February 2018, in Cleveland, Ohio. The probable outcome of this matter cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this matter.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies
Net Income (Loss) Per Share	Net Income (Loss) Per Share We compute net income (loss) per share in accordance with Accounting Standards Codification (“ASC”) 260, Earnings Per Share. Basic net income (loss) per share is computed by dividing net income (loss) attributable to BioTelemetry by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential dilutive common shares, including stock options and restricted stock units, using the treasury stock method. The following table presents the calculation of basic and diluted net income (loss) per share: Three Months Ended Nine months Ended 2017 2016 2017 2016 Numerator: Net income (loss) attributable to BioTelemetry, Inc. $ ) $ $ ) $ Denominator: Weighted average shares used in computing basic net income (loss) per share Dilutive stock option and restricted stock units — — Weighted average shares used in computing diluted net income per share Net income (loss) per share attributable to BioTelemetry, Inc: Basic net income (loss) per share $ ) $ $ ) $ Diluted net income (loss) per share $ ) $ $ ) $ Certain stock options, which are priced higher than the market price of our shares as of September 30, 2017 and 2016, would be anti-dilutive and therefore have been excluded from the weighted average shares used in computing diluted net income (loss) per share. These options could become dilutive in future periods.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. This consists of disaggregating the components within other income (expense) in the consolidated statements of operations. The reclassification had no impact on previously reported net income (loss), cash flows or accumulated deficit.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the exit price, the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as defined below. Observable inputs are inputs a market participant would use in valuing an asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the factors a market participant would use in valuing an asset or liability developed using the best information available in the circumstances. The classification of an asset’s or liability’s level within the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Level 1—Quoted prices in active markets for an identical asset or liability. Level 2—Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. Level 3—Inputs that are unobservable for the asset or liability, based on our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Our financial instruments consist primarily of cash and cash equivalents, Healthcare accounts receivable, other accounts receivable, accounts payable, short-term debt and long-term debt. With the exception of long-term debt, the carrying value of these financial instruments approximates their fair value because of their short-term nature (classified as Level 1). For long-term debt, based on the borrowing rates currently available, the fair value was determined to be $205,000 (classified as Level 2) as of September 30, 2017. The fair value of contingent consideration is measured on a recurring basis using unobservable inputs such as projected payment dates, probabilities of meeting specified milestones and other such variables resulting in payment amounts which are discounted back to present value using a probability-weighted discounted cash flow model (classified as Level 3). Adjustments to contingent consideration are recorded under other charges. In addition to the recurring fair value measurements, certain assets acquired and liabilities assumed in connection with a business combination are recorded at fair value primarily using a discounted cash flow model (classified as Level 3). This valuation technique requires us to make certain assumptions, including, but not limited to, future operating performance and cash flows, royalty rate and other such variables which are discounted to present value using a discount rate that reflects the risk factors associated with future cash flow, the characteristics of the assets acquired and liabilities assumed and the experience of the acquired business.
Derivative Instruments	Derivative Instruments During the second quarter of 2017, we purchased a foreign currency option with a notional value of $194,185 to mitigate the foreign exchange risk related to the Swiss Franc denominated purchase price of LifeWatch AG (“LifeWatch”). This derivative instrument was not designated as a hedge for accounting purposes. The derivative instrument was recorded at fair value in the consolidated balance sheet as a component of prepaid expenses and other current assets. We did not exercise this option and the contract expired during the third quarter of 2017, resulting in a write off of the premium of $1,322 which was recorded as a component of other non-operating income (expense), net in the consolidated statements of operations and comprehensive income (loss).
Equity Method Investments	Equity Method Investments We account for investments using the equity method of accounting if the investment provides us the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is recorded at cost in the consolidated balance sheet as a component of other assets and is periodically adjusted for capital contributions, dividends received and our share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded as loss on equity method investment in the consolidated statements of operations and comprehensive income (loss).
Noncontrolling interests	Noncontrolling interests The consolidated financial statements reflect the application of ASC 810, Consolidations, which establishes accounting and reporting standards that require: (i) the ownership interest in subsidiaries held by parties other than the parent to be clearly identified and presented in the consolidated balance sheet within shareholder’s equity, but separate from the parent’s equity; (ii) the amount of consolidated net income attributable to the parent and the noncontrolling interest to be clearly identified and presented on the face of the consolidated statements of income; and (iii) changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary to be accounted for consistently. We acquired approximately 97.0% of LifeWatch AG on July 12, 2017. On that date, we acquired control of LifeWatch AG and began consolidating its financial statements. The interest represented by the shares not tendered or subsequently acquired through September 30, 2017 are presented as noncontrolling interests in our consolidated financial statements. The fair value of the noncontrolling interest was determined based on the observable quoted share price as of the acquisition date. As of September 30, 2017, we owned 98.5% of LifeWatch AG and expect to acquire the remaining outstanding shares in the fourth quarter of 2017 or shortly thereafter. LifeWatch AG owns 55% of LifeWatch Turkey Holding AG (“LifeWatch Turkey”) with their partner, IKSIR TEKNOLOJI SAGLIK VE KIMYA SAN. ve TIC. A.S., a company located in Ankara, Turkey, to provide digital health solutions to the Turkish market. Concurrent with our acquisition of LifeWatch AG, we acquired control of LifeWatch Turkey and began consolidating their financial statements. As of September 30, 2017, LifeWatch Turkey’s net assets were $3,097 and their loss since July 12, 2017 was $526. Amounts pertaining to the noncontrolling ownership interest of both LifeWatch AG and LifeWatch Turkey Holding AG held by third parties in the operating results of the Company are combined and reported as noncontrolling interests in the accompanying consolidated financial statements.
Goodwill and Acquired Intangible Assets	Goodwill and Acquired Intangible Assets Goodwill is the excess of the purchase price of an acquired business over the amounts assigned to assets acquired and liabilities assumed in a business combination. In accordance with ASC 350 , Intangibles—Goodwill and Other (“ASC 350”), goodwill is reviewed for impairment annually, or when events arise that could indicate that an impairment exists. Initially, we qualitatively assess whether it is more-likely-than-not that an impairment exists for each reporting unit. Such qualitative factors can include, among others, industry and market conditions, present and anticipated sales and cost factors, overall financial performance and relevant entity-specific events. If we conclude based on our qualitative assessment that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, we perform a two-step impairment test in accordance with ASC 350. In the first step, we compare the fair value of our reporting units to the carrying value of the reporting units. If the carrying value of the net assets assigned to the reporting units exceeds the fair value of the reporting units, then the second step of the impairment test is performed in order to determine the implied fair value of the reporting units’ goodwill. If the carrying value of the reporting units’ goodwill exceeds the implied fair value of those reporting units, an impairment loss equal to the difference is recorded. For the purpose of performing our goodwill impairment analysis, we consider our business to be comprised of three reporting units: Healthcare, Research and Technology. We calculate the fair value of the reporting units utilizing a weighting of the income and market approaches. The income approach is based on a discounted cash flow methodology that includes assumptions for, among other things, forecasted income, cash flow, growth rates, income tax rates, expected tax benefits and long-term discount rates, all of which require significant judgment. The market approach utilizes our market data. There are inherent uncertainties related to these factors and the judgment applied in the analysis. We believe that the combination of an income and a market approach provides a reasonable basis to estimate the fair value of our reporting units. Acquired intangible assets are recorded at fair value on the acquisition date. The estimated fair values and useful lives of intangible assets are determined by assessing many factors including estimates of future operating performance and cash flow of the acquired business, the characteristics of the intangible assets acquired and the experience of the acquired business. Independent appraisal firms may assist with the valuation of acquired assets. The impairment test for indefinite-lived intangible assets other than goodwill consists of a comparison of the fair value of the indefinite-lived intangible asset to the carrying value of the asset. We estimate the fair value of the indefinite-lived intangibles using the relief from royalty method.
Accounting Pronouncements Recently Adopted and Not Yet Adopted	Accounting Pronouncements Recently Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting . The standard revises the accounting for certain aspects of share-based compensation arrangements and requires any excess tax benefits or tax deficiencies to be recorded directly in the income statement when such awards vest or settle. In addition, the cash flows related to any excess tax benefits will no longer be separately classified as a financing activity, but will rather be classified as an operating activity, along with all other income tax cash flows. The standard also makes certain changes to the way the treasury stock method is applied when calculating diluted net income per share, as well as allows for a policy election to account for forfeitures as they occur, rather than using the estimation method currently prescribed by ASC 718, Compensation — Stock Compensation (“ASC 718”). The standard is effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. We elected to early adopt the standard during the fourth quarter of 2016. The standard requires the recognition of any pre-adoption date net operating loss (“NOL”) carryforwards from share-based compensation arrangements to be recognized on a modified retrospective basis, through an opening retained earnings adjustment on January 1, 2016. Any income tax effects from share-based compensation arrangements arising after January 1, 2016 will be recognized prospectively in the income statement during the period of adoption. Upon adoption, we recognized all previously unrecognized tax benefits which resulted in a cumulative-effect adjustment of $1,752 to our accumulated deficit. These previously unrecognized tax benefits were recorded as a deferred tax asset, which was fully offset by a valuation allowance on January 1, 2016, thus there was no net impact from the adoption of ASU 2016-09 as of the same date. In addition, we recognized excess tax benefits as an adjustment to our previously reported (provision for) income taxes of $94 and $583 for the three and nine months ended September 30, 2016, respectively. Corresponding adjustments were recorded in the operating section of our statement of cash flows for the nine months ended September 30, 2016. The weighted average number of common shares outstanding for calculating diluted net income per share increased by 547,196 and 448,792 for the three and nine months ended September 30, 2016. Our adoption of the standard did not have any impact to our consolidated statements of cash flows as no NOL carryforwards from share-based compensation arrangements were recognized prior to January 1, 2016, due to our use of the “with and without” method of accounting for equity-generated NOL carryforwards. We have elected to continue to estimate forfeitures under the true-up provision of ASC 718. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . The standard requires inventory to be measured at the lower of cost or net realizable value. The guidance will not apply to inventories for which cost is determined using the last-in, first-out method or the retail inventory method. Our adoption of this standard in the first quarter of 2017 did not have a material impact on our consolidated financial statements. Accounting Pronouncements Not Yet Adopted In January 2017, the FASB released ASU 2017-01, Business Combinations: Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this ASU should be applied prospectively and are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. No disclosures are required at transition. We will adopt this standard effective January 1, 2018 and do not expect the standard to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . The standard eliminates step two in the current two-step impairment test under ASC 350. Under the new standard, a goodwill impairment will be recorded for any excess of a reporting unit’s carrying value over its fair value. A prospective transition approach is required. The standard is effective for annual and interim reporting periods beginning after December 15, 2019 with early adoption permitted for annual and interim goodwill impairment testing dates after January 1, 2017. We plan to early adopt the standard at the time of our 2017 goodwill impairment testing date and do not expect the standard to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases . The standard will require lessees to recognize most leases on their balance sheet and makes selected changes to lessor accounting. The standard is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. A modified retrospective transition approach is required, with certain practical expedients available. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which has been updated through several revisions and clarifications since its original issuance. The standard will require revenue recognized to represent the transfer of promised goods or services to customers at an amount that reflects the consideration which a company expects to receive in exchange for those goods or services. The standard also requires new, expanded disclosures regarding revenue recognition. The standard will be effective January 1, 2018, with early adoption permissible beginning January 1, 2017. We have substantially completed the detailed review of our contract portfolio and revenue streams to identify potential differences in accounting as a result of the new standard. We expect that there will be an impact to our financial reporting disclosures as well as any related business operations processes and internal controls over financial reporting. As part of the assessment performed through the date of this filing, we have created an implementation working group, which includes internal and third-party resources. As part of our implementation plan, we have adopted implementation controls that will allow us to properly and timely adopt the new revenue accounting standard on its effective date. In particular, we implemented the following: · Developed a detailed project plan with key milestone dates; · Performed education of the new accounting standard; · Outlined our revenue generating activities that fall within the scope of ASU 2014-09, and assessed what impact the new accounting standard will have on those activities, and; · Monitored and assessed the impact of changes to ASU 2014-09 and its interpretations. Specific considerations made to date on the impact of adopting ASU 2014-09 include: · Healthcare Revenue —We continue to evaluate the valuation of our Healthcare revenue and accounts receivable with respect to adopting ASU 2014-09. This evaluation includes determining whether the Company has historical experience of collecting substantially all of the negotiated contractual rates or any implicit price concessions are provided. If the Company determines it has not provided an implicit price concession but, rather, that it has chosen to accept the risk of default by the patient, adjustments to the transaction price would be presented as bad debts. This impacts whether revenue will be recognized on a gross basis or a net basis. For this assessment, we combined LifeWatch revenue with the existing legacy Healthcare revenue streams. Our current accounting policy is such that revenue is recognized upon agreed upon reimbursement rates. If we do not have agreed upon reimbursement rates, we recognize revenue based on historical experience, or if no historical experience, when cash is received. Adjustments to the estimated net realizable value, based on final settlement with the third-party payors, are recorded upon settlement. · Research revenue — The Company has concluded that the majority of the clinical research arrangements in its Research segment will represent a single performance obligation. We expect to account for revenue for this single performance obligation over time using either an input or output method to measure progress. We are still evaluating the appropriate selection of the measure of progress for these arrangements. · Technology revenue — The Company has concluded that the standard will not have a material impact on Technology revenue. We will continue to recognize revenue in our Technology segment when products are shipped or as services are rendered. · Contract Costs — The Company has concluded that all material costs to acquire customer contracts will continue to be expensed as we have elected the practical expedient of expensing contract costs when incurred as the amortization period of the asset that we would have recognized is one year or less. We are evaluating the impact of fulfillment cost capitalization in conjunction with its measure of progress selection under the input or output method for Research revenue. We currently expense all contract costs. · Transition Method —We will be electing to adopt ASU 2014-09 using the modified retrospective approach. In addition to the open matters discussed above, significant implementation matters to be addressed prior to adopting ASU 2014-09 include determining the transition adjustment resulting from the new accounting standard on our consolidated financial statements, and updating, as needed, our business processes, systems and controls required to comply with ASU 2014-09 upon its effective date. We will make continuous updates to our year-end disclosures, with a focus on implementation status updates related to the impact ASU 2014-09 will have on our consolidated financial statements and related footnotes. We expect to complete our assessment of the full financial impact of ASU 2014-09 during the next three months and expect to adopt ASU 2014-09 when it becomes effective on January 1, 2018.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies
Schedule of calculation of basic and diluted net income (loss) per share	Three Months Ended Nine months Ended 2017 2016 2017 2016 Numerator: Net income (loss) attributable to BioTelemetry, Inc. $ ) $ $ ) $ Denominator: Weighted average shares used in computing basic net income (loss) per share Dilutive stock option and restricted stock units — — Weighted average shares used in computing diluted net income per share Net income (loss) per share attributable to BioTelemetry, Inc: Basic net income (loss) per share $ ) $ $ ) $ Diluted net income (loss) per share $ ) $ $ ) $

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2017
LifeWatch AG
Acquisitions
Schedule of total consideration and related allocation for net assets acquired	Amount Weighted Fair value of assets acquired: Cash and cash equivalents $ Healthcare accounts receivable Inventory Prepaid expenses and other current assets Property and equipment Other assets Identifiable intangible assets: Customer relationships 10 Technology 5 Total identifiable intangible assets Total assets acquired Fair value of liabilities assumed: Accounts payable Accrued liabilities Current portion of capital lease obligations Current portion of long-term debt Long-term capital lease obligations Deferred tax liabilities Other liabilities Total liabilities assumed Total identifiable net assets Fair value of noncontrolling interest ) Goodwill Net assets acquired $
Schedule of pro forma financial information	Three Months Ended September 30, Nine months Ended September 30, 2017 2016 2017 2016 Revenue $ $ $ Net income (loss) attributable to BioTelemetry, Inc ) ) ) Net income (loss) per common share attributable to BioTelemetry, Inc: Basic $ ) $ $ ) $ ) Diluted $ ) $ $ ) $ ) Weighted average number of common shares outstanding: Basic Diluted
Telcare
Acquisitions
Schedule of total consideration and related allocation for net assets acquired	Amount Weighted Fair value of assets acquired: Other accounts receivable $ Inventory Prepaid expenses and other current assets Property and equipment Other assets Identifiable intangible assets: Customer relationships 5 Technology 5 Tradename Indefinite Total identifiable intangible assets Total assets acquired Fair value of liabilities assumed: Accounts payable Accrued liabilities Deferred revenue Total liabilities assumed Total identifiable net assets Goodwill Net assets acquired $
Schedule of pro forma financial information	Three Months Ended Nine Months Ended Revenue $ $ Net Income $ $ Net income per common share: Basic $ $ Diluted $ $ Weighted average number of common shares outstanding: Basic Diluted
Summary of changes in contingent consideration	Total Contingent Balance at December 31, 2016 $ Change in fair value of acquisition-related contingent consideration ) Balance at September 30, 2017 $
VirtualScopics
Acquisitions
Schedule of total consideration and related allocation for net assets acquired	Weighted Average Life Amount (Years) Fair value of assets acquired: Cash and cash equivalents $ Other accounts receivable Inventory Prepaid expenses and other current assets Property and equipment Deferred taxes Identifiable intangible assets: Customer relationships 12 Technology 10 Backlog 4 Total identifiable intangible assets Total assets acquired Fair value of liabilities assumed: Accounts payable Accrued liabilities Current portion of capital lease obligations Current portion of long-term debt Deferred revenue Long-term capital lease obligations Long-term debt Total liabilities assumed Total identifiable net assets Goodwill Net assets acquired $
Schedule of pro forma financial information	Nine Months Ended Revenue $ Net Income $ Net income per common share: Basic $ Diluted $ Weighted average number of common shares outstanding: Basic Diluted
ePatch Division
Acquisitions
Schedule of total consideration and related allocation for net assets acquired	Weighted Average Life Amount (Years) Fair value of assets acquired: Inventory $ Property and equipment Identifiable intangible assets: Customer relationships 10 Technology 10 Trade names Indefinite Total identifiable intangible assets Total assets acquired Fair value of liabilities assumed: Accrued liabilities Total liabilities assumed Total identifiable net assets Goodwill Net assets acquired $
Summary of changes in contingent consideration	Total Contingent Balance at December 31, 2016 $ Change in fair value of acquisition-related contingent consideration ) Balance at September 30, 2017 $ —

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory
Schedule of inventory	September 30, 2017 December 31, 2016 Raw materials $ $ Finished goods Total inventory $ $

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Property and Equipment
Schedule of property and equipment	Estimated September December Cardiac monitoring devices, device parts and components 3 - 5 $ $ Computers 3 - 5 Equipment, tools and molds 3 - 5 Furniture, fixtures and other 5 - 7 Leasehold improvements Life of lease Capital leases 3 - 7 Total property and equipment, at cost Less accumulated depreciation ) ) Total property and equipment, net $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets
Schedule of changes in the carrying amounts of goodwill by segment	Reporting Segment Healthcare Research Technology Total Balance at December 31, 2016 $ $ $ $ Goodwill adjustments related to 2016 acquisitions — ) — Goodwill acquired during the year — — Balance at September 30, 2017 $ $ $ $
Schedule of gross carrying amounts and accumulated amortization of the entity's intangible assets	Estimated September December (Years) Customer relationships 5 - 15 $ $ Technology including internally developed software 3 - 10 Backlog 1 - 4 Covenants not to compete 5 - 7 Total intangible assets, gross Customer relationships ) ) Technology including internally developed software ) ) Backlog ) ) Covenants not to compete ) ) Total accumulated amortization ) ) Indefinite-lived trade names Total intangible assets, net $ $
Summary of estimated amortization expense for the next five years and thereafter	The estimated amortization expense for remainder of 2017, the next four years and thereafter is summarized as follows at September 30, 2017: 2017 $ 2018 2019 2020 2021 Thereafter Total estimated amortization $

Equity Method Investment (Table

Equity Method Investment (Tables)	9 Months Ended
	Sep. 30, 2017
Equity Method Investment
Summary of investment	Three Months Ended September 30, Nine months Ended September 30, 2017 2016 2017 2016 Beginning balance $ $ $ $ Capital contributions Our share of the investee’s losses ) ) ) ) Ending balance $ $ $ $

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Equity
Summary of stock option and restricted stock units activity	Stock Options Restricted Stock Units Number of Weighted Number of Weighted Average Stock outstanding as of December 31, 2016 $ $ Granted Cancelled/forfeited — — — — Exercised/vested ) ) Stock outstanding as of March 31, 2017 $ $ Granted Cancelled/forfeited ) ) Exercised/vested ) ) Stock outstanding as of June 30, 2017 $ $ Granted — — Cancelled/forfeited ) ) Exercised/vested ) — — Stock outstanding as of September 30, 2017 $ $
Summary of Performance stock option and Performance stock units activity	Performance Stock Options Performance Stock Units Number of Weighted Number of Weighted Average Stock outstanding as of December 31, 2016 $ $ Vested — — Cancelled/forfeited — — ) Exercised ) — — Stock outstanding as of March 31, 2017 $ — $ — Vested — — — — Cancelled/forfeited — — — — Exercised ) — — Stock outstanding as of June 30, 2017 $ — $ — Vested — — — — Cancelled/forfeited — — — — Exercised — — — — Stock outstanding as of September 30, 2017 $ — $ —

Other Charges (Tables)

Other Charges (Tables)	9 Months Ended
	Sep. 30, 2017
Other Charges
Summary of expenses	Three Months Ended September 30, Nine months Ended September 30, 2017 2016 2017 2016 Legal fees $ $ $ $ Professional fees Severance and employee related costs Change in contingent consideration ) — ) — Other costs Total $ $ $ $

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Information
Summary of financial information concerning the entity's reportable segments	For the three months ended: Healthcare Research Technology Corporate and Consolidated September 30, 2017 Revenues $ $ $ — $ Intersegment revenues — — $ ) — Income (loss) before income taxes ) ) Depreciation and amortization Capital expenditures — Healthcare Research Technology Corporate and Consolidated September 30, 2016 Revenues $ $ $ — $ Intersegment revenues — — $ ) — Income (loss) before income taxes ) Depreciation and amortization ) Capital expenditures — For the nine months ended: Healthcare Research Technology Corporate and Consolidated September 30, 2017 Revenues $ $ $ — $ Intersegment revenues — — $ ) — Income (loss) before income taxes ) ) Depreciation and amortization ) Capital expenditures — Healthcare Research Technology Corporate and Consolidated September 30, 2016 Revenues $ $ $ — $ Intersegment revenues — — $ ) — Income (loss) before income taxes ) Depreciation and amortization ) Capital expenditures —

Summary of Significant Accoun29

Summary of Significant Accounting Policies - Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net income (loss) attributable to BioTelemetry, Inc	$ (2,285)	$ 4,195	$ (363)	$ 12,989
Denominator:
Weighted average shares used in computing basic net income (loss) per share	31,897,237	28,102,196	29,682,210	27,810,763
Dilutive stock option and restricted stock units		2,778,577		2,495,254
Weighted average shares used in computing diluted net income per share	31,897,237	30,880,773	29,682,210	30,306,017
Net income (loss) per common share attributable to BioTelemetry, Inc.:
Basic net income (loss) per share	$ (0.07)	$ 0.15	$ (0.01)	$ 0.47
Diluted net income (loss) per share	$ (0.07)	$ 0.14	$ (0.01)	$ 0.43

Summary of Significant Accoun30

Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) $ in Thousands	Sep. 30, 2017USD ($)
Summary of Significant Accounting Policies
Fair value of long-term debt	$ 205,000

Summary of Significant Accoun31

Summary of Significant Accounting Policies - Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Jun. 30, 2017
Summary of Significant Accounting Policies
Derivative notional value			$ 194,185
Write off of derivative premium	$ 1,322	$ 1,322

Summary of Significant Accoun32

Summary of Significant Accounting Policies - Equity Method Investments (Details)	Sep. 30, 2017
Minimum
Equity Method Investments
Percentage of ownership interest in the voting stock	20.00%
Maximum
Equity Method Investments
Percentage of ownership interest in the voting stock	50.00%

Summary of Significant Accoun33

Summary of Significant Accounting Policies - Noncontrolling interests (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jul. 12, 2017
Noncontrolling interests
Net loss	$ (2,564)		$ 4,195	$ (642)	$ 12,989
LifeWatch AG
Noncontrolling interests
Ownership interests acquired (as a percent)						97.00%
Ownership interest (as a percent)	98.50%	98.50%		98.50%
LifeWatch Turkey
Noncontrolling interests
Net Assets	$ 3,097	$ 3,097		$ 3,097
Net loss		$ (526)
LifeWatch Turkey | LifeWatch AG
Noncontrolling interests
Ownership interest (as a percent)	55.00%	55.00%		55.00%

Summary of Significant Accoun34

Summary of Significant Accounting Policies - Goodwill and Acquired Intangible Assets (Details)	9 Months Ended
	Sep. 30, 2017segment
Goodwill and Acquired Intangible Assets
Number of reporting units	3

Summary of Significant Accoun35

Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Recent Accounting Pronouncements
Weighted average shares used in computing diluted net income (loss) per share	31,897,237	30,880,773	29,682,210	30,306,017
ASU 2016-09
Recent Accounting Pronouncements
Adjustment of unrecognized tax benefit			$ 1,752
Excess tax benefit adjustment		$ 94		$ 583
Weighted average shares used in computing diluted net income (loss) per share		547,196		448,792

Acquisitions - LifeWatch AG (De

Acquisitions - LifeWatch AG (Details) - USD ($) $ in Thousands	Jul. 12, 2017	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Use of Credit Agreement proceeds
Repayment of Long term debt				$ 25,851	$ 958
Goodwill
Goodwill		$ 227,524	$ 227,524	$ 227,524		$ 41,068
LifeWatch AG
Acquisitions
Ownership interests acquired (as a percent)	97.00%
Consideration in common stock (in shares)	3,615,840	19,806
Purchase of additional LifeWatch shares (in shares)		343,525
Cash consideration	$ 165,782	$ 4,765
Business Acquisition Percentage of Ownership		98.50%	98.50%	98.50%
Use of Credit Agreement proceeds
Acquired LifeWatch debt	$ 3,027	$ 3,027	$ 3,027	$ 3,027
Maximum period for finalizing accounting for acquisition from acquisition date (in years)	1 year
Fair value of consideration transferred
Cash consideration transferred	$ 165,782	4,765
Fair value of BioTelemetry common stock issued	116,792	648	648	648
Fair value of assets acquired:
Cash and cash equivalents		4,303	4,303	4,303
Healthcare accounts receivable		9,467	9,467	9,467
Inventory		1,136	1,136	1,136
Prepaid expenses and other current assets		4,392	4,392	4,392
Property and equipment		30,200	30,200	30,200
Other assets		713	713	713
Identifiable intangible assets:
Total identifiable intangible assets		111,500	111,500	111,500
Total assets acquired		161,711	161,711	161,711
Fair value of liabilities assumed:
Accounts payable		10,666	10,666	10,666
Accrued liabilities		8,879	8,879	8,879
Current portion of capital lease obligations		4,664	4,664	4,664
Current portion of long-term debt	3,027	3,027	3,027	3,027
Long-term capital lease obligations		3,420	3,420	3,420
Deferred tax liabilities		21,993	21,993	21,993
Other liabilities		1,720	1,720	1,720
Total liabilities assumed		54,369	54,369	54,369
Goodwill
Goodwill		186,456	186,456	186,456
Total identifiable net assets		107,342	107,342	107,342
Fair value of noncontrolling interest		(11,224)	(11,224)	(11,224)
Net assets acquired		282,574	282,574	282,574
Acquisition related costs			3,148	8,188
Revenue since acquisition date		27,386
Net loss since acquisition date		1,998
LifeWatch AG | Customer relationships
Identifiable intangible assets:
Total identifiable intangible assets		109,400	109,400	$ 109,400
Weighted Average Life (Years)				10 years
LifeWatch AG | Technology
Identifiable intangible assets:
Total identifiable intangible assets		$ 2,100	$ 2,100	$ 2,100
Weighted Average Life (Years)				5 years
HFS
Use of Credit Agreement proceeds
Repayment of Long term debt	24,875
Suntrust Bank | Term Loan
Use of Credit Agreement proceeds
Aggregate term loan principal at inception	205,000
Suntrust Bank | Revolving credit facility
Use of Credit Agreement proceeds
Undrawn line of credit	$ 50,000

Acquisitions - Telcare Inc, (De

Acquisitions - Telcare Inc, (Details) - USD ($) $ in Thousands	Dec. 01, 2016	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Goodwill
Goodwill		$ 227,524		$ 227,524	$ 41,068
Teclare
Acquisitions
Cash consideration	$ 7,000
Maximum performance-based earn out	5,000
Fair value of consideration transferred	9,700
Amount of goodwill preliminarily expected to be deductible for tax purposes	$ 668
Maximum period for finalizing accounting for acquisition from acquisition date (in years)	1 year
Measurement period adjustments - reducing the valuation of inventory		105	$ 269
Fair value of assets acquired:
Other accounts receivable		235		235
Inventory		1,417		1,417
Prepaid expenses and other current assets		1,261		1,261
Property and equipment		55		55
Other assets		933		933
Identifiable intangible assets:
Total identifiable intangible assets		2,800		2,800
Total assets acquired		6,701		6,701
Fair value of liabilities assumed:
Accounts payable		459		459
Accrued liabilities		206		206
Deferred revenue		49		49
Total liabilities assumed		714		714
Goodwill
Goodwill		3,713		3,713
Total identifiable net assets		5,987		5,987
Net assets acquired		9,700		9,700
Teclare | Customer relationships
Identifiable intangible assets:
Total identifiable intangible assets		400		$ 400
Weighted Average Life (Years)				5 years
Teclare | Technology
Identifiable intangible assets:
Total identifiable intangible assets		2,000		$ 2,000
Weighted Average Life (Years)				5 years
Teclare | Tradename
Identifiable intangible assets:
Total identifiable intangible assets		$ 400		$ 400

Acquisitions - VirtualScopics,

Acquisitions - VirtualScopics, Inc.(Details) - USD ($) $ / shares in Units, $ in Thousands	May 11, 2016	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Acquisitions
Common stock, par value (in dollars per share)			$ 0.001		$ 0.001
Total consideration paid, net of cash acquired			$ 166,244	$ 17,970
Goodwill
Goodwill			$ 227,524		$ 41,068
VirtualScopics
Acquisitions
Total consideration paid, net of cash acquired	$ 14,970
Amount of goodwill preliminarily expected to be deductible for tax purposes	$ 0
Measurement period adjustments - recognizing deferred tax assets		$ 292
Fair value of assets acquired:
Cash and cash equivalents		849
Other accounts receivable		3,679
Inventory		111
Prepaid expenses and other current assets		396
Property and equipment		500
Deferred taxes		20
Identifiable intangible assets:
Total identifiable intangible assets		10,300
Total assets acquired		15,855
Fair value of liabilities assumed:
Accounts payable		325
Accrued liabilities		2,945
Current portion of capital lease obligations		59
Current portion of long-term debt		91
Deferred revenue		700
Long-term capital lease obligations		162
Long-term debt		97
Total liabilities assumed		4,379
Goodwill
Goodwill		4,343
Total identifiable net assets		11,476
Net assets acquired		15,819
VirtualScopics | Customer relationships
Identifiable intangible assets:
Total identifiable intangible assets		$ 5,200
Weighted Average Life (Years)		12 years
VirtualScopics | Technology
Identifiable intangible assets:
Total identifiable intangible assets		$ 2,000
Weighted Average Life (Years)		10 years
VirtualScopics | Backlog
Identifiable intangible assets:
Total identifiable intangible assets		$ 3,100
Weighted Average Life (Years)		4 years
VirtualScopics | Common Stock
Acquisitions
Common stock, par value (in dollars per share)	$ 0.001
Share price (in dollars per share)	4.05
Series A and B Convertible Preferred Stock | VirtualScopics
Acquisitions
Share price (in dollars per share)	336.30
Preferred stock, par value (in dollars per share)	0.001
Series C-1 Convertible Preferred Stock | VirtualScopics
Acquisitions
Share price (in dollars per share)	920
Preferred stock, par value (in dollars per share)	$ 0.001

Acquisitions - Pro Forma Financ

Acquisitions - Pro Forma Financial Information LifeWatch AG, Telcare, Inc & VirtualScopics, Inc (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
LifeWatch AG
Unaudited pro forma information
Revenue	$ 84,349	$ 80,881	$ 257,976	$ 239,215
Net Income (loss)	$ (3,681)	$ 1,612	$ (2,753)	$ (9,073)
Net income (loss) per common share attributable to BioTelemetry, Inc:
Basic (in dollars per share)	$ (0.11)	$ 0.05	$ (0.09)	$ (0.29)
Diluted (in dollars per share)	$ (0.11)	$ 0.05	$ (0.09)	$ (0.29)
Weighted average number of common shares outstanding:
Basic (in shares)	32,350,858	31,737,842	32,245,396	31,446,409
Diluted (in shares)	32,350,858	34,516,419	32,245,396	31,446,409
Telcare
Unaudited pro forma information
Revenue		$ 54,169		$ 157,915
Net Income (loss)		$ 3,414		$ 10,417
Net income (loss) per common share attributable to BioTelemetry, Inc:
Basic (in dollars per share)		$ 0.12		$ 0.37
Diluted (in dollars per share)		$ 0.11		$ 0.34
Weighted average number of common shares outstanding:
Basic (in shares)		28,102,196		27,810,763
Diluted (in shares)		30,880,773		30,306,017
VirtualScopics
Unaudited pro forma information
Revenue				$ 160,314
Net Income (loss)				$ 14,933
Net income (loss) per common share attributable to BioTelemetry, Inc:
Basic (in dollars per share)				$ 0.54
Diluted (in dollars per share)				$ 0.49
Weighted average number of common shares outstanding:
Basic (in shares)				27,810,763
Diluted (in shares)				30,306,017

Acquisitions - ePatch Division

Acquisitions - ePatch Division of DELTA Danish Electronics, Light, and Acoustics (Details) - USD ($) $ in Thousands	Apr. 01, 2016	Mar. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Goodwill
Goodwill			$ 227,524	$ 41,068
ePatch Division
Acquisitions
Cash consideration	$ 3,000
Consideration in common stock (in shares)	244,519
Consideration in common stock	$ 2,885
Maximum performance-based earn out	3,000
Fair value of consideration transferred	$ 6,490
Fair value of assets acquired:
Inventory		$ 100
Property and equipment		175
Identifiable intangible assets:
Total identifiable intangible assets		3,300
Total assets acquired		3,575
Fair value of liabilities assumed:
Accrued liabilities		266
Total liabilities assumed		266
Goodwill
Goodwill		3,181
Total identifiable net assets		3,309
Net assets acquired		6,490
ePatch Division | Tradename
Identifiable intangible assets:
Total identifiable intangible assets		100
ePatch Division | Customer relationships
Identifiable intangible assets:
Total identifiable intangible assets		$ 400
Weighted Average Life (Years)		10 years
ePatch Division | Technology
Identifiable intangible assets:
Total identifiable intangible assets		$ 2,800
Weighted Average Life (Years)		10 years

Acquisitions - Contingent Consi

Acquisitions - Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Apr. 01, 2016
Summary of changes in contingent consideration
Change in fair value of acquisition-related contingent consideration	$ (1,400)	$ (2,005)
Telcare
Contingent Consideration
Maximum performance-based earn out	5,000	5,000
Summary of changes in contingent consideration
Balance at the beginning of the period		2,700
Change in fair value of acquisition-related contingent consideration		(1,400)
Balance at the end of the period	1,300	1,300
Telcare | Accrued liabilities
Summary of changes in contingent consideration
Balance at the end of the period	1,000	1,000
Telcare | Other long-term liabilities
Summary of changes in contingent consideration
Balance at the end of the period	$ 300	300
ePatch Division
Contingent Consideration
Maximum performance-based earn out			$ 3,000
ePatch Division | Other liabilities
Summary of changes in contingent consideration
Balance at the beginning of the period		605
Change in fair value of acquisition-related contingent consideration		$ (605)

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory
Raw materials	$ 3,185	$ 2,866
Finished goods	2,901	2,310
Total inventory	$ 6,086	$ 5,176

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Property and equipment
Total property and equipment, at cost	$ 120,314		$ 120,314		$ 85,893
Less accumulated depreciation	(63,634)		(63,634)		(60,070)
Total property and equipment, net	56,680		56,680		25,823
Depreciation expense	5,682	$ 2,627	11,233	$ 7,884
Cardiac monitoring devices, device parts and components
Property and equipment
Total property and equipment, at cost	72,541		$ 72,541		55,825
Cardiac monitoring devices, device parts and components | Minimum
Property and equipment
Estimated Useful Life (Years)			3 years
Cardiac monitoring devices, device parts and components | Maximum
Property and equipment
Estimated Useful Life (Years)			5 years
Computers
Property and equipment
Total property and equipment, at cost	24,303		$ 24,303		18,027
Computers | Minimum
Property and equipment
Estimated Useful Life (Years)			3 years
Computers | Maximum
Property and equipment
Estimated Useful Life (Years)			5 years
Equipment, tools and molds
Property and equipment
Total property and equipment, at cost	8,049		$ 8,049		6,666
Equipment, tools and molds | Minimum
Property and equipment
Estimated Useful Life (Years)			3 years
Equipment, tools and molds | Maximum
Property and equipment
Estimated Useful Life (Years)			5 years
Furniture, fixtures and other
Property and equipment
Total property and equipment, at cost	2,005		$ 2,005		1,467
Furniture, fixtures and other | Minimum
Property and equipment
Estimated Useful Life (Years)			5 years
Furniture, fixtures and other | Maximum
Property and equipment
Estimated Useful Life (Years)			7 years
Leasehold improvements
Property and equipment
Total property and equipment, at cost	6,111		$ 6,111		3,171
Capital leases
Property and equipment
Total property and equipment, at cost	$ 7,305		$ 7,305		$ 737
Capital leases | Minimum
Property and equipment
Estimated Useful Life (Years)			3 years
Capital leases | Maximum
Property and equipment
Estimated Useful Life (Years)			7 years

Goodwill and Intangible Asset44

Goodwill and Intangible Assets - Changes In Carrying Amounts (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Changes in the carrying amounts of goodwill by segment
Balance at the beginning of the year	$ 41,068
Goodwill acquired during the year	186,456
Balance at the end of the year	227,524
Healthcare
Changes in the carrying amounts of goodwill by segment
Balance at the beginning of the year	14,724
Goodwill acquired during the year	186,456
Balance at the end of the year	201,180
Research
Changes in the carrying amounts of goodwill by segment
Balance at the beginning of the year	16,643
Goodwill adjustments related to 2016 acquisitions	(350)
Balance at the end of the year	16,293
Technology
Changes in the carrying amounts of goodwill by segment
Balance at the beginning of the year	9,701
Goodwill adjustments related to 2016 acquisitions	350
Balance at the end of the year	$ 10,051

Goodwill and Intangible Asset45

Goodwill and Intangible Assets - Gross Carrying Amounts and Accumulated Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Intangible assets
Total intangible assets, gross	$ 158,304		$ 158,304		$ 45,735
Total accumulated amortization	(21,240)		(21,240)		(15,263)
Total intangible assets, net	140,064		140,064		33,472
Estimated amortization expense
2,017	3,836		3,836
2,018	15,573		15,573
2,019	15,845		15,845
2,020	15,294		15,294
2,021	14,868		14,868
Thereafter	71,648		71,648
Total estimated amortization	137,064		137,064
Amortization expense	3,337	$ 1,062	5,326	$ 2,735
Tradename
Intangible assets
Indefinite-lived trade names	3,000		3,000		3,000
Customer relationships
Intangible assets
Total intangible assets, gross	126,750		126,750		16,700
Total accumulated amortization	(7,715)		$ (7,715)		(3,809)
Customer relationships | Minimum
Intangible assets
Estimated Useful Life (Years)			5 years
Customer relationships | Maximum
Intangible assets
Estimated Useful Life (Years)			15 years
Technology including internally developed software
Intangible assets
Total intangible assets, gross	23,654		$ 23,654		21,135
Total accumulated amortization	(7,896)		$ (7,896)		(6,588)
Technology including internally developed software | Minimum
Intangible assets
Estimated Useful Life (Years)			3 years
Technology including internally developed software | Maximum
Intangible assets
Estimated Useful Life (Years)			10 years
Backlog
Intangible assets
Total intangible assets, gross	6,860		$ 6,860		6,860
Total accumulated amortization	(4,833)		$ (4,833)		(4,176)
Backlog | Minimum
Intangible assets
Estimated Useful Life (Years)			1 year
Backlog | Maximum
Intangible assets
Estimated Useful Life (Years)			4 years
Covenants not to compete
Intangible assets
Total intangible assets, gross	1,040		$ 1,040		1,040
Total accumulated amortization	$ (796)		$ (796)		$ (690)
Covenants not to compete | Minimum
Intangible assets
Estimated Useful Life (Years)			5 years
Covenants not to compete | Maximum
Intangible assets
Estimated Useful Life (Years)			7 years

Equity Method Investment (Detai

Equity Method Investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Summary of investments
Capital contributions			$ 490
Our share of the investee's losses	$ (106)	$ (69)	(302)	$ (184)
Well Bridge Health, Inc
Summary of investments
Equity method investment, beginning balance	1,279	985	1,125	1,100
Capital contributions	140	312	490	312
Our share of the investee's losses	(106)	(69)	(302)	(184)
Equity method investment, ending balance	$ 1,313	$ 1,228	$ 1,313	1,228
Percentage of ownership interest in the voting stock	31.00%		31.00%
Well Bridge Health, Inc | Goodwill
Summary of investments
Equity method investment, beginning balance				$ 891

Credit Agreement (Details)

Credit Agreement (Details) - USD ($) $ in Thousands	Jul. 12, 2017	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Credit Agreement
Proceeds from loans used to pay debt			$ 25,851	$ 958
Loss on extinguishment of debt		$ (543)	(543)
LifeWatch AG
Credit Agreement
Current portion of long-term debt	$ 3,027	3,027	3,027
HFS
Credit Agreement
Proceeds from loans used to pay debt	24,875
Loss on extinguishment of debt			$ 543
Suntrust Bank
Credit Agreement
Percentage of capital stock of U.S. based subsidiaries			65.00%
Suntrust Bank | LifeWatch AG
Credit Agreement
Percentage of capital stock of U.S. based subsidiaries			65.00%
Suntrust Bank | LIBOR
Credit Agreement
Spread on variable interest rate (as a percent)			2.00%
Suntrust Bank | Base Rate
Credit Agreement
Spread on variable interest rate (as a percent)			1.00%
Suntrust Bank | Term Loan
Credit Agreement
Aggregate term loan principal at inception	205,000
Carrying amount of term loan		199,047	$ 199,047
Unamortized deferred financing cost		$ 5,953	5,953
Suntrust Bank | Term Loan | January 2018 to December 2018
Credit Agreement
Principal amount of quarterly installment payments			513
Suntrust Bank | Term Loan | January 2019 to December 2019
Credit Agreement
Principal amount of quarterly installment payments			1,281
Suntrust Bank | Term Loan | January 2020 to December 2020
Credit Agreement
Principal amount of quarterly installment payments			3,844
Suntrust Bank | Term Loan | January 2021 to December 2021
Credit Agreement
Principal amount of quarterly installment payments			$ 5,125
Suntrust Bank | Revolving credit facility
Credit Agreement
Undrawn line of credit	$ 50,000

Equity (Details)

Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures
Common stock, shares authorized	200,000,000				200,000,000		200,000,000
Common stock, shares outstanding	32,408,118				32,408,118		28,261,503
Stock-Based Compensation
Stock based compensation	$ 1,485			$ 1,138	$ 5,685	$ 3,757
Stock options
Stock-Based Compensation
Shares available for grant under OIP	2,780,965				2,780,965
Number of Shares
Stock outstanding balance at the beginning of the period (in shares)	3,407,029	3,550,317	3,568,434		3,568,434
Granted/Vested (in shares)	280,000	25,000	173,881
Cancelled/forfeited (in shares)	(44,015)	(85,448)
Exercised (in shares)	(60,380)	(82,840)	(191,998)
Stock outstanding balance at the end of the period (in shares)	3,582,634	3,407,029	3,550,317		3,582,634
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share)	$ 8.60	$ 8.64	$ 7.82		$ 7.82
Granted (in dollars per share)	35.79	31.59	24.12
Cancelled/forfeited (in dollars per share)	13.78	17.97
Exercise (in dollars per share)	22.93	7.47	7.45
Balance at the end of the period (in dollars per share)	$ 10.42	$ 8.60	$ 8.64		$ 10.42
RSUs
Number of Shares
Stock outstanding balance at the beginning of the year (in shares)	503,044	494,978	592,349		592,349
Granted (in shares)		36,623	78,991
Cancelled/forfeited (in shares)	(19,023)	(17,172)
Exercised/vested (in shares)		(11,385)	(176,362)
Stock outstanding balance at the end of the year (in shares)	484,021	503,044	494,978		484,021
Weighted Average Grant Date Fair Value
Balance at the beginning of the year (in dollars per shares)	$ 13.59	$ 12.57	$ 9.86		$ 9.86
Granted (in dollars per share)		28.47	24.65
Cancelled/forfeited (in dollars per share)	12.53	14.74
Exercised/vested (in dollars per share)		15.42	8.89
Balance at the end of the year (in dollars per shares)	$ 13.63	$ 13.59	$ 12.57		$ 13.63
Performance Stock Options
Stock-Based Compensation
Stock based compensation	$ 0			0	$ 1,533	0
Number of Shares
Stock outstanding balance at the beginning of the period (in shares)	150,000	170,000	100,000		100,000
Vested (in shares)			100,000
Exercised (in shares)		(20,000)	(30,000)
Stock outstanding balance at the end of the period (in shares)	150,000	150,000	170,000		150,000
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share)	$ 20.41	$ 20.17	$ 18.33		$ 18.33
Granted (in dollars per share)			21.45
Exercise (in dollars per share)		18.33	18.33
Balance at the end of the period (in dollars per share)	$ 20.41	$ 20.41	$ 20.17		$ 20.41
PSUs
Stock-Based Compensation
Stock based compensation	$ 0			$ 0	$ 0	$ 444
Number of Shares
Stock outstanding balance at the beginning of the year (in shares)			132,992		132,992
Cancelled/forfeited (in shares)			(132,992)
Weighted Average Grant Date Fair Value
Balance at the beginning of the year (in dollars per shares)			$ 8.68		$ 8.68
Cancelled/forfeited (in dollars per share)			$ 8.68

Equity - Employee Stock Purchas

Equity - Employee Stock Purchase Plan (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	May 31, 2017
2008 ESPP
Employee stock purchase plan
Common stock purchased	47,966
Net proceeds from the issuance of shares of common stock (in dollars)	$ 636
2017 ESPP
Employee stock purchase plan
Common stock purchased	47,249
Net proceeds from the issuance of shares of common stock (in dollars)	$ 720
Shares reserved for issuance		500,000
Number of remaining shares available for purchase	452,751

Other Charges (Details)

Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Charges
Legal fees	$ 930	$ 1,965	$ 3,797	$ 4,576
Professional fees	4,462	144	7,794	590
Severance and employee related costs	3,210	238	3,742	561
Change in contingent consideration	(1,400)		(2,005)
Other costs	950	50	1,214	117
Total	$ 8,152	$ 2,397	$ 14,542	$ 5,844

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Taxes
Income tax (benefit)/expense	$ (435)	$ 141	$ (31)	$ (54)
Deferred tax assets	$ 15,498		$ 15,498		$ 36,636

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)
Segment information
Number of operating segments | segment			3
Revenues	$ 81,023	$ 53,055	$ 195,033	$ 154,375
Income (loss) before income taxes	(2,999)	4,336	(673)	12,935
Depreciation and amortization	9,019	3,689	16,559	10,619
Capital expenditures	5,743	2,815	11,940	8,507
Healthcare
Segment information
Revenues	69,528	40,395	156,109	123,709
Research
Segment information
Revenues	9,313	10,420	28,199	23,709
Technology
Segment information
Revenues	2,182	2,240	10,725	6,957
Operating segments | Healthcare
Segment information
Income (loss) before income taxes	14,721	14,722	45,429	44,504
Depreciation and amortization	7,337	2,434	12,904	7,415
Capital expenditures	4,796	2,481	10,399	6,797
Operating segments | Research
Segment information
Income (loss) before income taxes	217	1,442	917	1,847
Depreciation and amortization	1,040	1,180	3,112	3,064
Capital expenditures	608	327	1,074	1,677
Operating segments | Technology
Segment information
Revenues	5,217	3,396	13,434	9,070
Income (loss) before income taxes	508	1,059	4,346	2,752
Depreciation and amortization	404	141	917	333
Capital expenditures	339	7	467	33
Corporate and Other
Segment information
Revenues	(5,217)	(3,396)	(13,434)	(9,070)
Income (loss) before income taxes	(18,445)	(12,887)	(51,365)	(36,168)
Depreciation and amortization	$ 238	$ (66)	$ (374)	$ (193)

Legal Proceedings (Details)

Legal Proceedings (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)shares	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)shares	Sep. 30, 2016USD ($)	Dec. 31, 2011item	Dec. 31, 2016USD ($)
Legal proceedings
Fair value of the shares returned to the company			$ 2,753
Other non-operating income (expense), net	$ 658	$ (17)	$ (2,755)	$ (100)
Mednet
Legal proceedings
Indemnification asset						$ 1,420
Gain on settlement	$ 1,333
Common Stock
Legal proceedings
Common shares returned to Company in legal settlement (shares) | shares			79,333
Common Stock | Mednet
Legal proceedings
Common shares returned to Company in legal settlement (shares) | shares	79,333
Fair value of the shares returned to the company	$ 2,753
United States Department of Health and Human Services Settlement
Legal proceedings
Payment to settle the letter of inquiry			$ 2,500
Number of unencrypted laptop computers theft | item					2
Number of corrective action plan (in years)			2 years
Other non-operating income (expense), net			$ (2,500)