Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | Nuvectra Corp | |
Entity Central Index Key | 1,648,893 | |
Trading Symbol | nvtr | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 10,342,483 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unuadited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 48,067 | $ 63,710 |
Trade accounts receivable, net of allowance for doubtful accounts of $53 in fiscal 2017 and $10 in fiscal 2016 | 4,409 | 3,177 |
Inventories | 4,021 | 5,233 |
Prepaid expenses and other current assets | 205 | 443 |
Total current assets | 56,702 | 72,563 |
Property, plant and equipment, net | 6,483 | 6,317 |
Intangible assets, net | 1,642 | 1,714 |
Goodwill | 38,182 | 38,182 |
Other long-term assets | 526 | 526 |
Total assets | 103,535 | 119,302 |
Current liabilities: | ||
Accounts payable | 5,880 | 9,928 |
Accrued liabilities | 4,085 | 3,355 |
Other accrued compensation | 1,891 | 1,766 |
Accrued bonuses | 714 | 991 |
Total current liabilities | 12,570 | 16,040 |
Other long-term liabilities | 1,118 | 940 |
Long-term debt, net | 13,865 | 13,744 |
Total liabilities | 27,553 | 30,724 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 100,000,000 shares authorized; 10,342,317 and 10,319,627 shares issued and outstanding in fiscal 2017 and fiscal 2016, respectively | 10 | 10 |
Additional paid-in capital | 122,332 | 121,806 |
Accumulated other comprehensive loss | (2) | (2) |
Accumulated deficit | (46,358) | (33,236) |
Total stockholders’ equity | 75,982 | 88,578 |
Total liabilities and stockholders’ equity | $ 103,535 | $ 119,302 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unuadited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 30, 2016 |
Trade accounts receivable, allowance for doubtful accounts | $ 53 | $ 10 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 10,342,317 | 10,319,627 |
Common stock, shares outstanding (in shares) | 10,342,317 | 10,319,627 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Product | $ 4,588 | $ 1,551 |
Service | 452 | 511 |
Total sales | 5,040 | 2,062 |
Product | 2,101 | 801 |
Service | 310 | 254 |
Total cost of sales | 2,411 | 1,055 |
Gross profit | 2,629 | 1,007 |
Operating expenses: | ||
Selling, general and administrative expenses | 10,805 | 4,085 |
Research, development and engineering costs, net | 4,373 | 3,536 |
Other operating expenses | 469 | |
Total operating expenses | 15,178 | 8,090 |
Operating loss | (12,549) | (7,083) |
Interest expense, net | 370 | 59 |
Other expense, net | 203 | |
Loss before provision for income taxes | (13,122) | (7,142) |
Provision for income taxes | ||
Net loss | (13,122) | (7,142) |
Other comprehensive loss: | ||
Unrealized holding loss on investments arising during period | ||
Other comprehensive loss | ||
Comprehensive loss | $ (13,122) | $ (7,142) |
Basic and diluted net loss per share (in dollars per share) | $ (1.27) | $ (0.70) |
Basic and diluted weighted average shares outstanding (in shares) | 10,335 | 10,258 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (13,122,000) | $ (7,142,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for uncollectible accounts | 44,000 | |
Writedowns of excess and obsolete inventories | 156,000 | 0 |
Depreciation and amortization | 359,000 | 382,000 |
Debt related amortization included in interest expense | 163,000 | 14,000 |
Stock-based compensation | 477,000 | 706,000 |
Loss on disposal of property, plant and equipment | 40,000 | |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (1,276,000) | (414,000) |
Inventories | 1,056,000 | (111,000) |
Prepaid expenses and other current assets | 238,000 | (707,000) |
Other long-term assets | (526,000) | |
Accounts payable and other current liabilities | (3,240,000) | 3,110,000 |
Other accrued compensation | 125,000 | 190,000 |
Accrued bonuses | (277,000) | 471,000 |
Other long-term liabilities | 178,000 | 526,000 |
Net cash used in operating activities | (15,119,000) | (3,461,000) |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (531,000) | (702,000) |
Net cash used in investing activities | (531,000) | (702,000) |
Cash flows from financing activities: | ||
Borrowings under credit facility | 15,000,000 | |
Purchase of non-controlling interests | (6,818,000) | |
Net funding and capital contribution provided by Integer | 86,421,000 | |
Proceeds from the exercise of stock options | 49,000 | |
Payment of debt issuance costs | (42,000) | (295,000) |
Net cash provided by financing activities | 7,000 | 94,308,000 |
Net (decrease) increase in cash and cash equivalents | (15,643,000) | 90,145,000 |
Cash and cash equivalents, beginning of period | 63,710,000 | 202,000 |
Cash and cash equivalents, end of period | 48,067,000 | 90,347,000 |
Supplemental Disclosure of Cash Flow Information: | ||
Debt issuance costs accrued not paid | 1,200,000 | |
Acquisition of property, plant and equipment accrued not paid | $ 51,000 | $ 500,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 30, 2016 | 10,320,000 | ||||
Balance at Dec. 30, 2016 | $ 10 | $ 121,806 | $ (33,236) | $ (2) | $ 88,578 |
Option exercises (in shares) | 9,000 | 9,735 | |||
Option exercises | 49 | $ 49 | |||
Restricted stock issued, net of stock forfeited (in shares) | 13,000 | ||||
Stock-based compensation | 477 | 477 | |||
Net loss | (13,122) | (13,122) | |||
Balance (in shares) at Mar. 31, 2017 | 10,342,000 | ||||
Balance at Mar. 31, 2017 | $ 10 | $ 122,332 | $ (46,358) | $ (2) | $ 75,982 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Nuvectra Corporation, together with its wholly-owned subsidiaries (i) Algostim, LLC (“Algostim”), (ii) PelviStim LLC (“PelviStim”), and (iii) NeuroNexus Technologies, Inc. (“NeuroNexus”) (collectively “Nuvectra” or the “Company”), is a neurostimulation company committed to helping physicians improve the lives of people with chronic neurological conditions. The Algovita® Spinal Cord Stimulation (“SCS”) System (“Algovita”) is the Company’s first On March 14, 2016 Basis of Presentation 270, Interim Reporting 10 10 may Liquidity and Capital Resources $75 February 2017, $25 six twelve may may may Fiscal Year End 2017, fifty two, fifty three December 31. first 2016 13 April 1, 2016 December 30, 2016. 2017, Use of Estimates Inventories first first $0.2 $0 first 2017 2016, may Impairment of Long-Lived Assets may 50 Potential recoverability is measured by comparing the carrying amount of the asset or asset group to its related total future undiscounted cash flows. The projected cash flows for each asset or asset group considers multiple factors, including current revenue from existing customers, proceeds from the sale of the asset or asset group and expected profit margins giving consideration to historical and expected margins. If the carrying value is not recoverable, the asset or asset group is considered to be impaired. Impairment is measured by comparing the asset or asset group’s carrying amount to its fair value. When it is determined that useful lives of assets are shorter than originally estimated, and no impairment is present, the rate of depreciation is accelerated in order to fully depreciate the assets over their new shorter useful lives. Goodwill Valuation may may first zero” two zero two two December 30, 2016, first two first 4.5% 34.1% March 31, 2017 zero two Warranty Reserve Revenue Recognition Service revenue is recognized as the services are performed. The Company’s development services are typically provided on a fixed-fee basis. The revenues for such longer duration projects are typically recognized using the proportional performance method. In using the proportional performance method, revenues are generally recorded based on the percentage of effort incurred to date on a contract relative to the estimated total expected contract effort. Significant judgment is required when estimating total contract effort and progress to completion on the arrangements as well as whether a loss is expected to be incurred on the contract. Management uses historical experience, project plans and an assessment of the risks and uncertainties inherent in the arrangements to establish these estimates. Various uncertainties may may Deferred revenue consists primarily of service revenue not yet performed. Subsequent Events |
Note 2 - Intangible Assets
Note 2 - Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 2. INTANGIBLE ASSETS Intangible assets are comprised of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount At March 31, 2017 Technology and patents $ 1,058 $ (530 ) $ 528 Customer lists 1,869 (755 ) 1,114 Total intangible assets $ 2,927 $ (1,285 ) $ 1,642 At December 30, 2016 Technology and patents $ 1,058 $ (498 ) $ 560 Customer lists 1,869 (715 ) 1,154 Total intangible assets $ 2,927 $ (1,213 ) $ 1,714 Aggregate intangible asset amortization expense is classified as follows (in thousands): Three Months Ended March 31, 2017 April 1, 2016 Cost of sales $ 32 $ 28 Selling, general and administrative expenses 40 40 Total intangible asset amortization expense $ 72 $ 68 Estimated future intangible asset amortization expense based on the current carrying value is as follows (in thousands): Estimated Amortization Expense Remainder of 2017 $ 214 2018 298 2019 293 2020 209 2021 194 Thereafter 434 Total estimated amortization expense $ 1,642 |
Note 3 - Accrued Liabilities
Note 3 - Accrued Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 3 . Accrued Liabilities Accrued liabilities consisted of the following (in thousands): At March 31, 2017 December 30, 2016 Inventory $ 934 $ 547 Regulatory, clinical and quality 580 640 Research and development 525 165 Operations engagement fee 400 600 Information technology system and infrastructure implementations 321 327 Deferred revenue 298 — Sales and marketing 211 — Travel and entertainment — 285 Legal 150 98 Interest 102 99 Warranty reserve 98 98 Sales and use tax 88 56 Accrued other 378 440 Total accrued liabilities $ 4,085 $ 3,355 |
Note 4 - Employee Benefit Plans
Note 4 - Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 4. EMPLOYEE BENEFIT PLANS Nuvectra Corporation 2016 2016 “2016 March 14, 2016. 2016 may may 2016 2016 2,362,785. During the three March 31, 2017, 112,300 2016 2016 first 2017 $0.4 not first 2016. Stock-Based Compensation three $0.1 $0.7 first 2017 2016, The components and classification of stock-based compensation expenses were as follows (in thousands): Three Months Ended March 31, 2017 April 1, 2016 Stock options $ 171 $ 63 Restricted stock and restricted stock units 306 643 Total stock-based compensation expense $ 477 $ 706 Selling, general and administrative expenses $ 442 $ 166 Research, development and engineering costs, net 35 71 Other operating expenses — 469 Total stock-based compensation expense $ 477 $ 706 The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model with weighted-average assumptions based on the grant date. The weighted average fair value and assumptions used to value options granted under the 2016 three March 31, 2017 Weighted average fair value $ 3.38 Risk-free interest rate 2.17 % Expected volatility 55 % Holding period (in years) 6 Expected dividend yield — % The following table summarizes the stock option activity during the first 2017: Number of Time-Vested Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at December 30, 2016 873,992 $ 6.49 Granted 56,150 6.35 Exercised (9,735 ) 5.02 Forfeited or expired (6,127 ) 8.08 Outstanding at March 31, 2017 914,280 $ 6.49 6.78 $ 912,349 Exercisable at March 31, 2017 501,857 $ 5.80 4.88 $ 885,483 The Company received proceeds totaling $49,000 9,735 first 2017. The following table summarizes the restricted stock and restricted stock unit activity during the first 2017: Time-Vested Activity Weighted Average Fair Value Nonvested at December 30, 2016 551,224 $ 6.90 Granted 56,150 6.35 Vested (5,859 ) 5.58 Forfeited (47,628 ) 6.39 Nonvested at March 31, 2017 553,887 $ 6.89 Nuvectra Bonus Plan first 2017 2016 $0.7 Defined Contribution Plans 401(k) 401(k) 1986, 401(k)”), first 2017 25% 6% $0.1 first 2017. Integer sponsors a defined contribution 401(k) 401(k) first 2016 35% 6% 401(k) first 2016 condensed consolidated financial statements includes all of the compensation expenses directly attributable to Nuvectra employees. Direct costs related to this defined contribution plan allocated to the Company were $0.04 first 2016. |
Note 5 - Other Operating Expens
Note 5 - Other Operating Expenses | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Other Operating Income and Expense [Text Block] | 5. OTHER OPERATING EXPENSES Performance Restricted Stock Expense 2015 $469,000 March 14, 2016 |
Note 6 - Debt
Note 6 - Debt | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 6. DEBT Long-term debt is comprised of the following (in thousands): At March 31, 2017 December 30, 2016 Term loan $ 16,163 $ 16,163 Deferred financing fees (1,218 ) (1,262 ) Discount on debt (1,080 ) (1,157 ) Total long-term debt $ 13,865 $ 13,744 Credit Facility February 2017 $40,000,000 $15,000,000 March 18, 2016, $12,500,000 June 30, 2017 December 31, 2017, $12,500,000 December 31, 2017 June 30, 2018 $5,000,000 six $13,500,000, six $20,000,000. 60 80% may The Term Loans bear interest at a floating rate equal to the prime rate plus 4.15%, 7.65%. March 31, 2017 7.90%. December 2017 March 2018 33 30 September 1, 2020, 7.75% 3.45%, 6.95%. March 18, 2018, no March 31, 2017. On March 18, 2016 $1,125,000 2.50% $200,000 one $25,000 one one February 14, 2017, $25,000 2% 3% first 2% second 1% The Loans are secured by a first The Credit Facility contains customary representations and warranties, reporting and other covenants for credit facilities of this kind including prohibitions on the payment of cash dividends on the Company’s capital stock and restrictions on mergers, sales of assets, investments, incurrence of liens, incurrence of indebtedness and transactions with affiliates. If the lenders fund the Term Loan B Commitment, the Company will be subject to a quarterly financial covenant requiring the Company to achieve consolidated revenues of at least 75% As a condition to the lenders’ funding the Loans under the Credit Facility, concurrently with the funding under the Term Loan A Commitment on March 18, 2016, 56,533 $5.97 March 18, 2026, 56,533 $5.97 March 18, 2026. $0.2 Upon the funding of each of the Term Loan B Commitment and the Term Loan C Commitment, as applicable, Oxford Finance LLC and Silicon Valley Bank will each be entitled to additional warrants for the purchase of Nuvectra common stock. The number of shares under each warrant will be equal to the amount of the Term Loan made by each lender multiplied by 4.50% March 31, 2017 $0.4 10 Deferred Financing Fees – At December 30, 2016 $ 1,262 Additions during the period 42 Amortization during the period (86 ) At March 31, 2017 $ 1,218 In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015 03, 835 30): |
Note 7 - Income Taxes
Note 7 - Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7. INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws, business reorganizations and settlements with taxing authorities. The Company records a valuation allowance when it is “more likely than not” that all or a portion of a deferred tax asset will not be realized. Management reviews all available positive and negative evidence, including the Company’s current and past performance, the market environment in which the Company operates, the utilization of past tax credits, length of carry back and carry forward periods, existing contracts or sales backlog that will result in future profits, as well as other factors. The Company maintains a full valuation allowance on all of the net deferred tax assets for the periods presented. Until an appropriate level of profitability is sustained, the Company expects to continue to record a full valuation allowance on future tax benefits. Pursuant to the terms of the tax matters agreement entered into with Integer at the time of the Spin-off, until March 14, 2018, one 30% 35% may |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 8. COMMITMENTS AND CONTINGENCIES Litigation – Purchase Commitments As of March 31, 2017, $12.4 March 31, 2017, 2017 $1.8 The Company’s significant long-term obligations are operating leases on its facilities. |
Note 9 - Earnings (Loss) Per Sh
Note 9 - Earnings (Loss) Per Share ("EPS") | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. EARNINGS (LOSS) PER SHARE (“EPS”) Basic net loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is equal to basic net loss per share as the Company had no The following table illustrates the calculation of Basic and Diluted EPS (in thousands, except per share amounts): Three Months Ended March 31, 2017 April 1, 2016 Basic net loss per share: Net loss $ (13,122 ) $ (7,142 ) Weighted average common shares outstanding 10,335 10,258 Basic net loss per share $ (1.27 ) $ (0.70 ) Diluted net loss per share: Net loss $ (13,122 ) $ (7,142 ) Weighted average common shares outstanding 10,335 10,258 Dilutive stock options, restricted stock and restricted stock units — — Weighted average common shares outstanding – assuming dilution 10,335 10,258 Diluted net loss per share $ (1.27 ) $ (0.70 ) Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive 1,581 890 |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 10. FAIR VALUE MEASUREMENTS The carrying amounts of cash, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these items. As of March 31, 2017, 2 Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). The Company has categorized its warrants measured at fair value on a recurring basis in Level 3 $0.5 first 2017, $0.2 March 31, 2017 $0.4 The Company’s investments in marketable securities primarily consist of investments in debt securities, which are classified as available-for-sale and presented as current assets within Cash and Cash Equivalents on the balance sheet because of their original maturities of three The fair values of marketable securities were estimated using the market approach using prices and other relevant information generated by market transactions involving identical or comparable assets. The Company uses quoted market prices in active markets or quoted market prices in markets that are not active to measure fair value. When developing fair value estimates, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. As of March 31, 2017, $44.1 three Marketable securities, measured at fair value, by level within the fair value hierarchy were as follows (in thousands): March 31, 2017 Fair Value Hierarchy Cost Unrealized Loss Fair Value Cash Level 1 $ 27,567 $ — $ 27,567 Agency Level 1 2,996 — 2,996 Financial Level 2 5,910 (2 ) 5,908 Industrial Level 2 7,615 — 7,615 Total $ 44,088 $ (2 ) $ 44,086 December 30, 2016 Fair Value Hierarchy Cost Unrealized Loss Fair Value Cash Level 1 $ 33,821 $ — $ 33,821 Government Level 1 2,005 — 2,005 Financial Level 2 8,064 (1 ) 8,063 Industrial Level 2 11,125 (1 ) 11,124 Total $ 55,015 $ (2 ) $ 55,013 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Fair value standards also apply to certain assets and liabilities that are measured at fair value on a nonrecurring basis. A summary of the valuation methodologies for assets and liabilities measured on a nonrecurring basis is as follows: Long-lived Assets 1 Goodwill 1 first 2017 2016, no Warrants 10 March 18, 2016. The following table summarizes the assumptions as of March 31, 2017 Risk-free interest rate 2.26 % Expected volatility 60.00 % Contractual term (in years) 10 Dividend yield — % |
Note 11 - Business Segment, Geo
Note 11 - Business Segment, Geographic and Concentration Risk Information | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting, Geographical, and Concentration Risk Disclosure [Text Block] | 11. BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION As a new public entity, the Company commenced its first fourth 2016. two two Nuvectra is a neurostimulation company committed to helping physicians improve the lives of people with chronic neurological conditions. Algovita is the Company’s first TM , the second first NeuroNexus designs, manufactures and markets neural-interface technologies for the neuroscience clinical research market. Revenue includes sales of neural interface technology, components and systems to the neuroscience and clinical markets. An analysis and reconciliation of the Company’s product lines, business segments and geographic information to the respective information in the Condensed Consolidated Financial Statements follows. Sales by geographic area are presented by allocating sales from external customers based on where the products are shipped or services are rendered (in thousands): Three Months Ended March 31, 2017 April 1, 2016 Product line sales: Algovita $ 3,387 $ 415 Neural interface components and systems 1,201 1,136 Development and engineering service 452 511 Total sales $ 5,040 $ 2,062 Three Months Ended March 31, 2017 April 1, 2016 Business segment sales: Nuvectra $ 3,839 $ 926 NeuroNexus 1,201 1,136 Total sales $ 5,040 $ 2,062 Three Months Ended March 31, 2017 April 1, 2016 Segment loss from operations: Nuvectra $ (12,605 ) $ (6,901 ) NeuroNexus 56 (182 ) Total segment loss from operations (12,549 ) (7,083 ) Unallocated operating expenses — — Operating loss (12,549 ) (7,083 ) Unallocated other expense, net (573 ) (59 ) Loss before provision for income taxes $ (13,122 ) $ (7,142 ) Three Months Ended March 31, 2017 April 1, 2016 Sales by geographic area: United States $ 3,770 $ 664 Non-Domestic locations: Switzerland 473 546 Germany 351 556 Rest of world 446 296 Total sales $ 5,040 $ 2,062 All of the Company’s long-lived tangible assets are located in the United States. |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 12. related party transactions On March 14, 2016 $75.0 Employee Benefit Plans 4 Supply Agreement |
Note 13 - Recently Issued Accou
Note 13 - Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 13. RECENTLY ISSUED ACCOUNTING STANDARDS In the normal course of business, management evaluates all new accounting pronouncements issued by the FASB to determine the potential impact they may Recently Adopted In January 2017, 2017 04, 350): two December 15, 2019. January 1, 2017. 2017 04 In March 2016, 2016 09, 718, 2016 09 first 2017 2016 09 In July 2015, 2015 11, 330): first first 2017. 2015 11 Condensed Consolidated Financial Statements. Not Yet Adopted In January 2017, 2017 01, 805): 2017 01 2017 01 December 15, 2017, first 2018 2017 01 Condensed Consolidated Financial Statements. In August 2016, 2016 15, 230): 2016 15 eight December 15, 2017, first 2018 2016 15 Condensed Consolidated Financial Statements. In February 2016, 2016 02, 2016 02 2016 02 December 15, 2018 Condensed Consolidated Financial Statements. In January 2016, 2016 01, December 15, 2017, Condensed Consolidated Financial Statements. In May 2014, 2014 09, 2014 09 five two August 2015, 2015 14 2014 09 December 15, 2017, December 15, 2016. March 2016, 2016 08, 606): 2014 09. April 2016, 2016 10, 606): 2014 9. May 2016, 2016 11, 605) 815): 2014 09 2014 16 March 3, 2016 2016 11 two March 3, 2016 2016 11 605 December 15, 2017 815 December 15, 2015. May 2016, 2016 12, 606): 2014 9. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations [Policy Text Block] | Nature of Operations Nuvectra Corporation, together with its wholly-owned subsidiaries (i) Algostim, LLC (“Algostim”), (ii) PelviStim LLC (“PelviStim”), and (iii) NeuroNexus Technologies, Inc. (“NeuroNexus”) (collectively “Nuvectra” or the “Company”), is a neurostimulation company committed to helping physicians improve the lives of people with chronic neurological conditions. The Algovita® Spinal Cord Stimulation (“SCS”) System (“Algovita”) is the Company’s first On March 14, 2016 |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation 270, Interim Reporting 10 10 may |
Liquidity and Capital Resources [Policy Text Block] | Liquidity and Capital Resources $75 February 2017, $25 six twelve may may may |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year End 2017, fifty two, fifty three December 31. first 2016 13 April 1, 2016 December 30, 2016. 2017, |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Inventory, Policy [Policy Text Block] | Inventories first first $0.2 $0 first 2017 2016, may |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets may 50 Potential recoverability is measured by comparing the carrying amount of the asset or asset group to its related total future undiscounted cash flows. The projected cash flows for each asset or asset group considers multiple factors, including current revenue from existing customers, proceeds from the sale of the asset or asset group and expected profit margins giving consideration to historical and expected margins. If the carrying value is not recoverable, the asset or asset group is considered to be impaired. Impairment is measured by comparing the asset or asset group’s carrying amount to its fair value. When it is determined that useful lives of assets are shorter than originally estimated, and no impairment is present, the rate of depreciation is accelerated in order to fully depreciate the assets over their new shorter useful lives. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Valuation may may first zero” two zero two two December 30, 2016, first two first 4.5% 34.1% March 31, 2017 zero two |
Standard Product Warranty, Policy [Policy Text Block] | Warranty Reserve |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Service revenue is recognized as the services are performed. The Company’s development services are typically provided on a fixed-fee basis. The revenues for such longer duration projects are typically recognized using the proportional performance method. In using the proportional performance method, revenues are generally recorded based on the percentage of effort incurred to date on a contract relative to the estimated total expected contract effort. Significant judgment is required when estimating total contract effort and progress to completion on the arrangements as well as whether a loss is expected to be incurred on the contract. Management uses historical experience, project plans and an assessment of the risks and uncertainties inherent in the arrangements to establish these estimates. Various uncertainties may may Deferred revenue consists primarily of service revenue not yet performed. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events |
Note 2 - Intangible Assets (Tab
Note 2 - Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Gross Carrying Amount Accumulated Amortization Net Carrying Amount At March 31, 2017 Technology and patents $ 1,058 $ (530 ) $ 528 Customer lists 1,869 (755 ) 1,114 Total intangible assets $ 2,927 $ (1,285 ) $ 1,642 At December 30, 2016 Technology and patents $ 1,058 $ (498 ) $ 560 Customer lists 1,869 (715 ) 1,154 Total intangible assets $ 2,927 $ (1,213 ) $ 1,714 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Three Months Ended March 31, 2017 April 1, 2016 Cost of sales $ 32 $ 28 Selling, general and administrative expenses 40 40 Total intangible asset amortization expense $ 72 $ 68 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated Amortization Expense Remainder of 2017 $ 214 2018 298 2019 293 2020 209 2021 194 Thereafter 434 Total estimated amortization expense $ 1,642 |
Note 3 - Accrued Liabilities (T
Note 3 - Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | At March 31, 2017 December 30, 2016 Inventory $ 934 $ 547 Regulatory, clinical and quality 580 640 Research and development 525 165 Operations engagement fee 400 600 Information technology system and infrastructure implementations 321 327 Deferred revenue 298 — Sales and marketing 211 — Travel and entertainment — 285 Legal 150 98 Interest 102 99 Warranty reserve 98 98 Sales and use tax 88 56 Accrued other 378 440 Total accrued liabilities $ 4,085 $ 3,355 |
Note 4 - Employee Benefit Pla23
Note 4 - Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Three Months Ended March 31, 2017 April 1, 2016 Stock options $ 171 $ 63 Restricted stock and restricted stock units 306 643 Total stock-based compensation expense $ 477 $ 706 Selling, general and administrative expenses $ 442 $ 166 Research, development and engineering costs, net 35 71 Other operating expenses — 469 Total stock-based compensation expense $ 477 $ 706 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Weighted average fair value $ 3.38 Risk-free interest rate 2.17 % Expected volatility 55 % Holding period (in years) 6 Expected dividend yield — % |
Restricted Stock and RSU's [Member] | |
Notes Tables | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Time-Vested Activity Weighted Average Fair Value Nonvested at December 30, 2016 551,224 $ 6.90 Granted 56,150 6.35 Vested (5,859 ) 5.58 Forfeited (47,628 ) 6.39 Nonvested at March 31, 2017 553,887 $ 6.89 |
Employee Stock Option [Member] | |
Notes Tables | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Number of Time-Vested Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at December 30, 2016 873,992 $ 6.49 Granted 56,150 6.35 Exercised (9,735 ) 5.02 Forfeited or expired (6,127 ) 8.08 Outstanding at March 31, 2017 914,280 $ 6.49 6.78 $ 912,349 Exercisable at March 31, 2017 501,857 $ 5.80 4.88 $ 885,483 |
Note 6 - Debt (Tables)
Note 6 - Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | At March 31, 2017 December 30, 2016 Term loan $ 16,163 $ 16,163 Deferred financing fees (1,218 ) (1,262 ) Discount on debt (1,080 ) (1,157 ) Total long-term debt $ 13,865 $ 13,744 |
Schedule of Debt Issuance Costs [Table Text Block] | At December 30, 2016 $ 1,262 Additions during the period 42 Amortization during the period (86 ) At March 31, 2017 $ 1,218 |
Note 9 - Earnings (Loss) Per 25
Note 9 - Earnings (Loss) Per Share ("EPS") (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2017 April 1, 2016 Basic net loss per share: Net loss $ (13,122 ) $ (7,142 ) Weighted average common shares outstanding 10,335 10,258 Basic net loss per share $ (1.27 ) $ (0.70 ) Diluted net loss per share: Net loss $ (13,122 ) $ (7,142 ) Weighted average common shares outstanding 10,335 10,258 Dilutive stock options, restricted stock and restricted stock units — — Weighted average common shares outstanding – assuming dilution 10,335 10,258 Diluted net loss per share $ (1.27 ) $ (0.70 ) Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive 1,581 890 |
Note 10 - Fair Value Measurem26
Note 10 - Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | March 31, 2017 Fair Value Hierarchy Cost Unrealized Loss Fair Value Cash Level 1 $ 27,567 $ — $ 27,567 Agency Level 1 2,996 — 2,996 Financial Level 2 5,910 (2 ) 5,908 Industrial Level 2 7,615 — 7,615 Total $ 44,088 $ (2 ) $ 44,086 December 30, 2016 Fair Value Hierarchy Cost Unrealized Loss Fair Value Cash Level 1 $ 33,821 $ — $ 33,821 Government Level 1 2,005 — 2,005 Financial Level 2 8,064 (1 ) 8,063 Industrial Level 2 11,125 (1 ) 11,124 Total $ 55,015 $ (2 ) $ 55,013 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | Risk-free interest rate 2.26 % Expected volatility 60.00 % Contractual term (in years) 10 Dividend yield — % |
Note 11 - Business Segment, G27
Note 11 - Business Segment, Geographic and Concentration Risk Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Revenue from External Customers by Products and Services [Table Text Block] | Three Months Ended March 31, 2017 April 1, 2016 Product line sales: Algovita $ 3,387 $ 415 Neural interface components and systems 1,201 1,136 Development and engineering service 452 511 Total sales $ 5,040 $ 2,062 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended March 31, 2017 April 1, 2016 Business segment sales: Nuvectra $ 3,839 $ 926 NeuroNexus 1,201 1,136 Total sales $ 5,040 $ 2,062 Three Months Ended March 31, 2017 April 1, 2016 Segment loss from operations: Nuvectra $ (12,605 ) $ (6,901 ) NeuroNexus 56 (182 ) Total segment loss from operations (12,549 ) (7,083 ) Unallocated operating expenses — — Operating loss (12,549 ) (7,083 ) Unallocated other expense, net (573 ) (59 ) Loss before provision for income taxes $ (13,122 ) $ (7,142 ) |
Revenue from External Customers by Geographic Areas [Table Text Block] | Three Months Ended March 31, 2017 April 1, 2016 Sales by geographic area: United States $ 3,770 $ 664 Non-Domestic locations: Switzerland 473 546 Germany 351 556 Rest of world 446 296 Total sales $ 5,040 $ 2,062 |
Note 1 - Summary of Significa28
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | Mar. 14, 2016 | Feb. 28, 2017 | Mar. 31, 2017 | Apr. 01, 2016 | Dec. 30, 2016 |
Proceeds from Contributions from Former Parent | $ 86,421,000 | ||||
Line of Credit, Portion Subject to Certain Revenue Milestones | $ 25,000,000 | ||||
Inventory Write-down | $ 156,000 | $ 0 | |||
Nuvectra Segment [Member] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 4.50% | ||||
NeuroNexus Segment [Member] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 34.10% | ||||
Integer [Member] | |||||
Proceeds from Contributions from Former Parent | $ 75,000,000 |
Note 2 - Intangible Assets - Am
Note 2 - Intangible Assets - Amortizing Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 30, 2016 |
Gross carrying amount | $ 2,927 | $ 2,927 |
Accumulated amortization | (1,285) | (1,213) |
Net carrying amount | 1,642 | 1,714 |
Patented Technology [Member] | ||
Gross carrying amount | 1,058 | 1,058 |
Accumulated amortization | (530) | (498) |
Net carrying amount | 528 | 560 |
Customer Lists [Member] | ||
Gross carrying amount | 1,869 | 1,869 |
Accumulated amortization | (755) | (715) |
Net carrying amount | $ 1,114 | $ 1,154 |
Note 2 - Intangible Assets - Ag
Note 2 - Intangible Assets - Aggregate Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Intangible asset amortization expense | $ 72 | $ 68 |
Cost of Sales [Member] | ||
Intangible asset amortization expense | 32 | 28 |
Selling, General and Administrative Expenses [Member] | ||
Intangible asset amortization expense | $ 40 | $ 40 |
Note 2 - Intangible Assets - Fu
Note 2 - Intangible Assets - Future Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 30, 2016 |
Remainder of 2017 | $ 214 | |
2,018 | 298 | |
2,019 | 293 | |
2,020 | 209 | |
2,021 | 194 | |
Thereafter | 434 | |
Total estimated amortization expense | $ 1,642 | $ 1,714 |
Note 3 - Accrued Liabilities -
Note 3 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 30, 2016 |
Inventory | $ 934 | $ 547 |
Regulatory, clinical and quality | 580 | 640 |
Research and development | 525 | 165 |
Operations engagement fee | 400 | 600 |
Information technology system and infrastructure implementations | 321 | 327 |
Deferred revenue | 298 | |
Sales and marketing | 211 | |
Travel and entertainment | 285 | |
Legal | 150 | 98 |
Interest | 102 | 99 |
Warranty reserve | 98 | 98 |
Sales and use tax | 88 | 56 |
Accrued other | 378 | 440 |
Total accrued liabilities | $ 4,085 | $ 3,355 |
Note 4 - Employee Benefit Pla33
Note 4 - Employee Benefit Plans (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Proceeds from Stock Options Exercised | $ 49,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 9,735 | |
Defined Contribution Plan [Member] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 25.00% | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% | |
Defined Contribution Plan, Cost | $ 100,000 | |
Integer Sponsored Defined Contribution Plan [Member] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 35.00% | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% | |
Defined Contribution Plan, Cost | $ 40,000 | |
Bonus Plan [Member] | ||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 700,000 | 700,000 |
Nuvectra Corporation 2016 Equity Incentive Plan [Member] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 2,362,785 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 400,000 | 0 |
Nuvectra Corporation 2016 Equity Incentive Plan [Member] | Restricted Stock Units and Non-Qualified Stock Options [Member] | Directors, Certain Officers and Key Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options and Options, Grants in Period | 112,300 | |
Integer Equity Incentives Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 100,000 | $ 700,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Note 4 - Employee Benefit Pla34
Note 4 - Employee Benefit Plans - Allocated Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Allocated share-based compensation expense | $ 477 | $ 706 |
Selling, General and Administrative Expenses [Member] | ||
Allocated share-based compensation expense | 442 | 166 |
Research and Development Expense [Member] | ||
Allocated share-based compensation expense | 35 | 71 |
Other Operating Income (Expense) [Member] | ||
Allocated share-based compensation expense | 469 | |
Employee Stock Option [Member] | ||
Allocated share-based compensation expense | 171 | 63 |
Restricted Stock Units (RSUs) [Member] | ||
Allocated share-based compensation expense | $ 306 | $ 643 |
Note 4 - Employee Benefit Pla35
Note 4 - Employee Benefit Plans - Weighted Average Fair Value Assumption Used to Values Options Granted (Details) | 3 Months Ended |
Mar. 31, 2017$ / shares | |
Weighted average fair value (in dollars per share) | $ 3.38 |
Risk-free interest rate | 2.17% |
Expected volatility | 55.00% |
Holding period (in years) (Year) | 6 years |
Expected dividend yield | 0.00% |
Note 4 - Employee Benefit Pla36
Note 4 - Employee Benefit Plans - Summary of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Exercised, number of options (in shares) | (9,735) |
Employee Stock Option [Member] | |
Outstanding, number of options (in shares) | 873,992 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 6.49 |
Granted, number of options (in shares) | 56,150 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 6.35 |
Exercised, number of options (in shares) | (9,735) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 5.02 |
Forfeited or expired, number of options (in shares) | (6,127) |
Forfeited or expired, weighted average exercise price (in dollars per share) | $ / shares | $ 8.08 |
Outstanding, number of options (in shares) | 914,280 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 6.49 |
Outstanding, weighted average remaining contractual life (Year) | 6 years 284 days |
Outstanding, aggregate intrinsic value | $ | $ 912,349 |
Exercisable, number of options (in shares) | 501,857 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 5.80 |
Exercisable, weighted average remaining contractual life (Year) | 4 years 321 days |
Exercisable, aggregate intrinsic value | $ | $ 885,483 |
Note 4 - Employee Benefit Pla37
Note 4 - Employee Benefit Plans - Summary Restricted Stock Unit Activity (Details) - Restricted Stock and RSU's [Member] | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Nonvested (in shares) | shares | 551,224 |
Nonvested (in dollars per share) | $ / shares | $ 6.90 |
Granted (in shares) | shares | 56,150 |
Granted (in dollars per share) | $ / shares | $ 6.35 |
Vested (in shares) | shares | (5,859) |
Vested (in dollars per share) | $ / shares | $ 5.58 |
Forfeited (in shares) | shares | (47,628) |
Forfeited (in dollars per share) | $ / shares | $ 6.39 |
Nonvested (in shares) | shares | 553,887 |
Nonvested (in dollars per share) | $ / shares | $ 6.89 |
Note 5 - Other Operating Expe38
Note 5 - Other Operating Expenses (Details Textual) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Performance Shares [Member] | |
Other Operating Income (Expense), Net, Performance Restricted Stock Expense | $ 469,000 |
Note 6 - Debt (Details Textual)
Note 6 - Debt (Details Textual) - USD ($) | Mar. 18, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | Feb. 14, 2017 | Dec. 30, 2016 |
Long-term Debt | $ 13,865,000 | $ 13,744,000 | |||
Payments of Debt Issuance Costs | 42,000 | $ 295,000 | |||
Additional Paid in Capital | 122,332,000 | $ 121,806,000 | |||
Warrant [Member] | |||||
Derivative Liability | $ 500,000 | $ 400,000 | |||
Oxford Finance LLC and Silicon Valley Bank [Member] | Warrant [Member] | |||||
Additional Paid in Capital | 200,000 | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loan B Funded [Member] | |||||
Debt Covenant, Minimum Percentage of Forecasted Revenues Required | 75.00% | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | ||||
Line of Credit Facility, Borrowing Base as Percentage of Accounts Receivable | 80.00% | ||||
Debt Instrument, Interest Rate Floor | 6.95% | ||||
Long-term Debt | $ 0 | ||||
Line of Credit Facility, Commitment Fee Amount | 25,000 | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.45% | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loans [Member] | Piper Jaffray [Member] | |||||
Payments of Debt Issuance Costs | $ 1,125,000 | ||||
Debt Instrument, Arrangement Fee, Percentage | 2.50% | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loans [Member] | |||||
Debt Agreement, Maximum Borrowing Capacity | $ 40,000,000 | ||||
Debt Instrument, Interest Rate Floor | 7.65% | ||||
Debt Instrument, Interest Rate During Period | 7.90% | ||||
Debt Instrument, Percentage of Funded Loan Amounts due at Maturity | 7.75% | ||||
Debt Instrument, Commitment Fee Amount | $ 200,000 | ||||
Debt Instrument, Amendment Fee | $ 25,000 | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loans [Member] | If Term Loan B Not Funded, Beginning January, 2018 [Member] | |||||
Debt Instrument, Number of Monthly Principal and Interest Payments | 33 | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loans [Member] | If Term Loan B Funded, Beginning April, 2018 [Member] | |||||
Debt Instrument, Number of Monthly Principal and Interest Payments | 30 | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loans [Member] | Prepayment in First Year After Initial Closing [Member] | |||||
Debt Instrument, Prepayment Fee Percentage | 3.00% | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loans [Member] | Prepayment in Second Year After Initial Closing [Member] | |||||
Debt Instrument, Prepayment Fee Percentage | 2.00% | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loans [Member] | Prepayment After Second Year After Initial Closing [Member] | |||||
Debt Instrument, Prepayment Fee Percentage | 1.00% | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loans [Member] | Prime Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.15% | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loan A [Member] | |||||
Debt Agreement, Maximum Borrowing Capacity | $ 15,000,000 | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loan B [Member] | |||||
Debt Agreement, Maximum Borrowing Capacity | 12,500,000 | ||||
Debt Covenant, Minimum Revenue Required for Trailing Six Months | 13,500,000 | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loan C [Member] | |||||
Debt Agreement, Maximum Borrowing Capacity | 12,500,000 | ||||
Debt Covenant, Minimum Revenue Required for Trailing Six Months | $ 20,000,000 | ||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loans B and C [Member] | |||||
Debt Covenant, Maximum Number of Days to Draw Loan After Revenue Requirement | 60 days | ||||
Debt Instrument, Commitment Fee Percentage | 2.00% | ||||
Oxford Finance LLC [Member] | |||||
Class of Warrant or Right, Issued During Period | 56,533 | ||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ 5.97 | ||||
Silicon Valley Bank [Member] | |||||
Class of Warrant or Right, Issued During Period | 56,533 | ||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ 5.97 | ||||
Silicon Valley Bank [Member] | Term Loan B Funded [Member] | |||||
Class of Warrant or Right, Increase to Warrant, Percentage of Loan Divided by Market Value of Common Stock | 4.50% |
Note 6 - Debt - Long-term Debt
Note 6 - Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 30, 2016 |
Term loan | $ 16,163 | $ 16,163 |
Deferred financing fees | (1,218) | (1,262) |
Discount on debt | (1,080) | (1,157) |
Total long-term debt | $ 13,865 | $ 13,744 |
Note 6 - Debt - Deferred Financ
Note 6 - Debt - Deferred Financing Fees (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Deferred financing fees | $ 1,262 |
Additions during the period | 42 |
Amortization during the period | (86) |
Deferred financing fees | $ 1,218 |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - Greatbatch [Member] - Tax Matters Agreement [Member] | Mar. 31, 2017 |
Equity Issuance Limitations | 30.00% |
Asset Disposal Limitations | 35.00% |
Note 8 - Commitments and Cont43
Note 8 - Commitments and Contingencies (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 12.4 |
Capital Expenditures Yet to Be Incurred | $ 1.8 |
Note 9 - Earnings (Loss) Per 44
Note 9 - Earnings (Loss) Per Share ("EPS") (Details Textual) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 |
Note 9 - Earnings (Loss) Per 45
Note 9 - Earnings (Loss) Per Share ("EPS") - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Basic net loss per share: | ||
Net loss | $ (13,122) | $ (7,142) |
Weighted average common shares outstanding (in shares) | 10,335 | 10,258 |
Basic net loss per share (in dollars per share) | $ (1.27) | $ (0.70) |
Diluted net loss per share: | ||
Net loss | $ (13,122) | $ (7,142) |
Weighted average common shares outstanding (in shares) | 10,335 | 10,258 |
Dilutive stock options, restricted stock and restricted stock units (in shares) | ||
Weighted average common shares outstanding – assuming dilution (in shares) | 10,335 | 10,258 |
Diluted net loss per share (in dollars per share) | $ (1.27) | $ (0.70) |
Warrant [Member] | ||
Diluted net loss per share: | ||
Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive (in shares) | 1,581 | 890 |
Note 10 - Fair Value Measurem46
Note 10 - Fair Value Measurements (Details Textual) - USD ($) | 3 Months Ended | |||
Mar. 31, 2017 | Apr. 01, 2016 | Dec. 30, 2016 | Mar. 18, 2016 | |
Fair Value Adjustment of Warrants | $ 200,000 | |||
Available-for-sale Securities | 44,086,000 | $ 55,013,000 | ||
Goodwill, Impairment Loss | 0 | $ 0 | ||
Warrant [Member] | ||||
Derivative Liability | $ 400,000 | $ 500,000 |
Note 10 - Fair Value Measurem47
Note 10 - Fair Value Measurements - Marketable Securities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 30, 2016 |
Available-for-sale Securities, Amortized Cost Basis | $ 44,088 | $ 55,015 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | (2) | (2) |
Available-for-sale Securities | 44,086 | 55,013 |
Cash [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 27,567 | 33,821 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | ||
Available-for-sale Securities | 27,567 | 33,821 |
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 2,996 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | ||
Available-for-sale Securities | 2,996 | |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 2,005 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | ||
Available-for-sale Securities | 2,005 | |
Financial Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,910 | 8,064 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | (2) | (1) |
Available-for-sale Securities | 5,908 | 8,063 |
Industrial Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 7,615 | 11,125 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | (1) | |
Available-for-sale Securities | $ 7,615 | $ 11,124 |
Note 10 - Fair Value Measurem48
Note 10 - Fair Value Measurements - Fair Value Assumptions of Warrants (Details) - Warrant [Member] | 3 Months Ended |
Mar. 31, 2017 | |
Risk-free interest rate | 2.26% |
Expected volatility | 60.00% |
Contractual term (in years) (Year) | 10 years |
Dividend yield | 0.00% |
Note 11 - Business Segment, G49
Note 11 - Business Segment, Geographic and Concentration Risk Information (Details Textual) | 3 Months Ended |
Mar. 31, 2017 | |
Number of Reportable Segments | 2 |
Number of Reporting Units | 2 |
Note 11 - Business Segment, G50
Note 11 - Business Segment, Geographic and Concentration Risk Information - Product Line Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Sales revenue, net | $ 5,040 | $ 2,062 |
Algovita [Member] | ||
Sales revenue, net | 3,387 | 415 |
Neural Interface Components and Systems [Member] | ||
Sales revenue, net | 1,201 | 1,136 |
Development and Engineering Services [Member] | ||
Sales revenue, net | $ 452 | $ 511 |
Note 11 - Business Segment, G51
Note 11 - Business Segment, Geographic and Concentration Risk Information - Business Segments Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Sales revenue, net | $ 5,040 | $ 2,062 |
Segment loss from operations | (12,549) | (7,083) |
Unallocated operating expenses | 15,178 | 8,090 |
Unallocated other expense, net | (573) | (59) |
Loss before provision for income taxes | (13,122) | (7,142) |
Operating Segments [Member] | ||
Segment loss from operations | (12,549) | (7,083) |
Segment Reconciling Items [Member] | ||
Unallocated operating expenses | ||
Nuvectra Segment [Member] | ||
Sales revenue, net | 3,839 | 926 |
Nuvectra Segment [Member] | Operating Segments [Member] | ||
Segment loss from operations | (12,605) | (6,901) |
NeuroNexus Segment [Member] | ||
Sales revenue, net | 1,201 | 1,136 |
NeuroNexus Segment [Member] | Operating Segments [Member] | ||
Segment loss from operations | $ 56 | $ (182) |
Note 11 - Business Segment, G52
Note 11 - Business Segment, Geographic and Concentration Risk Information - Sales by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Sales revenue, net | $ 5,040 | $ 2,062 |
UNITED STATES | ||
Sales revenue, net | 3,770 | 664 |
SWITZERLAND | ||
Sales revenue, net | 473 | 546 |
GERMANY | ||
Sales revenue, net | 351 | 556 |
Rest of World [Member] | ||
Sales revenue, net | $ 446 | $ 296 |
Note 12 - Related Party Trans53
Note 12 - Related Party Transactions (Details Textual) $ in Millions | Mar. 14, 2016USD ($) |
Integer [Member] | |
Proceeds from Contributions from Parent | $ 75 |