Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 19, 2018 | |
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 | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 17,608,955 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Ex Transition Period | true |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 101,858 | $ 28,165 |
Trade accounts receivable, net of allowance for doubtful accounts of $637 and $417 in 2018 and 2017, respectively | 11,394 | 10,875 |
Inventories | 4,476 | 4,978 |
Prepaid expenses and other current assets | 1,420 | 1,011 |
Total current assets | 119,148 | 45,029 |
Property, plant and equipment, net | 5,655 | 6,219 |
Intangible assets, net | 1,204 | 1,428 |
Goodwill | 38,182 | 38,182 |
Other long-term assets | 245 | |
Total assets | 164,189 | 91,103 |
Current liabilities: | ||
Accounts payable | 230 | 2,043 |
Accrued liabilities | 9,977 | 8,827 |
Accrued compensation | 5,409 | 4,392 |
Short-term debt | 789 | |
Total current liabilities | 15,616 | 16,051 |
Other long-term liabilities | 516 | 993 |
Long-term debt, net | 43,824 | 25,886 |
Total liabilities | 59,956 | 42,930 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 100,000,000 shares authorized; 17,573,669 and 10,849,385 shares issued and outstanding in 2018 and 2017, respectively | 18 | 11 |
Additional paid-in capital | 217,329 | 125,999 |
Accumulated other comprehensive loss | (1) | |
Accumulated deficit | (113,114) | (77,836) |
Total stockholders’ equity | 104,233 | 48,173 |
Total liabilities and stockholders’ equity | $ 164,189 | $ 91,103 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Trade accounts receivable, allowance for doubtful accounts | $ 637 | $ 417 |
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) | 17,573,669 | 10,849,385 |
Common stock, shares outstanding (in shares) | 17,573,669 | 10,849,385 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Sales: | ||||
Sales | $ 14,216 | $ 7,617 | $ 37,939 | $ 19,880 |
Cost of sales: | ||||
Cost of sales | 6,597 | 4,151 | 17,641 | 10,101 |
Gross profit | 7,619 | 3,466 | 20,298 | 9,779 |
Operating expenses: | ||||
Selling, general and administrative expenses | 15,221 | 11,358 | 40,814 | 33,349 |
Research, development and engineering costs, net | 4,385 | 3,136 | 11,891 | 10,730 |
Total operating expenses | 19,606 | 14,494 | 52,705 | 44,079 |
Operating loss | (11,987) | (11,028) | (32,407) | (34,300) |
Interest expense, net | 986 | 422 | 2,772 | 1,190 |
Other expense, net | 11 | 179 | 88 | 499 |
Loss before provision for income taxes | (12,984) | (11,629) | (35,267) | (35,989) |
Provision for income taxes | (17) | 9 | 11 | 9 |
Net loss | (12,967) | (11,638) | (35,278) | (35,998) |
Other comprehensive gain: | ||||
Unrealized holding gain on investments arising during period | 1 | 2 | ||
Other comprehensive gain | 1 | 2 | ||
Comprehensive loss | $ (12,967) | $ (11,638) | $ (35,277) | $ (35,996) |
Basic and diluted net loss per share (in dollars per share) | $ (0.87) | $ (1.09) | $ (2.55) | $ (3.43) |
Basic and diluted weighted average shares outstanding (in shares) | 14,840 | 10,697 | 13,852 | 10,497 |
Product [Member] | ||||
Sales: | ||||
Sales | $ 13,813 | $ 7,431 | $ 36,686 | $ 18,684 |
Cost of sales: | ||||
Cost of sales | 6,361 | 4,019 | 16,577 | 9,393 |
Service [Member] | ||||
Sales: | ||||
Sales | 403 | 186 | 1,253 | 1,196 |
Cost of sales: | ||||
Cost of sales | $ 236 | $ 132 | $ 1,064 | $ 708 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (35,278) | $ (35,998) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for uncollectible accounts | 287 | 419 |
Write-downs of excess and obsolete inventories | 753 | 349 |
Depreciation and amortization | 1,374 | 1,172 |
Debt related amortization included in interest expense | 798 | 491 |
Stock-based compensation | 1,908 | 1,711 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (806) | (3,917) |
Inventories | (251) | 1,874 |
Prepaid expenses and other current assets | (409) | (758) |
Accounts payable and other current liabilities | (837) | (5,870) |
Accrued compensation | 1,017 | 1,304 |
Other long-term liabilities | 35 | (24) |
Net cash used in operating activities | (31,409) | (39,247) |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (533) | (875) |
Net cash used in investing activities | (533) | (875) |
Cash flows from financing activities: | ||
Borrowings under credit facility, net | 16,711 | 12,500 |
Proceeds from the sale of common stock | 88,816 | |
Payments of financing costs related to issuance of common stock | (283) | |
Proceeds from the exercise of stock options | 397 | 1,322 |
Payment of debt issuance costs and other financing activities | (6) | 121 |
Net cash provided by financing activities | 105,635 | 13,943 |
Net increase (decrease) in cash and cash equivalents | 73,693 | (26,179) |
Cash and cash equivalents, beginning of period | 28,165 | 63,710 |
Cash and cash equivalents, end of period | 101,858 | 37,531 |
Supplemental Disclosure of Cash Flow Information: | ||
Income taxes paid | 16 | 9 |
Interest paid | 2,086 | 1,579 |
Acquisition of property, plant and equipment accrued not paid | 53 | (8) |
Financing costs related to the issuance of common stock accrued not paid | $ 122 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2018 - 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. 31, 2017 | 10,849,000 | ||||
Balance at Dec. 31, 2017 | $ 11 | $ 125,999 | $ (77,836) | $ (1) | $ 48,173 |
Issuance of common stock, net of issuance costs of $6,617 (in shares) | 6,498,000 | ||||
Issuance of common stock, net of issuance costs of $6,617 | $ 6 | 88,404 | 88,410 | ||
Issuance of common stock warrants | 621 | $ 621 | |||
Option exercises (in shares) | 53,000 | 53,002 | |||
Option exercises | 397 | $ 397 | |||
Restricted stock issued, net of stock forfeited (in shares) | 174,000 | ||||
Restricted stock issued, net of stock forfeited | $ 1 | 1 | |||
Stock-based compensation | 1,908 | 1,908 | |||
Unrealized holding period gain | 1 | 1 | |||
Net loss | (35,278) | (35,278) | |||
Balance (in shares) at Sep. 30, 2018 | 17,574,000 | ||||
Balance at Sep. 30, 2018 | $ 18 | $ 217,329 | $ (113,114) | $ 104,233 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Additional Paid-in Capital [Member] | |
Stock issuance costs | $ 6,617 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations first In March 2016, Basis of Presentation 270, Interim Reporting 10 10 X. not not may Liquidity and Capital Resources Based on its current plans and expectations, the Company estimates that its cash on hand, which includes proceeds from the Company’s follow-on common stock offerings completed in the first third 2018, twelve On September 14, 2018, second 3,248,750 $64.6 $4.1 $0.3 The Company periodically evaluates its liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, the Company has in the past sought, and may not may may no Use of Estimates Inventories first first not Write-downs of excess and obsolete inventories were $0.4 $0.1 third 2018 2017, may Goodwill Valuation – December 31, may not first 360 10, Impairment and Disposal of Long-Lived Assets December 31, 2017 not not first nine 2018 not second third 2018 first 2018, Impairment of Long-Lived Assets may not not, not 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 no not first nine 2018 second third 2018 first 2018 Concentration of Credit Risk No 10% nine September 30, 2018 2017. No 10% September 30, 2018 December 31, 2017. may 11 Warranty Reserve Subsequent Events |
Note 2 - Revenue From Contracts
Note 2 - Revenue From Contracts With Customers | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2. REVENUE FROM CONTRACTS WITH CUSTOMERS The Company adopted ASC 606, Revenue From Contracts With Customers 606” January 1, 2018 not 606 not 2018 606 2017 605, Revenue Recognition 605” 606 606, five 1 Identify the contract(s) with a customer 2 Identify the performance obligations in the contract - third not 3 Determine the transaction price - not 4 Allocate the transaction price to the performance obligations in the contract - not 5 Recognize revenue when (or as) the Company satisfies a performance obligation - Disaggregated Revenue - Revenue Streams & Timing of Revenue Recognition The Company’s most significant revenue streams include (i) product sales, consisting of Nuvectra’s Algovita and NeuroNexus’s neural interface systems and (ii) development and engineering service revenue. Following is a description of the nature of the Company’s disaggregated revenue streams. Also see Note 11, Product Sales The Company’s product sales revenues include sales of Algovita and neural interface systems and components to the neuroscience and clinical markets. Contracts may one $36.7 nine September 30, 2018. Algovita not no Neural interface systems and components Shipping and handling costs Warranty not Significant j udgments may not Development and Engineering Service Revenue The Company’s development services are typically provided on a fixed-fee basis. Service revenue is recognized over time as the services are performed using an input method, on a cost-to-cost basis. In 2017 2018, one not $1.3 first nine 2018. not Significant j udgments may not The Company’s service revenue is recognized over time using an input method based on costs incurred. As such, estimating the total costs to be incurred and progress to completion on the contract requires significant judgment. 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 not Transaction Price Allocated to Future Performance Obligations ASC 606 not one not September 30, 2018, $1.1 6 12 Contract Balances Timing of revenue recognition may not. 30 Revenue recognized during the first nine 2018 $0.1 no first nine 2018 nine September 30, 2018, no Costs to Obtain and Fulfill a Contract The Company has elected to apply the practical expedient and recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one one January 1, 2018 September 30, 2018, one Certain NeuroNexus contracts may no January 1, 2018 September 30, 2018. |
Note 3 - Intangible Assets
Note 3 - Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 3. INTANGIBLE ASSETS Intangible assets are comprised of the following (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount At September 30 , 201 8 Technology and patents $ 1,058 $ (729 ) $ 329 Customer lists 1,869 (994 ) 875 Total intangible assets $ 2,927 $ (1,723 ) $ 1,204 At December 3 1 , 201 7 Technology and patents $ 1,058 $ (624 ) $ 434 Customer lists 1,869 (875 ) 994 Total intangible assets $ 2,927 $ (1,499 ) $ 1,428 Aggregate intangible asset amortization expense is classified as follows (in thousands): Three Months Ended Nine Months Ended September 30, 201 8 September 30, 2017 September 30, 201 8 September 30, 2017 Cost of sales $ 34 $ 32 $ 104 $ 95 Selling, general and administrative expenses 40 39 120 120 Total intangible asset amortization expense $ 74 $ 71 $ 224 $ 215 Estimated future intangible asset amortization expense based on the current carrying value is as follows (in thousands): Estimated Amortization Expense Remainder of 2018 $ 74 2019 293 2020 209 2021 194 2022 108 Thereafter 326 Total estimated amortization expense $ 1,204 |
Note 4 - Accrued Liabilities
Note 4 - Accrued Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 4 . Accrued Liabilities Accrued liabilities consisted of the following (in thousands): At September 30 , 201 8 December 3 1 , 201 7 Inventory purchases $ 6,418 $ 5,825 Research and development 575 164 Warranty reserve 454 195 Regulatory, clinical and quality 426 358 Sales and marketing 379 321 Interest 305 199 Legal 299 358 Deferred revenue 187 335 Sales and use tax 154 145 Information technology - 114 Operations engagement fee - 200 Insurance - 127 Accrued other 780 486 Total accrued liabilities $ 9,977 $ 8,827 |
Note 5 - Employee Benefit Plans
Note 5 - Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 5 . EMPLOYEE BENEFIT PLANS Nuvectra Corporation 2016 2016 “2016 may may 2016 2016 1,975,018. During the nine September 30, 2018, 385,386 2016 2016 three nine September 30, 2018 $0.7 $1.9 During the nine September 30, 2017, 546,146 2016 2016 three nine September 30, 2017 $0.6 $1.5 Stock-Based Compensation three no three nine September 30, 2018. $0.04 $0.2 three nine September 30, 2017, The components and classification of stock-based compensation expense were as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Stock options $ 263 $ 227 $ 764 $ 637 Restricted stock and restricted stock units 391 379 1,144 1,074 Total stock-based compensation expense $ 654 $ 606 $ 1,908 $ 1,711 Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Selling, general and administrative expenses $ 591 $ 507 $ 1,652 $ 1,491 Research, development and engineering costs, net 63 99 256 220 Total stock-based compensation expense $ 654 $ 606 $ 1,908 $ 1,711 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 Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Weighted average fair value $13.56 $7.85 $9.32 $3.63 Risk-free interest rate 2.81% 2.01% 2.67% 2.06% Expected volatility 65% 65% 65% 55% Holding period (in years) 6 6 6 6 Expected dividend yield —% —% —% —% The following table summarizes the stock option activity during the first nine 2018: Number of Time-Vested Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2017 870,820 $ 6.78 Granted 238,146 15.40 Exercised (53,002 ) 7.51 Forfeited or expired (84,247 ) 9.17 Outstanding at September 30, 2018 971,717 $ 8.64 7.18 $ 12,977 Exercisable at September 30, 2018 566,522 $ 6.59 5.94 $ 8,717 The Company received proceeds totaling approximately $0.4 53,002 first nine 2018. The following table summarizes the restricted stock and restricted stock unit activity during the first nine 2018: Time-Vested Activity Weighted Average Fair Value Non-vested at December 31, 2017 429,005 $ 6.88 Granted 147,240 16.83 Vested (174,959 ) 14.58 Forfeited (76,756 ) 8.07 Non-vested at September 30, 2018 324,530 $ 11.04 Nuvectra Bonus Plan three nine September 30, 2018 $0.7 $1.9 three nine September 30, 2017 $0.1 $1.4 Defined Contribution Plans 401 401 1986, 401 three nine September 30, 2018 25% 6% $0.1 $0.2 three nine September 30, 2018, $0.07 $0.2 three nine September 30, 2017, |
Note 6 - Debt
Note 6 - Debt | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 6 . DEBT Long-term debt is comprised of the following (in thousands): At September 30 , 201 8 December 3 1 , 201 7 Term loan $ 48,488 $ 29,631 Deferred financing fees (799 ) (962 ) Discount on debt (3,865 ) (1,994 ) Total debt 43,824 26,675 Less current portion of long-term debt - 789 Total long-term debt $ 43,824 $ 25,886 Credit Facility March 2016 February 2017 February 2018 ( $45 $27.5 $27.5 $12.5 February 2018, $5 September 2018. The Term Loans bear interest at a floating rate equal to the prime rate plus 4.15%, 8.65%. September 30, 2018 9.15%. March 2020 30 September 1, 2022, 7.75% In connection with the February 2018 $40 $27.5 $0.8 February 2018 $1.3 3% February 2019, 2% February 2020, 1% The Term Loans are secured by a first one 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. The Company is subject to a quarterly financial covenant requiring the Company to achieve specified minimum consolidated product revenues. As of September 30, 2018, Warrants March 18, 2016 $15 two 56,533 113,066 $5.97 March 18, 2026. $1.5 $0.2 As a condition to the lenders’ funding the initial Term Loan B Commitment on September 28, 2017 $12.5 two 22,844 45,688 $12.31 September 28, 2027. February 2017 $0.04 $0.4 As a condition to the lenders’ funding the new Term Loan B Commitment under the February 2018 two 30,245 60,490 $9.30 February 18, 2028. $0.5 first 2018, As a condition to the lenders’ funding the new Term Loan C Commitment on September 28, 2018 $5 two 5,119 10,238 $21.98 September 28, 2028. $0.2 third 2018, Deferred Financing Fees – At December 31, 2017 $ 962 Additions during the period 7 Amortization during the period (170 ) At September 30, 2018 $ 799 In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015 03, 835 30 |
Note 7 - Income Taxes
Note 7 - Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
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” not 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% March 14, 2018. |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 8 . COMMITMENTS AND CONTINGENCIES Litigation – not no not On September 19, 2017, three not Purchase Commitments 2018 September 30, 2018, no 2018 $0.5 Operating Leases first 2018, one March 2023. Minimum future estimated annual operating lease payments as of September 30, 2018 2018 (remaining 3 months) $ 178 2019 720 2020 732 2021 745 2022 619 Thereafter 85 Total estimated operating lease payments $ 3,079 |
Note 9 - Earnings (Loss) Per Sh
Note 9 - Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9 . EARNINGS (LOSS) PER SHARE 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 net loss per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Basic net loss per share: Net loss $ (12,967 ) $ (11,638 ) $ (35,278 ) $ (35,998 ) Weighted average common shares outstanding 14,840 10,697 13,852 10,497 Basic net loss per share $ (0.87 ) $ (1.09 ) $ (2.55 ) $ (3.43 ) Diluted net loss per share: Net loss $ (12,967 ) $ (11,638 ) $ (35,278 ) $ (35,998 ) Weighted average common shares outstanding 14,840 10,697 13,852 10,497 Dilutive stock options, restricted stock and restricted stock units — — — — Weighted average common shares outstanding – assuming dilution 14,840 10,697 13,852 10,497 Diluted net loss per share $ (0.87 ) $ (1.09 ) $ (2.55 ) $ (3.43 ) Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive 1,469 1,549 1,469 1,549 |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 1 0 . 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 September 30, 2018, 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 categorizes its warrants measured at fair value on a recurring basis in Level 3 3 first nine 2018 Balance at December 31, 2017 – initial Term Loan C (new Term Loan B) Commitment warrant $ 400 Loss on fair value of warrant liability – initial Term Loan C (new Term Loan B) Commitment warrant 55 Reclassification of warrant liability to equity upon issuance of warrants – initial Term Loan C (new Term Loan B) Commitment warrant (455 ) Fair value of warrant liability issued in first quarter 2018 – new Term Loan C Commitment warrant 109 Loss on fair value of warrant liability – new Term Loan C Commitment warrant 57 Reclassification of warrant liability to equity upon issuance of warrants in third quarter 2018 – new Term Loan C Commitment warrant (166 ) At September 30, 2018 $ - As discussed in Note 6, February 2018, February 2018 $0.1 September 2018, The Company’s investments in marketable securities primarily consist of investments in debt securities, which are classified as Cash and Cash Equivalents on the consolidated 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 September 30, 2018, $93.8 three Marketable securities, measured at fair value, by level within the fair value hierarchy were as follows (in thousands): September 30 , 201 8 Fair Value Hierarchy Cost Unrealized Loss Fair Value Cash Level 1 $ 78,828 $ - $ 78,828 Government Level 1 1,502 - 1,502 Financial Level 2 8,654 - 8,654 Industrial Level 2 4,800 - 4,800 Total $ 93,784 $ - $ 93,784 December 3 1 , 201 7 Fair Value Hierarchy Cost Unrealized Loss Fair Value Cash Level 1 $ 7,336 $ - $ 7,336 Government Level 1 1,499 - 1,499 Financial Level 2 3,799 (1 ) 3,798 Industrial Level 2 8,649 - 8,649 Total $ 21,283 $ (1 ) $ 21,282 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 first nine 2018 2017, no Goodwill not December 31, 1 first nine 2018 2017, no Warrants 10 |
Note 11 - Business Segment, Geo
Note 11 - Business Segment, Geographic and Concentration Risk Information | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Segment Reporting, Geographical, and Concentration Risk Disclosure [Text Block] | 1 1 . BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION The Company has two two Nuvectra is a neurostimulation company committed to helping physicians improve the lives of people with chronic conditions. Algovita is the Company’s first second first NeuroNexus designs, manufactures and markets neural-interface technologies for the neuroscience clinical research market. Revenues include 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 consolidated financial statements follows (in thousands): Three Months Ended Nine Months Ended Product line sales: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Algovita $ 12,460 $ 6,302 $ 33,050 $ 15,180 Neural interface components and systems 1,353 1,129 3,636 3,504 Development and engineering service 403 186 1,253 1,196 Total sales $ 14,216 $ 7,617 $ 37,939 $ 19,880 Three Months Ended Nine Months Ended Business segment sales: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Nuvectra $ 12,863 $ 6,488 $ 34,303 $ 16,376 NeuroNexus 1,353 1,129 3,636 3,504 Total sales $ 14,216 $ 7,617 $ 37,939 $ 19,880 Three Months Ended Nine Months Ended Segment (loss) income from operations: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Nuvectra $ (12,164 ) $ (11,092 ) $ (32,851 ) $ (34,510 ) NeuroNexus 177 64 444 210 Total segment (loss) income from operations (11,987 ) (11,028 ) (32,407 ) (34,300 ) Unallocated operating expenses — — — — Operating loss (11,987 ) (11,028 ) (32,407 ) (34,300 ) Unallocated other expense, net (997 ) (601 ) (2,860 ) (1,689 ) Loss before provision for income taxes $ (12,984 ) $ (11,629 ) $ (35,267 ) $ (35,989 ) 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 | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 1 2 . related party transactions On March 14, 2016, no Employee Benefit Plans 5 Supply Agreement |
Note 13 - Recently Issued Accou
Note 13 - Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 1 3 . 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 not not Recently Adopted in 2018 In May 2017, 2017 09, Compensation-Stock Compensation (Topic 718 2017 09 2017 09, not 2017 09 2017 09 not In January 2017, 2017 01, Business Combinations (Topic 805 Clarifying the Definition of a Business 2017 01 not not not 2017 01 2017 01 not In August 2016, 2016 15, Statement of Cash Flows (Topic 230 2016 15 eight 2016 15 not In January 2016, 2016 01, Recognition and Measurement of Financial Assets and Financial Liabilities 2016 01 not In May 2014, No. 2014 09, Revenue from Contracts with Customers (Topic 606 2014 09 606 2014 09 January 1, 2018 not 2014 09 not January 1, 2018 nine September 30, 2018. 2, Not In August 2018, 2018 15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350 40 2018 15 December 15, 2019, In August 2018, 2018 13, Fair Value Measurement (Topic 820 2018 13 first 2020, In June 2016, 2016 13, Financial Instruments - Credit Losses (Topic 326 2016 13 2016 13 December 15, 2019, December 15, 2018. In February 2016, 2016 02, Leases (Topic 842 , 2016 02 July 2018, 2018 11, Leases (Topic 842 2016 02 December 15, 2018 ( January 1, 2019, The Company has preliminarily elected the package of practical expedients that permits the Company not not 12 not The Company has established an implementation team to assist with its assessment of the impact that the new guidance will have on the Company’s operations, consolidated financial statements and related disclosures. To date, this assessment has included surveying the Company’s business units, assessing the Company’s portfolio of leases, compiling information on active leases and assessing the potential impact of embedded leases from its manufacturing outsourcing, service arrangements and other agreements. The implementation team is in the process of evaluating and designing the necessary changes to its business processes, systems and controls to support recognition and disclosure under the new standard. The Company’s primary operating leases are its real estate leases. See Note 8 The Company is currently in the process of evaluating the impact of adoption of the ASU on its condensed consolidated financial statements and has not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations [Policy Text Block] | Nature of Operations first In March 2016, |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation 270, Interim Reporting 10 10 X. not not may |
Liquidity and Capital Resources [Policy Text Block] | Liquidity and Capital Resources Based on its current plans and expectations, the Company estimates that its cash on hand, which includes proceeds from the Company’s follow-on common stock offerings completed in the first third 2018, twelve On September 14, 2018, second 3,248,750 $64.6 $4.1 $0.3 The Company periodically evaluates its liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, the Company has in the past sought, and may not may may no |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Inventory, Policy [Policy Text Block] | Inventories first first not Write-downs of excess and obsolete inventories were $0.4 $0.1 third 2018 2017, may |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Valuation – December 31, may not first 360 10, Impairment and Disposal of Long-Lived Assets December 31, 2017 not not first nine 2018 not second third 2018 first 2018, |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets may not not, not 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 no not first nine 2018 second third 2018 first 2018 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk No 10% nine September 30, 2018 2017. No 10% September 30, 2018 December 31, 2017. may 11 |
Standard Product Warranty, Policy [Policy Text Block] | Warranty Reserve |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events |
Note 3 - Intangible Assets (Tab
Note 3 - Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Gross Carrying Amount Accumulated Amortization Net Carrying Amount At September 30 , 201 8 Technology and patents $ 1,058 $ (729 ) $ 329 Customer lists 1,869 (994 ) 875 Total intangible assets $ 2,927 $ (1,723 ) $ 1,204 At December 3 1 , 201 7 Technology and patents $ 1,058 $ (624 ) $ 434 Customer lists 1,869 (875 ) 994 Total intangible assets $ 2,927 $ (1,499 ) $ 1,428 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Three Months Ended Nine Months Ended September 30, 201 8 September 30, 2017 September 30, 201 8 September 30, 2017 Cost of sales $ 34 $ 32 $ 104 $ 95 Selling, general and administrative expenses 40 39 120 120 Total intangible asset amortization expense $ 74 $ 71 $ 224 $ 215 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated Amortization Expense Remainder of 2018 $ 74 2019 293 2020 209 2021 194 2022 108 Thereafter 326 Total estimated amortization expense $ 1,204 |
Note 4 - Accrued Liabilities (T
Note 4 - Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | At September 30 , 201 8 December 3 1 , 201 7 Inventory purchases $ 6,418 $ 5,825 Research and development 575 164 Warranty reserve 454 195 Regulatory, clinical and quality 426 358 Sales and marketing 379 321 Interest 305 199 Legal 299 358 Deferred revenue 187 335 Sales and use tax 154 145 Information technology - 114 Operations engagement fee - 200 Insurance - 127 Accrued other 780 486 Total accrued liabilities $ 9,977 $ 8,827 |
Note 5 - Employee Benefit Pla_2
Note 5 - Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Stock options $ 263 $ 227 $ 764 $ 637 Restricted stock and restricted stock units 391 379 1,144 1,074 Total stock-based compensation expense $ 654 $ 606 $ 1,908 $ 1,711 Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Selling, general and administrative expenses $ 591 $ 507 $ 1,652 $ 1,491 Research, development and engineering costs, net 63 99 256 220 Total stock-based compensation expense $ 654 $ 606 $ 1,908 $ 1,711 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Weighted average fair value $13.56 $7.85 $9.32 $3.63 Risk-free interest rate 2.81% 2.01% 2.67% 2.06% Expected volatility 65% 65% 65% 55% Holding period (in years) 6 6 6 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 Non-vested at December 31, 2017 429,005 $ 6.88 Granted 147,240 16.83 Vested (174,959 ) 14.58 Forfeited (76,756 ) 8.07 Non-vested at September 30, 2018 324,530 $ 11.04 |
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 (in thousands) Outstanding at December 31, 2017 870,820 $ 6.78 Granted 238,146 15.40 Exercised (53,002 ) 7.51 Forfeited or expired (84,247 ) 9.17 Outstanding at September 30, 2018 971,717 $ 8.64 7.18 $ 12,977 Exercisable at September 30, 2018 566,522 $ 6.59 5.94 $ 8,717 |
Note 6 - Debt (Tables)
Note 6 - Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | At September 30 , 201 8 December 3 1 , 201 7 Term loan $ 48,488 $ 29,631 Deferred financing fees (799 ) (962 ) Discount on debt (3,865 ) (1,994 ) Total debt 43,824 26,675 Less current portion of long-term debt - 789 Total long-term debt $ 43,824 $ 25,886 |
Schedule of Debt Issuance Costs [Table Text Block] | <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 15%; margin-left: 36pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 82%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">At December 31, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">962</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Additions during the period</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Amortization during the period</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(170</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">At September 30, 2018</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">799</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>" id="sjs-B5"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 15%; margin-left: 36pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 82%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">At December 31, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">962</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Additions during the period</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Amortization during the period</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(170</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">At September 30, 2018</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">799</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div> |
Note 8 - Commitments and Cont_2
Note 8 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2018 (remaining 3 months) $ 178 2019 720 2020 732 2021 745 2022 619 Thereafter 85 Total estimated operating lease payments $ 3,079 |
Note 9 - Earnings (Loss) Per _2
Note 9 - Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Basic net loss per share: Net loss $ (12,967 ) $ (11,638 ) $ (35,278 ) $ (35,998 ) Weighted average common shares outstanding 14,840 10,697 13,852 10,497 Basic net loss per share $ (0.87 ) $ (1.09 ) $ (2.55 ) $ (3.43 ) Diluted net loss per share: Net loss $ (12,967 ) $ (11,638 ) $ (35,278 ) $ (35,998 ) Weighted average common shares outstanding 14,840 10,697 13,852 10,497 Dilutive stock options, restricted stock and restricted stock units — — — — Weighted average common shares outstanding – assuming dilution 14,840 10,697 13,852 10,497 Diluted net loss per share $ (0.87 ) $ (1.09 ) $ (2.55 ) $ (3.43 ) Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive 1,469 1,549 1,469 1,549 |
Note 10 - Fair Value Measurem_2
Note 10 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Balance at December 31, 2017 – initial Term Loan C (new Term Loan B) Commitment warrant $ 400 Loss on fair value of warrant liability – initial Term Loan C (new Term Loan B) Commitment warrant 55 Reclassification of warrant liability to equity upon issuance of warrants – initial Term Loan C (new Term Loan B) Commitment warrant (455 ) Fair value of warrant liability issued in first quarter 2018 – new Term Loan C Commitment warrant 109 Loss on fair value of warrant liability – new Term Loan C Commitment warrant 57 Reclassification of warrant liability to equity upon issuance of warrants in third quarter 2018 – new Term Loan C Commitment warrant (166 ) At September 30, 2018 $ - |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | September 30 , 201 8 Fair Value Hierarchy Cost Unrealized Loss Fair Value Cash Level 1 $ 78,828 $ - $ 78,828 Government Level 1 1,502 - 1,502 Financial Level 2 8,654 - 8,654 Industrial Level 2 4,800 - 4,800 Total $ 93,784 $ - $ 93,784 December 3 1 , 201 7 Fair Value Hierarchy Cost Unrealized Loss Fair Value Cash Level 1 $ 7,336 $ - $ 7,336 Government Level 1 1,499 - 1,499 Financial Level 2 3,799 (1 ) 3,798 Industrial Level 2 8,649 - 8,649 Total $ 21,283 $ (1 ) $ 21,282 |
Note 11 - Business Segment, G_2
Note 11 - Business Segment, Geographic and Concentration Risk Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Revenue from External Customers by Products and Services [Table Text Block] | Three Months Ended Nine Months Ended Product line sales: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Algovita $ 12,460 $ 6,302 $ 33,050 $ 15,180 Neural interface components and systems 1,353 1,129 3,636 3,504 Development and engineering service 403 186 1,253 1,196 Total sales $ 14,216 $ 7,617 $ 37,939 $ 19,880 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended Business segment sales: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Nuvectra $ 12,863 $ 6,488 $ 34,303 $ 16,376 NeuroNexus 1,353 1,129 3,636 3,504 Total sales $ 14,216 $ 7,617 $ 37,939 $ 19,880 Three Months Ended Nine Months Ended Segment (loss) income from operations: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Nuvectra $ (12,164 ) $ (11,092 ) $ (32,851 ) $ (34,510 ) NeuroNexus 177 64 444 210 Total segment (loss) income from operations (11,987 ) (11,028 ) (32,407 ) (34,300 ) Unallocated operating expenses — — — — Operating loss (11,987 ) (11,028 ) (32,407 ) (34,300 ) Unallocated other expense, net (997 ) (601 ) (2,860 ) (1,689 ) Loss before provision for income taxes $ (12,984 ) $ (11,629 ) $ (35,267 ) $ (35,989 ) |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Details Textual) xbrli-pure in Thousands, $ in Thousands | Sep. 14, 2018USD ($)shares | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017 |
Proceeds from Issuance of Common Stock | $ 88,816 | |||||
Inventory Write-down | $ 400 | $ 100 | 753 | $ 349 | ||
Asset Impairment Charges, Total | $ 0 | |||||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||||
Number of Major Customers | 0 | 0 | ||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Number of Major Customers | 0 | 0 | ||||
Second Underwritten Shelf Takedown [Member] | ||||||
Stock Issued During Period, Shares, New Issues | shares | 3,248,750 | |||||
Proceeds from Issuance of Common Stock | $ 64,600 | |||||
Underwriting Discounts and Commissions | 4,100 | |||||
Payments of Other Issuance Costs | $ 300 |
Note 2 - Revenue From Contrac_2
Note 2 - Revenue From Contracts With Customers (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 14,216 | $ 7,617 | $ 37,939 | $ 19,880 | |
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration | 1 year | 1 year | |||
Revenue, Remaining Performance Obligation, Amount | $ 1,100 | $ 1,100 | |||
Contract with Customer, Performance Obligation Satisfied in Previous Period | 0 | ||||
Contract with Customer, Asset, Reclassified to Receivable | 0 | ||||
Capitalized Contract Cost, Net, Total | $ 0 | $ 0 | $ 0 | ||
Minimum [Member] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 180 days | 180 days | |||
Maximum [Member] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year | |||
Product [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 13,813 | 7,431 | $ 36,686 | 18,684 | |
Contract with Customer, Liability, Revenue Recognized | 100 | ||||
Service [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 403 | $ 186 | $ 1,253 | $ 1,196 |
Note 3 - Intangible Assets - Am
Note 3 - Intangible Assets - Amortizing Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Gross carrying amount | $ 2,927 | $ 2,927 |
Accumulated amortization | (1,723) | (1,499) |
Net carrying amount | 1,204 | 1,428 |
Patented Technology [Member] | ||
Gross carrying amount | 1,058 | 1,058 |
Accumulated amortization | (729) | (624) |
Net carrying amount | 329 | 434 |
Customer Lists [Member] | ||
Gross carrying amount | 1,869 | 1,869 |
Accumulated amortization | (994) | (875) |
Net carrying amount | $ 875 | $ 994 |
Note 3 - Intangible Assets - Ag
Note 3 - Intangible Assets - Aggregate Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Intangible asset amortization expense | $ 74 | $ 71 | $ 224 | $ 215 |
Cost of Sales [Member] | ||||
Intangible asset amortization expense | 34 | 32 | 104 | 95 |
Selling, General and Administrative Expenses [Member] | ||||
Intangible asset amortization expense | $ 40 | $ 39 | $ 120 | $ 120 |
Note 3 - Intangible Assets - Fu
Note 3 - Intangible Assets - Future Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Remainder of 2018 | $ 74 | |
2,019 | 293 | |
2,020 | 209 | |
2,021 | 194 | |
2,022 | 108 | |
Thereafter | 326 | |
Total estimated amortization expense | $ 1,204 | $ 1,428 |
Note 4 - Accrued Liabilities -
Note 4 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory purchases | $ 6,418 | $ 5,825 |
Research and development | 575 | 164 |
Warranty reserve | 454 | 195 |
Regulatory, clinical and quality | 426 | 358 |
Sales and marketing | 379 | 321 |
Interest | 305 | 199 |
Legal | 299 | 358 |
Deferred revenue | 187 | 335 |
Sales and use tax | 154 | 145 |
Information technology | 114 | |
Operations engagement fee | 200 | |
Insurance | 127 | |
Accrued other | 780 | 486 |
Total accrued liabilities | $ 9,977 | $ 8,827 |
Note 5 - Employee Benefit Pla_3
Note 5 - Employee Benefit Plans (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Proceeds from Stock Options Exercised | $ 397 | $ 1,322 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 53,002 | |||
401K Plan [Member] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 25.00% | 25.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% | 6.00% | ||
Defined Contribution Plan, Cost | $ 100 | $ 70 | $ 200 | 200 |
Bonus Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 700 | 100 | $ 1,900 | 1,400 |
Nuvectra Corporation 2016 Equity Incentive Plan [Member] | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,975,018 | 1,975,018 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost, Total | $ 700 | 600 | $ 1,900 | $ 1,500 |
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 | 385,386 | 546,146 | ||
Integer Equity Incentives Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost, Total | $ 0 | $ 40 | $ 0 | $ 200 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Note 5 - Employee Benefit Pla_4
Note 5 - Employee Benefit Plans - Allocated Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Allocated share-based compensation expense | $ 654 | $ 606 | $ 1,908 | $ 1,711 |
Selling, General and Administrative Expenses [Member] | ||||
Allocated share-based compensation expense | 591 | 507 | 1,652 | 1,491 |
Research and Development Expense [Member] | ||||
Allocated share-based compensation expense | 63 | 99 | 256 | 220 |
Employee Stock Option [Member] | ||||
Allocated share-based compensation expense | 263 | 227 | 764 | 637 |
Restricted Stock and RSU's [Member] | ||||
Allocated share-based compensation expense | $ 391 | $ 379 | $ 1,144 | $ 1,074 |
Note 5 - Employee Benefit Pla_5
Note 5 - Employee Benefit Plans - Weighted Average Fair Value Assumption Used to Values Options Granted (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Weighted average fair value (in dollars per share) | $ 13.56 | $ 7.85 | $ 9.32 | $ 3.63 |
Risk-free interest rate | 2.81% | 2.01% | 2.67% | 2.06% |
Expected volatility | 65.00% | 65.00% | 65.00% | 55.00% |
Holding period (in years) (Year) | 6 years | 6 years | 6 years | 6 years |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Note 5 - Employee Benefit Pla_6
Note 5 - Employee Benefit Plans - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Exercised, number of options (in shares) | (53,002) |
Employee Stock Option [Member] | |
Outstanding, number of options (in shares) | 870,820 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 6.78 |
Granted, number of options (in shares) | 238,146 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 15.40 |
Exercised, number of options (in shares) | (53,002) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 7.51 |
Forfeited or expired, number of options (in shares) | (84,247) |
Forfeited or expired, weighted average exercise price (in dollars per share) | $ / shares | $ 9.17 |
Outstanding, number of options (in shares) | 971,717 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 8.64 |
Outstanding, weighted average remaining contractual life (Year) | 7 years 65 days |
Outstanding, aggregate intrinsic value | $ | $ 12,977 |
Exercisable, number of options (in shares) | 566,522 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 6.59 |
Exercisable, weighted average remaining contractual life (Year) | 5 years 343 days |
Exercisable, aggregate intrinsic value | $ | $ 8,717 |
Note 5 - Employee Benefit Pla_7
Note 5 - Employee Benefit Plans - Summary Restricted Stock Unit Activity (Details) - Restricted Stock and RSU's [Member] | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Nonvested (in shares) | shares | 429,005 |
Nonvested (in dollars per share) | $ / shares | $ 6.88 |
Granted (in shares) | shares | 147,240 |
Granted (in dollars per share) | $ / shares | $ 16.83 |
Vested (in shares) | shares | (174,959) |
Vested (in dollars per share) | $ / shares | $ 14.58 |
Forfeited (in shares) | shares | (76,756) |
Forfeited (in dollars per share) | $ / shares | $ 8.07 |
Nonvested (in shares) | shares | 324,530 |
Nonvested (in dollars per share) | $ / shares | $ 11.04 |
Note 6 - Debt (Details Textual)
Note 6 - Debt (Details Textual) $ / shares in Units, $ in Thousands | Sep. 28, 2018USD ($)$ / sharesshares | Feb. 28, 2018USD ($)$ / sharesshares | Feb. 16, 2018USD ($) | Sep. 28, 2017USD ($)$ / sharesshares | Mar. 18, 2016USD ($)$ / sharesshares | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Proceeds from Issuance of Long-term Debt, Total | $ 16,711 | $ 12,500 | |||||
Debt Issuance Costs Incurred During Period | 7 | ||||||
Warrants in Connection with Term Loan A [Member] | Additional Paid-in Capital [Member] | |||||||
Warrants and Rights Outstanding | $ 200 | ||||||
Warrants in Connection with Term Loan B [Member] | Additional Paid-in Capital [Member] | |||||||
Warrants and Rights Outstanding | $ 400 | ||||||
Warrants Issued in Connection with Term Loan A and Term Loan B [Member] | Additional Paid-in Capital [Member] | |||||||
Warrants and Rights Outstanding | $ 500 | ||||||
Warrants in Connection with Term Loan C [Member] | Additional Paid-in Capital [Member] | |||||||
Warrants and Rights Outstanding | 200 | ||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Warrants in Connection with Term Loan A [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 113,066 | ||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ / shares | $ 5.97 | ||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Warrants in Connection with Term Loan B [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 45,688 | ||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ / shares | $ 12.31 | ||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Warrants Issued in Connection with Term Loan A and Term Loan B [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 60,490 | ||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ / shares | $ 9.30 | ||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Warrants in Connection with Term Loan C [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 10,238 | ||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ / shares | $ 21.98 | ||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loan A [Member] | |||||||
Debt Agreement, Maximum Borrowing Capacity | $ 15,000 | ||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loan B [Member] | |||||||
Debt Agreement, Maximum Borrowing Capacity | $ 12,500 | ||||||
Debt Issuance Costs Incurred During Period | $ 40 | ||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loan C [Member] | |||||||
Debt Agreement, Maximum Borrowing Capacity | $ 5,000 | ||||||
Oxford Finance LLC [Member] | Warrants in Connection with Term Loan A [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 56,533 | ||||||
Oxford Finance LLC [Member] | Warrants in Connection with Term Loan B [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 22,844 | ||||||
Oxford Finance LLC [Member] | Warrants Issued in Connection with Term Loan A and Term Loan B [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 30,245 | ||||||
Oxford Finance LLC [Member] | Warrants in Connection with Term Loan C [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 5,119 | ||||||
Silicon Valley Bank [Member] | Warrants in Connection with Term Loan A [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 56,533 | ||||||
Silicon Valley Bank [Member] | Warrants in Connection with Term Loan B [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 22,844 | ||||||
Silicon Valley Bank [Member] | Warrants Issued in Connection with Term Loan A and Term Loan B [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 30,245 | ||||||
Silicon Valley Bank [Member] | Warrants in Connection with Term Loan C [Member] | |||||||
Class of Warrant or Right, Issued During Period | shares | 5,119 | ||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | |||||||
Debt Agreement, Maximum Borrowing Capacity | $ 45,000 | ||||||
Debt Instrument, Interest Rate Floor | 8.65% | ||||||
Debt Instrument, Interest Rate During Period | 9.15% | ||||||
Debt Instrument, Percentage of Funded Loan Amounts due at Maturity | 7.75% | ||||||
Proceeds from Issuance of Long-term Debt, Total | $ 40,000 | ||||||
Repayments of Long-term Debt, Total | 27,500 | ||||||
Loan Amendment Payment | $ 800 | ||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | If Term Loan B Funded, Beginning April 2020 [Member] | |||||||
Debt Instrument, Number of Monthly Principal and Interest Payments | 30 | ||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | Prepayment in First Year After Initial Closing [Member] | |||||||
Debt Instrument, Prepayment Fee, Amount | $ 1,300 | ||||||
Debt Instrument, Prepayment Fee Percentage | 3.00% | ||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | Prepayment in Second Year After Initial Closing [Member] | |||||||
Debt Instrument, Prepayment Fee, Amount | $ 1,300 | ||||||
Debt Instrument, Prepayment Fee Percentage | 2.00% | ||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | Prepayment After Second Year After Initial Closing [Member] | |||||||
Debt Instrument, Prepayment Fee, Amount | $ 1,300 | ||||||
Debt Instrument, Prepayment Fee Percentage | 1.00% | ||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | Prime Rate [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 4.15% | ||||||
Term Loan A [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | |||||||
Debt Agreement, Maximum Borrowing Capacity | $ 27,500 | ||||||
Debt Issuance Costs Incurred During Period | $ 1,500 | ||||||
Term Loan B [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | |||||||
Debt Agreement, Maximum Borrowing Capacity | 12,500 | ||||||
Term Loan C [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | |||||||
Debt Agreement, Maximum Borrowing Capacity | $ 5,000 |
Note 6 - Debt - Long-term Debt
Note 6 - Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Term loan | $ 48,488 | $ 29,631 |
Deferred financing fees | (799) | (962) |
Discount on debt | (3,865) | (1,994) |
Total debt | 43,824 | 26,675 |
Less current portion of long-term debt | 789 | |
Total long-term debt | $ 43,824 | $ 25,886 |
Note 6 - Debt - Deferred Financ
Note 6 - Debt - Deferred Financing Fees (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Deferred financing fees | $ 962 |
Additions during the period | 7 |
Amortization during the period | (170) |
Deferred financing fees | $ 799 |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - Greatbatch [Member] - Tax Matters Agreement [Member] | Sep. 30, 2018 |
Equity Issuance Limitations | 30.00% |
Asset Disposal Limitations | 35.00% |
Note 8 - Commitments and Cont_3
Note 8 - Commitments and Contingencies (Details Textual) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Capital Expenditures Yet to Be Incurred | $ 0.5 |
Note 8 - Commitments and Cont_4
Note 8 - Commitments and Contingencies - Minimum Future Estimated Annual Operating Lease Payments (Details) $ in Thousands | Sep. 30, 2018USD ($) |
2018 (remaining 3 months) | $ 178 |
2,019 | 720 |
2,020 | 732 |
2,021 | 745 |
2,022 | 619 |
Thereafter | 85 |
Total estimated operating lease payments | $ 3,079 |
Note 9 - Earnings (Loss) Per _3
Note 9 - Earnings (Loss) Per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Weighted Average Number Diluted Shares Outstanding Adjustment, Total | 0 | 0 | 0 | 0 |
Note 9 - Earnings (Loss) Per _4
Note 9 - Earnings (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Basic net loss per share: | ||||
Net loss | $ (12,967) | $ (11,638) | $ (35,278) | $ (35,998) |
Weighted average common shares outstanding (in shares) | 14,840 | 10,697 | 13,852 | 10,497 |
Basic net loss per share (in dollars per share) | $ (0.87) | $ (1.09) | $ (2.55) | $ (3.43) |
Diluted net loss per share: | ||||
Net loss | $ (12,967) | $ (11,638) | $ (35,278) | $ (35,998) |
Weighted average common shares outstanding (in shares) | 14,840 | 10,697 | 13,852 | 10,497 |
Dilutive stock options, restricted stock and restricted stock units (in shares) | ||||
Weighted average common shares outstanding – assuming dilution (in shares) | 14,840 | 10,697 | 13,852 | 10,497 |
Diluted net loss per share (in dollars per share) | $ (0.87) | $ (1.09) | $ (2.55) | $ (3.43) |
Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive (in shares) | 1,469 | 1,549 | 1,469 | 1,549 |
Note 10 - Fair Value Measurem_3
Note 10 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivative Liability, Total | $ 100 | ||
Debt Securities, Available-for-sale, Total | 93,784 | $ 21,282 | |
Impairment of Long-Lived Assets Held-for-use | 0 | $ 0 | |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Note 10 - Fair Value Measurem_4
Note 10 - Fair Value Measurements - Summary of Changes in the Fair Value of Liability Warrants (Details) - Warrant Liabilities [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Fair value of warrant liability issued in 2018 | |
Warrants in Connection with Term Loan B [Member] | |
Balance | 400 |
Loss on fair value of warrant liability | 55 |
Reclassification of warrant liability to equity upon issuance of warrants | (455) |
Warrants in Connection with Term Loan C [Member] | |
Loss on fair value of warrant liability | 57 |
Reclassification of warrant liability to equity upon issuance of warrants | (166) |
Fair value of warrant liability issued in 2018 | $ 109 |
Note 10 - Fair Value Measurem_5
Note 10 - Fair Value Measurements - Marketable Securities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Amortized Cost Basis | $ 93,784 | $ 21,283 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | (1) | |
Available-for-sale Securities | 93,784 | 21,282 |
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 78,828 | 7,336 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | ||
Available-for-sale Securities | 78,828 | 7,336 |
Fair Value, Inputs, Level 1 [Member] | US Treasury and Government [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 1,502 | 1,499 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | ||
Available-for-sale Securities | 1,502 | 1,499 |
Fair Value, Inputs, Level 2 [Member] | Financial Debt Securities [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 8,654 | 3,799 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | (1) | |
Available-for-sale Securities | 8,654 | 3,798 |
Fair Value, Inputs, Level 2 [Member] | Industrial Debt Securities [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 4,800 | 8,649 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | ||
Available-for-sale Securities | $ 4,800 | $ 8,649 |
Note 11 - Business Segment, G_3
Note 11 - Business Segment, Geographic and Concentration Risk Information (Details Textual) | 9 Months Ended |
Sep. 30, 2018 | |
Number of Reportable Segments | 2 |
Number of Reporting Units | 2 |
Note 11 - Business Segment, G_4
Note 11 - Business Segment, Geographic and Concentration Risk Information - Product Line Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 14,216 | $ 7,617 | $ 37,939 | $ 19,880 |
Algovita [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 12,460 | 6,302 | 33,050 | 15,180 |
Neural Interface Components and Systems [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 1,353 | 1,129 | 3,636 | 3,504 |
Development and Engineering Services [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 403 | $ 186 | $ 1,253 | $ 1,196 |
Note 11 - Business Segment, G_5
Note 11 - Business Segment, Geographic and Concentration Risk Information - Business Segments Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 14,216 | $ 7,617 | $ 37,939 | $ 19,880 |
Segment loss from operations | (11,987) | (11,028) | (32,407) | (34,300) |
Unallocated operating expenses | 19,606 | 14,494 | 52,705 | 44,079 |
Unallocated other expense, net | (997) | (601) | (2,860) | (1,689) |
Loss before provision for income taxes | (12,984) | (11,629) | (35,267) | (35,989) |
Segment Reconciling Items [Member] | ||||
Unallocated operating expenses | ||||
Nuvectra Segment [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 12,863 | 6,488 | 34,303 | 16,376 |
Nuvectra Segment [Member] | Operating Segments [Member] | ||||
Segment loss from operations | (12,164) | (11,092) | (32,851) | (34,510) |
NeuroNexus Segment [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 1,353 | 1,129 | 3,636 | 3,504 |
NeuroNexus Segment [Member] | Operating Segments [Member] | ||||
Segment loss from operations | $ 177 | $ 64 | $ 444 | $ 210 |