Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 17, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | DIGIRAD CORP | ||
Entity Central Index Key | 707,388 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 19,445,429 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 78,643,552 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Diagnostic Services | $ 46,407 | $ 42,170 | $ 37,171 |
Diagnostic Imaging | 14,419 | 13,438 | 12,205 |
Total revenues | 60,826 | 55,608 | 49,376 |
Cost of revenues: | |||
Diagnostic Services | 35,968 | 31,721 | 27,828 |
Diagnostic Imaging | 6,949 | 7,247 | 7,432 |
Total cost of revenues | 42,917 | 38,968 | 35,260 |
Gross profit | 17,909 | 16,640 | 14,116 |
Operating expenses: | |||
Research and development | 0 | 0 | 1,025 |
Marketing and sales | 4,741 | 4,730 | 4,411 |
General and administrative | 9,888 | 8,344 | 8,118 |
Amortization of intangible assets | 506 | 356 | 231 |
Restructuring charges | 0 | 692 | 1,728 |
Gain on sale of assets and license agreement | 0 | 0 | (1,568) |
Total operating expenses | 15,135 | 14,122 | 13,945 |
Income from operations | 2,774 | 2,518 | 171 |
Other income (expense): | |||
Interest and other income, net | 39 | 58 | 63 |
Interest and other expense, net | (296) | (39) | (15) |
Total other income (expense) | (257) | 19 | 48 |
Income before income taxes | 2,517 | 2,537 | 219 |
Income tax benefit (expense) | 19,123 | (62) | 45 |
Net income | $ 21,640 | $ 2,475 | $ 264 |
Net income per share: | |||
Earnings Per Share, Basic (in dollars per share) | $ 1.13 | $ 0.13 | $ 0.01 |
Earnings Per Share, Diluted (in dollars per share) | $ 1.10 | $ 0.13 | $ 0.01 |
Shares used in per share computations: | |||
Weighted average shares outstanding - basic (in dollars per share) | 19,210 | 18,571 | 18,789 |
Weighted average shares outstanding - diluted (in dollars per share) | 19,690 | 18,878 | 19,159 |
Common stock dividends declared (usd per share) | $ 0.20 | $ 0.20 | $ 0.05 |
Other Comprehensive loss: | |||
Unrealized loss on marketable securities | $ (221) | $ (17) | $ (19) |
Total other comprehensive loss | (221) | (17) | (19) |
Comprehensive loss | 21,419 | 2,458 | 245 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Other Comprehensive loss: | |||
Unrealized loss on marketable securities | $ (221) | $ (17) | $ (19) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 15,868 | $ 14,051 |
Securities available-for-sale | 3,227 | 7,935 |
Accounts receivable, net | 7,274 | 5,989 |
Inventories, net | 4,381 | 3,644 |
Other current assets | 764 | 856 |
Restricted cash | 233 | 477 |
Total current assets | 31,747 | 32,952 |
Property and equipment, net | 6,252 | 4,766 |
Property and equipment, net | 3,079 | 2,577 |
Goodwill | 2,897 | 1,337 |
Long-term deferred tax assets | 18,578 | 0 |
Long-term deferred tax assets | 1,560 | 269 |
Total assets | 64,113 | 41,901 |
Liabilities and stockholders' equity | ||
Accounts payable | 1,369 | 1,423 |
Accrued compensation | 2,453 | 3,261 |
Accrued warranty | 213 | 176 |
Deferred revenue | 1,673 | 1,644 |
Other current liabilities | 2,998 | 1,789 |
Total current liabilities | 8,706 | 8,293 |
Other liabilities | 1,252 | 963 |
Total liabilities | $ 9,958 | $ 9,256 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value: 10,000,000 shares authorized; no shares issued or outstanding | $ 0 | $ 0 |
Common stock, $0.0001 par value: 80,000,000 shares authorized; 19,416,070 and 18,615,945 shares issued and outstanding (net of treasury shares) at December 31, 2015 and 2014, respectively | 2 | 2 |
Treasury stock, at cost; 2,588,484 shares at December 31, 2015 and 2014 | (5,728) | (5,728) |
Additional paid-in capital | 153,860 | 153,769 |
Accumulated other comprehensive loss | (240) | (19) |
Accumulated deficit | (93,739) | (115,379) |
Total stockholders’ equity | 54,155 | 32,645 |
Total liabilities and stockholders’ equity | $ 64,113 | $ 41,901 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par value (usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock, Par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 19,416,070 | 18,615,945 |
Common Stock, shares outstanding | 19,416,070 | 18,615,945 |
Treasury stock, shares | 2,588,484 | 2,588,484 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net income | $ 21,640 | $ 2,475 | $ 264 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation | 1,935 | 1,579 | 1,682 |
Amortization of intangible assets | 506 | 356 | 231 |
Provision for bad debts | 266 | 311 | (150) |
Stock-based compensation | 616 | 326 | 340 |
Loss (gain) on sale of assets | 67 | (77) | (1,621) |
Amortization of premium on investments | 115 | 198 | 192 |
Deferred income taxes | (18,599) | 21 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,246) | (614) | 1,049 |
Inventories | (811) | 300 | 1,136 |
Other assets | 430 | (302) | (90) |
Accounts payable | (203) | 776 | (935) |
Accrued compensation | (889) | (380) | 1,108 |
Deferred revenue | 29 | 13 | (218) |
Other liabilities | (380) | (469) | (787) |
Restricted cash | 244 | (233) | 0 |
Net cash provided by operating activities | 3,720 | 4,280 | 2,201 |
Investing activities | |||
Purchases of property and equipment | (1,424) | (1,258) | (726) |
Net proceeds from sale of assets | 18 | 103 | 1,697 |
Purchases of securities available-for-sale | 0 | (2,617) | (4,679) |
Maturities of securities available-for-sale | 4,602 | 2,140 | 4,474 |
Stock subscription | (1,000) | 0 | 0 |
Net cash received from (paid for) acquisition | 3 | (3,447) | 0 |
Net cash provided by (used in) investing activities | 2,199 | (5,079) | 766 |
Financing activities | |||
Issuances of common stock | 624 | 188 | 919 |
Repurchases of common stock | 0 | 0 | (3,642) |
Loan issuance costs | (300) | 0 | 0 |
Dividends paid | (3,833) | (3,713) | (925) |
Repayment of long term debt | 0 | (131) | 0 |
Repayment of obligations under capital leases | (593) | (238) | (89) |
Net cash used in financing activities | (4,102) | (3,894) | (3,737) |
Net increase (decrease) in cash and cash equivalents | 1,817 | (4,693) | (770) |
Cash and cash equivalents at beginning of year | 14,051 | 18,744 | 19,514 |
Cash and cash equivalents at beginning of year | 15,868 | 14,051 | 18,744 |
Non-Cash Investing Activities | |||
Assets acquired by entering into capital lease | 1,393 | 521 | 490 |
Leasehold improvements paid for by lessor | 0 | 212 | 0 |
Stock Issued During Period, Value, Acquisitions | $ 2,684 | $ 0 | $ 0 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Balance (shares) at Dec. 31, 2012 | 19,144,000 | |||||
Balance at Dec. 31, 2012 | $ 36,449 | $ 2 | $ (2,086) | $ 156,634 | $ 17 | $ (118,118) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 340 | 340 | ||||
Stock Issued During Period, Value, Acquisitions | 0 | |||||
Shares issued under stock incentive plans (shares) | 875,000 | |||||
Shares issued under stock incentive plans | 919 | 919 | ||||
Repurchases of common stock (shares) | (1,515,000) | |||||
Repurchases of common stock | (3,642) | (3,642) | ||||
Dividends paid | (925) | (925) | ||||
Net income | 264 | 264 | ||||
Unrealized loss on securities available-for-sale | (19) | (19) | ||||
Balance (shares) at Dec. 31, 2013 | 18,504,000 | |||||
Balance at Dec. 31, 2013 | 33,386 | $ 2 | (5,728) | 156,968 | (2) | (117,854) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 326 | 326 | ||||
Stock Issued During Period, Value, Acquisitions | 0 | |||||
Shares issued under stock incentive plans (shares) | 112,000 | |||||
Shares issued under stock incentive plans | 188 | 188 | ||||
Dividends paid | (3,713) | (3,713) | ||||
Net income | 2,475 | 2,475 | ||||
Unrealized loss on securities available-for-sale | $ (17) | (17) | ||||
Balance (shares) at Dec. 31, 2014 | 18,615,945 | 18,616,000 | ||||
Balance at Dec. 31, 2014 | $ 32,645 | $ 2 | (5,728) | 153,769 | (19) | (115,379) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 616 | 616 | ||||
Stock Issued During Period, Value, Acquisitions | 2,684 | $ 610 | 2,684 | |||
Shares issued under stock incentive plans (shares) | 190,000 | |||||
Shares issued under stock incentive plans | 624 | 624 | ||||
Dividends paid | (3,833) | (3,833) | ||||
Net income | 21,640 | 21,640 | ||||
Unrealized loss on securities available-for-sale | $ (221) | (221) | ||||
Balance (shares) at Dec. 31, 2015 | 19,416,070 | 19,416,000 | ||||
Balance at Dec. 31, 2015 | $ 54,155 | $ 2 | $ (5,728) | $ 153,860 | $ (240) | $ (93,739) |
The Company (Notes)
The Company (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
The Company [Abstract] | |
The Company | The Company Digirad Corporation (Digirad), a Delaware corporation, is one of the largest national providers of in-office nuclear cardiology imaging and ultrasound services, and also provides cardiac event monitoring services. These services are provided to physician practices, hospitals, and imaging centers through our Diagnostic Services reportable segment. Digirad also sells solid-state gamma cameras for nuclear cardiology and general nuclear medicine applications, as well as provides service on the products sold, through our Diagnostic Imaging reportable segment. These two reportable segments, Diagnostic Services and Diagnostic Imaging, are collectively referred to herein as the “Company.” The accompanying consolidated financial statements include the operations of both segments. Intercompany accounts and transactions are accounted for at cost and have been eliminated in consolidation. All our long-lived assets are located in the United States and substantially all of our revenues arise from sales activity in the United States. |
Basis Of Presentation And Signi
Basis Of Presentation And Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The consolidated financial statements are prepared in conformity with United States generally accepted accounting principles (GAAP) and include the financial statements of the Company and its wholly owned subsidiaries. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from management’s estimates. All significant intercompany accounts and transactions have been eliminated. Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. The financial results for the year ended December 31, 2015 include the financial results of MD Office Solutions and Telerhythmics, LLC. See Note 3 to the audited consolidated financial statements for more information related to the acquisitions of MD Office Solutions and Telerhythmics, LLC. Revenue Recognition We derive revenues primarily from providing in-office services related to the performance of cardiac diagnostic imaging procedures, cardiac event monitoring, and from selling and servicing solid-state digital gamma cameras. We recognize revenue in accordance with the authoritative guidance for revenue recognition, when all of the following four criteria are met: (i) a contract or sales arrangement exists; (ii) products have been shipped and title has transferred or services have been rendered; (iii) the price of the products or services is fixed or determinable; and (iv) collectability is reasonably assured. The timing of revenue recognition is based upon factors such as passage of title and risk of loss, the need for installation, and customer acceptance. These factors are based on the specific terms of each contract or sales arrangement. Diagnostic Services imaging services revenue is derived from our ability to provide our physician customers with our services, which includes use of our imaging system, qualified personnel, and related items required to perform imaging in their own offices and bill Medicare, Medicaid, and other payors for in-office nuclear and ultrasound diagnostic imaging procedures. Revenue related to diagnostic imaging services is recognized at the time services are performed and collection is reasonably assured. Imaging services are generally billed on a per-day basis under annual contracts for nuclear diagnostic imaging, which specifies the number of days of service to be provided, or on a flat rate month-to-month basis for ultrasound imaging. Our cardiac event monitoring services are provided primarily through an independent diagnostic testing facility model which allows us to bill Medicare, Medicaid, or one of the third-party healthcare insurers directly for services provided. We also receive reimbursement directly from patients through co-pays and self-pay arrangements. Billings for services reimbursed by third party payors, including Medicare, are recorded as revenue net of contractual allowances. Contractual allowances are estimated based on historical collections by Current Procedural Terminology (CPT) code for specific payors, or class of payors. Adjustments to the estimated receipts, based on final settlement with the third party payors, are recorded upon settlement. Diagnostic Imaging product revenues are generated from the sales of gamma cameras and follow-on maintenance service contracts. We generally recognize revenue upon delivery and acceptance by customers. We also provide installation and training for camera sales in the United States. Installation and initial training is generally performed shortly after delivery and represents a cost which we accrue at the time revenue is recognized. Neither service is essential to the functionality of the product. Maintenance services are sold beyond the term of the warranty, which is generally one year from the date of purchase. Revenue from these contracts is deferred and recognized ratably over the period of the obligation and is included in Diagnostic Imaging sales. Multiple Element Arrangements In fiscal year 2013, we sold all of our assets specifically related to an uncommercialized surgical imaging system previously in development, as well as licensed certain existing Company technology. The transaction was accounted for in accordance with the authoritative guidance for multiple element arrangements. We identified the deliverables at the inception of the agreement and determined which items had value to the customer on a standalone basis, and were therefore separate units of accounting. Non-contingent arrangement consideration was allocated at the inception of the agreement to all identified units of accounting based on their relative selling price. The relative selling price for each unit of accounting was determined using best estimate of selling price, because neither vendor specific objective evidence (VSOE) of selling price nor third-party evidence of selling price existed for the units of accounting. The non-contingent amount of arrangement consideration allocated to each unit of account was recognized upon performance and delivery of the related unit of accounting. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and disclosures made in the accompanying notes to the consolidated financial statements. Significant estimates and judgments include those related to revenue recognition, reserves for doubtful accounts and contractual allowances, inventory valuation, and income taxes. Actual results could differ from those estimates. Concentration of Credit Risk and Significant Customers Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of cash and cash equivalents, investments, and accounts receivable. We limit our exposure to credit loss by generally placing our cash and investments in high credit quality financial institutions and investment grade corporate debt securities. Additionally, we have established guidelines regarding diversification of our investments and their maturities, which are designed to maintain principal and maximize liquidity. For the years ended December 31, 2015 and 2014 , Emory Healthcare represented 10.2% and 10.9% of our consolidated revenues, respectively, and 13.4% an 14.3% of our Diagnostic Services revenues, respectively. Prior to 2014, no single customer exceeded 10% of our consolidated revenues. We believe we have good relations with Emory Healthcare, however, if we were to lose Emory Healthcare as a customer, it would likely have a material adverse affect on our operations. Fair Value of Financial Instruments The authoritative guidance for fair value measurements defines fair value for accounting purposes, establishes a framework for measuring fair value, and provides disclosure requirements regarding fair value measurements. The guidance defines fair value as an exit price, which is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. The degree of judgment utilized in measuring the fair value of assets and liabilities generally correlates to the level of pricing observability. Our financial instruments primarily consist of cash equivalents, securities available-for-sale, accounts receivable, other current assets, restricted cash, accounts payable, contingent consideration, and other current liabilities. The carrying amount of these financial instruments generally approximate fair value due to their short term nature. Securities available-for-sale are recorded at fair value. Cash and Cash Equivalents We consider all investments with a maturity of three months or less when acquired to be cash equivalents. Securities Available-for-Sale Securities available-for-sale primarily consist of investment grade corporate debt securities. In addition, we own shares of common stock issued by Perma-Fix Medical, S.A. (Perma-Fix Medical), a publicly traded company listed on the NewConnect market of the Warsaw Stock Exchange. We classify all debt securities as available-for-sale and as current assets, as the sale of such securities may be required prior to maturity to execute management strategies. The Perma-Fix Medical equity securities are classified as an other asset (non-current), as the investment is strategic in nature and our current intent is to hold the investment over a several year period. Securities available-for-sale are carried at fair value, with the unrealized gains and losses reported as a component of accumulated other comprehensive loss in stockholders' equity until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis. A decline in the market value of any available-for-sale security below cost that is determined to be other than temporary will result in an impairment charge to earnings and a new cost basis for the security is established. No such impairment charges were recorded for any period presented. It is not more likely than not that we will be required to sell investments before recovery of their amortized costs. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the straight-line method and included in interest income. Interest income is recognized when earned. Realized gains and losses on investments in securities are included in other income (expense) within the consolidated statements of comprehensive income. We recognized a loss of $233,000 related to available-for-sale securities for the year ended December 31, 2015 due to the initial excess of the transaction price over fair value for the Perma-Fix Medical investment. The realized gains and losses related to securities available-for-sale were minimal for the years ended December 31, 2014 and 2013. The following table sets forth the composition of securities available-for-sale as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 Maturity in Cost Unrealized Fair Value Gains Losses Corporate debt securities Less than 1 year $ 2,311 $ — $ (5 ) $ 2,306 Corporate debt securities 1-3 years 926 — (5 ) 921 Equity securities - 721 — (230 ) 491 $ 3,958 $ — $ (240 ) $ 3,718 As of December 31, 2014 Maturity in Cost Unrealized Fair Value Gains Losses Corporate debt securities Less than 1 year $ 4,650 $ — $ (5 ) $ 4,645 Corporate debt securities 1-3 years 3,304 — (14 ) 3,290 $ 7,954 $ — $ (19 ) $ 7,935 Allowance for Doubtful Accounts, Billing Adjustments, and Contractual Allowances Accounts receivable consist principally of trade receivables from customers and government or third-party healthcare insurance providers, and are generally unsecured and due within 30 days . Expected credit losses related to trade accounts receivable are recorded as an allowance for doubtful accounts within accounts receivable, net in the consolidated balance sheets. The provision for doubtful accounts is charged to general and administrative expenses. When internal collection efforts on accounts have been exhausted, the accounts are written off by reducing the allowance for doubtful accounts. Within Diagnostic Services, we record adjustments and credit memos that represent billing adjustments subsequent to the performance of service. A provision for billing adjustments is charged against Diagnostic Services revenues. Our cardiac event monitoring services are provided primarily through an independent diagnostic testing facility model which allows us to bill Medicare, Medicaid, or one of the third-party healthcare insurers directly for services provided. Accounts receivable related to cardiac event monitoring are recorded at the time revenue is recognized, net of contractual allowances. Contractual allowances are estimated based on historical collections by Current Procedural Terminology (CPT) code for specific payors, or class of payors. A provision for contractual allowances is charged against Diagnostic Services revenues. The following table summarizes our allowance for doubtful accounts, billing adjustments, and contractual allowances as of and for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): Allowance for Doubtful Accounts (1) Reserve for Billing Adjustments (2) Reserve for Contractual Allowances (2) Balance at December 31, 2012 $ 513 $ 81 $ — Provision adjustment (150 ) 29 — Write-offs and recoveries, net (93 ) (102 ) — Balance at December 31, 2013 270 8 — Provision adjustment 571 99 18,675 Write-offs and recoveries, net (577 ) (100 ) (17,968 ) Balance at December 31, 2014 264 7 707 Provision adjustment 483 105 22,256 Write-offs and recoveries, net (303 ) (102 ) (22,373 ) Balance at December 31, 2015 $ 444 $ 10 $ 590 (1) The provision was charged against general and administrative expenses. (2) The provision was charged against Diagnostic Services revenue. Inventory Our inventories are stated at the lower of cost (first-in, first-out) or market (net realizable value) and we review inventory balances for excess and obsolete inventory levels on a quarterly basis. Costs include material, labor, and manufacturing overhead costs. We rely on historical information to support our excess and obsolete reserves and utilize our business judgment with respect to estimated future demand. Per our policy, we generally reserve 100% of the cost of inventory quantities in excess of a defined period of demand. Once inventory is reserved, we do not adjust the reserve balance until the inventory is sold or disposed. The following table summarizes our reserves for excess and obsolete inventory as of and for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): Reserve for Excess and Obsolete Inventories (1) Balance at December 31, 2012 $ 2,565 Provision adjustment 210 Write-offs and scrap (232 ) Balance at December 31, 2013 2,543 Provision adjustment (630 ) Write-offs and scrap — Balance at December 31, 2014 1,913 Provision adjustment (967 ) Write-offs and scrap (227 ) Balance at December 31, 2015 $ 719 (1) The provision was charged against Diagnostic Imaging cost of revenues. Long-Lived Assets including Finite Lived Purchased Intangible Assets Long-lived assets consist of property and equipment and finite lived intangible assets. We record property and equipment at cost, and record other intangible assets based on their fair values at the date of acquisition. We calculate depreciation on property and equipment using the straight-line method over the estimated useful life of the assets which average 6 years for machinery and equipment, 3 years for computer hardware and software, and the lower of the lease term or an average of 5 years for leasehold improvements. Charges related to amortization of assets recorded under capital leases are included within depreciation expense. We calculate amortization on other intangible assets using either the accelerated or the straight-line method over the estimated useful life of the assets, based on when we expect to receive cash inflows generated by the intangible assets. Estimated useful lives for intangibles range from 5 to 9 years for customer relationships, 5 to 9 years for trademarks, 8 to 15 years for patents, and 5 years for covenants not to compete. Impairment losses on long-lived assets used in operations are recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. No impairment losses were recorded on long-lived assets to be held and used during the years ended December 31, 2015 , 2014 , and 2013 . During the year ended December 31, 2015 , an impairment loss of $56,000 was recorded related to the excess of the carrying amount above fair value of certain assets held for sale. No impairment losses were recorded on long-lived assets held for sale during the years ended December 31, 2014 , or 2013 . Valuation of Goodwill We review goodwill for impairment on an annual basis during the fourth quarter, as well as when events or changes in circumstances indicate that the carrying value may not be recoverable. We begin the process by assessing qualitative factors in determining whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount. After performing the aforementioned assessment and upon review of the results of such assessment, we may begin performing step one of the two-step impairment analysis by quantitatively comparing the fair value of the reporting unit to the carrying value of the reporting unit, including goodwill. If the carrying value of the long-term assets exceeds the fair value of the reporting unit, then we must perform the second step of the impairment test, whereby the carrying value of the reporting unit’s goodwill is compared to its implied fair value. If the carrying value of the goodwill exceeds the implied fair value, an impairment loss equal to the difference would be recorded. No goodwill impairment losses were recorded during the years ended December 31, 2015 , 2014 , and 2013 . Restricted Cash As of December 31, 2015 , we held $0.2 million of money market funds that are restricted from withdrawal as they are held as collateral for a letter of credit related to the building lease for the Poway, CA facility. Restructuring Restructuring costs are included in income from operations within the consolidated statements of comprehensive income. Losses on property and equipment are recorded consistent with our accounting policy related to long-lived assets. One-time termination benefits are recorded at the time they are communicated to the affected employees. Losses on property lease obligations are recorded when the lease is abandoned or when the contract is terminated. In February 2013, we announced a plan to restructure our Diagnostic Imaging business. In addition, we announced a plan in January 2014 to exit our 47,000 square foot former headquarters facility in Poway, California. Both restructuring initiatives were complete as of December 31, 2014. See Note 11 to the audited consolidated financial statements for further information. Shipping and Handling Fees and Costs We record all shipping and handling billings to customers as revenue earned for the goods provided. Shipping and handling costs are included in cost of revenues and totaled $0.6 million , $0.5 million , and $0.2 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Share-Based Compensation We account for share-based awards exchanged for employee services in accordance with the authoritative guidance for share-based compensation. Under this guidance, share-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense, net of estimated forfeitures, over the requisite service period. Warranty We generally provide a 12 month warranty on our gamma cameras. We accrue the estimated cost of this warranty at the time revenue is recorded and charge warranty expense to Diagnostic Imaging cost of revenues. Warranty reserves are established based on historical experience with failure rates and repair costs and the number of systems covered by warranty. Warranty reserves are depleted as gamma cameras are repaired. The costs consist principally of materials, personnel, overhead, and transportation. We review warranty reserves quarterly and, if necessary, make adjustments. The activities related to our warranty reserve for the years ended December 31, 2015 , 2014 , and 2013 are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 176 $ 137 $ 326 Charges to Diagnostic Imaging cost of revenues 331 286 149 Applied to liability (294 ) (247 ) (338 ) Balance at end of year $ 213 $ 176 $ 137 Research and Development Research and development costs are expensed as incurred. Advertising Costs Advertising costs are expensed as incurred. Total advertising costs for each of the years ended December 31, 2015 , 2014 , and 2013 were $0.3 million , $0.2 million , and $0.3 million respectively. Basic and Diluted Net Income Per Share Basic earnings per share (EPS) is calculated by dividing net income by the weighted average number of common shares and vested restricted stock units outstanding. Diluted EPS is computed by dividing net income by the weighted average number of common shares and vested restricted stock units outstanding and the weighted average number of dilutive common stock equivalents, including stock options and non-vested restricted stock units under the treasury stock method. Common stock equivalents are only included in the diluted earnings per share calculation when their effect is dilutive. Shares used to compute basic net income per share include 5,063 , and 44,522 vested restricted stock units for the years ended December 31, 2014, and 2013, respectively. There were no vested restricted stock units included in the shares used to compute basic net income per share for the year ended December 31, 2015. The following table sets forth the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts): Year Ended December 31, 2015 2014 2013 Net income $ 21,640 $ 2,475 $ 264 Shares used to compute basic net income per share 19,210 18,571 18,789 Dilutive potential common shares: Stock options 449 307 359 Restricted stock units 31 — 11 Shares used to compute diluted net income per share 19,690 18,878 19,159 Basic net income per share $ 1.13 $ 0.13 $ 0.01 Diluted net income per share $ 1.10 $ 0.13 $ 0.01 Antidilutive common stock equivalents are excluded from the computation of diluted earnings per share. Stock options and restricted stock units are antidilutive when the assumed proceeds per share are greater than the average market price of the common shares. In addition, in periods where net losses are incurred, stock options and restricted stock units with assumed proceeds per share less than the average market price of the common shares become antidilutive as well. The number of common share equivalents that were antidilutive were 984 , 66,917 , and 177,891 for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Other Comprehensive Loss Other comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss includes unrealized losses on our marketable securities. Income Taxes We provide for income taxes under the liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the tax basis of assets or liabilities and their carrying amounts in the financial statements. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will expire before we are able to realize their benefit. We calculate the valuation allowance in accordance with the authoritative guidance relating to income taxes, which requires an assessment of both positive and negative evidence regarding the realizability of these deferred tax assets when measuring the need for a valuation allowance. Significant judgment is required in determining any valuation allowance against deferred tax assets. As of December 31, 2014, due to a history of operating losses and other key operating factors, we concluded that a full valuation allowance was necessary to offset all of our deferred tax assets. A significant piece of objective negative evidence evaluated as of December 31, 2014, was the cumulative pretax loss incurred over the three-year period ended December 31, 2014. During the year ended December 31, 2015, we concluded that it was more likely than not that a portion of our deferred tax assets would be realized through future taxable income. This conclusion was based on our restructuring efforts in 2013 and 2014 and resulting sustained profitability for the second half of 2013, 2014, and 2015, as well as our projections of positive future earnings and other key operating factors. As of September 30, 2015, we had generated cumulative pretax income over the preceding twelve quarter period, and therefore the objective negative evidence of a history of operating losses was no longer present. The authoritative guidance for income taxes defines a recognition threshold and measurement attributes for financial statement recognition and measurement of a tax provision taken or expected to be taken in a tax return. The guidance also provides direction on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Under the guidance, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. We recognize interest and penalties related to uncertain tax positions as a component of the income tax provision. Acquisitions On March 5, 2015, we acquired MD Office Solutions. On March 13, 2014, we acquired 100% of the membership interest of Telerhythmics, LLC. Both acquisitions were accounted for as business combinations. We measure all assets acquired and liabilities assumed, including contingent considerations, at fair value as of the acquisition date. Contingent purchase considerations to be settled in cash are remeasured to estimated fair value at each reporting period with the change in fair value recorded in general and administrative expense, a component of operating expenses. See Note 3 to the audited consolidated financial statements for further information. Accounting Standards Updates In February 2016, the FASB amended the existing accounting standards for the accounting for leases. The amendments are based on the principle that assets and liabilities arising from leases should be recognized within the financial statements. The Company is required to adopt the amendments beginning in 2019. Early adoption is permitted. The amendments must be applied using a modified retrospective transition approach and the FASB decided not to permit a full retrospective transition approach. The Company is currently evaluating the impact these amendments will have on its consolidated financial statements. In January 2016, the FASB amended the existing accounting standards for the accounting for financial instruments. The amendments require equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income. The new standard is effective prospectively for fiscal years beginning after December 15, 2017. We are currently evaluating the impact, if any, of adopting this guidance on our financial statements. In November 2015, the FASB issued guidance which requires classification of all deferred tax assets and liabilities as noncurrent. The new standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. We have early adopted the guidance on a prospective basis for the year ended December 31, 2015. Therefore, the classification of deferred tax assets and liabilities in periods prior to the year ended December 31, 2015 have not been changed from their original presentation. In September 2015, the FASB issued guidance which eliminates the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The new standard is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. We are currently evaluating the impact, if any, of adopting this guidance on our financial statements. In July 2015, the FASB issued guidance that amends the guidelines for the measurement of inventory from lower of cost or market to the lower of cost and net realizable value (NRV). NRV is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Under existing standards, inventory is measured at lower of cost or market, which requires the consideration of replacement cost, NRV, and NRV less an amount that approximates a normal profit margin. This ASU eliminates the requirement to determine and consider replacement cost or NRV less an approximately normal profit margin for inventory measurement. The new standard is effective prospectively for fiscal years beginning after December 15, 2016. We are currently evaluating the impact, if any, of adopting this guidance on our financial statements. In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers which supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The guidance allows for either full retrospective or modified retrospective adoption and is currently scheduled to become effective for us in the first quarter of 2018. We are currently evaluating the alternative transition methods and the potential effects of the adoption of this guidance on our financial statements. |
Acquisitions (Notes)
Acquisitions (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | MD Office Solutions (2015) On March 5, 2015, we entered into an Agreement of Merger and Plan of Reorganization (the Merger Agreement) to acquire MD Office Solutions (MD Office). MD Office is a provider of in-office nuclear cardiology imaging in the northern and central California regions. The acquisition expands the geographical region in which we are able to provide our in-office nuclear cardiology imaging services. Total consideration related to the Merger Agreement paid to the sellers was 610,000 shares of common stock of Digirad Corporation, with a total value at closing of $2,684,000 , as well as settlement of a $15,000 accounts receivable balance owed to the Company. The Company issued new shares for the consideration. In addition, there is an earn-out opportunity of up to $400,000 in cash over approximately three years based on the MD Office business meeting certain earnings before interest, taxes, depreciation, and amortization (EBITDA) milestones. The sellers will receive fifty percent of the EBITDA generated by the MD Office business in excess of the EBITDA milestone amounts, which are $650,000 for each of the annual periods ending December 31, 2015, 2016, and 2017, with the target for 2015 being prorated based on the close date. At December 31, 2015 , we have estimated the fair value of the contingent earn-out opportunity to be $153,000 . The earn-out opportunity is estimated based on actual performance for the period from the acquisition date through December 31, 2015, as well as the expected performance of the business over the period from January 1, 2016, through December 31, 2017, utilizing an income approach. It is reasonably possible that our estimate of the earn-out potential could change in the near term. Any adjustment in the estimated earn-out opportunity until settled will be recorded as a gain or loss to current operations in the period the estimate changes. The Merger Agreement was also subject to a post-closing purchase price adjustment based on the final working capital balance, as defined in the Merger Agreement, as well as a Registration Rights Agreement related to the common shares provided to the sellers as part of the consideration. The allocation of the purchase price of $2,699,000 to the assets acquired and liabilities assumed on the acquisition date was as follows: (in thousands) Allocation of purchase price Assets Current assets: Cash and cash equivalents $ 3 Accounts receivable 457 Other current assets 32 Total current assets 492 Property and equipment 481 Intangible assets 1,007 Goodwill 1,560 Other assets 26 Total assets $ 3,566 Liabilities Current liabilities: Accounts payable $ 149 Accrued compensation 81 Other accrued liabilities 87 Total current liabilities 317 Deferred tax liability 544 Other liabilities 6 Total liabilities $ 867 The goodwill recognized as part of the transaction primarily represents synergies between Digirad and MD Office that were not separately identified as part of the acquisition valuation process. MD Office activities are included within the Diagnostic Services reportable segment. The resulting goodwill from the acquisition is not deductible for federal and state tax reporting purposes. The following table summarizes the fair value of acquired identifiable intangible assets as of the acquisition date: (in thousands) Weighted Average Useful Lives (in years) Fair Value Customer relationships 7.0 $ 639 Trademarks 5.0 187 Covenants not to compete 5.0 181 Total intangible assets acquired, excluding goodwill 6.3 $ 1,007 The below tables display estimated proforma results had the business acquisition been completed as of January 1, 2014. In deriving the proforma results, we utilized the historical operating results of MD Office and adjusted for the impact of the purchase accounting and transaction costs as if the acquisition occurred on January 1, 2014. Year Ended December 31, (unaudited) (in thousands) 2015 2014 Revenues $ 61,393 $ 58,869 Net income $ 21,849 $ 2,216 Included within our consolidated operating results for the year ended December 31, 2015 are MD Office operations for the period March 6, 2015 through December 31, 2015 as follows: (in thousands) Year Ended (unaudited) Revenues $ 2,550 Net income $ 248 Included within the results for MD Office for the year ended December 31, 2015 are approximately $195,000 of transaction costs related to the acquisition. These costs are classified as general and administrative expenses in the consolidated statements of comprehensive income. Telerhythmics, LLC (2014) On March 13, 2014, we acquired 100% of the membership interest of Telerhythmics, LLC (Telerhythmics), a provider of 24-hour cardiac monitoring services. We paid to the sellers of the membership interest (the Sellers) aggregate up-front consideration of $3.4 million and assumed approximately $131,000 in debt. In addition, there is an aggregate earn-out opportunity of up to $501,000 from the period March 14, 2014 through December 31, 2016 based on the Telerhythmics business meeting certain earnings before interest, taxes, depreciation, and amortization (EBITDA) milestones. The Sellers will receive fifty percent (50%) of the EBITDA generated by the Telerhythmics business in excess of the EBITDA milestone amounts, which are as follows: • $415,000 of EBITDA for the period from the closing date through December 31, 2014, • $825,000 of EBITDA for the period from January 1, 2015 through December 31, 2015; and • $825,000 of EBITDA for the period from January 1, 2016 through December 31, 2016. At December 31, 2015 , we have estimated the fair value of the contingent earn-out opportunity to be $22,000 . The earn-out opportunity is estimated based on expected performance of the business over the period from January 1, 2016 through December 31, 2016, utilizing an income approach. No earn-out consideration was earned by the Sellers for the period from the closing date through December 31, 2015 . It is reasonably possible that our estimate of the earn-out potential could change in the near term. Any adjustment in the estimated earn-out opportunity until settled will be recorded as a gain or loss to current operations in the period the estimate changes. The allocation of the purchase price of $3,447,000 to the assets acquired and liabilities assumed on the acquisition date was as follows: (in thousands) Allocation of purchase price Assets Current assets: Accounts receivable $ 256 Other current assets 34 Total current assets 290 Property and equipment 290 Intangible assets 2,580 Goodwill 1,153 Total assets $ 4,313 Liabilities Current liabilities: Accounts payable $ 36 Accrued compensation 169 Other accrued liabilities 356 Current portion of long-term debt 131 Total current liabilities 692 Other liabilities 174 Total liabilities $ 866 The long-term debt was paid in full on March 28, 2014. The goodwill recognized as part of the transaction primarily represents synergies between Digirad and Telerhythmics that were not separately identified as part of the acquisition valuation process. Telerhythmics activities are considered their own operating segment, which is aggregated into our Diagnostic Services reportable segment. The resulting goodwill from the acquisition is expected to be deductible for federal and state tax reporting purposes. The below tables display estimated pro forma results had the business acquisition been completed as of January 1, 2013. In deriving the pro forma results, we utilized the historical operating results of Telerhythmics and adjusted for the impact of the purchase accounting and transaction costs as if the acquisition occurred on January 1, 2013. Year Ended December 31, (unaudited) (in thousands) 2014 2013 Revenues $ 56,763 $ 55,494 Net income $ 2,688 $ 247 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We categorize our assets and liabilities measured at fair value into a three-level hierarchy in accordance with the authoritative guidance for fair value measurements. Assets and liabilities presented at fair value in our consolidated balance sheets are generally categorized as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Such assets and liabilities may have values determined using pricing models, discounted cash flow methodologies, or similar techniques, and include instruments for which the determination of fair value requires significant management judgment or estimation. As required by the authoritative guidance for fair value measurements, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of assets and liabilities and their placement within the fair value hierarchy levels. The following table sets forth by level within the fair value hierarchy our assets that were recorded at fair value as of December 31, 2015 and 2014 (in thousands): At Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Corporate debt securities $ — $ 3,227 $ — $ 3,227 Equity securities — 491 — 491 Total $ — $ 3,718 $ — $ 3,718 Liabilities: Acquisition related contingent consideration $ — $ — $ 175 $ 175 At Fair Value as of December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Corporate debt securities $ — $ 7,935 $ — $ 7,935 Liabilities: Acquisition related contingent consideration $ — $ — $ 229 $ 229 Our investments in corporate debt securities are valued based on quoted market prices for identical securities. Some of the corporate debt securities we hold do not trade on a daily basis. For investments that do not trade on a daily basis, we utilize a variety of pricing sources to determine fair value and corroborate the fair value by observing market data prior and subsequent to the balance sheet date. Equity securities consist of shares of Perma-Fix Medical, a publicly traded company listed on the NewConnect market of the Warsaw Stock Exchange. Fair value of the Perma-Fix Medical investment is based on the closing price observed on December 31, 2015 . Given that there are days in which there are no trades of Perma-Fix Medical's stock, we corroborate the fair value by observing market data prior and subsequent to the balance sheet date. The acquisition related contingent consideration is related to the acquisitions of Telerhythmics, on March 13, 2014, and MD Office Solutions, on March 5, 2015. We reassess the fair value of the contingent consideration on a quarterly basis using the income approach, which is a Level 3 measurement. The estimation of the fair value of the contingent consideration requires significant management judgment, including estimating future cash flows associated with the respective businesses and determining the associated discount rate. The maximum possible consideration to be paid related to Telerhythmics and MD Office Solutions is $501,000 and $400,000 , respectively. No minimum amount of contingent consideration is guaranteed to be paid related to either Telerhythmics or MD Office Solutions. No earn-out consideration was earned related to Telerhythmics for the period from the closing date of March 13, 2014 through December 31, 2015 . Contingent consideration of $76,000 was earned related to MD Office Solutions for the period from the closing date of March 5, 2015 through December 31, 2015 . Changes in the estimated fair value of contingent consideration liabilities (level 3 measurement) from December 31, 2013 to December 31, 2015 are as follows (in thousands): Telerhythmics Contingent Consideration MD Office Solutions Contingent Consideration Total Contingent Consideration Balance at December 31, 2013 $ — $ — $ — Acquisition of Telerhythmics 220 — 220 Change in estimated fair value 9 — 9 Balance at December 31, 2014 229 — 229 Acquisition of MD Office Solutions — 6 6 Change in estimated fair value (207 ) 147 (60 ) Balance at December 31, 2015 $ 22 $ 153 $ 175 |
Supplementary Balance Sheet Inf
Supplementary Balance Sheet Information (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Supplementary Balance Sheet Disclosures [Abstract] | |
Supplementary Balance Sheet Information | Supplementary Balance Sheet Information (in thousands): December 31, December 31, Inventories: Raw materials $ 2,600 $ 2,439 Work-in-process 1,649 2,560 Finished goods 851 558 Total inventories 5,100 5,557 Less reserve for excess and obsolete inventories (719 ) (1,913 ) Total inventories, net $ 4,381 $ 3,644 December 31, December 31, Property and equipment: Machinery and equipment $ 25,254 $ 23,412 Computer hardware and software 3,555 2,917 Leasehold improvements 583 571 Total property and equipment 29,392 26,900 Less accumulated depreciation (23,140 ) (22,134 ) Total property and equipment, net $ 6,252 $ 4,766 December 31, 2015 Weighted Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net (1) Intangible assets with finite useful lives: Customer relationships 8.2 $ 5,489 $ (3,259 ) $ 2,230 Trademarks 8.0 787 (150 ) 637 Patents 14.6 141 (125 ) 16 Covenants not to compete 5.0 251 (55 ) 196 Total intangible assets, net $ 6,668 $ (3,589 ) $ 3,079 December 31, 2014 Weighted Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net (1) Intangible assets with finite useful lives: Customer relationships 8.6 $ 4,850 $ (2,904 ) $ 1,946 Trademarks 9.0 600 (53 ) 547 Patents 13.2 141 (116 ) 25 Covenants not to compete 5.0 70 (11 ) 59 Total intangible assets, net $ 5,661 $ (3,084 ) $ 2,577 (1) Amortization expense for intangible assets, net for the years ended December 31, 2015 , 2014 , and 2013 was $0.5 million , $0.4 million , and $0.2 million , respectively. Estimated amortization expense for intangible assets for 2016 is $0.5 million , for 2017 is $0.5 million , for 2018 is $0.5 million , for 2019 is $0.5 million , for 2020 is $0.4 million , and thereafter is $0.7 million . December 31, December 31, Other current liabilities: Professional fees $ 1,006 $ 333 Sales and property taxes payable 268 197 Radiopharmaceuticals and consumable medical supplies 83 177 Current portion of capital lease obligation 724 348 Facilities and related costs 127 155 Outside services and consulting 258 151 Other accrued liabilities 532 428 Total other current liabilities $ 2,998 $ 1,789 |
Goodwill (Notes)
Goodwill (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill has been recorded related to the acquisitions of MD Office in 2015, Telerhythmics in 2014, and Ultrascan in 2007. The related goodwill has been recorded within two separate reporting units within our Diagnostic Services segment. During the year ended December 31, 2014, we recorded $1.2 million of goodwill as a result of acquisition of Telerhythmics. During the year ended December 31, 2015, we recorded $1.6 million of goodwill as a result of acquisition of MD Office, bringing total goodwill to its current carrying value of $2.9 million . We determined the implied fair value of the goodwill for MD Office, Telerhythmics and Ultrascan utilizing the discounted cash flow method under the income approach. Under the income approach, we derived the fair value based on the present value of estimated future cash flows, which were based on historical data and assumptions pertaining to the market. During the second quarter of 2015, based on the quantitative performance of the Telerhythmics business compared to plan, we performed the first step of the goodwill impairment test which involves comparing the fair value of the reporting unit with the associated carrying value, including goodwill. We determined the fair value of the reporting unit using the income valuation approach. The reporting unit’s fair value exceeded the associated carrying amount of the reporting unit; therefore the second step of the goodwill impairment test was not necessary. Subsequently, during the fourth quarter of 2015, we performed our annual goodwill impairment testing. We performed a qualitative assessment of all reporting units to estimate whether it is more likely than not that the fair value of each reporting unit was less than its carrying amount. In performing this qualitative assessment, we assessed relevant events and circumstances that may impact the fair value and the carrying amount of each reporting unit. Factors that were considered included, but were not limited to, the following: (1) macroeconomic conditions; (2) industry and market conditions; (3) overall financial performance and expected financial performance; (4) other entity specific events. Based on the results of this qualitative assessment, we determined that it is more likely than not that the reporting units were not impaired. Changes in the carrying amount of goodwill from December 31, 2013 to December 31, 2015 by reportable segment are as follows (in thousands): Diagnostic Services Diagnostic Imaging Balance at December 31, 2013 $ 184 $ — Acquisition of Telerhythmics 1,153 — Balance at December 31, 2014 1,337 — Acquisition of MD Office Solutions 1,560 — Balance at December 31, 2015 $ 2,897 $ — |
Commitments And Contingencies (
Commitments And Contingencies (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies Leases We currently lease facilities and certain automotive equipment under non-cancelable operating leases expiring from January 1, 2016 through November 30, 2021. Rent expense is recognized on a straight-line basis over the initial lease term and those renewal periods that are reasonably assured as determined at lease inception. The difference between rent expense and rent paid is recorded as deferred rent and is included in other current and long-term liabilities. Rent expense was approximately $1.3 million for the years ended December 31, 2015 and 2014 and $1.4 million for the year ended December 31, 2013 . As of December 31, 2015 , we financed certain information technology and medical equipment and vehicles under capital leases. These obligations are secured by the specific equipment financed under each lease and will be repaid monthly over the remaining lease terms through December 31, 2019. We are committed to making future cash payments on non-cancelable operating leases and capital leases (including interest). The future minimum lease payments due under both non-cancelable operating leases and capital leases having initial or remaining lease terms in excess of one year as of December 31, 2015 are as follows (in thousands): Operating Leases Capital Leases 2016 $ 1,125 $ 780 2017 757 595 2018 632 234 2019 599 47 2020 572 1 Thereafter 164 — Total future minimum lease payments $ 3,849 1,657 Less amounts representing interest (90 ) Present value of obligations 1,567 Less: current capital lease obligations (724 ) Total long-term capital lease obligations $ 843 Annual Meeting Litigation. In May 2013, we were served with a complaint in Delaware Chancery Court by one of our shareholders, the Red Oak Fund, L.P. (Red Oak). In summary, the complaint alleged that the Annual Meeting of Shareholders election process (the Election) was improperly conducted. Red Oak sought to have the results of the Election voided and to compel Digirad to conduct a new Annual Meeting process. On October 23, 2013, the Delaware Chancery Court issued a memorandum opinion in favor of the Company which upheld the Election as valid. Other matters. In the normal course of business, we have been, and will likely continue to be, subject to litigation or administrative proceedings incidental to our business, such as claims related to customer disputes, employment practices, wage and hour disputes, product liability, professional liability, commercial disputes, licensure restrictions or denials, and warranty or patent infringement. Responding to litigation or administrative proceedings, regardless of whether they have merit, can be expensive and disruptive to normal business operations. We are not able to predict the timing or outcome of these matters. |
Share Based Compensation (Notes
Share Based Compensation (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Based Compensation | Share-Based Compensation At December 31, 2015 , we have two active equity incentive plans, the 2011 Inducement Stock Incentive Plan (the 2011 Plan) and the 2014 Equity Incentive Award Plan (the 2014 Plan), (collectively the Plans), under which stock options, restricted stock units, and other stock based awards may be granted to employees and non-employees, including members of our Board of Directors. Terms of any equity instruments granted under the Plans are approved by the Board of Directors. Stock options typically vest over the requisite service period of one to four years and have a contractual term of seven to ten years. Restricted stock units generally vest over one to four years. Under the Plans, we are authorized to issue an aggregate of 1,856,733 shares of common stock. As of December 31, 2015 , the Plans had 968,733 shares available for future issuance. The number of shares reserved for issuance under the 2014 Plan is subject to increase by any shares under the 2004 Equity Incentive Award Plan (the 2004 Plan) that are forfeited, expire, or are canceled. As of December 31, 2015 , the number of shares provided for issuance under the 2014 Plan due to forfeited, expired, and canceled shares under the 2004 Plan was 10,248 shares. Stock Options The estimated fair value of our stock options is determined using the Black-Scholes model. All stock options were granted with an exercise price equal to the fair value of the common stock on the grant date. The weighted-average grant date fair value of employee stock options granted during the years ended December 31, 2014 and 2013 was $0.70 , and $1.06 per share, respectively, which was estimated using the following weighted-average assumptions. There were no employee stock options granted during the year ended December 31, 2015. Year Ended December 31, 2015 2014 2013 Expected volatility — 43 % 56 % Expected term (in years) — 4.1 4.6 Risk-free interest rate — 1.2 % 0.9 % Expected dividend yield — 5.7 % — The determination of the fair value of stock options using an option valuation model is affected by our stock price, as well as assumptions regarding a number of complex and subjective variables. The volatility assumption is based on the historical volatility of our common stock over a period of time equal to the expected term of the stock options. The expected term of our stock options is based on historical experience. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield in effect at the time of grant. The expected dividend yield is based on the current annualized dividend rate per share divided by the historical average stock price. At the time of the grants, for the year ended December 31, 2013, we had no plans to pay a dividend and no history of paying a dividend previously and as such an expected dividend yield of zero was utilized for purposes of determining fair value of the associated stock options. A summary of our stock option award activity as of and for the year ended December 31, 2015 is as follows (in thousands, except per share data): Number of Shares Weighted- Average Exercise Price per Share Weighted- Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Options outstanding at December 31, 2014 1,458 $ 2.62 Options exercisable at December 31, 2014 553 $ 1.82 Options granted — $ — Options forfeited — — Options expired (9 ) 5.74 Options exercised (190 ) 3.28 Options outstanding at December 31, 2015 1,259 $ 2.50 3.9 $ 3,920 Options exercisable at December 31, 2015 1,028 $ 2.42 3.7 $ 3,297 As share-based compensation expense under the authoritative guidance for share-based payments is based on awards ultimately expected to vest, it is reduced for estimated forfeitures. The guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. At December 31, 2015 , total unrecognized compensation cost related to unvested stock options was $0.2 million , which is expected to be recognized over a weighted-average period of 1.2 years. Upon exercise, we issue new shares of common stock. Cash received from stock option exercises was $0.6 million during the year ended December 31, 2015 , $0.2 million during the year ended December 31, 2014 , and $0.9 million for the year ended December 31, 2013 . The total intrinsic value of stock options exercised was $0.2 million during the year ended December 31, 2015 , $0.1 million during the year ended December 31, 2014 , and $0.9 million during the year ended 2013 . Restricted Stock Units Under guidance for share-based payments, the fair value of our restricted stock awards is based on the grant date fair value of our common stock. All restricted stock units were granted with no purchase price. Vesting of the restricted stock awards is subject to service conditions, as well as the attainment of additional performance objectives for certain of the awards. The weighted-average grant date fair value of the restricted stock units was $4.14 and $3.81 per share during the years ended December 31, 2015 and 2014 , respectively. There were no restricted stock units granted during the year ended December 31, 2013 . A summary of our restricted stock unit activity as of and for the year ended December 31, 2015 is as follows (in thousands, except per share data): Number of Shares Weighted- Average Grant Date Fair Value Per Share Non-vested restricted stock units outstanding at December 31, 2014 88 $ 3.81 Granted 119 4.14 Forfeited (5 ) 4.15 Vested — — Non-vested restricted stock units outstanding at December 31, 2015 202 $ 4.00 The following table summarizes information about restricted stock units that vested during the years ended December 31, 2015 , 2014 , and 2013 based on service conditions (in thousands): Year Ended December 31, 2015 2014 2013 Fair value on vesting date of vested restricted stock units $ — $ — $ 136 At December 31, 2015 , total unrecognized compensation cost related to non-vested restricted stock units was $0.5 million , which is expected to be recognized over a weighted-average period of 1.9 years. Allocation of Share-Based Compensation Expense Total share-based compensation expense related to all of our share-based units for the years ended December 31, 2015 , 2014 , and 2013 was allocated as follows (in thousands): Year Ended December 31, Cost of revenues: 2015 2014 2013 Diagnostic Services $ 18 $ 1 $ 6 Diagnostic Imaging 47 26 49 Research and development — — 9 Marketing and sales 98 51 52 General and administrative 453 248 224 Share-based compensation expense $ 616 $ 326 $ 340 |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Significant components of the provision (benefit) for income taxes from continuing operations are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Current provision (benefit): Federal $ — $ — $ (49 ) State 23 41 4 Total current provision (benefit) 23 41 (45 ) Deferred provision (benefit): Federal (17,347 ) 18 — State (1,799 ) 3 — Total deferred provision (benefit) (19,146 ) 21 — Total income tax provision (benefit) $ (19,123 ) $ 62 $ (45 ) Differences between the provision (benefit) for income taxes and income taxes at the statutory federal income tax rate are as follows: Year Ended December 31, 2015 2014 2013 Income tax expense (benefit) at statutory federal rate 34.0 % 35.0 % 35.0 % State income tax expense, net of federal benefit 3.4 % 4.8 % 7.2 % Permanent differences and other 4.4 % (2.9 )% 14.8 % Transaction costs 23.1 % — — Research and development credits, current year — % — % (58.1 )% Research and development credits, prior year — % — % (39.1 )% Change in effective federal and state tax rates 37.6 % (3.2 )% (25.6 )% Expiration of net operating loss and tax credit carryovers 8.4 % 1.1 % 8.2 % Stock compensation expense — % 0.1 % 53.7 % Reserve for uncertain tax positions and other reserves 76.8 % — % 5.4 % Change in valuation allowance (947.5 )% (32.5 )% (22.2 )% Provision (benefit) for income taxes (759.8 )% 2.4 % (20.7 )% Our net deferred tax assets (liabilities) consisted of the following (in thousands): December 31, 2015 2014 Deferred tax assets (liabilities): Net operating loss carryforwards $ 31,598 $ 33,732 Research and development and other credits 38 1,950 Reserves 891 1,417 Intangibles 1,316 2,097 Other, net 1,300 1,079 Total deferred tax assets 35,143 40,275 Deferred tax liabilities—depreciation (348 ) (237 ) Valuation allowance for deferred tax assets (16,217 ) (40,059 ) Net deferred tax assets (liabilities) $ 18,578 $ (21 ) As of December 31, 2015 , we had federal and state income tax net operating loss carryforwards of $90.3 million and $25.0 million , respectively. Federal loss carryforwards will begin to expire in 2018 unless previously utilized. State loss carryforwards of approximately $3.6 million expired in 2015 , and approximately $0.9 million is set to expire in 2016 unless previously utilized. We also have federal and California research and other credit carryforwards of approximately $1.8 million and $2.1 million , as of December 31, 2015 and 2014 , respectively. The federal credits will begin to expire in 2018 . The California research credits have no expiration. Pursuant to Internal Revenue Code Sections 382 and 383, use of our net operating loss and credit carryforwards may be limited because of a cumulative change in ownership greater than 50% which may have occurred or which may occur in the future. A valuation allowance has been recognized to offset the deferred tax assets, as realization of such assets has not met the "more likely than not" threshold required under the authoritative guidance of accounting for income taxes. We recognize windfall tax benefits associated with the exercise of share-based compensation directly to stockholders' equity only when realized. Accordingly, deferred tax assets are not recognized for the net operating loss carryforwards resulting from windfall tax benefits. At December 31, 2015, deferred tax assets do not include approximately $0.3 million of excess tax benefits from share-based compensation. The following table summarizes the activity related to our unrecognized tax benefits (in thousands): December 31, 2015 2014 2013 Balance at beginning of year $ 1,553 $ 1,553 $ 1,539 Increases related to prior year tax positions 2,363 — 5 Increases related to current year tax positions — — 64 Expiration of the statute of limitations for the assessment of taxes — — (55 ) Change in valuation allowances — — — Balance at end of year $ 3,916 $ 1,553 $ 1,553 Included in the unrecognized tax benefits of $3.9 million at December 31, 2015 was $3.2 million of tax benefits that, if recognized, would reduce our annual effective tax rate, subject to the valuation allowance. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. We file income tax returns in the U.S. and in various state jurisdictions with varying statutes of limitations. We are no longer subject to income tax examination by tax authorities for years prior to 2011 ; however, our net operating loss carryforwards and research credit carryforwards arising prior to that year are subject to adjustment. Our policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. There were no accrued interest and penalties as of December 31, 2015 and 2014 , and no interest and penalties were recognized during the years ended December 31, 2015 , 2014 , and 2013 . |
Employee Retirement Plan (Notes
Employee Retirement Plan (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Retirement Plan | Employee Retirement Plan We have 401(k) and Simple IRA retirement plans under which employees may contribute up to 100% of their annual salary, within IRS limits. The Company contributions to the retirement plans totaled $0.2 million for each of the years ended December 31, 2015 , 2014 , and 2013 . |
Restructuring Charges (Notes)
Restructuring Charges (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | NOTE 11. Restructuring Charges Diagnostic Imaging restructuring initiative On February 28, 2013, we announced a plan to restructure our Diagnostic Imaging business to significantly reduce costs, including a reduction in force (the Diagnostic Imaging restructuring initiative). The Diagnostic Imaging restructuring initiative was completed as of June 30, 2014. A total of $1.8 million of costs were incurred related to the Diagnostic Imaging restructuring initiative, with $29 thousand incurred during the year ended December 31, 2014 , and $1.7 million incurred in the year ended December 31, 2013 . Facilities restructuring initiative On January 27, 2014, we announced a plan to exit our 47,000 square foot former headquarters facility in Poway, California (the Facilities restructuring initiative). This action was undertaken as the facility had excess space and capacity given our current operating plan. We entered into a termination agreement to end the lease on the facility as of April 30, 2014. The original term of the lease would have continued through February 29, 2016. Concurrently with the termination of the lease for the 47,000 square foot Poway, California facility, we entered into a new lease agreement on January 23, 2014 for a separate 21,300 square foot facility in Poway, California to house our Diagnostic Imaging operations. As a result of the Facilities restructuring initiative, we incurred a total of $0.7 million in restructuring charges, all of which were incurred during the year ended December 31, 2014 . The charges were comprised of lease termination, moving and other related costs. All Facilities restructuring charges were included in the Diagnostic Imaging segment. Restructuring liabilities and associated charges were measured at fair value as incurred. |
Permafix (Notes)
Permafix (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Permafix [Abstract] | |
Perma-Fix Medical Stock Subscription and Supply Agreements | Perma-Fix Medical Stock Subscription and Supply Agreements On July 27, 2015, we entered into a Stock Subscription Agreement (the Subscription Agreement) and Tc-99m Supplier Agreement (the Supply Agreement) with Perma-Fix Medical, S.A. (Perma-Fix Medical), a publicly traded company listed on the NewConnect market of the Warsaw Stock Exchange. Perma-Fix Medical is a subsidiary of Perma-Fix Environmental Services, Inc. (NASDAQ: PESI). Perma-Fix Medical is developing a proprietary process to produce Technetium-99m (Tc-99m) resin from non-enriched uranium sources for purposes of creating nuclear imaging isotopes. Under the terms of the Subscription Agreement, we invested $1 million USD in exchange for 71,429 shares of Perma-Fix Medical, which constituted approximately 5.4% of the outstanding common shares of Perma-Fix Medical at the time of investment. Under Polish law, issuance of the shares required approval of the shares by a Polish court which occurred on October 12, 2015. The investment in Perma-Fix Medical is accounted for as an available-for-sale security. In connection with the Subscription Agreement, the Company's President and CEO was appointed to the Supervisory Board of Perma-Fix Medical. See Note 13 to the audited consolidated financial statements for further information regarding Perma-Fix Medical and Perma-Fix Environmental Services, Inc. Pursuant to the Supply Agreement, should Perma-Fix Medical successfully complete development of the new Tc-99m resin, Perma-Fix Medical will supply us or our preferred nuclear pharmacy supplier with Tc-99m at a preferred rate and we will purchase agreed upon quantities of such Tc-99m for our nuclear imaging operations, either directly or in conjunction with our preferred nuclear pharmacy supplier. Of the $1 million investment in Perma-Fix Medical, $45,000 of value was allocated to the supply agreement with the remaining value allocated to the 71,429 Perma-Fix Medical shares. We immediately expensed the $45,000 of value associated with the supply agreement. In addition, we realized a loss of $233,000 related to the 71,429 Perma-Fix Medical shares due to the initial excess of the transaction price over fair value. |
Related Party Transaction (Note
Related Party Transaction (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Mr. John Climaco currently serves as a Director of the Company and a member of the Compensation, Corporate Governance and Strategic Advisory committees of the Board. Mr. Climaco also serves as a Director of Perma-Fix Environmental Services, Inc. (NASDAQ: PESI). Further, on June 2, 2015, Mr. Climaco was elected as the Executive Vice President of Perma-Fix Medical S.A., a majority-owned Polish subsidiary of Perma-Fix Environmental Services, Inc. As described in Note 12 to the audited consolidated financial statements, on July 27, 2015, we entered into a Stock Subscription Agreement (the Subscription Agreement) and Tc-99m Supplier Agreement (the Supply Agreement) with Perma-Fix Medical. Under the terms of the Subscription Agreement, we invested $1 million USD in exchange for 71,429 shares of Perma-Fix Medical. Pursuant to the Supply Agreement, should Perma-Fix Medical successfully complete development of the new Tc-99m resin, Perma-Fix Medical will supply us or our preferred nuclear pharmacy supplier with Tc-99m at a preferred rate and we will purchase agreed upon quantities of such Tc-99m for our nuclear imaging operations, either directly or in conjunction with our preferred nuclear pharmacy supplier. In addition, in connection with the Subscription Agreement, the Company's President and CEO was appointed to the Supervisory Board of Perma-Fix Medical. |
Surgical Imaging Asset Sale and
Surgical Imaging Asset Sale and License Agreement (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Surgical Imaging Asset Sale and License Agreement | Surgical Imaging Asset Sale and License Agreement On July 31, 2013, we entered into an asset purchase agreement with Novadaq Technologies Inc. (Novadaq). Under the terms of the asset purchase agreement, we sold Novadaq all of our assets specifically related to an uncommercialized surgical imaging system previously in development. We also licensed certain existing Company technology to Novadaq for their use in the peri-operative field. In exchange, we received upfront consideration of $2.0 million , and could receive up to $1.0 million in deferred contingent payments based on the achievement of specific regulatory and commercial milestones. In addition a royalty on sales, if any, will be paid for a period of five years from the date of the first commercial sale of the related surgical imaging system. We identified the deliverables at the inception of the agreements and determined that the tangible assets, consisting of inventory parts, and intangible assets, consisting of the technology license and various patents and know-how, individually represent separate units of accounting because each deliverable has standalone value. The best estimated selling prices for these units of accounting were determined using the income method for the intangible assets, and cost plus a reasonable margin basis for the tangible assets. The arrangement consideration was allocated to the deliverables based on the relative selling price method. The amount of allocable arrangement consideration is limited to the amount that is not contingent upon meeting other specified performance conditions (the non-contingent amount); therefore, the amount allocated to the deliverables was limited to the upfront cash received of $2.0 million . A gain of $1.6 million representing the $2.0 million of upfront consideration less legal, consulting, and other transaction fees, as well as the cost basis of the inventory was recorded during the year ended December 31, 2013 . We will recognize contingent consideration if and when earned. |
Segments (Notes)
Segments (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segments | Segments Our reporting segments have been determined based on the nature of the products and/or services offered to customers or the nature of their function in the organization. We evaluate performance based on the operating income (loss) contributed by each segment. Our operating segments include Diagnostic Imaging, Digirad Imaging Solutions, and cardiac event monitoring from our Telerhythmics acquisition on March 13, 2014 (See Note 3). For financial reporting purposes, we aggregate Digirad Imaging Solutions and cardiac event monitoring due to their similar economic and operational characteristics. Summarized annual data for segments are as follows (in thousands): Year ended December 31, 2015 (1) 2014 (2) 2013 Gross profit by segment: Diagnostic Services $ 10,439 $ 10,449 $ 9,343 Diagnostic Imaging 7,470 6,191 4,773 Consolidated gross profit $ 17,909 $ 16,640 $ 14,116 Income (loss) from operations by segment: Diagnostic Services $ (506 ) $ 220 $ 30 Diagnostic Imaging (3) 3,280 2,298 141 Consolidated income from operations $ 2,774 $ 2,518 $ 171 Depreciation and amortization of tangible and intangible assets by segment: Diagnostic Services $ 2,150 $ 1,672 $ 1,436 Diagnostic Imaging 291 263 477 Consolidated depreciation and amortization $ 2,441 $ 1,935 $ 1,913 December 31, 2015 (1) 2014 (2) Identifiable assets by segment: Diagnostic Services $ 19,478 $ 18,724 Diagnostic Imaging 44,635 23,177 Consolidated assets $ 64,113 $ 41,901 (1) On March 5, 2015, we acquired MD Office Solutions (MD Office). The results of MD Office are included in Diagnostic Services since the acquisition date (See Note 3). (2) On March 13, 2014, we acquired 100% of the membership interest of Telerhythmics, LLC. The results of Telerhythmics are included in Diagnostic Services since the acquisition date (See Note 3). (3) Included in the Diagnostic Imaging income from operations for the year ended December 31, 2014 , are approximately $0.7 million of charges associated with our Diagnostic Imaging and Facilities restructuring initiatives (see Note 11). Included in the Diagnostic Imaging income from operations for the year ended December 31, 2013 , are approximately $1.7 million of charges associated with our Diagnostic Imaging restructuring initiative, as well as a gain of approximately $1.6 million associated with the sale of assets and licensing agreement from an uncommercialized surgical imaging system previously in development (See Note 14). |
Quaterly Financial Information
Quaterly Financial Information (Unaudited) (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly Financial Information (Unaudited) The following financial information reflects all normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods. Summarized quarterly data for fiscal 2015 and 2014 are as follows (in thousands, except per share data): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal 2015 (1) Revenues $ 13,839 $ 15,547 $ 15,862 $ 15,578 Gross profit $ 3,648 $ 4,767 $ 4,802 $ 4,692 Income from operations $ 165 $ 1,163 $ 948 $ 498 Net income (3) $ 745 $ 1,097 $ 19,120 $ 678 Net income per common share—basic (5) $ 0.04 $ 0.06 $ 0.99 $ 0.03 Net income per common share—diluted (5) $ 0.04 $ 0.06 $ 0.97 $ 0.03 Fiscal 2014 (2) Revenues $ 12,997 $ 14,587 $ 13,881 $ 14,143 Gross profit $ 3,442 $ 4,505 $ 4,409 $ 4,284 Income (loss) from operations (4) $ (155 ) $ 825 $ 1,032 $ 816 Net income (loss) $ (148 ) $ 823 $ 1,028 $ 772 Net income (loss) per common share—basic (5) $ (0.01 ) $ 0.04 $ 0.06 $ 0.04 Net income (loss) per common share—diluted (5) $ (0.01 ) $ 0.04 $ 0.05 $ 0.04 (1) On March 5, 2015, we acquired MD Office Solutions (MD Office). The results of MD Office are included in Diagnostic Services since the acquisition date (See Note 3). (2) On March 13, 2014, we acquired 100% of the membership interest of Telerhythmics, LLC. The results of Telerhythmics are included in Diagnostic Services since the acquisition date (See Note 3). (3) Included in net income for the third quarter of 2015 is an income tax benefit of $18.2 million primarily related to the release of the valuation allowance associated with a portion of our deferred tax assets. (4) Included in the income (loss) from operations for the first, second, third, and fourth quarter of 2014, are approximately $0.4 million , $0.1 million , $0.1 million , and less than $0.1 million of charges, respectively, associated with our Diagnostic Imaging and Facilities restructuring initiatives (See Note 11). (5) Earnings per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly net earnings per share will not necessarily equal the total for the year. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Credit Facility On January 1, 2016, Digirad and certain of its subsidiaries entered into a Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”) as administrative agent (“Agent”) and as sole lead arranger and sole book runner. The Credit Agreement is a five-year credit facility (maturing in January 2021) with a maximum credit amount of $40,000,000 (the “Credit Facility”). The Credit Facility consists of a term loan of $20,000,000 (“Term Loan A”), a second term loan of $7,500,000 (“Term Loan B”), and a revolving credit facility with a maximum commitment of $12,500,000 (the “Revolver”). At the Borrower’s option, the Credit Facility will bear interest at either (i) the LIBOR Rate, as defined in the Credit Agreement, plus 2.5% for Term Loan A, 5.0% for Term Loan B, and 2.0% for the Revolver; or (ii) the Base Rate, as defined below, plus 1.5% for Term Loan A, 4.0% for Term Loan B, and 1.0% for the Revolver. As further defined in the Credit Agreement, “Base Rate” means the greatest of (a) the Federal Funds Rate (as defined in the Credit Agreement) plus 0.5% , (b) the LIBOR Rate (which rate will be calculated based upon an interest period of one month and will be determined on a daily basis), plus 1% , and (c) the rate of interest announced, from time to time, within Wells Fargo at its principal office in San Francisco as its “prime rate.” On January 4, 2016, the Company used the financing made available under the Credit Facility to fund a portion of the purchase price related to the Company’s acquisition of Project Rendezvous Holding Corporation (“PRHC”) described below. The draw on the Credit Facility on January 4, 2016 was as follows: $20,000,000 on Term Loan A, $7,500,000 on Term Loan B and $6,117,220 on the Revolver. The Credit Agreement contains certain representations, warranties, events of default, mandatory prepayment requirements, as well as certain affirmative and negative covenants customary for Credit Agreements of this type. These covenants include restrictions on borrowings, investments, and divestitures, as well as limitations on the Company’s ability to make certain restricted payments, including payment of dividends. These restrictions do not prevent or prohibit the payment of dividends by the Company consistent with past practice, subject to satisfaction of certain conditions. Upon the occurrence and during the continuation of an event of default under the Credit Agreement, the Lenders may, among other things, declare the loans and all other obligations under the Credit Agreement immediately due and payable and increase the interest rate at which loans and obligations under the Credit Agreement bear interest. Pursuant to a separate Guaranty and Security Agreement dated January 1, 2016, between the Company, its subsidiaries and Wells Fargo, the Credit Facility is secured by a first-priority security interest on substantially all of the assets of the Company and its subsidiaries and a pledge of all shares and membership interests of the Company’s subsidiaries. Acquisition of Project Rendezvous Holding Corporation / DMS Health On January 1, 2016 (the “Closing Date”), pursuant to the Stock Purchase Agreement, dated as of October 13, 2015, and as amended on December 31, 2015 (the “Purchase Agreement”), by and among Digirad, PRHC, the stockholders of PRHC (collectively, “Stockholders”), and Platinum Equity Advisors, LLC as the Stockholder representative, we completed the acquisition from the Stockholders, for $36,000,000 in cash (subject to certain adjustments) (the “Purchase Price”), of all the issued and outstanding common stock of PRHC (the “DMS Transaction”). On January 4, 2016, the Company funded payment of the Purchase Price with a combination of cash-on-hand and the financing made available under the Credit Facility. On the Closing Date, PRHC became a wholly owned subsidiary of the Company. PRHC is the ultimate parent of DMS Health Technologies, Inc., a provider of mobile healthcare solutions and related sales and services to small and regional hospitals throughout the United States, with a large concentration in the upper Midwest region. We expect to account for the transaction as a business combination and are in the process of determining the allocation of the purchase price to acquired assets and assumed liabilities, as well as preparing pro forma financial information. A determination of the acquisition-date fair values of the assets acquired and the liabilities assumed is pending the completion of an independent appraisal and other evaluations and therefore further disclosures have not been made. Dividend On February 1, 2016, the Company announced a dividend of $0.05 payable to shareholders of record as of February 16, 2016. The dividend was paid on February 29, 2016. |
Basis Of Presentation And Sig24
Basis Of Presentation And Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements are prepared in conformity with United States generally accepted accounting principles (GAAP) and include the financial statements of the Company and its wholly owned subsidiaries. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ from management’s estimates. All significant intercompany accounts and transactions have been eliminated. Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. The financial results for the year ended December 31, 2015 include the financial results of MD Office Solutions and Telerhythmics, LLC. See Note 3 to the audited consolidated financial statements for more information related to the acquisitions of MD Office Solutions and Telerhythmics, LLC. |
Revenue Recognition | Revenue Recognition We derive revenues primarily from providing in-office services related to the performance of cardiac diagnostic imaging procedures, cardiac event monitoring, and from selling and servicing solid-state digital gamma cameras. We recognize revenue in accordance with the authoritative guidance for revenue recognition, when all of the following four criteria are met: (i) a contract or sales arrangement exists; (ii) products have been shipped and title has transferred or services have been rendered; (iii) the price of the products or services is fixed or determinable; and (iv) collectability is reasonably assured. The timing of revenue recognition is based upon factors such as passage of title and risk of loss, the need for installation, and customer acceptance. These factors are based on the specific terms of each contract or sales arrangement. Diagnostic Services imaging services revenue is derived from our ability to provide our physician customers with our services, which includes use of our imaging system, qualified personnel, and related items required to perform imaging in their own offices and bill Medicare, Medicaid, and other payors for in-office nuclear and ultrasound diagnostic imaging procedures. Revenue related to diagnostic imaging services is recognized at the time services are performed and collection is reasonably assured. Imaging services are generally billed on a per-day basis under annual contracts for nuclear diagnostic imaging, which specifies the number of days of service to be provided, or on a flat rate month-to-month basis for ultrasound imaging. Our cardiac event monitoring services are provided primarily through an independent diagnostic testing facility model which allows us to bill Medicare, Medicaid, or one of the third-party healthcare insurers directly for services provided. We also receive reimbursement directly from patients through co-pays and self-pay arrangements. Billings for services reimbursed by third party payors, including Medicare, are recorded as revenue net of contractual allowances. Contractual allowances are estimated based on historical collections by Current Procedural Terminology (CPT) code for specific payors, or class of payors. Adjustments to the estimated receipts, based on final settlement with the third party payors, are recorded upon settlement. Diagnostic Imaging product revenues are generated from the sales of gamma cameras and follow-on maintenance service contracts. We generally recognize revenue upon delivery and acceptance by customers. We also provide installation and training for camera sales in the United States. Installation and initial training is generally performed shortly after delivery and represents a cost which we accrue at the time revenue is recognized. Neither service is essential to the functionality of the product. Maintenance services are sold beyond the term of the warranty, which is generally one year from the date of purchase. Revenue from these contracts is deferred and recognized ratably over the period of the obligation and is included in Diagnostic Imaging sales. Multiple Element Arrangements In fiscal year 2013, we sold all of our assets specifically related to an uncommercialized surgical imaging system previously in development, as well as licensed certain existing Company technology. The transaction was accounted for in accordance with the authoritative guidance for multiple element arrangements. We identified the deliverables at the inception of the agreement and determined which items had value to the customer on a standalone basis, and were therefore separate units of accounting. Non-contingent arrangement consideration was allocated at the inception of the agreement to all identified units of accounting based on their relative selling price. The relative selling price for each unit of accounting was determined using best estimate of selling price, because neither vendor specific objective evidence (VSOE) of selling price nor third-party evidence of selling price existed for the units of accounting. The non-contingent amount of arrangement consideration allocated to each unit of account was recognized upon performance and delivery of the related unit of accounting. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and disclosures made in the accompanying notes to the consolidated financial statements. Significant estimates and judgments include those related to revenue recognition, reserves for doubtful accounts and contractual allowances, inventory valuation, and income taxes. Actual results could differ from those estimates. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of cash and cash equivalents, investments, and accounts receivable. We limit our exposure to credit loss by generally placing our cash and investments in high credit quality financial institutions and investment grade corporate debt securities. Additionally, we have established guidelines regarding diversification of our investments and their maturities, which are designed to maintain principal and maximize liquidity. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The authoritative guidance for fair value measurements defines fair value for accounting purposes, establishes a framework for measuring fair value, and provides disclosure requirements regarding fair value measurements. The guidance defines fair value as an exit price, which is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. The degree of judgment utilized in measuring the fair value of assets and liabilities generally correlates to the level of pricing observability. Our financial instruments primarily consist of cash equivalents, securities available-for-sale, accounts receivable, other current assets, restricted cash, accounts payable, contingent consideration, and other current liabilities. The carrying amount of these financial instruments generally approximate fair value due to their short term nature. Securities available-for-sale are recorded at fair value. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all investments with a maturity of three months or less when acquired to be cash equivalents. |
Securities Available-for-sale | Securities Available-for-Sale Securities available-for-sale primarily consist of investment grade corporate debt securities. In addition, we own shares of common stock issued by Perma-Fix Medical, S.A. (Perma-Fix Medical), a publicly traded company listed on the NewConnect market of the Warsaw Stock Exchange. We classify all debt securities as available-for-sale and as current assets, as the sale of such securities may be required prior to maturity to execute management strategies. The Perma-Fix Medical equity securities are classified as an other asset (non-current), as the investment is strategic in nature and our current intent is to hold the investment over a several year period. Securities available-for-sale are carried at fair value, with the unrealized gains and losses reported as a component of accumulated other comprehensive loss in stockholders' equity until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis. A decline in the market value of any available-for-sale security below cost that is determined to be other than temporary will result in an impairment charge to earnings and a new cost basis for the security is established. No such impairment charges were recorded for any period presented. It is not more likely than not that we will be required to sell investments before recovery of their amortized costs. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the straight-line method and included in interest income. Interest income is recognized when earned. Realized gains and losses on investments in securities are included in other income (expense) within the consolidated statements of comprehensive income. |
Allowance for Doubtful Accounts, Billing Adjustments, and Contractual Allowances | Allowance for Doubtful Accounts, Billing Adjustments, and Contractual Allowances Accounts receivable consist principally of trade receivables from customers and government or third-party healthcare insurance providers, and are generally unsecured and due within 30 days . Expected credit losses related to trade accounts receivable are recorded as an allowance for doubtful accounts within accounts receivable, net in the consolidated balance sheets. The provision for doubtful accounts is charged to general and administrative expenses. When internal collection efforts on accounts have been exhausted, the accounts are written off by reducing the allowance for doubtful accounts. Within Diagnostic Services, we record adjustments and credit memos that represent billing adjustments subsequent to the performance of service. A provision for billing adjustments is charged against Diagnostic Services revenues. Our cardiac event monitoring services are provided primarily through an independent diagnostic testing facility model which allows us to bill Medicare, Medicaid, or one of the third-party healthcare insurers directly for services provided. Accounts receivable related to cardiac event monitoring are recorded at the time revenue is recognized, net of contractual allowances. Contractual allowances are estimated based on historical collections by Current Procedural Terminology (CPT) code for specific payors, or class of payors. A provision for contractual allowances is charged against Diagnostic Services revenues. |
Inventory | Inventory Our inventories are stated at the lower of cost (first-in, first-out) or market (net realizable value) and we review inventory balances for excess and obsolete inventory levels on a quarterly basis. Costs include material, labor, and manufacturing overhead costs. We rely on historical information to support our excess and obsolete reserves and utilize our business judgment with respect to estimated future demand. Per our policy, we generally reserve 100% of the cost of inventory quantities in excess of a defined period of demand. Once inventory is reserved, we do not adjust the reserve balance until the inventory is sold or disposed. |
Long-Lived Assets including Finite Lived Purchased Intangible Assets | Long-Lived Assets including Finite Lived Purchased Intangible Assets Long-lived assets consist of property and equipment and finite lived intangible assets. We record property and equipment at cost, and record other intangible assets based on their fair values at the date of acquisition. We calculate depreciation on property and equipment using the straight-line method over the estimated useful life of the assets which average 6 years for machinery and equipment, 3 years for computer hardware and software, and the lower of the lease term or an average of 5 years for leasehold improvements. Charges related to amortization of assets recorded under capital leases are included within depreciation expense. We calculate amortization on other intangible assets using either the accelerated or the straight-line method over the estimated useful life of the assets, based on when we expect to receive cash inflows generated by the intangible assets. |
Valuation of Long Lived Assets including Finite Lived Purchased Intangible Assets | Impairment losses on long-lived assets used in operations are recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. |
Valuation of Goodwill | Valuation of Goodwill We review goodwill for impairment on an annual basis during the fourth quarter, as well as when events or changes in circumstances indicate that the carrying value may not be recoverable. We begin the process by assessing qualitative factors in determining whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount. After performing the aforementioned assessment and upon review of the results of such assessment, we may begin performing step one of the two-step impairment analysis by quantitatively comparing the fair value of the reporting unit to the carrying value of the reporting unit, including goodwill. If the carrying value of the long-term assets exceeds the fair value of the reporting unit, then we must perform the second step of the impairment test, whereby the carrying value of the reporting unit’s goodwill is compared to its implied fair value. If the carrying value of the goodwill exceeds the implied fair value, an impairment loss equal to the difference would be recorded. No goodwill impairment losses were recorded during the years ended December 31, 2015 , 2014 , and 2013 . |
Restricted Cash | Restricted Cash As of December 31, 2015 , we held $0.2 million of money market funds that are restricted from withdrawal as they are held as collateral for a letter of credit related to the building lease for the Poway, CA facility. |
Restructuring | Restructuring Restructuring costs are included in income from operations within the consolidated statements of comprehensive income. Losses on property and equipment are recorded consistent with our accounting policy related to long-lived assets. One-time termination benefits are recorded at the time they are communicated to the affected employees. Losses on property lease obligations are recorded when the lease is abandoned or when the contract is terminated. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs We record all shipping and handling billings to customers as revenue earned for the goods provided. Shipping and handling costs are included in cost of revenues |
Share-Based Compensation | Share-Based Compensation We account for share-based awards exchanged for employee services in accordance with the authoritative guidance for share-based compensation. Under this guidance, share-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense, net of estimated forfeitures, over the requisite service period. |
Warranty | Warranty We generally provide a 12 month warranty on our gamma cameras. We accrue the estimated cost of this warranty at the time revenue is recorded and charge warranty expense to Diagnostic Imaging cost of revenues. Warranty reserves are established based on historical experience with failure rates and repair costs and the number of systems covered by warranty. Warranty reserves are depleted as gamma cameras are repaired. The costs consist principally of materials, personnel, overhead, and transportation. We review warranty reserves quarterly and, if necessary, make adjustments. |
Research and Development | Research and Development Research and development costs are expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Basic and Diluted Net Income Per Share | Basic and Diluted Net Income Per Share Basic earnings per share (EPS) is calculated by dividing net income by the weighted average number of common shares and vested restricted stock units outstanding. Diluted EPS is computed by dividing net income by the weighted average number of common shares and vested restricted stock units outstanding and the weighted average number of dilutive common stock equivalents, including stock options and non-vested restricted stock units under the treasury stock method. Common stock equivalents are only included in the diluted earnings per share calculation when their effect is dilutive. |
Other Comprehensive Loss | Other Comprehensive Loss Other comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss includes unrealized losses on our marketable securities. |
Income Taxes | Income Taxes We provide for income taxes under the liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the tax basis of assets or liabilities and their carrying amounts in the financial statements. We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will expire before we are able to realize their benefit. We calculate the valuation allowance in accordance with the authoritative guidance relating to income taxes, which requires an assessment of both positive and negative evidence regarding the realizability of these deferred tax assets when measuring the need for a valuation allowance. Significant judgment is required in determining any valuation allowance against deferred tax assets. As of December 31, 2014, due to a history of operating losses and other key operating factors, we concluded that a full valuation allowance was necessary to offset all of our deferred tax assets. A significant piece of objective negative evidence evaluated as of December 31, 2014, was the cumulative pretax loss incurred over the three-year period ended December 31, 2014. During the year ended December 31, 2015, we concluded that it was more likely than not that a portion of our deferred tax assets would be realized through future taxable income. This conclusion was based on our restructuring efforts in 2013 and 2014 and resulting sustained profitability for the second half of 2013, 2014, and 2015, as well as our projections of positive future earnings and other key operating factors. As of September 30, 2015, we had generated cumulative pretax income over the preceding twelve quarter period, and therefore the objective negative evidence of a history of operating losses was no longer present. The authoritative guidance for income taxes defines a recognition threshold and measurement attributes for financial statement recognition and measurement of a tax provision taken or expected to be taken in a tax return. The guidance also provides direction on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Under the guidance, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. We recognize interest and penalties related to uncertain tax positions as a component of the income tax provision. |
Acquisition | Acquisitions On March 5, 2015, we acquired MD Office Solutions. On March 13, 2014, we acquired 100% of the membership interest of Telerhythmics, LLC. Both acquisitions were accounted for as business combinations. We measure all assets acquired and liabilities assumed, including contingent considerations, at fair value as of the acquisition date. Contingent purchase considerations to be settled in cash are remeasured to estimated fair value at each reporting period with the change in fair value recorded in general and administrative expense, a component of operating expenses. See Note 3 to the audited consolidated financial statements for further information. |
Accounting Standards Updates | Accounting Standards Updates In February 2016, the FASB amended the existing accounting standards for the accounting for leases. The amendments are based on the principle that assets and liabilities arising from leases should be recognized within the financial statements. The Company is required to adopt the amendments beginning in 2019. Early adoption is permitted. The amendments must be applied using a modified retrospective transition approach and the FASB decided not to permit a full retrospective transition approach. The Company is currently evaluating the impact these amendments will have on its consolidated financial statements. In January 2016, the FASB amended the existing accounting standards for the accounting for financial instruments. The amendments require equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income. The new standard is effective prospectively for fiscal years beginning after December 15, 2017. We are currently evaluating the impact, if any, of adopting this guidance on our financial statements. In November 2015, the FASB issued guidance which requires classification of all deferred tax assets and liabilities as noncurrent. The new standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. We have early adopted the guidance on a prospective basis for the year ended December 31, 2015. Therefore, the classification of deferred tax assets and liabilities in periods prior to the year ended December 31, 2015 have not been changed from their original presentation. In September 2015, the FASB issued guidance which eliminates the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The new standard is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. We are currently evaluating the impact, if any, of adopting this guidance on our financial statements. In July 2015, the FASB issued guidance that amends the guidelines for the measurement of inventory from lower of cost or market to the lower of cost and net realizable value (NRV). NRV is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. Under existing standards, inventory is measured at lower of cost or market, which requires the consideration of replacement cost, NRV, and NRV less an amount that approximates a normal profit margin. This ASU eliminates the requirement to determine and consider replacement cost or NRV less an approximately normal profit margin for inventory measurement. The new standard is effective prospectively for fiscal years beginning after December 15, 2016. We are currently evaluating the impact, if any, of adopting this guidance on our financial statements. In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers which supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The guidance allows for either full retrospective or modified retrospective adoption and is currently scheduled to become effective for us in the first quarter of 2018. We are currently evaluating the alternative transition methods and the potential effects of the adoption of this guidance on our financial statements. |
Leases | currently lease facilities and certain automotive equipment under non-cancelable operating leases expiring from January 1, 2016 through November 30, 2021. Rent expense is recognized on a straight-line basis over the initial lease term and those renewal periods that are reasonably assured as determined at lease inception. The difference between rent expense and rent paid is recorded as deferred rent and is included in other current and long-term liabilities. |
Commitments and Contingencies | Other matters. In the normal course of business, we have been, and will likely continue to be, subject to litigation or administrative proceedings incidental to our business, such as claims related to customer disputes, employment practices, wage and hour disputes, product liability, professional liability, commercial disputes, licensure restrictions or denials, and warranty or patent infringement. Responding to litigation or administrative proceedings, regardless of whether they have merit, can be expensive and disruptive to normal business operations. We are not able to predict the timing or outcome of these matters. |
Basis Of Presentation And Sig25
Basis Of Presentation And Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Schedule of available-for-sale securities | The following table sets forth the composition of securities available-for-sale as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 Maturity in Cost Unrealized Fair Value Gains Losses Corporate debt securities Less than 1 year $ 2,311 $ — $ (5 ) $ 2,306 Corporate debt securities 1-3 years 926 — (5 ) 921 Equity securities - 721 — (230 ) 491 $ 3,958 $ — $ (240 ) $ 3,718 As of December 31, 2014 Maturity in Cost Unrealized Fair Value Gains Losses Corporate debt securities Less than 1 year $ 4,650 $ — $ (5 ) $ 4,645 Corporate debt securities 1-3 years 3,304 — (14 ) 3,290 $ 7,954 $ — $ (19 ) $ 7,935 Securities available-for-sale primarily consist of investment grade corporate debt securities. In addition, we own shares of common stock issued by Perma-Fix Medical, S.A. (Perma-Fix Medical), a publicly traded company listed on the NewConnect market of the Warsaw Stock Exchange. We classify all debt securities as available-for-sale and as current assets, as the sale of such securities may be required prior to maturity to execute management strategies. The Perma-Fix Medical equity securities are classified as an other asset (non-current), as the investment is strategic in nature and our current intent is to hold the investment over a several year period. Securities available-for-sale are carried at fair value, with the unrealized gains and losses reported as a component of accumulated other comprehensive loss in stockholders' equity until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis. A decline in the market value of any available-for-sale security below cost that is determined to be other than temporary will result in an impairment charge to earnings and a new cost basis for the security is established. No such impairment charges were recorded for any period presented. It is not more likely than not that we will be required to sell investments before recovery of their amortized costs. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the straight-line method and included in interest income. Interest income is recognized when earned. Realized gains and losses on investments in securities are included in other income (expense) within the consolidated statements of comprehensive income. We recognized a loss of $233,000 related to available-for-sale securities for the year ended December 31, 2015 due to the initial excess of the transaction price over fair value for the Perma-Fix Medical investment. The realized gains and losses related to securities available-for-sale were minimal for the years ended December 31, 2014 and 2013. |
Schedule of Company's allowance for doubtful accounts and billing adjustments | The following table summarizes our allowance for doubtful accounts, billing adjustments, and contractual allowances as of and for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): Allowance for Doubtful Accounts (1) Reserve for Billing Adjustments (2) Reserve for Contractual Allowances (2) Balance at December 31, 2012 $ 513 $ 81 $ — Provision adjustment (150 ) 29 — Write-offs and recoveries, net (93 ) (102 ) — Balance at December 31, 2013 270 8 — Provision adjustment 571 99 18,675 Write-offs and recoveries, net (577 ) (100 ) (17,968 ) Balance at December 31, 2014 264 7 707 Provision adjustment 483 105 22,256 Write-offs and recoveries, net (303 ) (102 ) (22,373 ) Balance at December 31, 2015 $ 444 $ 10 $ 590 (1) The provision was charged against general and administrative expenses. (2) The provision was charged against Diagnostic Services revenue. |
Schedule of excess and obsolete inventory | The following table summarizes our reserves for excess and obsolete inventory as of and for the years ended December 31, 2015 , 2014 , and 2013 (in thousands): Reserve for Excess and Obsolete Inventories (1) Balance at December 31, 2012 $ 2,565 Provision adjustment 210 Write-offs and scrap (232 ) Balance at December 31, 2013 2,543 Provision adjustment (630 ) Write-offs and scrap — Balance at December 31, 2014 1,913 Provision adjustment (967 ) Write-offs and scrap (227 ) Balance at December 31, 2015 $ 719 (1) The provision was charged against Diagnostic Imaging cost of revenues. |
Schedule of Company's warranty reserve activity | The activities related to our warranty reserve for the years ended December 31, 2015 , 2014 , and 2013 are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 176 $ 137 $ 326 Charges to Diagnostic Imaging cost of revenues 331 286 149 Applied to liability (294 ) (247 ) (338 ) Balance at end of year $ 213 $ 176 $ 137 |
Schedule of basic and diluted net loss per share computations | The following table sets forth the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts): Year Ended December 31, 2015 2014 2013 Net income $ 21,640 $ 2,475 $ 264 Shares used to compute basic net income per share 19,210 18,571 18,789 Dilutive potential common shares: Stock options 449 307 359 Restricted stock units 31 — 11 Shares used to compute diluted net income per share 19,690 18,878 19,159 Basic net income per share $ 1.13 $ 0.13 $ 0.01 Diluted net income per share $ 1.10 $ 0.13 $ 0.01 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The allocation of the purchase price of $2,699,000 to the assets acquired and liabilities assumed on the acquisition date was as follows: (in thousands) Allocation of purchase price Assets Current assets: Cash and cash equivalents $ 3 Accounts receivable 457 Other current assets 32 Total current assets 492 Property and equipment 481 Intangible assets 1,007 Goodwill 1,560 Other assets 26 Total assets $ 3,566 Liabilities Current liabilities: Accounts payable $ 149 Accrued compensation 81 Other accrued liabilities 87 Total current liabilities 317 Deferred tax liability 544 Other liabilities 6 Total liabilities $ 867 The allocation of the purchase price of $3,447,000 to the assets acquired and liabilities assumed on the acquisition date was as follows: (in thousands) Allocation of purchase price Assets Current assets: Accounts receivable $ 256 Other current assets 34 Total current assets 290 Property and equipment 290 Intangible assets 2,580 Goodwill 1,153 Total assets $ 4,313 Liabilities Current liabilities: Accounts payable $ 36 Accrued compensation 169 Other accrued liabilities 356 Current portion of long-term debt 131 Total current liabilities 692 Other liabilities 174 Total liabilities $ 866 |
Business Acquisition, Pro Forma Information | The below tables display estimated pro forma results had the business acquisition been completed as of January 1, 2013. In deriving the pro forma results, we utilized the historical operating results of Telerhythmics and adjusted for the impact of the purchase accounting and transaction costs as if the acquisition occurred on January 1, 2013. Year Ended December 31, (unaudited) (in thousands) 2014 2013 Revenues $ 56,763 $ 55,494 Net income $ 2,688 $ 247 |
MD Office [Member] | |
Business Acquisition [Line Items] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table summarizes the fair value of acquired identifiable intangible assets as of the acquisition date: (in thousands) Weighted Average Useful Lives (in years) Fair Value Customer relationships 7.0 $ 639 Trademarks 5.0 187 Covenants not to compete 5.0 181 Total intangible assets acquired, excluding goodwill 6.3 $ 1,007 |
Condensed Income Statement | Included within our consolidated operating results for the year ended December 31, 2015 are MD Office operations for the period March 6, 2015 through December 31, 2015 as follows: (in thousands) Year Ended (unaudited) Revenues $ 2,550 Net income $ 248 |
Business Acquisition, Pro Forma Information | The below tables display estimated proforma results had the business acquisition been completed as of January 1, 2014. In deriving the proforma results, we utilized the historical operating results of MD Office and adjusted for the impact of the purchase accounting and transaction costs as if the acquisition occurred on January 1, 2014. Year Ended December 31, (unaudited) (in thousands) 2015 2014 Revenues $ 61,393 $ 58,869 Net income $ 21,849 $ 2,216 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Fair Value Measurements | At Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Corporate debt securities $ — $ 3,227 $ — $ 3,227 Equity securities — 491 — 491 Total $ — $ 3,718 $ — $ 3,718 Liabilities: Acquisition related contingent consideration $ — $ — $ 175 $ 175 At Fair Value as of December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Corporate debt securities $ — $ 7,935 $ — $ 7,935 Liabilities: Acquisition related contingent consideration $ — $ — $ 229 $ 229 |
Supplementary Balance Sheet I28
Supplementary Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplementary Balance Sheet Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplementary Balance Sheet Information (in thousands): December 31, December 31, Inventories: Raw materials $ 2,600 $ 2,439 Work-in-process 1,649 2,560 Finished goods 851 558 Total inventories 5,100 5,557 Less reserve for excess and obsolete inventories (719 ) (1,913 ) Total inventories, net $ 4,381 $ 3,644 December 31, December 31, Property and equipment: Machinery and equipment $ 25,254 $ 23,412 Computer hardware and software 3,555 2,917 Leasehold improvements 583 571 Total property and equipment 29,392 26,900 Less accumulated depreciation (23,140 ) (22,134 ) Total property and equipment, net $ 6,252 $ 4,766 December 31, 2015 Weighted Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net (1) Intangible assets with finite useful lives: Customer relationships 8.2 $ 5,489 $ (3,259 ) $ 2,230 Trademarks 8.0 787 (150 ) 637 Patents 14.6 141 (125 ) 16 Covenants not to compete 5.0 251 (55 ) 196 Total intangible assets, net $ 6,668 $ (3,589 ) $ 3,079 December 31, 2014 Weighted Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net (1) Intangible assets with finite useful lives: Customer relationships 8.6 $ 4,850 $ (2,904 ) $ 1,946 Trademarks 9.0 600 (53 ) 547 Patents 13.2 141 (116 ) 25 Covenants not to compete 5.0 70 (11 ) 59 Total intangible assets, net $ 5,661 $ (3,084 ) $ 2,577 (1) Amortization expense for intangible assets, net for the years ended December 31, 2015 , 2014 , and 2013 was $0.5 million , $0.4 million , and $0.2 million , respectively. Estimated amortization expense for intangible assets for 2016 is $0.5 million , for 2017 is $0.5 million , for 2018 is $0.5 million , for 2019 is $0.5 million , for 2020 is $0.4 million , and thereafter is $0.7 million . December 31, December 31, Other current liabilities: Professional fees $ 1,006 $ 333 Sales and property taxes payable 268 197 Radiopharmaceuticals and consumable medical supplies 83 177 Current portion of capital lease obligation 724 348 Facilities and related costs 127 155 Outside services and consulting 258 151 Other accrued liabilities 532 428 Total other current liabilities $ 2,998 $ 1,789 |
Commitments And Contingencies29
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Property Subject to or Available for Operating Lease | The future minimum lease payments due under both non-cancelable operating leases and capital leases having initial or remaining lease terms in excess of one year as of December 31, 2015 are as follows (in thousands): Operating Leases Capital Leases 2016 $ 1,125 $ 780 2017 757 595 2018 632 234 2019 599 47 2020 572 1 Thereafter 164 — Total future minimum lease payments $ 3,849 1,657 Less amounts representing interest (90 ) Present value of obligations 1,567 Less: current capital lease obligations (724 ) Total long-term capital lease obligations $ 843 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average grant date fair value of employee stock options granted during the years ended December 31, 2014 and 2013 was $0.70 , and $1.06 per share, respectively, which was estimated using the following weighted-average assumptions. There were no employee stock options granted during the year ended December 31, 2015. Year Ended December 31, 2015 2014 2013 Expected volatility — 43 % 56 % Expected term (in years) — 4.1 4.6 Risk-free interest rate — 1.2 % 0.9 % Expected dividend yield — 5.7 % — |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of our stock option award activity as of and for the year ended December 31, 2015 is as follows (in thousands, except per share data): Number of Shares Weighted- Average Exercise Price per Share Weighted- Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Options outstanding at December 31, 2014 1,458 $ 2.62 Options exercisable at December 31, 2014 553 $ 1.82 Options granted — $ — Options forfeited — — Options expired (9 ) 5.74 Options exercised (190 ) 3.28 Options outstanding at December 31, 2015 1,259 $ 2.50 3.9 $ 3,920 Options exercisable at December 31, 2015 1,028 $ 2.42 3.7 $ 3,297 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of our restricted stock unit activity as of and for the year ended December 31, 2015 is as follows (in thousands, except per share data): Number of Shares Weighted- Average Grant Date Fair Value Per Share Non-vested restricted stock units outstanding at December 31, 2014 88 $ 3.81 Granted 119 4.14 Forfeited (5 ) 4.15 Vested — — Non-vested restricted stock units outstanding at December 31, 2015 202 $ 4.00 The following table summarizes information about restricted stock units that vested during the years ended December 31, 2015 , 2014 , and 2013 based on service conditions (in thousands): Year Ended December 31, 2015 2014 2013 Fair value on vesting date of vested restricted stock units $ — $ — $ 136 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Allocation of Share-Based Compensation Expense Total share-based compensation expense related to all of our share-based units for the years ended December 31, 2015 , 2014 , and 2013 was allocated as follows (in thousands): Year Ended December 31, Cost of revenues: 2015 2014 2013 Diagnostic Services $ 18 $ 1 $ 6 Diagnostic Imaging 47 26 49 Research and development — — 9 Marketing and sales 98 51 52 General and administrative 453 248 224 Share-based compensation expense $ 616 $ 326 $ 340 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Year Ended December 31, 2015 2014 2013 Current provision (benefit): Federal $ — $ — $ (49 ) State 23 41 4 Total current provision (benefit) 23 41 (45 ) Deferred provision (benefit): Federal (17,347 ) 18 — State (1,799 ) 3 — Total deferred provision (benefit) (19,146 ) 21 — Total income tax provision (benefit) $ (19,123 ) $ 62 $ (45 ) |
Schedule of Net Deferred Tax Assets | net deferred tax assets (liabilities) consisted of the following (in thousands): December 31, 2015 2014 Deferred tax assets (liabilities): Net operating loss carryforwards $ 31,598 $ 33,732 Research and development and other credits 38 1,950 Reserves 891 1,417 Intangibles 1,316 2,097 Other, net 1,300 1,079 Total deferred tax assets 35,143 40,275 Deferred tax liabilities—depreciation (348 ) (237 ) Valuation allowance for deferred tax assets (16,217 ) (40,059 ) Net deferred tax assets (liabilities) $ 18,578 $ (21 ) |
Schedule of Effective Income Tax Rate Reconciliation | Year Ended December 31, 2015 2014 2013 Income tax expense (benefit) at statutory federal rate 34.0 % 35.0 % 35.0 % State income tax expense, net of federal benefit 3.4 % 4.8 % 7.2 % Permanent differences and other 4.4 % (2.9 )% 14.8 % Transaction costs 23.1 % — — Research and development credits, current year — % — % (58.1 )% Research and development credits, prior year — % — % (39.1 )% Change in effective federal and state tax rates 37.6 % (3.2 )% (25.6 )% Expiration of net operating loss and tax credit carryovers 8.4 % 1.1 % 8.2 % Stock compensation expense — % 0.1 % 53.7 % Reserve for uncertain tax positions and other reserves 76.8 % — % 5.4 % Change in valuation allowance (947.5 )% (32.5 )% (22.2 )% Provision (benefit) for income taxes (759.8 )% 2.4 % (20.7 )% |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the activity related to our unrecognized tax benefits (in thousands): December 31, 2015 2014 2013 Balance at beginning of year $ 1,553 $ 1,553 $ 1,539 Increases related to prior year tax positions 2,363 — 5 Increases related to current year tax positions — — 64 Expiration of the statute of limitations for the assessment of taxes — — (55 ) Change in valuation allowances — — — Balance at end of year $ 3,916 $ 1,553 $ 1,553 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Year ended December 31, 2015 (1) 2014 (2) 2013 Gross profit by segment: Diagnostic Services $ 10,439 $ 10,449 $ 9,343 Diagnostic Imaging 7,470 6,191 4,773 Consolidated gross profit $ 17,909 $ 16,640 $ 14,116 Income (loss) from operations by segment: Diagnostic Services $ (506 ) $ 220 $ 30 Diagnostic Imaging (3) 3,280 2,298 141 Consolidated income from operations $ 2,774 $ 2,518 $ 171 Depreciation and amortization of tangible and intangible assets by segment: Diagnostic Services $ 2,150 $ 1,672 $ 1,436 Diagnostic Imaging 291 263 477 Consolidated depreciation and amortization $ 2,441 $ 1,935 $ 1,913 December 31, 2015 (1) 2014 (2) Identifiable assets by segment: Diagnostic Services $ 19,478 $ 18,724 Diagnostic Imaging 44,635 23,177 Consolidated assets $ 64,113 $ 41,901 (1) On March 5, 2015, we acquired MD Office Solutions (MD Office). The results of MD Office are included in Diagnostic Services since the acquisition date (See Note 3). (2) On March 13, 2014, we acquired 100% of the membership interest of Telerhythmics, LLC. The results of Telerhythmics are included in Diagnostic Services since the acquisition date (See Note 3). (3) Included in the Diagnostic Imaging income from operations for the year ended December 31, 2014 , are approximately $0.7 million of charges associated with our Diagnostic Imaging and Facilities restructuring initiatives (see Note 11). Included in the Diagnostic Imaging income from operations for the year ended December 31, 2013 , are approximately $1.7 million of charges associated with our Diagnostic Imaging restructuring initiative, as well as a gain of approximately $1.6 million associated with the sale of assets and licensing agreement from an uncommercialized surgical imaging system previously in development (See Note 14). |
Quaterly Financial Informatio33
Quaterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly data for fiscal 2015 and 2014 are as follows (in thousands, except per share data): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal 2015 (1) Revenues $ 13,839 $ 15,547 $ 15,862 $ 15,578 Gross profit $ 3,648 $ 4,767 $ 4,802 $ 4,692 Income from operations $ 165 $ 1,163 $ 948 $ 498 Net income (3) $ 745 $ 1,097 $ 19,120 $ 678 Net income per common share—basic (5) $ 0.04 $ 0.06 $ 0.99 $ 0.03 Net income per common share—diluted (5) $ 0.04 $ 0.06 $ 0.97 $ 0.03 Fiscal 2014 (2) Revenues $ 12,997 $ 14,587 $ 13,881 $ 14,143 Gross profit $ 3,442 $ 4,505 $ 4,409 $ 4,284 Income (loss) from operations (4) $ (155 ) $ 825 $ 1,032 $ 816 Net income (loss) $ (148 ) $ 823 $ 1,028 $ 772 Net income (loss) per common share—basic (5) $ (0.01 ) $ 0.04 $ 0.06 $ 0.04 Net income (loss) per common share—diluted (5) $ (0.01 ) $ 0.04 $ 0.05 $ 0.04 (1) On March 5, 2015, we acquired MD Office Solutions (MD Office). The results of MD Office are included in Diagnostic Services since the acquisition date (See Note 3). (2) On March 13, 2014, we acquired 100% of the membership interest of Telerhythmics, LLC. The results of Telerhythmics are included in Diagnostic Services since the acquisition date (See Note 3). (3) Included in net income for the third quarter of 2015 is an income tax benefit of $18.2 million primarily related to the release of the valuation allowance associated with a portion of our deferred tax assets. (4) Included in the income (loss) from operations for the first, second, third, and fourth quarter of 2014, are approximately $0.4 million , $0.1 million , $0.1 million , and less than $0.1 million of charges, respectively, associated with our Diagnostic Imaging and Facilities restructuring initiatives (See Note 11). (5) Earnings per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly net earnings per share will not necessarily equal the total for the year. |
Goodwill Carrying Amount Rollfo
Goodwill Carrying Amount Rollforward (Tables) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Goodwill | $ 2,897 | $ 1,337 |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill from December 31, 2013 to December 31, 2015 by reportable segment are as follows (in thousands): Diagnostic Services Diagnostic Imaging Balance at December 31, 2013 $ 184 $ — Acquisition of Telerhythmics 1,153 — Balance at December 31, 2014 1,337 — Acquisition of MD Office Solutions 1,560 — Balance at December 31, 2015 $ 2,897 $ — |
The Company (Details)
The Company (Details) | 12 Months Ended |
Dec. 31, 2015segment | |
The Company [Abstract] | |
Number of reportable segments | 2 |
Basis Of Presentation And Sig36
Basis Of Presentation And Significant Accounting Policies - Securities Available for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 233 | |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 3,958 | $ 7,954 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (240) | (19) |
Available-for-sale Securities, Fair Value | 3,718 | 7,935 |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Fair Value | 491 | |
Available-for-sale Equity Securities, Amortized Cost Basis | 721 | |
Available-for-sale Equity Securities, Gross Unrealized Gain | 0 | |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | (230) | |
Less than 1 year [Member] | Corporate Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 2,311 | 4,650 |
Available-for-sale Securities, Unrealized Gains | 0 | 0 |
Available-for-sale Securities, Unrealized Losses | (5) | (5) |
Available-for-sale Securities, Fair Value | 2,306 | 4,645 |
1-3 years [Member] | Corporate Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 926 | 3,304 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (5) | (14) |
Available-for-sale Securities, Fair Value | 921 | 3,290 |
Level 2 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Fair Value | 3,718 | |
Level 2 | Corporate Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Fair Value | 3,227 | $ 7,935 |
Level 2 | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Fair Value | $ 491 |
Basis Of Presentation And Sig37
Basis Of Presentation And Significant Accounting Policies - Allowance For Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Allowance for Doubtful Accounts | ||||
Allowance for doubtful accounts and billing adjustments [Roll Forward] | ||||
Balance | [1] | $ 264 | $ 270 | $ 513 |
Provision | [1] | 483 | 571 | (150) |
Write-offs and recoveries, net | [1] | (303) | (577) | (93) |
Balance | [1] | 444 | 264 | 270 |
Reserves for Billing Adjustments and Contractual Allowances | ||||
Allowance for doubtful accounts and billing adjustments [Roll Forward] | ||||
Balance | [2] | 7 | 8 | 81 |
Provision | [2] | 105 | 99 | 29 |
Write-offs and recoveries, net | [2] | (102) | (100) | (102) |
Balance | [2] | 10 | 7 | 8 |
Reserves for Contractual Allowance [Member] | ||||
Allowance for doubtful accounts and billing adjustments [Roll Forward] | ||||
Balance | 707 | 0 | 0 | |
Provision | 22,256 | 18,675 | 0 | |
Write-offs and recoveries, net | (22,373) | (17,968) | 0 | |
Balance | $ 590 | $ 707 | $ 0 | |
[1] | The provision was charged against general and administrative expenses. | |||
[2] | The provision was charged against Diagnostic Services revenue. |
Basis Of Presentation And Sig38
Basis Of Presentation And Significant Accounting Policies - Reserves For Excess And Obsolete Inventories (Details) - Reserve For Excess and Obsolete Inventories - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance | $ 1,913 | $ 2,543 | $ 2,565 |
Provision | (967) | (630) | 210 |
Write-offs and srap | (227) | 0 | (232) |
Balance | $ 719 | $ 1,913 | $ 2,543 |
Basis Of Presentation And Sig39
Basis Of Presentation And Significant Accounting Policies - Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |||
Standard product warranty period | P12M | ||
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance | $ 176 | $ 137 | $ 326 |
Charges to Diagnostic Imaging cost of revenues | 331 | 286 | 149 |
Applied to liability | (294) | (247) | (338) |
Balance | $ 213 | $ 176 | $ 137 |
Basis Of Presentation And Sig40
Basis Of Presentation And Significant Accounting Policies - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Loss Per Share [Line Items] | ||||||||||||
Vested restricted stock units used to compute basic net loss per share | 5,063 | 44,522 | ||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||
Net loss | $ 678 | $ 19,120 | $ 1,097 | $ 745 | $ 772 | $ 1,028 | $ 823 | $ (148) | $ 21,640 | $ 2,475 | $ 264 | |
Shares used to compute basic net loss per share (in dollars per share) | 19,210,000 | 18,571,000 | 18,789,000 | |||||||||
Shares used to compute diluted net loss per share (in dollars per share) | 19,690,000 | 18,878,000 | 19,159,000 | |||||||||
Earnings Per Share, Basic (in dollars per share) | $ 0.03 | $ 0.99 | $ 0.06 | $ 0.04 | $ 0.04 | $ 0.06 | $ 0.04 | $ (0.01) | $ 1.13 | $ 0.13 | $ 0.01 | |
Earnings Per Share, Diluted (in dollars per share) | $ 0.03 | $ 0.97 | $ 0.06 | $ 0.04 | $ 0.04 | $ 0.05 | $ 0.04 | $ (0.01) | $ 1.10 | $ 0.13 | $ 0.01 | |
Stock Options | ||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||
Stock options | 449,000 | 307,000 | 359,000 | |||||||||
Restricted Stock Units (RSUs) | ||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||
Stock options | 31,000 | 0 | 11,000 | |||||||||
Stock Options | ||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||
Antidilutive common shares excluded from computation of diluted net loss | 984 | 66,917 | 177,891 |
Basis Of Presentation And Sig41
Basis Of Presentation And Significant Accounting Policies - Acquisition (Details) - Telerhythmics [Member] - USD ($) | Mar. 13, 2014 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |
Current Liabilities, Long-term Debt | $ 131,000 | $ 131,000 |
Contingent Consideration Arrangements, Range of Outcomes, Value, High | 501,000 | |
Intangible assets | 2,580,000 | |
Property and equipment | $ 290,000 | |
Payments to Acquire Businesses, Gross | $ 3,447,000 |
Basis Of Presentation And Sig42
Basis Of Presentation And Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $ 56 | ||
Restricted cash | 233 | $ 477 | |
Shipping and handling costs | 600 | 500 | $ 200 |
Advertising costs | $ 300 | $ 200 | $ 300 |
Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of the long-lived assets | 6 years | ||
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of the long-lived assets | 3 years | ||
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives of the long-lived assets | 5 years | ||
Customer Relationships | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life | 8 years 2 months 12 days | 8 years 7 months 6 days | |
Trademarks | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life | 8 years | 9 years | |
Patents | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life | 14 years 7 months 6 days | 13 years 2 months 12 days | |
Noncompete Agreements | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life | 5 years | 5 years | |
Minimum [Member] | Customer Relationships | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life | 5 years | ||
Minimum [Member] | Trademarks | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life | 5 years | ||
Minimum [Member] | Patents | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life | 8 years | ||
Minimum [Member] | Noncompete Agreements | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life | 5 years | ||
Maximum [Member] | Customer Relationships | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life | 9 years | ||
Maximum [Member] | Trademarks | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life | 9 years | ||
Maximum [Member] | Patents | |||
Property, Plant and Equipment [Line Items] | |||
Weighted average useful life | 15 years | ||
Emory Healthcare [Member] | Customer Concentration Risk [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Concentration Risk, Percentage | 10.20% | 10.90% | |
Diagnostic Services [Member] | Emory Healthcare [Member] | Customer Concentration Risk [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Concentration Risk, Percentage | 13.40% | 14.30% |
Acquisitions (Details)
Acquisitions (Details) - USD ($) shares in Thousands | Mar. 05, 2015 | Mar. 13, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||||||||||
Finite-Lived Intangible Assets, Net | $ 3,079,000 | $ 2,577,000 | $ 3,079,000 | $ 2,577,000 | |||||||||
Contingent Consideration, Liability | 175,000 | 229,000 | 175,000 | 229,000 | $ 0 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||||
Net income | 678,000 | $ 19,120,000 | $ 1,097,000 | $ 745,000 | 772,000 | $ 1,028,000 | $ 823,000 | $ (148,000) | 21,640,000 | 2,475,000 | 264,000 | ||
Stock Issued During Period, Value, Acquisitions | 2,684,000 | 0 | 0 | ||||||||||
Goodwill | 2,897,000 | 1,337,000 | $ 2,897,000 | 1,337,000 | |||||||||
MD Office [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average useful life | 6 years 3 months 12 days | ||||||||||||
Finite-Lived Intangible Assets, Net | 1,007,000 | $ 1,007,000 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 3,000 | ||||||||||||
Stock Issued During Period, Shares, Acquisitions | 610 | ||||||||||||
Payments to Acquire Businesses, Gross | $ 2,699,000 | ||||||||||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 400,000 | ||||||||||||
Percentage Of EBITDA To Be Received | 50.00% | ||||||||||||
Contingent Consideration, Liability | 153,000 | 0 | 153,000 | 0 | 0 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||||
Accounts receivable | $ 457,000 | ||||||||||||
Other current assets | 32,000 | ||||||||||||
Total current assets | 492,000 | ||||||||||||
Property and equipment | 481,000 | ||||||||||||
Intangible assets | 1,007,000 | ||||||||||||
Total assets | 3,566,000 | ||||||||||||
Accounts payable | 149,000 | ||||||||||||
Accrued compensation | 81,000 | ||||||||||||
Other accrued liabilities | 87,000 | ||||||||||||
Total current liabilities | 317,000 | ||||||||||||
Total liabilities | 867,000 | ||||||||||||
Revenues | 61,393,000 | 58,869,000 | |||||||||||
Net income | 21,849,000 | 2,216,000 | |||||||||||
Revenues | 2,550,000 | ||||||||||||
Net income | 248,000 | ||||||||||||
Business Acquisition, Transaction Costs | 195,000 | 195,000 | |||||||||||
Stock Issued During Period, Value, Acquisitions | 2,684,000 | ||||||||||||
business combination, settlement of accounts receivable owed to the Company | 15,000 | ||||||||||||
Goodwill | 1,560,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 26,000 | ||||||||||||
Deferred tax liability | 544,000 | ||||||||||||
Other liabilities | 6,000 | ||||||||||||
Telerhythmics [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||||||||
Payments to Acquire Businesses, Gross | $ 3,447,000 | ||||||||||||
Current Liabilities, Long-term Debt | 131,000 | 131,000 | 131,000 | ||||||||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 501,000 | ||||||||||||
Percentage Of EBITDA To Be Received | 50.00% | ||||||||||||
Contingent Consideration, Liability | $ 22,000 | 22,000 | 229,000 | 22,000 | 229,000 | $ 0 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||||
Accounts receivable | 256,000 | 256,000 | |||||||||||
Other current assets | 34,000 | 34,000 | |||||||||||
Total current assets | 290,000 | 290,000 | |||||||||||
Property and equipment | 290,000 | 290,000 | |||||||||||
Intangible assets | 2,580,000 | 2,580,000 | |||||||||||
Goodwill | 1,153,000 | 1,153,000 | |||||||||||
Total assets | 4,313,000 | 4,313,000 | |||||||||||
Accounts payable | 36,000 | 36,000 | |||||||||||
Accrued compensation | 169,000 | 169,000 | |||||||||||
Other accrued liabilities | 356,000 | 356,000 | |||||||||||
Total current liabilities | 692,000 | 692,000 | |||||||||||
Other liabilities | 174,000 | 174,000 | |||||||||||
Total liabilities | 866,000 | 866,000 | |||||||||||
Revenues | 56,763,000 | 55,494,000 | |||||||||||
Net income | $ 2,688,000 | $ 247,000 | |||||||||||
Year one to Year three [Member] | MD Office [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 650,000 | ||||||||||||
Year one [Member] | Telerhythmics [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | 415,000 | ||||||||||||
Year two [Member] | Telerhythmics [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | 825,000 | ||||||||||||
Year three [Member] | Telerhythmics [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 825,000 | ||||||||||||
Customer Relationships | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average useful life | 8 years 2 months 12 days | 8 years 7 months 6 days | |||||||||||
Finite-Lived Intangible Assets, Net | 2,230,000 | 1,946,000 | $ 2,230,000 | $ 1,946,000 | |||||||||
Customer Relationships | MD Office [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average useful life | 7 years | ||||||||||||
Finite-Lived Intangible Assets, Net | 639,000 | $ 639,000 | |||||||||||
Trademarks | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average useful life | 8 years | 9 years | |||||||||||
Finite-Lived Intangible Assets, Net | 637,000 | 547,000 | $ 637,000 | $ 547,000 | |||||||||
Trademarks | MD Office [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average useful life | 5 years | ||||||||||||
Finite-Lived Intangible Assets, Net | 187,000 | $ 187,000 | |||||||||||
Noncompete Agreements | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average useful life | 5 years | 5 years | |||||||||||
Finite-Lived Intangible Assets, Net | 196,000 | $ 59,000 | $ 196,000 | $ 59,000 | |||||||||
Noncompete Agreements | MD Office [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Weighted average useful life | 5 years | ||||||||||||
Finite-Lived Intangible Assets, Net | $ 181,000 | $ 181,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 10 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 05, 2015 | Mar. 13, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent Consideration, Liability | $ 175,000 | $ 175,000 | $ 229,000 | $ 0 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 6,000 | 220,000 | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (60,000) | 9,000 | ||||
Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 0 | 0 | ||||
Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 3,718,000 | 3,718,000 | ||||
Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 0 | 0 | ||||
Corporate Debt Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 3,718,000 | 3,718,000 | 7,935,000 | |||
Corporate Debt Securities | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 0 | 0 | 0 | |||
Corporate Debt Securities | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 3,227,000 | 3,227,000 | 7,935,000 | |||
Corporate Debt Securities | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 0 | 0 | 0 | |||
Common Stock [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 491,000 | 491,000 | ||||
Common Stock [Member] | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 0 | 0 | ||||
Common Stock [Member] | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 491,000 | 491,000 | ||||
Common Stock [Member] | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 0 | 0 | ||||
Less than 1 year [Member] | Corporate Debt Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 2,306,000 | 2,306,000 | 4,645,000 | |||
Telerhythmics [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent Consideration, Liability | 22,000 | 22,000 | 229,000 | $ 22,000 | 0 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 0 | 220,000 | ||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 501,000 | |||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | (207,000) | 9,000 | ||||
MD Office [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent Consideration, Liability | 153,000 | 153,000 | 0 | $ 0 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 76,000 | 6,000 | 0 | |||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 400,000 | |||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 147,000 | 0 | ||||
Total | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 3,718,000 | 3,718,000 | ||||
Total | Corporate Debt Securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | 3,227,000 | 3,227,000 | $ 7,935,000 | |||
Total | Common Stock [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Company's assets recorded at fair value | $ 491,000 | $ 491,000 |
Supplementary Balance Sheet I45
Supplementary Balance Sheet Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory, Net [Abstract] | |||
Raw materials | $ 2,600 | $ 2,439 | |
Work-in-process | 1,649 | 2,560 | |
Finished goods | 851 | 558 | |
Total inventories | 5,100 | 5,557 | |
Less reserve for excess and obsolete inventories | (719) | (1,913) | |
Total inventories, net | 4,381 | 3,644 | |
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 29,392 | 26,900 | |
Less accumulated depreciation | (23,140) | (22,134) | |
Total property and equipment, net | 6,252 | 4,766 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Intangible assets, gross | 6,668 | 5,661 | |
Accumulated amortization | (3,589) | (3,084) | |
Finite-Lived Intangible Assets, Net | 3,079 | 2,577 | |
Amortization of intangible assets | 506 | 356 | $ 231 |
2,015 | 500 | ||
2,017 | 500 | ||
2,018 | 500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 500 | ||
2,019 | 400 | ||
Accrued Liabilities, Current [Abstract] | |||
Professional fees | 1,006 | 333 | |
Sales and property taxes payable | 268 | 197 | |
Radiopharmaceuticals and consumable medical supplies | 83 | 177 | |
Current portion of capital lease obligation | 724 | 348 | |
Facilities and related costs | 127 | 155 | |
Outside services and consulting | 258 | 151 | |
Other accrued liabilities | 532 | 428 | |
Total other current liabilities | 2,998 | 1,789 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 700 | ||
Leasehold Improvements | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 583 | 571 | |
Computer hardware and software | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 3,555 | 2,917 | |
Machinery and Equipment | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | $ 25,254 | $ 23,412 | |
Customer Relationships | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Weighted average useful life | 8 years 2 months 12 days | 8 years 7 months 6 days | |
Intangible assets, gross | $ 5,489 | $ 4,850 | |
Accumulated amortization | (3,259) | (2,904) | |
Finite-Lived Intangible Assets, Net | $ 2,230 | $ 1,946 | |
Trademarks | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Weighted average useful life | 8 years | 9 years | |
Intangible assets, gross | $ 787 | $ 600 | |
Accumulated amortization | (150) | (53) | |
Finite-Lived Intangible Assets, Net | $ 637 | $ 547 | |
Noncompete Agreements | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Weighted average useful life | 5 years | 5 years | |
Intangible assets, gross | $ 251 | $ 70 | |
Accumulated amortization | (55) | (11) | |
Finite-Lived Intangible Assets, Net | $ 196 | $ 59 | |
Patents | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Weighted average useful life | 14 years 7 months 6 days | 13 years 2 months 12 days | |
Intangible assets, gross | $ 141 | $ 141 | |
Accumulated amortization | (125) | (116) | |
Finite-Lived Intangible Assets, Net | $ 16 | $ 25 |
Fair Value Measurements Assets
Fair Value Measurements Assets Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value | $ 0 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value | 3,718 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value | 0 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 175 | 229 |
Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value | 3,718 | 7,935 |
Corporate Debt Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value | 0 | 0 |
Corporate Debt Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value | 3,227 | 7,935 |
Corporate Debt Securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value | 0 | 0 |
Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value | 3,718 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 175 | 229 |
Total | Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value | $ 3,227 | $ 7,935 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 05, 2015 | |
Goodwill [Line Items] | ||||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 | |
Goodwill | 2,897 | 1,337 | ||
Telerhythmics [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | 1,200 | |||
MD Office [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | 1,600 | |||
Goodwill | $ 1,560 | |||
Diagnostic Services [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | 1,560 | 1,153 | ||
Goodwill | 2,897 | 1,337 | 184 | |
Diagnostic Imaging | ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | 0 | 0 | ||
Goodwill | $ 0 | $ 0 | $ 0 |
Commitments And Contingencies48
Commitments And Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease rent expense | $ 1,300 | $ 1,400 |
Operating Leases | ||
2,016 | 1,125 | |
2,017 | 757 | |
2,018 | 632 | |
2,019 | 599 | |
2,020 | 572 | |
Thereafter | 164 | |
Total future minimum lease payments | 3,849 | |
Capital Leases | ||
2,016 | 780 | |
2,017 | 595 | |
2,018 | 234 | |
2,019 | 47 | |
2,020 | 1 | |
Thereafter | 0 | |
Total future minimum lease payments | 1,657 | |
Less amounts representing interest | (90) | |
Present value of obligations | 1,567 | |
Less: current capital lease obligations | (724) | |
Total long-term capital lease obligations | $ 843 |
Share Based Compensation - Narr
Share Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Aggregate number of shares of common stock authorized to issue under the Plans (shares) | 1,856,733 | ||
Shares available for future issuance under the Plans (shares) | 968,733 | ||
Number of shares reserved for issuance under the Plans | 10,248 | ||
Stock Options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock options contractual term under the Plans | 3 years 10 months 25 days | ||
Weighted average grabnt-date fair value of options granted | $ 0.70 | $ 1.06 | |
Unrecognized compensation cost | $ 0.2 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 2 months 18 days | ||
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | $ 0.6 | $ 0.2 | $ 0.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 0.2 | $ 0.1 | $ 0.9 |
Stock Options | Minimum [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock options requisite service period under the Plans | 2 years | ||
Stock options contractual term under the Plans | 7 years | ||
Stock Options | Maximum [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock options requisite service period under the Plans | 4 years | ||
Stock options contractual term under the Plans | 10 years | ||
Restricted Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Restricted stock settlement period under the Plans | 36 months | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 11 months 5 days | ||
Weighted average grant-date fair value of the restricted stock units | $ 4.14 | $ 3.81 | |
Restricted Stock | Minimum [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
restricted stock vesting period under the Plans | 1 year | ||
Restricted Stock | Maximum [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
restricted stock vesting period under the Plans | 3 years |
Share Based Compensation - Stoc
Share Based Compensation - Stock Options Fair Value Weighted Average Valuation Assumptions (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 0.00% | 43.00% | 56.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 1 month 6 days | 4 years 7 months 6 days | |
Expected term (in years) | P4Y1M6D | P4Y7M6D | P6Y |
Risk-free interest rate | 0.00% | 1.20% | 0.90% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 5.70% | 0.00% |
Share Based Compensation - St51
Share Based Compensation - Stock Options Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 5.70% | 0.00% |
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | $ 600 | $ 200 | $ 900 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 200 | $ 100 | $ 900 |
Number of Shares [Roll Forward] | |||
Options outstanding at December 31, 2011 (shares) | 1,458 | ||
Options exercisable at December 31, 2011 (shares) | 553 | ||
Options granted (shares) | 0 | ||
Options forfeited (shares) | 0 | ||
Options expired (shares) | (9) | ||
Options exercised (shares) | (190) | ||
Options outstanding at December 31, 2012 (shares) | 1,259 | 1,458 | |
Options exercisable at December 31, 2012 (shares) | 1,028 | 553 | |
Weighted Average Exercise Price per Share [Roll Forward] | |||
Options outstanding at December 31, 2011 - Weighted Average Exercise Price per Share (US$ per share) | $ 2.62 | ||
Options exercisable at December 31, 2011 - Weighted Average Exercise Price per Share (US$ per share) | 1.82 | ||
Options granted - Weighted Average Exercise Price per Share (US$ pre share) | 0 | ||
Options forfeited - Weighted Average Exercise Price per Share (US$ per share) | 0 | ||
Options expired - Weighted Average Exercise Price per Share (US$ per share) | 5.74 | ||
Options exercised - Weighted Average Exercise Price per Share (US$ per share) | 3.28 | ||
Options outstanding at December 31, 2012 - Weighted Average Exercise Price per Share (US$ per share) | 2.50 | $ 2.62 | |
Options exercisable at December 31, 2012 - Weighted Average Exercise Price per Share (US$ per share) | $ 2.42 | $ 1.82 | |
Options outstanding - Weighted Average Remaining Contractual Term (in years) | 3 years 10 months 25 days | ||
Options exercisable - Weighted Average Remaining Contractual Term (in years) | 3 years 7 months 25 days | ||
Options outstanding at December 31, 2012 - Aggregate Intrinsic Value | $ 3,920 | ||
Options exercisable at December 31, 2012 - Aggregate Intrinsic Value | $ 3,297 |
Share Based Compensation - Rest
Share Based Compensation - Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 500 | |||
Nonvested Resticted Stock Units - Number of Shares [Roll Forward] | ||||
Non-vested restricted stock units outstanding at December 31, 2011 (shares) | 202 | 88 | 202 | |
Granted (shares) | 119 | |||
Forfeited (shares) | (5) | |||
Vested (shares) | 0 | |||
Non-vested restricted stock units outstanding at December 31, 2011 (shares) | 202 | 88 | ||
Nonvested Restricted Stock Units - Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Non-vested restricted stock units outstanding at December 31, 2011 - Weighted Average Grant Date Fair Value | $ 3.81 | |||
Granted (US$ per share) | 4.14 | $ 3.81 | ||
Forfeited (US$ per share) | 4.15 | |||
Vested (US$ per share) | 0 | |||
Non-vested restricted stock units outstanding at December 31, 2011 - Weighted Average Grant Date Fair Value | $ 4 | $ 3.81 | ||
Fair value on vesting date of vested restricted stock units | $ 0 | $ 0 | $ 136 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 11 months 5 days |
Share Based Compensation - Allo
Share Based Compensation - Allocation of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 616 | $ 326 | $ 340 |
DIS | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 18 | 1 | 6 |
Diagnostic Imaging | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 47 | 26 | 49 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 0 | 0 | 9 |
Marketing and sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 98 | 51 | 52 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 453 | $ 248 | $ 224 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | ||||
State income tax net operating loss carryforwards | $ 25,000 | |||
Unrecognized Tax Benefits - Balance at end of year | 3,916 | $ 1,553 | $ 1,553 | $ 1,539 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 3,200 | |||
Internal Revenue Service (IRS) | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal income tax net operating loss carryforwards | 90,300 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
State loss carryforward subject to expiration | 3,600 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal and California research and other credit carryforwards | 1,800 | |||
Federal And California Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal and California research and other credit carryforwards | 2,100 | |||
Expiring In Year Two | State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
State loss carryforward subject to expiration | $ 900 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Current Federal Tax Expense (Benefit) | $ 0 | $ 0 | $ (49) | |
Current State and Local Tax Expense (Benefit) | 23 | 41 | 4 | |
Current Income Tax Expense (Benefit) | 23 | 41 | (45) | |
Deferred Federal Income Tax Expense (Benefit) | (17,347) | 18 | 0 | |
Deferred State and Local Income Tax Expense (Benefit) | (1,799) | 3 | 0 | |
Deferred Income Tax Expense (Benefit) | (19,146) | 21 | 0 | |
Income Tax Expense (Benefit) | $ 18,200 | $ (19,123) | $ 62 | $ (45) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation Line Items [Abstract] | |||
Income tax expense (benefit) at statutory federal rate | 34.00% | 35.00% | 35.00% |
State income tax expense, net of federal benefit | 3.40% | 4.80% | 7.20% |
Permanent differences and other | 4.40% | (2.90%) | 14.80% |
Transaction costs | 23.10% | 0.00% | 0.00% |
Research and development credits, current year | (0.00%) | (0.00%) | (58.10%) |
Research and development credits, prior year | (0.00%) | (0.00%) | (39.10%) |
Change in effective federal and state tax rates | 37.60% | (3.20%) | (25.60%) |
Expiration of net operating loss and tax credit carryovers | 8.40% | 1.10% | 8.20% |
Stock compensation expense | 0.00% | 0.10% | 53.70% |
Reserve for uncertain tax positions and other reserves | 76.80% | 0.00% | 5.40% |
Change in valuation allowance | (947.50%) | (32.50%) | (22.20%) |
Provision (benefit) for income taxes | (759.80%) | 2.40% | (20.70%) |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | $ 300 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 3,200 | |
Net operating loss carryforwards | 31,598 | $ 33,732 |
Research and development and other credits | 38 | 1,950 |
Reserves | 891 | 1,417 |
Intangibles | 1,316 | 2,097 |
Other, net | 1,300 | 1,079 |
Total deferred tax assets | 35,143 | 40,275 |
Deferred tax liabilities—depreciation | (348) | (237) |
Valuation allowance for deferred tax assets | (16,217) | (40,059) |
Net deferred tax assets | $ 18,578 | |
Deferred tax liabilities | $ (21) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 3,200 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits - Balance at beginning of year | 1,553 | $ 1,553 | $ 1,539 |
Change in valuation amount | 0 | 0 | 0 |
Expiration of the statute of limitations for the assessment of taxes | 0 | 0 | (55) |
Increases related to current year tax positions | 0 | 0 | 64 |
Increases related to prior year tax positions | 2,363 | 0 | 5 |
Unrecognized Tax Benefits - Balance at end of year | $ 3,916 | $ 1,553 | $ 1,553 |
Employee Retirement Plan (Detai
Employee Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Maximum annual contribution of annual salary per employee | 100.00% | |
The Company's contributions to its retirement plans | $ 0.2 | $ 0.2 |
Restructuring Charges - Diagnos
Restructuring Charges - Diagnostic Imaging Restructuring Initiative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0 | $ 692 | $ 1,728 |
Diagnostic Imaging Initiative [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 1,800 | $ 0 | $ 1,700 |
Restructuring Charges - Facilit
Restructuring Charges - Facilities Restructuring Initiative (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jan. 27, 2014ft² | Jan. 23, 2014ft² | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 | $ 692 | $ 1,728 | ||
Facilities Restructuring Initiative [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 700 | ||||
Approximate square footage of manufacturing and office space | ft² | 47,000 | 21,300 |
Permafix (Details)
Permafix (Details) - USD ($) $ in Thousands | Jul. 27, 2015 | Dec. 31, 2015 |
Investments in and Advances to Affiliates [Line Items] | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 233 | |
Other Affiliates [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Payments to Acquire Available-for-sale Securities, Equity | $ 1,000 | |
Investments in and Advances to Affiliates, Balance, Shares | 71,429 | |
Sale of Stock, Percentage of Ownership after Transaction | 5.40% | |
Supply Commitment [Member] | Other Affiliates [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Payments to Acquire Available-for-sale Securities, Equity | $ 0 |
Related Party Transaction (Deta
Related Party Transaction (Details) - Other Affiliates [Member] $ in Millions | Jul. 27, 2015USD ($)shares |
Related Party Transaction [Line Items] | |
Investment made as part of Subscription Agreement | $ | $ 1 |
Shares acquired | shares | 71,429 |
Surgical Imaging Asset Sale a64
Surgical Imaging Asset Sale and License Agreement (Details) - USD ($) $ in Thousands | Jul. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Restructuring charges | $ 0 | $ 692 | $ 1,728 | |||||
Period over which royalty payments, if any, would be made | 5 years | |||||||
Gain on sale of assets and license agreement | $ 0 | $ 0 | $ (1,568) | |||||
Novadaq Technologies [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from Sale of Machinery and Equipment | $ 2,000 | |||||||
Regulatory And Commercial Milestones [Member] | Novadaq Technologies [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Deferred Contingent Payments, Maximum Consideration That Can Be Received | $ 1,000 | |||||||
Diagnostic Imaging | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Restructuring charges | $ 100 | $ 100 | $ 100 | $ 400 |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 13, 2014 | |
Segment Reporting Information [Line Items] | ||||||||||||
Consolidated gross profit | $ 4,692 | $ 4,802 | $ 4,767 | $ 3,648 | $ 4,284 | $ 4,409 | $ 4,505 | $ 3,442 | $ 17,909 | $ 16,640 | $ 14,116 | |
Consolidated loss from operations | 498 | $ 948 | $ 1,163 | $ 165 | 816 | 1,032 | 825 | (155) | 2,774 | 2,518 | 171 | |
Consolidated depreciation and amortization | 2,441 | 1,935 | 1,913 | |||||||||
Consolidated assets | 64,113 | 41,901 | 64,113 | 41,901 | ||||||||
Restructuring charges | 0 | 692 | 1,728 | |||||||||
Gain on sale of assets and license agreement | 0 | 0 | 1,568 | |||||||||
DIS | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Consolidated gross profit | 10,439 | 10,449 | 9,343 | |||||||||
Consolidated loss from operations | (506) | 220 | 30 | |||||||||
Consolidated depreciation and amortization | 2,150 | 1,672 | 1,436 | |||||||||
Consolidated assets | 19,478 | 18,724 | 19,478 | 18,724 | ||||||||
Diagnostic Imaging | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Consolidated gross profit | 7,470 | 6,191 | 4,773 | |||||||||
Consolidated loss from operations | 3,280 | 2,298 | 141 | |||||||||
Consolidated depreciation and amortization | 291 | 263 | $ 477 | |||||||||
Consolidated assets | $ 44,635 | 23,177 | $ 44,635 | $ 23,177 | ||||||||
Restructuring charges | $ 100 | $ 100 | $ 100 | $ 400 | ||||||||
Telerhythmics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Quaterly Financial Informatio66
Quaterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 13, 2014 | |
Income Tax Expense (Benefit) | $ 18,200 | $ (19,123) | $ 62 | $ (45) | ||||||||
Restructuring charges | 0 | 692 | 1,728 | |||||||||
Revenue | $ 15,578 | 15,862 | $ 15,547 | $ 13,839 | $ 14,143 | $ 13,881 | $ 14,587 | $ 12,997 | 46,407 | 42,170 | 37,171 | |
Gross profit | 4,692 | 4,802 | 4,767 | 3,648 | 4,284 | 4,409 | 4,505 | 3,442 | 17,909 | 16,640 | 14,116 | |
Loss from operations | 498 | 948 | 1,163 | 165 | 816 | 1,032 | 825 | (155) | 2,774 | 2,518 | 171 | |
Net income | $ 678 | $ 19,120 | $ 1,097 | $ 745 | $ 772 | $ 1,028 | $ 823 | $ (148) | $ 21,640 | $ 2,475 | $ 264 | |
Earnings Per Share, Basic (in dollars per share) | $ 0.03 | $ 0.99 | $ 0.06 | $ 0.04 | $ 0.04 | $ 0.06 | $ 0.04 | $ (0.01) | $ 1.13 | $ 0.13 | $ 0.01 | |
Earnings Per Share, Diluted (in dollars per share) | $ 0.03 | $ 0.97 | $ 0.06 | $ 0.04 | $ 0.04 | $ 0.05 | $ 0.04 | $ (0.01) | $ 1.10 | $ 0.13 | $ 0.01 | |
Gain on sale of assets and license agreement | $ 0 | $ 0 | $ (1,568) | |||||||||
Telerhythmics [Member] | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||||||
Diagnostic Imaging | ||||||||||||
Restructuring charges | $ 100 | $ 100 | $ 100 | $ 400 | ||||||||
Gross profit | 7,470 | 6,191 | 4,773 | |||||||||
Loss from operations | $ 3,280 | $ 2,298 | $ 141 |
Subsequent Event - Dividend Pay
Subsequent Event - Dividend Payable (Details) - $ / shares | Feb. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||
Common stock dividends declared (usd per share) | $ 0.20 | $ 0.20 | $ 0.05 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock dividends declared (usd per share) | $ 0.05 |
Subsequent Event MD Office Acqu
Subsequent Event MD Office Acquisition (Details) - USD ($) | Jan. 01, 2016 | Mar. 05, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ (3,000) | $ 3,447,000 | $ 0 | ||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 36,000,000 | ||||
MD Office [Member] | |||||
Subsequent Event [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 2,699,000 | ||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 400,000 | ||||
Percentage Of EBITDA To Be Received | 50.00% | ||||
Year one to Year three [Member] | MD Office [Member] | |||||
Subsequent Event [Line Items] | |||||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 650,000 |
Subsequent Event Credit Facilit
Subsequent Event Credit Facility (Details) - USD ($) | Jan. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ (3,000) | $ 3,447,000 | $ 0 | |
Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000,000 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 36,000,000 | |||
Term Loan, A [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 20,000,000 | |||
Term Loan, A [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 20,000,000 | |||
Term Loan, B [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 7,500,000 | |||
Term Loan, B [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 7,500,000 | |||
Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,500,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan, A [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan, B [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |||
Base Rate [Member] | Term Loan, A [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Base Rate [Member] | Term Loan, B [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||
Base Rate [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||
Federal Funds Effective Swap Rate [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% |