Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 30, 2018 | |
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 | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 20,271,057 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 29.7 | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | ||
Total revenues | $ 93,424 | |
Revenues | 104,180 | $ 104,632 |
Cost of revenues: | ||
Total cost of revenues | 85,909 | 83,436 |
Gross profit | 18,271 | 21,196 |
Operating expenses: | ||
Marketing and sales | 5,418 | 6,249 |
General and administrative | 15,038 | 18,586 |
Amortization of intangible assets | 1,377 | 1,494 |
Goodwill impairment | 476 | 166 |
Loss on sale of buildings | 507 | 0 |
Total operating expenses | 22,816 | 26,495 |
Loss from operations | (4,545) | (5,299) |
Other expense: | ||
Other expense, net | (61) | (311) |
Interest expense, net | (751) | (730) |
Loss on extinguishment of debt | (43) | (709) |
Total other expense | (855) | (1,750) |
Loss before income taxes | (5,400) | (7,049) |
Income tax benefit (expense) | 1,561 | (27,987) |
Net loss from continuing operations | (3,839) | (35,036) |
Net income (loss) from discontinued operations | 4,575 | (694) |
Net income (loss) | $ 736 | $ (35,730) |
Net income (loss) per share — basic and diluted: | ||
Net loss from continuing operations per share - basic and diluted (in usd per share) | $ (0.19) | $ (1.75) |
Net income (loss) from discontinued operations per share - basic and diluted (in usd per share) | 0.23 | (0.04) |
Net income (loss) per share — basic and diluted (in usd per share) | 0.04 | (1.79) |
Dividends declared per common share (usd per share) | $ 0.165 | $ 0.21 |
Other comprehensive income (loss): | ||
Unrealized gain on available-for-sale marketable securities | $ 0 | $ 17 |
Reclassification of unrealized gain on available-for-sale marketable securities to retained earnings | (17) | 0 |
Reclassification of other-than-temporary losses on available-for-sale securities included in net (loss) income | 0 | 52 |
Total other comprehensive (loss) income, before tax | (17) | 69 |
Provision for income taxes | 0 | (22) |
Total other comprehensive (loss) income, after tax | (17) | 47 |
Comprehensive income (loss) | 719 | (35,683) |
Services | ||
Revenues: | ||
Total revenues | 92,197 | 92,551 |
Cost of revenues: | ||
Total cost of revenues | 79,068 | 76,391 |
Product and product-related | ||
Revenues: | ||
Total revenues | 11,983 | 12,081 |
Cost of revenues: | ||
Total cost of revenues | 6,841 | 7,045 |
Segment Reconciling Items | ||
Operating expenses: | ||
Goodwill impairment | 476 | 166 |
Loss on sale of buildings | $ 507 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,545 | $ 1,877 |
Equity securities | 153 | 97 |
Accounts receivable, net | 12,642 | 15,887 |
Inventories, net | 5,402 | 5,501 |
Restricted cash | 167 | 242 |
Other current assets | 1,285 | 1,972 |
Total current assets | 21,194 | 25,576 |
Property and equipment, net | 21,645 | 28,365 |
Intangible assets, net | 5,228 | 7,830 |
Goodwill | 1,745 | 2,393 |
Restricted cash | 101 | 101 |
Non-current assets held for sale | 0 | 1,735 |
Other assets | 681 | 703 |
Total assets | 50,594 | 66,703 |
Current liabilities: | ||
Accounts payable | 5,206 | 5,207 |
Accrued compensation | 3,862 | 5,507 |
Accrued warranty | 197 | 204 |
Deferred revenue | 1,687 | 2,302 |
Current liabilities held-for-sale | 0 | 835 |
Other current liabilities | 2,265 | 2,915 |
Total current liabilities | 13,217 | 16,970 |
Long-term debt, net of current portion | 9,500 | 19,500 |
Deferred tax liabilities | 121 | 254 |
Other liabilities | 1,956 | 2,180 |
Total liabilities | 24,794 | 38,904 |
Commitments and contingencies (Note 9) | ||
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; 20,249,786 and 20,060,311 shares issued and outstanding (net of treasury shares) at December 31, 2018 and 2017, respectively | 2 | 2 |
Treasury stock, at cost; 2,588,484 shares at December 31, 2018 and 2017 | (5,728) | (5,728) |
Additional paid-in capital | 145,428 | 148,163 |
Accumulated other comprehensive loss | (22) | (5) |
Accumulated deficit | (113,880) | (114,633) |
Total stockholders’ equity | 25,800 | 27,799 |
Total liabilities and stockholders’ equity | $ 50,594 | $ 66,703 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common Stock par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock issued (in shares) | 20,249,786 | 20,060,311 |
Common stock outstanding (in shares) | 20,249,786 | 20,060,311 |
Treasury stock (in shares) | 2,588,484 | 2,588,484 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Document Period End Date | Dec. 31, 2018 | |
Operating activities | ||
Net income (loss) | $ 736 | $ (35,730) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation | 7,331 | 7,903 |
Amortization of intangible assets | 1,390 | 3,161 |
Provision for bad debts | 53 | 174 |
Stock-based compensation | 634 | 852 |
Amortization of loan fees | 43 | 177 |
Loss on extinguishment of debt | 43 | 709 |
Gain on disposal of discontinued operations | (6,161) | |
Gain on sale of assets | (46) | (66) |
Unrealized loss on available-for-sale securities | 62 | 311 |
Goodwill impairment | 476 | 2,746 |
Deferred income taxes | (133) | 27,530 |
Other, net | 0 | (160) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,026 | (1,567) |
Inventories | (12) | 409 |
Other assets | 686 | (14) |
Accounts payable | 25 | (1,244) |
Accrued compensation | (1,645) | 1,545 |
Deferred revenue | (749) | 6 |
Other liabilities | (676) | (673) |
Net cash provided by operating activities | 5,064 | 6,069 |
Investing activities | ||
Purchases of property and equipment | (2,163) | (2,531) |
Proceeds from sale of discontinued operations | 6,844 | |
Proceeds from sale of property and equipment | 2,095 | 167 |
Purchases of equity securities | (13) | (18) |
Sales and maturities of securities available-for-sale | 0 | 917 |
Net cash provided by (used in) investing activities | 8,685 | (1,465) |
Financing activities | ||
Proceeds from long-term borrowings | 33,347 | 37,569 |
Repayment of long-term borrowings | (43,347) | (40,032) |
Loan issuance costs and extinguishment costs | 24 | (271) |
Dividends paid | (3,321) | (4,195) |
Issuances of common stock | 26 | 5 |
Taxes paid related to net share settlement of equity awards | (74) | (195) |
Cash paid for contingent consideration for acquisitions | 0 | (27) |
Repayment of obligations under capital leases | (811) | (917) |
Net cash used in financing activities | (14,156) | (8,063) |
Net decrease in cash, cash equivalents, and restricted cash | (407) | (3,459) |
Cash, cash equivalents, and restricted cash at beginning of year | 2,220 | 5,679 |
Cash, cash equivalents, and restricted cash at end of year | 1,813 | 2,220 |
Supplemental Information | ||
Cash paid during the period for interest | 702 | 856 |
Cash paid during the period for income taxes | 52 | 127 |
Non-Cash Investing Activities | ||
Assets acquired by entering into capital lease | 613 | 2,422 |
Medical Device Sales And Service Post-Warranty Service Business | ||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Gain on disposal of discontinued operations | (6,161) | 0 |
Investing activities | ||
Proceeds from sale of discontinued operations | 6,844 | 0 |
Telerhythmics | ||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Gain on disposal of discontinued operations | (19) | 0 |
Investing activities | ||
Proceeds from sale of discontinued operations | $ 1,922 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common stock | Treasury Stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit |
Equity, beginning balance (in shares) at Dec. 31, 2016 | 19,892,000 | |||||
Equity, beginning balance at Dec. 31, 2016 | $ 66,481 | $ 2 | $ (5,728) | $ 151,696 | $ (52) | $ (79,437) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 852 | 852 | ||||
Shares issued under stock incentive plans, net of shares withheld for employee taxes (in shares) | 168,000 | |||||
Shares issued under stock incentive plans, net of shares withheld for employee taxes | (190) | (190) | ||||
Dividends paid | (4,195) | (4,195) | ||||
Net income (loss) | (35,730) | |||||
Unrealized gain on securities available-for-sale | 17 | 17 | ||||
Reclassification of other-than-temporary losses on available-for-sale securities included in net income | 52 | 52 | ||||
Provision for income taxes | (22) | 22 | ||||
Cumulative effect of change in accounting principle | 534 | 534 | ||||
Reclassification of other-than-temporary losses on available-for-sale securities included in net (loss) income | $ 52 | |||||
Equity, ending balance (shares) at Dec. 31, 2017 | 20,060,311 | 20,060,000 | ||||
Equity, ending balance at Dec. 31, 2017 | $ 27,799 | $ 2 | (5,728) | 148,163 | (5) | (114,633) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 634 | 634 | ||||
Shares issued under stock incentive plans, net of shares withheld for employee taxes (in shares) | 190,000 | |||||
Shares issued under stock incentive plans, net of shares withheld for employee taxes | (48) | (48) | ||||
Dividends paid | (3,321) | (3,321) | ||||
Net income (loss) | 736 | |||||
Provision for income taxes | 0 | |||||
Reclassification of other-than-temporary losses on available-for-sale securities included in net (loss) income | $ 0 | (17) | 17 | |||
Equity, ending balance (shares) at Dec. 31, 2018 | 20,249,786 | 20,250,000 | ||||
Equity, ending balance at Dec. 31, 2018 | $ 25,800 | $ 2 | $ (5,728) | $ 145,428 | $ (22) | $ (113,880) |
The Company
The Company | 12 Months Ended |
Dec. 31, 2018 | |
The Company [Abstract] | |
The Company | The Company Digirad Corporation, a Delaware holding corporation, together with its consolidated subsidiaries (collectively “Digirad” or the “Company”) delivers convenient, effective, and efficient healthcare solutions on an as needed, when needed, and where needed basis. Digirad’s diverse portfolio of mobile healthcare solutions and medical equipment and services, including diagnostic imaging and patient monitoring, provides hospitals, physician practices, and imaging centers throughout the United States access to technology and services necessary to provide exceptional patient care in the rapidly changing healthcare environment. As of December 31, 2018 , our business is organized into three reportable segments: Diagnostic Services, Mobile Healthcare, and Diagnostic Imaging. See Note 14. Segments , for more information relating to our segments. For discussion purposes, we categorized our Diagnostic Services and Mobile Healthcare reportable segments as “Services,” and our Diagnostic Imaging reportable segment as “Product and Product-Related.” |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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. All 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. Discontinued Operations On February 1, 2018, the Company completed the sale of its customer contracts relating to the Medical Device Sales and Service (“MDSS”) post-warranty service business to Philips North America LLC (“Philips”) pursuant to an Asset Purchase Agreement, dated as of December 22, 2017 for $8.0 million . For all periods presented in our consolidated statements of operations, all sales, costs, expenses, and income taxes attributable to MDSS, except as related to the impact of the decrease in the federal statutory tax rate (see Note 11. Income Taxes ), have been aggregated under the caption “earnings from discontinued operations, net of income taxes.” Cash flows used in or provided by MDSS operations as part of discontinued operations and prior year results recasted to conform with the current presentation are disclosed in Note 3. Discontinued Operations. Unless otherwise noted, amounts and disclosures throughout these notes to consolidated financial statements relate to our continuing operations. Sale of Telerhythmics, LLC On October 31, 2018, the Company entered into a membership interest purchase agreement (the “Telerhythmics Purchase Agreement”) with G Medical Innovations USA, Inc. (“G Medical”), pursuant to which we sold all the outstanding membership interests in Telerhythmics to G Medical. The total consideration related to the Telerhythmics Purchase Agreement was $1.95 million in cash, which was paid at the closing on October 31, 2018. In connection with the transaction, the Company has agreed to make partial monthly rent payments aggregating $0.2 million through January 2021. The Telerhythmics Purchase Agreement includes customary representations, warranties, covenants and indemnification obligations of the parties, including a non-competition covenant by the Company. The gain on the sale of Telerhythmics, LLC was approximately $19 thousand and is included in other income in the statement of operations and comprehensive income. Use of Estimates The preparation of financial statements in conformity with GAAP 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, self-insurance, inventory valuation, and income taxes. Actual results could materially differ from those estimates. Revenue Recognition We adopted Accounting Standards Codification (“ASC”) Topic 606 effective January 1, 2018 using the modified retrospective method. We applied the practical expedient permitted under ASC Topic 606 to those contracts that were not completed as of the date of initial adoption. Results for reporting periods after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with legacy accounting guidance under ASC Topic 605. Our revenue recognition policies under ASC Topic 606 and Topic 605 are explained below. Pursuant to ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when a customer obtains control of promised goods or services. The Company records the amount of revenue that reflects the consideration that it expects to receive in exchange for those goods or services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. Under ASC 605, we recognized revenue for all of our reportable segments 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. Services Revenue Recognition. We generate service revenue primarily from providing diagnostic imaging and cardiac monitoring services to our customers. Service revenue within our Diagnostic Imaging and Mobile Healthcare reportable segments is derived from providing our customers with contract diagnostic imaging services, which includes use of our imaging systems, qualified personnel, radiopharmaceuticals, licensing, logistics and related items required to perform testing in their own offices. We bill customers either on a per-scan or fixed-payment methodology, depending upon the contract that is negotiated with the customer. Within our Mobile Healthcare segment, we also rent imaging systems to healthcare customers for use in their operations. Rental revenues are structured as either a weekly or monthly payment arrangement, and are recognized in the month services are provided. Revenue related to provision of our services is recognized at the time services are performed. Product and Product-Related Revenue Recognition. We generate revenue from product and product-related sales, primarily from the sale of gamma cameras. Diagnostic Imaging product revenues are generated from the sale of internally developed solid-state gamma camera imaging systems and camera maintenance service contracts. Revenue for sales of imaging systems is generally recognized upon delivery of systems and acceptance by customers. We also provide installation services and training on cameras we sell, primarily in the United States. Installation and initial training is generally performed shortly after delivery and revenue related to the provision of these services is recognized at the time services are performed. Neither installation nor training is essential to the functionality of the product. Finally, we offer camera maintenance service contracts that are sold beyond the term of the initial warranty, generally one year from the date of purchase. Revenue from these contracts is deferred and recognized ratably over the period of the obligation. Concentration of Credit Risk 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 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, 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. Equity Securities As of December 31, 2018 , securities consist of investments in equity securities that are publicly traded. Investments that are strategic in nature, with the intent to hold the investment over a several year period, are classified as other assets (non-current). Effective January 1, 2018, equity securities, with certain exceptions, are measured at fair value and changes in fair value are recognized in net income. During the year ended December 31, 2018 , the Company recognized expenses related to changes in fair value of $0.1 million in the statement of operations. During 2017 , the Company recorded equity securities as available-for-sale and any change in fair value was recorded as part of other comprehensive income (loss). The Company recorded other than temporary impairment charges to earnings of $0.3 million in 2017 . 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 . We regularly evaluate the collectability of our trade receivables and provide reserves for doubtful accounts based on our historical experience rate, known collectability issues and disputes, and our bad debt write-off history. Our estimates of collectability could be impacted by material amounts due to changed circumstances, such as a higher number of defaults or material adverse changes in a payor’s ability to meet its obligations. 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, and the related provision for doubtful accounts is charged to general and administrative expenses. Within Diagnostic Services, we record adjustments and credit memos that represent billing adjustments subsequent to the performance of service. As such, we also record a provision for billing adjustments, which are based on our historical experience rate and billing adjustments history. The provision for billing adjustments 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, 2018 , and 2017 (in thousands): Allowance for Doubtful Accounts (1) Reserve for Billing Adjustments (2) Reserve for Contractual Allowances (2) Balance at December 31, 2016 $ 531 $ 13 $ 515 Provision adjustment 453 133 19,307 Write-offs and recoveries, net (431 ) (137 ) (19,375 ) Balance at December 31, 2017 553 9 447 Provision adjustment 180 219 19,221 Write-offs and recoveries, net (301 ) (210 ) (19,668 ) Balance at December 31, 2018 $ 432 $ 18 $ — (1) The provision was charged against general and administrative expenses. (2) The provision was charged against services revenue. Contractual allowance was written off due to sale of Telerhythmics. 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, 2018 and 2017 (in thousands): Reserve for Excess and Obsolete Inventories (1) Balance at December 31, 2016 $ 416 Provision adjustment 81 Write-offs and scrap (44 ) Balance at December 31, 2017 453 Provision adjustment 42 Write-offs and scrap (2) (115 ) Balance at December 31, 2018 $ 380 (1) The provision was charged against Product and product-related cost of revenues. (2) Amount includes $90 thousand related to inventory sold during the year. 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 range from 5 to 20 years for buildings and improvements, 3 to 10 years for machinery and equipment, 3 to 10 years for computer hardware and software, and the lower of the estimated useful life or remaining lease term 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 3 years to 15 years . 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, 2018 and 2017 . 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 impairment analysis by quantitatively comparing the fair value of the reporting unit to the carrying value of the reporting unit, including goodwill. Impairment charge for goodwill is recognized for the amount by which the carrying value of the reporting unit exceeds its fair value and such loss should not exceed the total goodwill allocated to the reporting unit. The Company recorded an impairment charge of $2.6 million associated with the impairment assessment of the MDSS reporting unit during the year ended December 31, 2017 . The Company also recorded impairment charges of $0.5 million and $0.2 million during the years ended December 31, 2018 and 2017 , respectively, associated with the impairment assessment of the Telerhythmics reporting unit. See Note 7. Goodwill , for further information. Self-Insured Health Insurance Benefits Effective January 1, 2017, the Company provided healthcare benefits to its employees through a self-insured plan with “stop loss” coverage. The Company records a liability that represents our estimated cost of claims incurred and unpaid as of the balance sheet date. Our estimated reserve is based on historical experience and trends related to both health insurance claims and payments. The ultimate cost of healthcare benefits will depend on actual costs incurred to settle the claims and may differ from the amounts reserved by the Company for those claims. As of December 31, 2018 and 2017 , the reserve for estimated claims incurred and unpaid was $0.5 million and $1.0 million , respectively. Restricted Cash We maintain certain cash amounts restricted as to withdrawal or use. As of December 31, 2018 and 2017 , restricted cash was $0.3 million , comprised of cash held for letters of credit for our real estate leases and certain minimum balance requirements on our banking arrangements. Debt Issuance Costs We incur debt issuance costs in connection with long-term debt financings. Debt issuance costs recorded in connection with our Comerica revolving credit facility are presented in other assets on the consolidated balance sheets and are amortized over the term of the revolving debt agreements using the straight-line method. Amortization of debt issuance costs are included in interest expense. As of December 31, 2018 , we have $0.2 million of unamortized debt issuance costs. Upon changes to our debt structure, we evaluate debt issuance costs in accordance with the Debt topic of the Codification. We adjust debt issuance costs as necessary based on the results of this evaluation, as discussed in Note 8. Debt . 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 $0.8 million and $0.9 million for the years ended December 31, 2018 and 2017 , 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 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 Product and product-related 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, 2018 and 2017 are as follows (in thousands): Year Ended December 31, 2018 2017 Balance at beginning of year $ 204 $ 196 Charges to cost of revenues 279 351 Applied to liability (286 ) (343 ) Balance at end of year $ 197 $ 204 Advertising Costs Advertising costs are expensed as incurred. Total advertising costs for each of the years ended December 31, 2018 and 2017 were $0.3 million and $0.3 million , respectively. Basic and Diluted Net Income (Loss) Per Share Basic earnings per share (“EPS”) is calculated by dividing net (loss) income by the weighted-average number of common shares and vested restricted stock units outstanding. Diluted EPS is computed by dividing net (loss) 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. The following table sets forth the computation of basic and diluted net (loss) income per share for the periods indicated (in thousands, except per share amounts): Year Ended December 31, 2018 2017 Numerator: Loss from continuing operations, net of tax $ (3,839 ) $ (35,036 ) Income (loss) from discontinued operations, net of tax 4,575 (694 ) Net income (loss) $ 736 $ (35,730 ) Denominator: Weighted average shares outstanding - basic 20,158 19,995 Dilutive potential common shares: Stock options — — Restricted stock units — — Weighted average shares outstanding - diluted 20,158 19,995 Net income (loss) per common share - basic and diluted Continuing operations $ (0.19 ) $ (1.75 ) Discontinued operations 0.23 (0.04 ) Net income (loss) per share - basic and diluted (1) $ 0.04 $ (1.79 ) (1) Earnings per share may not add due to rounding. 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 following weighted-average outstanding common stock equivalents were not included in the calculation of diluted net income (loss) per share because their effect was antidilutive (in thousands): Year Ended December 31, 2018 2017 Stock options 340 220 Restricted stock units 157 33 Total 497 253 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. Income Taxes We provide for income taxes under the asset and 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. 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 derecognition, 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. Recently Adopted Accounting Standards In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. We adopted ASU 2016-18 effective January 1, 2018 using the retrospective transition method, which resulted in an increase of $3.0 million in net cash flows used in financing activities that was previously reported for the year ended December 31, 2017 . In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which 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. We adopted ASU 2016-01 on January 1, 2018. As a result of the adoption, we recorded an increase to retained earnings of $17 thousand to recognize the unrealized gains previously recorded within accumulated other comprehensive income. Subsequent changes in the fair value of our marketable securities will be recorded to other expense, net. See Note 6. Fair Value Measurements , for further details. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes current revenue recognition guidance, including most industry-specific guidance. We adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. Under the modified retrospective method, the Company recognized the cumulative effect of initially applying the standard as an adjustment to opening retained earnings at the date of initial application; however, we did not have any adjustments as of the date of the adoption. See Note 4. Revenue , for expanded revenue disclosures and updates to our revenue recognition policy. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. We early adopted ASU 2017-04 effective April 1, 2018 on a prospective basis in conjunction with the interim impairment test of goodwill performed during that quarter. See Note 7. Goodwill , for additional information on our interim goodwill impairment test performed. New Accounting Standards To Be Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which amended the existing accounting standards for the accounting for leases. Most significant among the changes in the standard is the recognition of right-of-use (“ROU”) assets and lease liabilities by lessees for those leases classified as operating leases under current U.S. GAAP. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which offers a transition option to entities adopting ASC 842. The Company will adopt ASC 842 beginning January 1, 2019, using the modified-retrospective method, which will result in a cumulative effect adjustment to accumulated deficit at the beginning of 2019, rather than adjustments to the comparative prior periods presented in the financial statements. The Company is finalizing its implementation related to policies, processes, and internal controls to comply with the guidance. The Company estimates that the right-of-use assets and lease liabilities to be recorded on its consolidated balance sheet for its lease portfolio as of January 1, 2019, to be within the range of $3.5 million to $4.5 million , primarily relating to real estate and vehicle leases. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for us beginning January 1, 2020. ASU 2018-15 is required to be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently evaluating the impact adopting this guidance will have on our financial statements. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | On February 1, 2018, the Company completed the sale of its customer contracts relating to our MDSS post-warranty service business to Philips pursuant to an Asset Purchase Agreement, dated as of December 22, 2017 for $8.0 million . The total cash proceeds were adjusted for deferred revenue liabilities assigned to Philips at the closing date, as well as $0.5 million of proceeds held in escrow, subject to claims for breaches of general representation and warranties, which was recorded in other current assets at the date of sale. All claims have been settled as of December 31, 2018 . Prior to the contemplation of the transaction entered into above, on September 28, 2017, we received notification from Philips that our distribution agreement to sell Philips imaging systems on a commission basis would be terminated, effective December 31, 2017. As a result, our product sales activities within our MDSS reportable segment were also discontinued effective in the first quarter of 2018. The Company deemed the disposition of our MDSS reportable segment in the first quarter of 2018 to represent a strategic shift that will have a major effect on our operations and financial results, in accordance with the provisions of FASB authoritative guidance on the presentation of financial statements, we have classified the results of our MDSS segment as discontinued operations in our consolidated statement of operations for all periods presented. Therefore, the related assets and liabilities associated with the discontinued operations as of December 31, 2017 were reclassified as held for sale in our consolidated balance sheet. The Company has allocated a portion of interest expense to discontinued operations since the proceeds received from the sale were required to be used to pay down outstanding borrowings under our revolving credit facility with Comerica Bank, a Texas banking association (“Comerica”). The allocation was based on the ratio of proceeds received in the sale to total borrowings for the period. In addition, certain general and administrative costs related to corporate and shared service functions previously allocated to the MDSS reportable segment are not included in discontinued operations. The following table summarizes the MDSS results for each period (in thousands): Year ended December 31, 2018 2017 Total revenues $ 789 $ 13,707 Total cost of revenues 555 6,501 Gross profit 234 7,206 Operating expenses: Marketing and sales 85 2,905 General and administrative 163 774 Amortization of intangible assets 13 1,667 Gain on sale of discontinued operations (6,161 ) — Goodwill impairment — 2,580 Total operating expenses (5,900 ) 7,926 Income (loss) from operations 6,134 (720 ) Interest expense, net (26 ) (338 ) Income (loss) from discontinued operations before income taxes 6,108 (1,058 ) Income tax (expense) benefit (1,533 ) 364 Net income (loss) from discontinued operations $ 4,575 $ (694 ) The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s balance sheet (in thousands): December 31, 2018 2017 Carrying amounts of assets included as part of discontinued operations Intangible assets, net $ — $ 637 Goodwill — 1,098 Total assets classified as held for sale as part of discontinued operations $ — $ 1,735 Carrying amounts of liabilities included as part of discontinued operations Deferred revenue $ — $ 835 Total liabilities classified as held for sale in the consolidated balance sheet $ — $ 835 The following table presents supplemental cash flow information of discontinued operations (in thousands): December 31, 2018 2017 Operating activities Depreciation $ 2 $ 34 Amortization of intangible assets $ 13 $ 1,667 Gain on sale of discontinued operations $ (6,161 ) $ — Share-based compensation $ — $ 18 Investing activities Proceeds from sale of discontinued operations $ 6,844 $ — |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Product and Product-Related Revenues and Services Revenue Product and product-related revenue are generated from the sale of gamma cameras and post-warranty maintenance service contracts within our Diagnostic Imaging reportable segment. Services revenue are generated from providing diagnostic imaging and cardiac monitoring services to customers within our Diagnostic Services and Mobile Healthcare reportable segments. Services revenue also includes lease income generated from interim rentals of imaging systems to our customers. Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from revenue. The majority of our contracts have a single performance obligation, as we provide a series of distinct services that are substantially the same and are transferred with the same pattern to the customer. For contracts with multiple performance obligations, we allocate the total transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. We use an observable price to determine the stand-alone selling price for separate performance obligations or a cost plus margin approach when one is not available. Our products are generally not sold with a right of return and the Company does not provide significant credits or incentives, which may be variable consideration when estimating the amount of revenue to be recognized. Disaggregation of Revenue The following table presents our revenues disaggregated by major source (in thousands): Year Ended December 31, 2018 Diagnostic Services Diagnostic Imaging Mobile Healthcare Total Major Goods/Service Lines Mobile Imaging and Cardiac Monitoring $ 48,694 $ — $ 32,865 $ 81,559 Camera Sales — 4,914 — 4,914 Camera Support — 6,951 — 6,951 Revenue from Contracts with Customers 48,694 11,865 32,865 93,424 Lease Income 562 118 10,076 10,756 Total Revenues $ 49,256 $ 11,983 $ 42,941 $ 104,180 Timing of Revenue Recognition Services and goods transferred over time $ 45,862 $ 6,555 $ 42,477 $ 94,894 Services and goods transferred at a point in time 3,394 5,428 464 9,286 Total Revenues $ 49,256 $ 11,983 $ 42,941 $ 104,180 Nature of Goods and Services Mobile Imaging Within our Diagnostic Services and Mobile Healthcare reportable segments, our sales are derived from providing services and materials to our customers, primarily physician practices and hospitals, that allow them to perform diagnostic imaging services at their site. We typically bundle our services in providing staffing, our imaging systems, licensing, radiopharmaceuticals, and supplies depending on our customers’ needs. Our contracts with customers are typically entered into annually and are billed on a fixed rate per-day or per-scan basis, depending on terms of the contract. For the majority of these contracts, the Company has the right to invoice the customer in an amount that directly corresponds with the value to the customer of the Company’s performance to date. The Company uses the practical expedient to recognize revenue corresponding with amounts we have the right to invoice for services performed. Camera Within our Diagnostic Imaging segment, camera revenues are generated from the sale of internally developed solid-state gamma camera imaging systems. We recognize revenue upon transfer of control to the customer, which is generally upon delivery and acceptance. We also provide installation services and training on cameras we sell, primarily in the United States. Installation and initial training is generally performed shortly after delivery. The Company recognizes revenues for installation and training over time as the customer receives and consumes benefits provided as the Company performs the installation services. Our sale of imaging systems includes a one -year warranty that we account for as an assurance-type warranty. The expected costs associated with our standard warranties and field service actions continue to be recognized as expense when cameras are sold. Maintenance service contracts sold beyond the term of our standard warranties are accounted for as a service-type warranty and revenue is deferred and recognized ratably over the period of the obligation. Camera Support Within our Diagnostic Imaging segment, camera support revenue is derived from the sale of separately-priced extended maintenance contracts to camera owners, training, and the sale of parts to customers that do not have an extended warranty. Our separately priced service contracts range from 12 to 48 months. Service contracts are usually billed at the beginning of the contract period or at periodic intervals (e.g., monthly or quarterly) and revenue is recognized ratably over the term of the agreement. Services and training revenues are recognized in the period the services and training are performed. Revenue for sales of parts are recognized when the parts are delivered to the customer and control is transferred. Lease Income Within primarily our Mobile Healthcare segment, we also generate income from interim rentals of our imaging systems to customers that are in the midst of new construction or refurbishing their current facilities. Rental contracts are structured as either a weekly or monthly payment arrangement and are accounted for as operating leases. Revenues are recognized on a straight-line basis over the term of the rental. Deferred Revenues We record deferred revenues when cash payments are received or due in advance of our performance, including amounts that are refundable. We have determined our contracts do not include a significant financing component. The majority of our deferred revenue relates to payments received on camera support post-warranty service contracts, which are billed at the beginning of the annual contract period or at periodic intervals (e.g., monthly or quarterly). Changes in the deferred revenues for the year ended December 31, 2018 , is as follows (in thousands): Balance at December 31, 2017 $ 2,375 Revenue recognized that was included in balance at beginning of the year (1,380 ) Deferred revenue, net, related to contracts entered into during the year 718 Balance at December 31, 2018 $ 1,713 Included in the balances above as of December 31, 2018 and 2017 is non-current deferred revenue of $26 thousand and $73 thousand , respectively. The Company has elected to use the practical expedient under ASC 606 to exclude disclosures of unsatisfied remaining performance obligations for (i) contracts having an original expected length of one year or less or (ii) contracts for which the practical expedient has been applied to recognize revenue at the amount for which it has a right to invoice. Contract Costs We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period would have been one year or less. These costs mainly include the Company’s internal sales commissions; under the terms of these programs these are generally earned and the costs are recognized at the time the revenue is recognized. |
Supplementary Balance Sheet Inf
Supplementary Balance Sheet Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Balance Sheet Disclosures [Abstract] | |
Supplementary Balance Sheet Information | Supplementary Balance Sheet Information The following tables show the Company’s consolidated balance sheet details as of December 31, 2018 and 2017 (in thousands): December 31, December 31, Inventories: Raw materials $ 2,419 $ 2,331 Work-in-process 2,307 2,094 Finished goods 1,056 1,529 Total inventories 5,782 5,954 Less reserve for excess and obsolete inventories (380 ) (453 ) Total inventories, net $ 5,402 $ 5,501 December 31, December 31, Property and equipment, net: Land $ 550 $ 1,170 Buildings and Leasehold improvements 1,989 2,946 Machinery and equipment 52,409 55,152 Computer hardware and software 4,490 4,615 Total property and equipment 59,438 63,883 Accumulated depreciation (37,793 ) (35,518 ) Total property and equipment, net $ 21,645 $ 28,365 Depreciation expense for the years ended December 31, 2018 and 2017 was $7.3 million and $7.9 million , respectively. In the third quarter of 2018, the Company completed the sale of buildings and a portion of land in its Fargo, North Dakota location with a net book value of $1.5 million , for net cash proceeds of approximately $1.0 million , resulting in a loss on sale of $0.5 million , which has been classified as a “Loss on sale of buildings” in the consolidated statement of operations. December 31, 2018 Weighted-Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangible assets with finite useful lives: Customer relationships 9.8 $ 8,453 $ (4,751 ) $ 3,702 Trademarks 6.0 3,055 (1,577 ) 1,478 Patents 15.0 141 (136 ) 5 Covenants not to compete 5.0 181 (138 ) 43 Total intangible assets, net $ 11,830 $ (6,602 ) $ 5,228 December 31, 2017 Weighted-Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangible assets with finite useful lives: Customer relationships 9.6 $ 10,363 $ (4,976 ) $ 5,387 Trademarks 6.4 3,654 (1,314 ) 2,340 Distribution Agreement 3.3 2,165 (2,165 ) — Patents 15.0 141 (134 ) 7 Covenants not to compete 5.0 251 (155 ) 96 Total intangible assets, net $ 16,574 $ (8,744 ) $ 7,830 Amortization expense for intangible assets, net for the year ended December 31, 2018 and 2017 was $1.4 million , and $1.5 million respectively. Estimated amortization expense for intangible assets for 2019 is $1.1 million , for 2020 is $1.1 million , for 2021 is $1.0 million , for 2022 is $0.5 million , for 2023 is $0.5 million , and thereafter is $1.0 million . December 31, December 31, Other current liabilities: Professional fees $ 358 $ 506 Sales and property taxes payable 324 404 Current portion of capital lease obligation 786 796 Facilities and related costs 259 153 Outside services and consulting 135 146 Payable to former DMS Health stockholders — 170 Other accrued liabilities 403 740 Total other current liabilities $ 2,265 $ 2,915 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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 (in thousands): At Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Equity securities $ 153 $ 6 $ — $ 159 At Fair Value as of December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Equity securities $ 97 $ 111 $ — $ 208 The investment in equity securities consists of common stock of publicly traded companies. The level 2 securities are included in other assets on the Company’s consolidated balance sheet. The fair value of these securities is based on the closing prices observed on December 31, 2018 . During the year ended December 31, 2018 the Company recorded in the statement of operations unrealized gains of $43 thousand and unrealized losses of $105 thousand . We did not reclassify any investments between levels in the fair value hierarchy during the year ended December 31, 2018 . The fair values of the Company’s revolving credit facility approximate carrying value due to the variable rate nature of these borrowings. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The value of our goodwill has historically been derived from the acquisition of MD Office Solutions (“MD Office”) in 2015, Telerhythmics, LLC (“Telerhythmics”) in 2014, and substantially all of the assets of Ultrascan, Inc. (“Ultrascan”) in 2007. As of December 31, 2018 , Digirad Imaging Solutions is the only reporting unit that carried a goodwill balance. Changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 , by reportable segment, are as follows (in thousands): Diagnostic Services Medical Device Sales and Service Total Balance at December 31, 2016 $ 2,559 $ 3,678 $ 6,237 Impairment of DMS Health — (2,580 ) (2,580 ) Impairment of Telerhythmics (166 ) — (166 ) Balance at December 31, 2017 $ 2,393 $ 1,098 $ 3,491 Derecognition of DMS Health (1) — (1,098 ) (1,098 ) Impairment of Telerhythmics (476 ) — (476 ) Derecognition of Telerhythmics (2) (172 ) — (172 ) Balance at December 31, 2018 $ 1,745 $ — $ 1,745 (1) On February 1, 2018, the Company’s MDSS reportable segment ceased to exist as the Company sold its MDSS customer contracts related to the post-warranty service business. As a result, the MDSS reportable segment is reported as discontinued operations in these consolidated financial statements and related notes thereto. (2) On October 31, 2018, the Company entered into a membership interest purchase agreement (the “Telerhythmics Purchase Agreement”) with G Medical Innovations USA, Inc. (“G Medical”), pursuant to which we sold all the outstanding membership interests in Telerhythmics to G Medical. Estimating the fair value of the reporting units requires the use of estimates and significant judgments regarding future cash flows that are based on a number of factors including actual operating results, forecasted billings, revenue, and spend targets, discount rate assumptions, and long-term growth rate assumptions. These estimates and judgments could adversely change in future periods and we cannot provide absolute assurance that all of the targets will be achieved, which could lead to future impairment charges. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of long-term debt is as follows (dollars in thousands): December 31, 2018 December 31, 2017 Amount Interest Rate Amount Interest Rate Revolving Credit Facility $ 9,500 4.87% $ 19,500 3.90% On June 21, 2017, the Company entered into a Revolving Credit Agreement with Comerica, as amended from time to time (the”Comerica Credit Agreement”). The Comerica Credit Agreement provides for a five -year revolving credit facility with a maximum credit amount of $20.0 million (reduced from $25.0 million ) maturing in June 2022 , upon which a balloon payment on the balance is due. Under the Comerica Credit Facility, the Company can request the issuance of letters of credit in an aggregate amount not to exceed $1.0 million at any one time. In connection with the sale of our post-warranty service customer contracts to Philips, the Company entered into Amendment No. 1 to the Comerica Credit Agreement, dated January 30, 2018 (the “First Amendment”). The First Amendment, among other things, (a) reduced the revolving credit commitment from $25.0 million to $20.0 million and (b) modified the definitions of “Adjusted EBITDA,” “FCCR Capital Expenditures,” and “Revolving Credit Commitment” as used under the Comerica Credit Agreement. On November 1, 2018, the Company entered into the Amendment No. 2 to the Comerica Credit Agreement (the “Second Amendment”). The Second Amendment, among other things, (a) modified the definition of “Fixed Charge Coverage Ratio” to change how the Fixed Charge Coverage Ratio is calculated, (b) modified the definition of “FCCR Capital Expenditure” to reduce a threshold amount and (c) modified the definitions of “Permitted Acquisition” and “Permitted Investments.” As of December 31, 2018 , the Company had $0.2 million of letters of credit outstanding and had additional borrowing capacity under the Comerica Credit Agreement of $10.3 million . In connection with the Amendment No. 1, the Company recognized a $43 thousand loss on extinguishment due to the write off of unamortized deferred financing costs associated with the original Comerica Credit Agreement. In the year ended December 31, 2017 , the Company used a portion of the financing made available under the Comerica Credit Agreement to repay and terminate the previous credit agreement with Wells Fargo Bank. The Company recognized a $0.7 million loss on extinguishment due to the write off of unamortized deferred financing costs associated with the previous credit facility. At the Company’s option, the Comerica Credit Facility will bear interest at either (i) the LIBOR Rate, as defined in the Comerica Credit Agreement, plus a margin of 2.35% ; or (ii) the PRR-based Rate, plus a margin of 0.5% . As further defined in the Comerica Credit Agreement, the “PRR-based Rate” means the greatest of (a) the Prime Rate in effect on such day (as defined in the Comerica Credit Agreement) plus 0.5% , or (b) the daily adjusting LIBOR Rate plus 2.50% . In addition to interest on outstanding borrowings under the Comerica Credit Facility, the revolving credit note bears an unused line fee of 0.25% , which is presented as interest expense. The Comerica Credit Agreement contains certain representations, warranties, events of default, 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. The Comerica Credit Agreement requires us to comply with certain financial covenants, including a Fixed Charge Coverage Ratio and a Funded Debt to Adjusted EBITDA Ratio (each as defined in the Comerica Credit Agreement). The Fixed Charge Coverage Ratio is calculated based on the ratio of (a) Adjusted EBITDA, less (i) cash income taxes paid for such period, less (ii), FCCR Capital Expenditures (as defined in the Comerica Credit Agreement) made during such period, less (iii) payments, repurchases or redemptions of stock made during such period, less (iv) Distributions and Purchases (each as defined in the Comerica Credit Agreement) made during such period, to (b) (i) the Current Maturities of Long Term Debt (each as defined in the Comerica Credit Agreement) as of the last day of such period plus (ii) interest paid during such period. The Fixed Charge Coverage ratio is measured on a quarterly basis as of the most recent fiscal quarter end. Under the Comerica Credit Agreement, we must maintain a fixed charge ratio of at least 1.25 to 1.00 for each trailing twelve-month period as of the end of each fiscal quarter. The funded debt to Adjusted EBITDA ratio (as defined in the Comerica Credit Agreement) must be not more than 2.25 to 1.00 measured at each fiscal quarter. Upon the occurrence and during the continuation of an event of default under the Comerica Credit Agreement, Comerica may, among other things, declare the loans and all other obligations under the Comerica Credit Agreement immediately due and payable and increase the interest rate at which loans and obligations under the Comerica Credit Agreement bear interest. Pursuant to a separate Security Agreement dated June 21, 2017, between the Company, its subsidiaries and Comerica Bank, the Comerica Credit Facility is secured by a first-priority security interest in substantially all of the assets (excluding real estate) of the Company and its subsidiaries and a pledge of all shares and membership interests of the Company’s subsidiaries. At December 31, 2018 , the Company was in compliance with all covenants. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation Matters In May 2016, Shaun Smith (“Smith”), a former employee of Digirad Imaging Solutions and MD Office Solutions, filed a lawsuit against Digirad Corporation, Digirad Imaging Solutions, Inc., and certain current and former officers of these companies, on behalf of himself and class members (collectively, the “Class Members”) in Alameda County Superior Court. In October 2016, Smith filed a First Amended Complaint adding MD Office Solutions as a named defendant. Digirad Corporation, Digirad Imaging Solutions, Inc., and certain current and former officers of these companies and MD Office Solutions are collectively referred to as the “Defendants.” In March 2017, Smith filed a Second Amended Complaint adding David Dolan (“Dolan”) and Robert Erskine (“Erskine”) as named plaintiffs. Smith, Dolan, and Erskine are collectively referred to as the “Plaintiffs.” The claim alleges that Defendants violated California laws by: failing to provide Class Members with off-duty meal and rest breaks, failing to furnish accurate wage statements, failing to timely pay all earned wages, and failing to pay all wages due upon a Class Member’s separation from Digirad Imaging Solutions, Inc. and MD Office Solutions, among other claims. In addition, Mr. Smith asserted individual claims for racial discrimination, retaliation and wrongful termination. The parties to this action participated in a voluntary mediation and reached a tentative settlement of the case and all claims. Preliminary court approval was received in September 2017. In the fourth quarter of 2017, final court approval and acceptance by Class Members was reached. The parties to this action agreed to a final settlement amount of approximately $1.3 million , which was paid by the Company in December 2017. Leases We currently lease facilities and certain automotive equipment under non-cancelable operating leases expiring through July 2023. 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 $4.5 million and $4.2 million for the years ended December 31, 2018 and 2017 , respectively. As of December 31, 2018 , 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 January 2023. 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, 2018 are as follows (in thousands): Operating Capital Leases 2019 $ 2,147 $ 899 2020 1,245 804 2021 881 778 2022 582 219 2023 343 27 Thereafter — — Total future minimum lease payments $ 5,198 2,727 Less amounts representing interest 222 Present value of obligations 2,505 Less: current capital lease obligations 786 Total long-term capital lease obligations $ 1,719 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
Share Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Based Compensation | Share-Based Compensation At December 31, 2018 , we have two active equity incentive plans, the 2011 Inducement Stock Incentive Plan (the “2011 Plan”), and the 2018 Incentive Plan (the “2018” Plan and together with the 2011 Plan, “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 1,850,000 shares of common stock. As of December 31, 2018 , the Plans had 2,066,965 shares available for future issuance. The number of shares reserved for issuance under the 2018 Plan is subject to increase by (i) the number of shares of common stock that remained available for grant under the 2014 Equity Incentive Award Plan (the “2014 Plan”) as of the effective date of the 2018 Plan, plus (ii) any shares of common stock under the 2014 Plan that are forfeited, expire, or are canceled. As of December 31, 2018 , the number of shares provided for issuance under the 2018 Plan due to unissued, forfeited, expired, and canceled shares under the 2014 Plan was 359,272 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. There were no employee stock options granted during the years ended December 31, 2018 and 2017 . A summary of our stock option award activity as of and for the year ended December 31, 2018 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 exercisable at December 31, 2017 824 $ 2.84 Options outstanding at December 31, 2017 902 $ 3.03 Options granted — $ — Options forfeited (17 ) $ 5.12 Options expired (290 ) $ 2.68 Options exercised (37 ) $ 0.70 Options outstanding at December 31, 2018 558 $ 3.31 2.7 $ — Options exercisable at December 31, 2018 523 $ 3.18 2.4 $ — At December 31, 2018 , total unrecognized compensation cost related to unvested stock options was $25 thousand , which is expected to be recognized over a weighted-average period of 1.1 years. Upon exercise, we issue new shares of common stock. Cash received from stock option exercises was $26 thousand and $5 thousand during the years ended December 31, 2018 and 2017 , respectively. The total intrinsic value of stock options exercised was $36 thousand and $12 thousand during the years ended December 31, 2018 and 2017 , respectively. 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 $1.92 and $4.77 per share during the years ended December 31, 2018 and 2017 , respectively. A summary of our restricted stock unit activity as of and for the year ended December 31, 2018 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, 2017 341 $4.73 Granted 498 $1.92 Forfeited (285 ) $2.66 Vested (187 ) $4.03 Non-vested restricted stock units outstanding at December 31, 2018 367 $2.88 The following table summarizes information about restricted stock units that vested during the years ended December 31, 2018 and 2017 based on service conditions (in thousands): Year Ended December 31, 2018 2017 Fair value on vesting date of vested restricted stock units $ 364 $ 798 At December 31, 2018 , total unrecognized compensation cost related to non-vested restricted stock units was $0.7 million , which is expected to be recognized over a weighted-average period of 2.2 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, 2018 and 2017 was allocated as follows (in thousands): Year Ended December 31, 2018 2017 Cost of revenues: Services $ 34 $ 40 Product and product-related 16 19 Marketing and sales 101 157 General and administrative 483 636 Total share-based compensation expense $ 634 $ 852 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Current provision: Federal $ — $ — State 80 30 Foreign 45 63 Total current provision 125 93 Deferred (benefit) provision: Federal (1,398 ) 26,737 State (288 ) 1,157 Foreign — — Total deferred (benefit) provision (1,686 ) 27,894 Total income tax (benefit) provision $ (1,561 ) $ 27,987 Intraperiod allocation rules require us to allocate our provision for income taxes between continuing operations and other categories or comprehensive income such as discontinued operations. As described in Note 3. Discontinued Operations , the results of our MDSS reportable segment have been reported as discontinued operations for the current and prior year. As a result of the intraperiod allocation rules, for the year ended December 31, 2018 , the Company recorded a tax expense of $1.5 million . For the year ended December 31, 2017 , the Company recorded a benefit of $0.4 million (see Note 3. Discontinued Operations) . Differences between the provision (benefit) for income taxes and income taxes at the statutory federal income tax rate for continuing operations are as follows: Year Ended December 31, 2018 2017 Income tax expense (benefit) at statutory federal rate 21.0 % 34.0 % State income tax expense, net of federal benefit 1.7 % 2.6 % Permanent differences and other (4.6 )% — % Goodwill — % (9.5 )% Withholding costs (0.8 )% (0.9 )% Tax credit (0.1 )% — % Impact of 2017 Tax Act — % (165.0 )% Change in effective federal and state tax rates (2.0 )% 0.4 % Expiration of net operating loss and tax credit carryovers — % (0.1 )% Stock compensation expense (2.4 )% (1.1 )% Reserve for uncertain tax positions and other reserves — % 0.7 % Change in valuation allowance 16.1 % (258.0 )% Provision (benefit) for income taxes 28.9 % (396.9 )% Our net deferred tax assets consisted of the following (in thousands): December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 22,043 $ 23,451 Research and development and other credits 72 44 Reserves 336 567 Intangibles — — Other, net 1,013 1,232 Total deferred tax assets 23,464 25,294 Deferred tax liabilities: Fixed assets and other (2,588 ) (3,489 ) Intangibles (756 ) (891 ) Total deferred tax liabilities (3,344 ) (4,380 ) Valuation allowance for deferred tax assets (20,241 ) (21,168 ) Net deferred tax liabilities $ (121 ) $ (254 ) The Company recognizes federal and state deferred tax assets or liabilities based on the Company’s estimate of future tax effects attributable to temporary differences and carryovers. The Company records a valuation allowance to reduce any deferred tax assets by the amount of any tax benefits that, based on available evidence and judgment, are not expected to be realized. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. The Company considers projected future taxable income and planning strategies in making this assessment. As of December 31, 2017 , as a result of a three-year cumulative loss and recent events, such as the unanticipated termination of the Philips distribution agreement and its effect on our near term forecasted income, we concluded that a full valuation allowance was necessary to offset our deferred tax assets. We intend to maintain a valuation allowance until sufficient positive evidence exists to support its reversal. The Company continues to be in a cumulative pretax loss for the three year period ended December 31, 2018 . Accordingly, the full valuation allowance was maintained for the year ended December 31, 2018 . The Company’s valuation allowance balance at December 31, 2018 is $20.2 million , offsetting the Company’s deferred tax assets. The Company will continue to evaluate its deferred tax balances to determine any assets that are more likely than not to be realized. As of December 31, 2018 , we had federal and state income tax net operating loss carryforwards of $83.7 million and $26.7 million , respectively. Pre-2018 federal loss carryforwards will begin to expire in 2019 unless previously utilized. State loss carryforwards of approximately $0.2 million expired in 2018 , and approximately $30 thousand is set to expire in 2019 , unless previously utilized. We also have federal and California research and other credit carryforwards of approximately $1.5 million and $2.1 million , respectively, as of December 31, 2018 . The federal credits will begin to expire in 2019 . 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%. As of December 31, 2018 , Digirad Corporation has not experienced a change in ownership greater than 50%; however, some of the tax attributes acquired with the DMS Health businesses are subject to such limitations due to ownership changes of greater than 50% that 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. The following table summarizes the activity related to our unrecognized tax benefits (in thousands): December 31, 2018 2017 Balance at beginning of year $ 3,936 $ 4,134 Expiration of the statute of limitations for the assessment of taxes (326 ) (198 ) Balance at end of year $ 3,610 $ 3,936 Included in the unrecognized tax benefits of $3.6 million at December 31, 2018 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 2014 ; 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. The accrued interest as of December 31, 2018 and 2017 , and interest and penalties recognized during the years ended December 31, 2018 and 2017 were of insignificant amounts. Tax Cuts and Jobs Act The Company applied the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Cuts and Jobs Act (the “Tax Act”) in 2017 and throughout 2018. At December 31, 2017, the Company had not completed its accounting for all of the enactment-date income tax effects of the Tax Act under ASC 740, Income Taxes, related to the recognition of the provisional tax impacts related to its Internal Revenue Code Section 162(m) limitations and the potential impact on its equity compensation deferred tax assets. At December 31, 2018, the Company has now completed its accounting for all of the enactment-date income tax effects of the Tax Act and no net tax adjustments were made to the provisional amounts recorded at December 31, 2017. |
Employee Retirement Plan
Employee Retirement Plan | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plan | Employee Retirement Plan We have a 401(k) retirement plan under which employees may contribute up to 100% of their annual salary, within IRS limits. The Company contributions to the retirement plans totaled $0.3 million and $0.4 million for the years ended December 31, 2018 and 2017 , respectively. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Related Party Transactions Mr. John Climaco currently serves as a Director of the Company and a member of the Corporate Governance and Strategic Advisory committees of the Board. Until July 11, 2017, Mr. Climaco also served as a Director of Perma-Fix Environmental Services, Inc. (NASDAQ: PESI). Further, from June 2, 2015 until July 11, 2017, Mr. Climaco served as the Executive Vice President of Perma-Fix Medical S.A., a majority-owned Polish subsidiary of Perma-Fix Environmental Services, Inc. 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 $1.0 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. Jeffrey E. Eberwein, the Chairman of our board of directors and the Chairman of the board of directors of ATRM, owns approximately 17.4% of the outstanding common stock of ATRM. Mr. Eberwein is also the Chief Executive Officer of Lone Star Value Management, LLC, which is the investment manager of Lone Star Value Investors, LP (“LSVI”). LSVI owns 222,577 shares of ATRM’s 10.00% Series B Cumulative Preferred Stock (the “Series B Stock”) and another 374,562 shares of Series B Stock are owned directly by Lone Star Value Co-Invest I, LP (“LSV Co-Invest I”). Through these relationships and other relationships with affiliated entities, Mr. Eberwein may be deemed the beneficial owner of the securities owned by LSVI and LSV Co-Invest I. Mr. Eberwein disclaims beneficial ownership of Series B Stock, except to the extent of his pecuniary interest therein. On December 14, 2018, Digirad and ATRM, entered into a joint venture and formed Star Procurement, LLC (“Star Procurement”), with Digirad and ATRM each holding a 50% interest. The purpose of the joint venture is to provide the service of purchasing and selling building materials and related goods to KBS Builders, Inc., a wholly-owned subsidiary of ATRM with which Star Procurement entered into a Services Agreement on January 2, 2019. In accordance with the terms of the Star Procurement Limited Liability Company Agreement, Digirad made a $1.0 million capital contribution to the joint venture, which was made in January 2019. On December 14, 2018, the Company received an unsecured promissory note from ATRM in the principal amount of $0.3 million (the “ATRM Note”) in exchange for a loan to ATRM in the same amount. The ATRM Note bears interest at 10.0% per annum for the first 12 months of its term, and at 12.0% per annum for the remaining 12 months. All unpaid principal and interest is due on December 14, 2020. ATRM may prepay the note at any time after a specified amount of advance notice to the Company. The ATRM Note provides for customary events of default, the occurrence of any of which may result in the principal and unpaid interest then outstanding becoming immediately due and payable. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments | Segments As of December 31, 2018 , our business is organized into three reportable segments: 1. Diagnostic Services 2. Diagnostic Imaging 3. Mobile Healthcare For discussion purposes, we categorized our Diagnostic Services and Mobile Healthcare reportable segments as “Services,” and our Diagnostic Imaging reportable segment as “Product and Product-Related.” Diagnostic Services. Through Diagnostic Services, we offer a convenient and economically efficient imaging and monitoring services program as an alternative to purchasing equipment or outsourcing the procedures to another physician or imaging center. For physicians who wish to perform nuclear imaging, echocardiography, vascular or general ultrasound tests, we provide the ability for them to engage our services, which includes the use of our imaging system, qualified personnel, and related items required to perform imaging in their own offices and bill Medicare, Medicaid, or one of the third-party healthcare insurers directly for those services. These services are primarily provided to smaller cardiology and related physician practice customers, though we do provide some services to hospital systems. Diagnostic Imaging. Through Diagnostic Imaging, we sell our internally developed solid-state gamma cameras and camera maintenance contracts. Our systems include nuclear cardiac imaging and general purposes nuclear imaging as well. We sell our imaging systems to physician offices and hospitals primarily in the United States, although we have sold a small number of imaging systems internationally. Mobile Healthcare. Through Mobile Healthcare, we provide contract diagnostic imaging, including PET, CT, MRI, and healthcare expertise to hospitals, integrated delivery networks (“IDNs”), and federal institutions on a long-term contract basis, but can also provide provisional services to institutions that are in transition. These services are provided primarily when there is a cost, ease, and efficiency component of providing the services directly rather than owning and operating the related services and equipment directly by our customers. Our reporting segments have been determined based on the nature of the products and services offered to customers or the nature of their function in the organization. We evaluate performance based on the gross profit and operating income (loss) excluding litigation reserve expense, goodwill impairment, and transaction and integration costs. The Company does not identify or allocate its assets by operating segments. Accordingly, assets are not being reported by segment because the information is not available by segment and is not reviewed in the evaluation of performance or making decisions in the allocation of resources. Our operating costs included in our shared service functions, which primarily consist of senior executive officers, finance, human resources, legal, and information technology, are allocated to our segments. During the first quarter of 2018, we have classified the results of our MDSS segment as discontinued operations in our consolidated statement of operations for all periods presented. Accordingly, segment results have been recast for all periods presented to reflect MDSS as discontinued operations. As costs of shared service functions previously allocated to MDSS are not allocable to discontinued operations, prior period corporate costs have been reallocated amongst the continuing reportable segments. Segment information for the years ended December 31, 2018 and 2017 is as follows (in thousands): Year ended December 31, 2018 2017 Revenue by segment: Diagnostic Services $ 49,256 $ 49,016 Diagnostic Imaging 11,983 12,081 Mobile Healthcare 42,941 43,535 Consolidated revenue $ 104,180 $ 104,632 Gross profit by segment: Diagnostic Services $ 9,447 $ 9,942 Diagnostic Imaging 5,142 5,036 Mobile Healthcare 3,682 6,218 Consolidated gross profit $ 18,271 $ 21,196 Income (loss) from operations by segment: Diagnostic Services $ 732 $ (134 ) Diagnostic Imaging (304 ) (1,097 ) Mobile Healthcare (3,990 ) (2,563 ) Segment loss from operations $ (3,562 ) $ (3,794 ) Loss on sale of buildings (1) (507 ) — Goodwill impairment (2) (476 ) (166 ) Litigation reserve (3) — (1,339 ) Consolidated loss from operations $ (4,545 ) $ (5,299 ) (1) Reflects loss on sale of land and buildings in our Fargo, North Dakota location. See Note 5. Supplementary Balance Sheet Information , for further information (2) See Note 7. Goodwill , for further information. (3) See Note 9. Commitments and Contingencies , for further information. Geographic Information. The Company’s sales to customers located outside the United States for the years ended December 31, 2018 and 2017 was $1.2 million and $1.0 million , respectively. All of our long-lived assets are located in the United States. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 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 2018 and 2017 are as follows (in thousands, except per share data): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal 2018 Revenues $ 25,465 $ 27,080 $ 25,707 $ 25,928 Gross profit $ 4,607 $ 5,567 $ 4,358 $ 3,739 Loss from operations $ (1,609 ) $ (248 ) $ (1,290 ) $ (1,398 ) Loss from continuing operations $ (1,388 ) $ (350 ) $ (1,187 ) $ (914 ) Income (loss) from discontinued operations $ 5,494 $ — $ (239 ) $ (680 ) Net income (loss) (2) $ 4,106 $ (350 ) $ (1,426 ) $ (1,594 ) Net income (loss) per share — basic and diluted: Net loss from continuing operations (1) $ (0.07 ) $ (0.02 ) $ (0.06 ) $ (0.05 ) Net income (loss) from discontinued operations (1) $ 0.27 $ — $ (0.01 ) $ (0.03 ) Net income (loss) per share — basic and diluted (1) $ 0.20 $ (0.02 ) $ (0.07 ) $ (0.08 ) Fiscal 2017 Revenues $ 25,840 $ 26,685 $ 25,795 $ 26,312 Gross profit $ 5,602 $ 5,688 $ 5,370 $ 4,536 Loss from operations $ (1,451 ) $ (1,998 ) $ (105 ) $ (1,745 ) Loss from continuing operations $ (2,251 ) $ (2,846 ) $ (7,334 ) $ (22,605 ) Income (loss) from discontinued operations $ 175 $ 74 $ (1,565 ) $ 622 Net loss (3) $ (2,076 ) $ (2,772 ) $ (8,899 ) $ (21,983 ) Net income (loss) per share — basic and diluted: Net loss from continuing operations (1) $ (0.11 ) $ (0.14 ) $ (0.37 ) $ (1.13 ) Net income (loss) from discontinued operations (1) $ 0.01 $ — $ (0.08 ) $ 0.03 Net loss per share — basic and diluted (1) $ (0.10 ) $ (0.14 ) $ (0.44 ) $ (1.10 ) (1) 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. (2) In the third quarter of 2018, the Company completed the sale of buildings and a portion of land in its Fargo, North Dakota location with a net book value of $1.5 million , for net cash proceeds of approximately $1.0 million , resulting in a loss on sale of $0.5 million , which has been classified as a “Loss on sale of buildings” in the consolidated statement of operations. (3) In the third and fourth quarters of 2017, the Company has increased its valuation allowance for deferred tax assets associated with net operating losses based on an estimated forecast of business operation profitability as well as material changes in business operations from business events. In the fourth quarter of 2017, the remaining deferred tax assets related to net operating losses were fully reserved. In addition, the fourth quarter of 2017 includes the impact of tax rate changes from enacted tax legislation signed in December 2017. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 8, 2019, we received a deficiency letter from the Nasdaq Listing Qualifications Department notifying us that, for the prior thirty consecutive business days, the closing bid price for our common stock had closed below the minimum $1.00 per share requirement for continued listing on the Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Price Requirement”). In accordance with Nasdaq Listing Rules, we have been given 180 calendar days, or until July 8, 2019 to regain compliance with the Minimum Bid Price Requirement. If we do not regain compliance by July 8, 2019, we may transfer from The Nasdaq Global Market to The Nasdaq Capital Market and may be eligible for an additional compliance period of 180 days. To qualify for the additional compliance period, we will have to: (i) submit a transfer application and related application fees; (ii) meet the continued listing requirement for market value of publicly held shares and all other initial listing standards of The Nasdaq Capital Market (except for the bid price requirement); and (iii) provide written notice to Nasdaq of our intention to cure the deficiency during the additional 180-day compliance period by effecting a reverse stock split if necessary. If we do not qualify for an additional compliance period, or should we determine not to submit a transfer application or make the required representation, or if Nasdaq concludes that we will not be able to cure the deficiency, Nasdaq will provide written notice to us that our common stock will be subject to delisting. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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. All 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. Discontinued Operations On February 1, 2018, the Company completed the sale of its customer contracts relating to the Medical Device Sales and Service (“MDSS”) post-warranty service business to Philips North America LLC (“Philips”) pursuant to an Asset Purchase Agreement, dated as of December 22, 2017 for $8.0 million . For all periods presented in our consolidated statements of operations, all sales, costs, expenses, and income taxes attributable to MDSS, except as related to the impact of the decrease in the federal statutory tax rate (see Note 11. Income Taxes ), have been aggregated under the caption “earnings from discontinued operations, net of income taxes.” Cash flows used in or provided by MDSS operations as part of discontinued operations and prior year results recasted to conform with the current presentation are disclosed in Note 3. Discontinued Operations. Unless otherwise noted, amounts and disclosures throughout these notes to consolidated financial statements relate to our continuing operations. Sale of Telerhythmics, LLC On October 31, 2018, the Company entered into a membership interest purchase agreement (the “Telerhythmics Purchase Agreement”) with G Medical Innovations USA, Inc. (“G Medical”), pursuant to which we sold all the outstanding membership interests in Telerhythmics to G Medical. The total consideration related to the Telerhythmics Purchase Agreement was $1.95 million in cash, which was paid at the closing on October 31, 2018. In connection with the transaction, the Company has agreed to make partial monthly rent payments aggregating $0.2 million through January 2021. The Telerhythmics Purchase Agreement includes customary representations, warranties, covenants and indemnification obligations of the parties, including a non-competition covenant by the Company. The gain on the sale of Telerhythmics, LLC was approximately $19 thousand and is included in other income in the statement of operations and comprehensive income. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP 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, self-insurance, inventory valuation, and income taxes. Actual results could materially differ from those estimates. |
Revenue Recognition | 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 $0.8 million and $0.9 million for the years ended December 31, 2018 and 2017 , respectively. Revenue Recognition We adopted Accounting Standards Codification (“ASC”) Topic 606 effective January 1, 2018 using the modified retrospective method. We applied the practical expedient permitted under ASC Topic 606 to those contracts that were not completed as of the date of initial adoption. Results for reporting periods after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with legacy accounting guidance under ASC Topic 605. Our revenue recognition policies under ASC Topic 606 and Topic 605 are explained below. Pursuant to ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when a customer obtains control of promised goods or services. The Company records the amount of revenue that reflects the consideration that it expects to receive in exchange for those goods or services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. Under ASC 605, we recognized revenue for all of our reportable segments 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. Services Revenue Recognition. We generate service revenue primarily from providing diagnostic imaging and cardiac monitoring services to our customers. Service revenue within our Diagnostic Imaging and Mobile Healthcare reportable segments is derived from providing our customers with contract diagnostic imaging services, which includes use of our imaging systems, qualified personnel, radiopharmaceuticals, licensing, logistics and related items required to perform testing in their own offices. We bill customers either on a per-scan or fixed-payment methodology, depending upon the contract that is negotiated with the customer. Within our Mobile Healthcare segment, we also rent imaging systems to healthcare customers for use in their operations. Rental revenues are structured as either a weekly or monthly payment arrangement, and are recognized in the month services are provided. Revenue related to provision of our services is recognized at the time services are performed. Product and Product-Related Revenue Recognition. We generate revenue from product and product-related sales, primarily from the sale of gamma cameras. Diagnostic Imaging product revenues are generated from the sale of internally developed solid-state gamma camera imaging systems and camera maintenance service contracts. Revenue for sales of imaging systems is generally recognized upon delivery of systems and acceptance by customers. We also provide installation services and training on cameras we sell, primarily in the United States. Installation and initial training is generally performed shortly after delivery and revenue related to the provision of these services is recognized at the time services are performed. Neither installation nor training is essential to the functionality of the product. Finally, we offer camera maintenance service contracts that are sold beyond the term of the initial warranty, generally one year from the date of purchase. Revenue from these contracts is deferred and recognized ratably over the period of the obligation. Deferred Revenues We record deferred revenues when cash payments are received or due in advance of our performance, including amounts that are refundable. We have determined our contracts do not include a significant financing component. The majority of our deferred revenue relates to payments received on camera support post-warranty service contracts, which are billed at the beginning of the annual contract period or at periodic intervals (e.g., monthly or quarterly). Contract Costs We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract when the amortization period would have been one year or less. These costs mainly include the Company’s internal sales commissions; under the terms of these programs these are generally earned and the costs are recognized at the time the revenue is recognized. Product and Product-Related Revenues and Services Revenue Product and product-related revenue are generated from the sale of gamma cameras and post-warranty maintenance service contracts within our Diagnostic Imaging reportable segment. Services revenue are generated from providing diagnostic imaging and cardiac monitoring services to customers within our Diagnostic Services and Mobile Healthcare reportable segments. Services revenue also includes lease income generated from interim rentals of imaging systems to our customers. Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from revenue. The majority of our contracts have a single performance obligation, as we provide a series of distinct services that are substantially the same and are transferred with the same pattern to the customer. For contracts with multiple performance obligations, we allocate the total transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. We use an observable price to determine the stand-alone selling price for separate performance obligations or a cost plus margin approach when one is not available. Our products are generally not sold with a right of return and the Company does not provide significant credits or incentives, which may be variable consideration when estimating the amount of revenue to be recognized. |
Concentration of Credit Risk | Concentration of Credit Risk 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, 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. |
Equity Securities | Equity Securities As of December 31, 2018 , securities consist of investments in equity securities that are publicly traded. Investments that are strategic in nature, with the intent to hold the investment over a several year period, are classified as other assets (non-current). Effective January 1, 2018, equity securities, with certain exceptions, are measured at fair value and changes in fair value are recognized in net 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 . We regularly evaluate the collectability of our trade receivables and provide reserves for doubtful accounts based on our historical experience rate, known collectability issues and disputes, and our bad debt write-off history. Our estimates of collectability could be impacted by material amounts due to changed circumstances, such as a higher number of defaults or material adverse changes in a payor’s ability to meet its obligations. 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, and the related provision for doubtful accounts is charged to general and administrative expenses. Within Diagnostic Services, we record adjustments and credit memos that represent billing adjustments subsequent to the performance of service. As such, we also record a provision for billing adjustments, which are based on our historical experience rate and billing adjustments history. The provision for billing adjustments 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 range from 5 to 20 years for buildings and improvements, 3 to 10 years for machinery and equipment, 3 to 10 years for computer hardware and software, and the lower of the estimated useful life or remaining lease term 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 impairment analysis by quantitatively comparing the fair value of the reporting unit to the carrying value of the reporting unit, including goodwill. Impairment charge for goodwill is recognized for the amount by which the carrying value of the reporting unit exceeds its fair value and such loss should not exceed the total goodwill allocated to the reporting unit. |
Self-Insured Health Insurance Benefits | Self-Insured Health Insurance Benefits Effective January 1, 2017, the Company provided healthcare benefits to its employees through a self-insured plan with “stop loss” coverage. The Company records a liability that represents our estimated cost of claims incurred and unpaid as of the balance sheet date. Our estimated reserve is based on historical experience and trends related to both health insurance claims and payments. The ultimate cost of healthcare benefits will depend on actual costs incurred to settle the claims and may differ from the amounts reserved by the Company for those claims. |
Restricted Cash | Restricted Cash We maintain certain cash amounts restricted as to withdrawal or use. As of December 31, 2018 and 2017 , restricted cash was $0.3 million , comprised of cash held for letters of credit for our real estate leases and certain minimum balance requirements on our banking arrangements. |
Debt Issuance Costs | Debt Issuance Costs We incur debt issuance costs in connection with long-term debt financings. Debt issuance costs recorded in connection with our Comerica revolving credit facility are presented in other assets on the consolidated balance sheets and are amortized over the term of the revolving debt agreements using the straight-line method. Amortization of debt issuance costs are included in interest expense. As of December 31, 2018 , we have $0.2 million of unamortized debt issuance costs. Upon changes to our debt structure, we evaluate debt issuance costs in accordance with the Debt topic of the Codification. We adjust debt issuance costs as necessary based on the results of this evaluation, as discussed in Note 8. Debt . |
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 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 Product and product-related 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. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Basic and Diluted Net (Loss) Per Share | Basic and Diluted Net Income (Loss) Per Share Basic earnings per share (“EPS”) is calculated by dividing net (loss) income by the weighted-average number of common shares and vested restricted stock units outstanding. Diluted EPS is computed by dividing net (loss) 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. The following table sets forth the computation of basic and diluted net (loss) income per share for the periods indicated (in thousands, except per share amounts): Year Ended December 31, 2018 2017 Numerator: Loss from continuing operations, net of tax $ (3,839 ) $ (35,036 ) Income (loss) from discontinued operations, net of tax 4,575 (694 ) Net income (loss) $ 736 $ (35,730 ) Denominator: Weighted average shares outstanding - basic 20,158 19,995 Dilutive potential common shares: Stock options — — Restricted stock units — — Weighted average shares outstanding - diluted 20,158 19,995 Net income (loss) per common share - basic and diluted Continuing operations $ (0.19 ) $ (1.75 ) Discontinued operations 0.23 (0.04 ) Net income (loss) per share - basic and diluted (1) $ 0.04 $ (1.79 ) (1) Earnings per share may not add due to rounding. 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 following weighted-average outstanding common stock equivalents were not included in the calculation of diluted net income (loss) per share because their effect was antidilutive (in thousands): Year Ended December 31, 2018 2017 Stock options 340 220 Restricted stock units 157 33 Total 497 253 |
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. |
Income Taxes | Income Taxes We provide for income taxes under the asset and 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. 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 derecognition, 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. |
Recent Accounting Standards | Recently Adopted Accounting Standards In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. We adopted ASU 2016-18 effective January 1, 2018 using the retrospective transition method, which resulted in an increase of $3.0 million in net cash flows used in financing activities that was previously reported for the year ended December 31, 2017 . In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which 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. We adopted ASU 2016-01 on January 1, 2018. As a result of the adoption, we recorded an increase to retained earnings of $17 thousand to recognize the unrealized gains previously recorded within accumulated other comprehensive income. Subsequent changes in the fair value of our marketable securities will be recorded to other expense, net. See Note 6. Fair Value Measurements , for further details. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes current revenue recognition guidance, including most industry-specific guidance. We adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. Under the modified retrospective method, the Company recognized the cumulative effect of initially applying the standard as an adjustment to opening retained earnings at the date of initial application; however, we did not have any adjustments as of the date of the adoption. See Note 4. Revenue , for expanded revenue disclosures and updates to our revenue recognition policy. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. We early adopted ASU 2017-04 effective April 1, 2018 on a prospective basis in conjunction with the interim impairment test of goodwill performed during that quarter. See Note 7. Goodwill , for additional information on our interim goodwill impairment test performed. New Accounting Standards To Be Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which amended the existing accounting standards for the accounting for leases. Most significant among the changes in the standard is the recognition of right-of-use (“ROU”) assets and lease liabilities by lessees for those leases classified as operating leases under current U.S. GAAP. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which offers a transition option to entities adopting ASC 842. The Company will adopt ASC 842 beginning January 1, 2019, using the modified-retrospective method, which will result in a cumulative effect adjustment to accumulated deficit at the beginning of 2019, rather than adjustments to the comparative prior periods presented in the financial statements. The Company is finalizing its implementation related to policies, processes, and internal controls to comply with the guidance. The Company estimates that the right-of-use assets and lease liabilities to be recorded on its consolidated balance sheet for its lease portfolio as of January 1, 2019, to be within the range of $3.5 million to $4.5 million , primarily relating to real estate and vehicle leases. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 is effective for us beginning January 1, 2020. ASU 2018-15 is required to be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently evaluating the impact adopting this guidance will have on our financial statements. |
Leases | We currently lease facilities and certain automotive equipment under non-cancelable operating leases expiring through July 2023. 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 Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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, 2018 , and 2017 (in thousands): Allowance for Doubtful Accounts (1) Reserve for Billing Adjustments (2) Reserve for Contractual Allowances (2) Balance at December 31, 2016 $ 531 $ 13 $ 515 Provision adjustment 453 133 19,307 Write-offs and recoveries, net (431 ) (137 ) (19,375 ) Balance at December 31, 2017 553 9 447 Provision adjustment 180 219 19,221 Write-offs and recoveries, net (301 ) (210 ) (19,668 ) Balance at December 31, 2018 $ 432 $ 18 $ — (1) The provision was charged against general and administrative expenses. (2) The provision was charged against services revenue. Contractual allowance was written off due to sale of Telerhythmics. |
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, 2018 and 2017 (in thousands): Reserve for Excess and Obsolete Inventories (1) Balance at December 31, 2016 $ 416 Provision adjustment 81 Write-offs and scrap (44 ) Balance at December 31, 2017 453 Provision adjustment 42 Write-offs and scrap (2) (115 ) Balance at December 31, 2018 $ 380 (1) The provision was charged against Product and product-related cost of revenues. (2) Amount includes $90 thousand related to inventory sold during the year. |
Schedule of Company's warranty reserve activity | The activities related to our warranty reserve for the years ended December 31, 2018 and 2017 are as follows (in thousands): Year Ended December 31, 2018 2017 Balance at beginning of year $ 204 $ 196 Charges to cost of revenues 279 351 Applied to liability (286 ) (343 ) Balance at end of year $ 197 $ 204 |
Schedule of basic and diluted net (loss) income per share computations | The following table sets forth the computation of basic and diluted net (loss) income per share for the periods indicated (in thousands, except per share amounts): Year Ended December 31, 2018 2017 Numerator: Loss from continuing operations, net of tax $ (3,839 ) $ (35,036 ) Income (loss) from discontinued operations, net of tax 4,575 (694 ) Net income (loss) $ 736 $ (35,730 ) Denominator: Weighted average shares outstanding - basic 20,158 19,995 Dilutive potential common shares: Stock options — — Restricted stock units — — Weighted average shares outstanding - diluted 20,158 19,995 Net income (loss) per common share - basic and diluted Continuing operations $ (0.19 ) $ (1.75 ) Discontinued operations 0.23 (0.04 ) Net income (loss) per share - basic and diluted (1) $ 0.04 $ (1.79 ) (1) Earnings per share may not add due to rounding. |
Schedule of antidilutive weighted average outstanding common stock equivalents | The following weighted-average outstanding common stock equivalents were not included in the calculation of diluted net income (loss) per share because their effect was antidilutive (in thousands): Year Ended December 31, 2018 2017 Stock options 340 220 Restricted stock units 157 33 Total 497 253 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations Information | The following table summarizes the MDSS results for each period (in thousands): Year ended December 31, 2018 2017 Total revenues $ 789 $ 13,707 Total cost of revenues 555 6,501 Gross profit 234 7,206 Operating expenses: Marketing and sales 85 2,905 General and administrative 163 774 Amortization of intangible assets 13 1,667 Gain on sale of discontinued operations (6,161 ) — Goodwill impairment — 2,580 Total operating expenses (5,900 ) 7,926 Income (loss) from operations 6,134 (720 ) Interest expense, net (26 ) (338 ) Income (loss) from discontinued operations before income taxes 6,108 (1,058 ) Income tax (expense) benefit (1,533 ) 364 Net income (loss) from discontinued operations $ 4,575 $ (694 ) The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s balance sheet (in thousands): December 31, 2018 2017 Carrying amounts of assets included as part of discontinued operations Intangible assets, net $ — $ 637 Goodwill — 1,098 Total assets classified as held for sale as part of discontinued operations $ — $ 1,735 Carrying amounts of liabilities included as part of discontinued operations Deferred revenue $ — $ 835 Total liabilities classified as held for sale in the consolidated balance sheet $ — $ 835 The following table presents supplemental cash flow information of discontinued operations (in thousands): December 31, 2018 2017 Operating activities Depreciation $ 2 $ 34 Amortization of intangible assets $ 13 $ 1,667 Gain on sale of discontinued operations $ (6,161 ) $ — Share-based compensation $ — $ 18 Investing activities Proceeds from sale of discontinued operations $ 6,844 $ — |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue | The following table presents our revenues disaggregated by major source (in thousands): Year Ended December 31, 2018 Diagnostic Services Diagnostic Imaging Mobile Healthcare Total Major Goods/Service Lines Mobile Imaging and Cardiac Monitoring $ 48,694 $ — $ 32,865 $ 81,559 Camera Sales — 4,914 — 4,914 Camera Support — 6,951 — 6,951 Revenue from Contracts with Customers 48,694 11,865 32,865 93,424 Lease Income 562 118 10,076 10,756 Total Revenues $ 49,256 $ 11,983 $ 42,941 $ 104,180 Timing of Revenue Recognition Services and goods transferred over time $ 45,862 $ 6,555 $ 42,477 $ 94,894 Services and goods transferred at a point in time 3,394 5,428 464 9,286 Total Revenues $ 49,256 $ 11,983 $ 42,941 $ 104,180 |
Schedule of changes in deferred revenues | Changes in the deferred revenues for the year ended December 31, 2018 , is as follows (in thousands): Balance at December 31, 2017 $ 2,375 Revenue recognized that was included in balance at beginning of the year (1,380 ) Deferred revenue, net, related to contracts entered into during the year 718 Balance at December 31, 2018 $ 1,713 |
Supplementary Balance Sheet I_2
Supplementary Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Balance Sheet Disclosures [Abstract] | |
Tables of supplemental balance sheet information | The following tables show the Company’s consolidated balance sheet details as of December 31, 2018 and 2017 (in thousands): December 31, December 31, Inventories: Raw materials $ 2,419 $ 2,331 Work-in-process 2,307 2,094 Finished goods 1,056 1,529 Total inventories 5,782 5,954 Less reserve for excess and obsolete inventories (380 ) (453 ) Total inventories, net $ 5,402 $ 5,501 December 31, December 31, Property and equipment, net: Land $ 550 $ 1,170 Buildings and Leasehold improvements 1,989 2,946 Machinery and equipment 52,409 55,152 Computer hardware and software 4,490 4,615 Total property and equipment 59,438 63,883 Accumulated depreciation (37,793 ) (35,518 ) Total property and equipment, net $ 21,645 $ 28,365 Depreciation expense for the years ended December 31, 2018 and 2017 was $7.3 million and $7.9 million , respectively. In the third quarter of 2018, the Company completed the sale of buildings and a portion of land in its Fargo, North Dakota location with a net book value of $1.5 million , for net cash proceeds of approximately $1.0 million , resulting in a loss on sale of $0.5 million , which has been classified as a “Loss on sale of buildings” in the consolidated statement of operations. December 31, 2018 Weighted-Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangible assets with finite useful lives: Customer relationships 9.8 $ 8,453 $ (4,751 ) $ 3,702 Trademarks 6.0 3,055 (1,577 ) 1,478 Patents 15.0 141 (136 ) 5 Covenants not to compete 5.0 181 (138 ) 43 Total intangible assets, net $ 11,830 $ (6,602 ) $ 5,228 December 31, 2017 Weighted-Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangible assets with finite useful lives: Customer relationships 9.6 $ 10,363 $ (4,976 ) $ 5,387 Trademarks 6.4 3,654 (1,314 ) 2,340 Distribution Agreement 3.3 2,165 (2,165 ) — Patents 15.0 141 (134 ) 7 Covenants not to compete 5.0 251 (155 ) 96 Total intangible assets, net $ 16,574 $ (8,744 ) $ 7,830 Amortization expense for intangible assets, net for the year ended December 31, 2018 and 2017 was $1.4 million , and $1.5 million respectively. Estimated amortization expense for intangible assets for 2019 is $1.1 million , for 2020 is $1.1 million , for 2021 is $1.0 million , for 2022 is $0.5 million , for 2023 is $0.5 million , and thereafter is $1.0 million . December 31, December 31, Other current liabilities: Professional fees $ 358 $ 506 Sales and property taxes payable 324 404 Current portion of capital lease obligation 786 796 Facilities and related costs 259 153 Outside services and consulting 135 146 Payable to former DMS Health stockholders — 170 Other accrued liabilities 403 740 Total other current liabilities $ 2,265 $ 2,915 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements | The following table sets forth by level within the fair value hierarchy our assets that were recorded at fair value (in thousands): At Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Equity securities $ 153 $ 6 $ — $ 159 At Fair Value as of December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Equity securities $ 97 $ 111 $ — $ 208 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | Changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 , by reportable segment, are as follows (in thousands): Diagnostic Services Medical Device Sales and Service Total Balance at December 31, 2016 $ 2,559 $ 3,678 $ 6,237 Impairment of DMS Health — (2,580 ) (2,580 ) Impairment of Telerhythmics (166 ) — (166 ) Balance at December 31, 2017 $ 2,393 $ 1,098 $ 3,491 Derecognition of DMS Health (1) — (1,098 ) (1,098 ) Impairment of Telerhythmics (476 ) — (476 ) Derecognition of Telerhythmics (2) (172 ) — (172 ) Balance at December 31, 2018 $ 1,745 $ — $ 1,745 (1) On February 1, 2018, the Company’s MDSS reportable segment ceased to exist as the Company sold its MDSS customer contracts related to the post-warranty service business. As a result, the MDSS reportable segment is reported as discontinued operations in these consolidated financial statements and related notes thereto. (2) On October 31, 2018, the Company entered into a membership interest purchase agreement (the “Telerhythmics Purchase Agreement”) with G Medical Innovations USA, Inc. (“G Medical”), pursuant to which we sold all the outstanding membership interests in Telerhythmics to G Medical. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt | A summary of long-term debt is as follows (dollars in thousands): December 31, 2018 December 31, 2017 Amount Interest Rate Amount Interest Rate Revolving Credit Facility $ 9,500 4.87% $ 19,500 3.90% |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | 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, 2018 are as follows (in thousands): Operating Capital Leases 2019 $ 2,147 $ 899 2020 1,245 804 2021 881 778 2022 582 219 2023 343 27 Thereafter — — Total future minimum lease payments $ 5,198 2,727 Less amounts representing interest 222 Present value of obligations 2,505 Less: current capital lease obligations 786 Total long-term capital lease obligations $ 1,719 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | A summary of our stock option award activity as of and for the year ended December 31, 2018 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 exercisable at December 31, 2017 824 $ 2.84 Options outstanding at December 31, 2017 902 $ 3.03 Options granted — $ — Options forfeited (17 ) $ 5.12 Options expired (290 ) $ 2.68 Options exercised (37 ) $ 0.70 Options outstanding at December 31, 2018 558 $ 3.31 2.7 $ — Options exercisable at December 31, 2018 523 $ 3.18 2.4 $ — |
Schedule of restricted stock activity | A summary of our restricted stock unit activity as of and for the year ended December 31, 2018 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, 2017 341 $4.73 Granted 498 $1.92 Forfeited (285 ) $2.66 Vested (187 ) $4.03 Non-vested restricted stock units outstanding at December 31, 2018 367 $2.88 The following table summarizes information about restricted stock units that vested during the years ended December 31, 2018 and 2017 based on service conditions (in thousands): Year Ended December 31, 2018 2017 Fair value on vesting date of vested restricted stock units $ 364 $ 798 |
Schedule of compensation expense | Total share-based compensation expense related to all of our share-based units for the years ended December 31, 2018 and 2017 was allocated as follows (in thousands): Year Ended December 31, 2018 2017 Cost of revenues: Services $ 34 $ 40 Product and product-related 16 19 Marketing and sales 101 157 General and administrative 483 636 Total share-based compensation expense $ 634 $ 852 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax components | Significant components of the provision (benefit) for income taxes from continuing operations are as follows (in thousands): Year Ended December 31, 2018 2017 Current provision: Federal $ — $ — State 80 30 Foreign 45 63 Total current provision 125 93 Deferred (benefit) provision: Federal (1,398 ) 26,737 State (288 ) 1,157 Foreign — — Total deferred (benefit) provision (1,686 ) 27,894 Total income tax (benefit) provision $ (1,561 ) $ 27,987 |
Schedule of differences between provision (benefit) for income taxes and statutory income taxes | Differences between the provision (benefit) for income taxes and income taxes at the statutory federal income tax rate for continuing operations are as follows: Year Ended December 31, 2018 2017 Income tax expense (benefit) at statutory federal rate 21.0 % 34.0 % State income tax expense, net of federal benefit 1.7 % 2.6 % Permanent differences and other (4.6 )% — % Goodwill — % (9.5 )% Withholding costs (0.8 )% (0.9 )% Tax credit (0.1 )% — % Impact of 2017 Tax Act — % (165.0 )% Change in effective federal and state tax rates (2.0 )% 0.4 % Expiration of net operating loss and tax credit carryovers — % (0.1 )% Stock compensation expense (2.4 )% (1.1 )% Reserve for uncertain tax positions and other reserves — % 0.7 % Change in valuation allowance 16.1 % (258.0 )% Provision (benefit) for income taxes 28.9 % (396.9 )% |
Schedule of deferred tax assets | Our net deferred tax assets consisted of the following (in thousands): December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 22,043 $ 23,451 Research and development and other credits 72 44 Reserves 336 567 Intangibles — — Other, net 1,013 1,232 Total deferred tax assets 23,464 25,294 Deferred tax liabilities: Fixed assets and other (2,588 ) (3,489 ) Intangibles (756 ) (891 ) Total deferred tax liabilities (3,344 ) (4,380 ) Valuation allowance for deferred tax assets (20,241 ) (21,168 ) Net deferred tax liabilities $ (121 ) $ (254 ) |
Schedule of activity related to unrecognized tax benefits | The following table summarizes the activity related to our unrecognized tax benefits (in thousands): December 31, 2018 2017 Balance at beginning of year $ 3,936 $ 4,134 Expiration of the statute of limitations for the assessment of taxes (326 ) (198 ) Balance at end of year $ 3,610 $ 3,936 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information for the years ended December 31, 2018 and 2017 is as follows (in thousands): Year ended December 31, 2018 2017 Revenue by segment: Diagnostic Services $ 49,256 $ 49,016 Diagnostic Imaging 11,983 12,081 Mobile Healthcare 42,941 43,535 Consolidated revenue $ 104,180 $ 104,632 Gross profit by segment: Diagnostic Services $ 9,447 $ 9,942 Diagnostic Imaging 5,142 5,036 Mobile Healthcare 3,682 6,218 Consolidated gross profit $ 18,271 $ 21,196 Income (loss) from operations by segment: Diagnostic Services $ 732 $ (134 ) Diagnostic Imaging (304 ) (1,097 ) Mobile Healthcare (3,990 ) (2,563 ) Segment loss from operations $ (3,562 ) $ (3,794 ) Loss on sale of buildings (1) (507 ) — Goodwill impairment (2) (476 ) (166 ) Litigation reserve (3) — (1,339 ) Consolidated loss from operations $ (4,545 ) $ (5,299 ) (1) Reflects loss on sale of land and buildings in our Fargo, North Dakota location. See Note 5. Supplementary Balance Sheet Information , for further information (2) See Note 7. Goodwill , for further information. (3) See Note 9. Commitments and Contingencies , for further information. |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly data | 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 2018 and 2017 are as follows (in thousands, except per share data): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal 2018 Revenues $ 25,465 $ 27,080 $ 25,707 $ 25,928 Gross profit $ 4,607 $ 5,567 $ 4,358 $ 3,739 Loss from operations $ (1,609 ) $ (248 ) $ (1,290 ) $ (1,398 ) Loss from continuing operations $ (1,388 ) $ (350 ) $ (1,187 ) $ (914 ) Income (loss) from discontinued operations $ 5,494 $ — $ (239 ) $ (680 ) Net income (loss) (2) $ 4,106 $ (350 ) $ (1,426 ) $ (1,594 ) Net income (loss) per share — basic and diluted: Net loss from continuing operations (1) $ (0.07 ) $ (0.02 ) $ (0.06 ) $ (0.05 ) Net income (loss) from discontinued operations (1) $ 0.27 $ — $ (0.01 ) $ (0.03 ) Net income (loss) per share — basic and diluted (1) $ 0.20 $ (0.02 ) $ (0.07 ) $ (0.08 ) Fiscal 2017 Revenues $ 25,840 $ 26,685 $ 25,795 $ 26,312 Gross profit $ 5,602 $ 5,688 $ 5,370 $ 4,536 Loss from operations $ (1,451 ) $ (1,998 ) $ (105 ) $ (1,745 ) Loss from continuing operations $ (2,251 ) $ (2,846 ) $ (7,334 ) $ (22,605 ) Income (loss) from discontinued operations $ 175 $ 74 $ (1,565 ) $ 622 Net loss (3) $ (2,076 ) $ (2,772 ) $ (8,899 ) $ (21,983 ) Net income (loss) per share — basic and diluted: Net loss from continuing operations (1) $ (0.11 ) $ (0.14 ) $ (0.37 ) $ (1.13 ) Net income (loss) from discontinued operations (1) $ 0.01 $ — $ (0.08 ) $ 0.03 Net loss per share — basic and diluted (1) $ (0.10 ) $ (0.14 ) $ (0.44 ) $ (1.10 ) (1) 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. (2) In the third quarter of 2018, the Company completed the sale of buildings and a portion of land in its Fargo, North Dakota location with a net book value of $1.5 million , for net cash proceeds of approximately $1.0 million , resulting in a loss on sale of $0.5 million , which has been classified as a “Loss on sale of buildings” in the consolidated statement of operations. (3) In the third and fourth quarters of 2017, the Company has increased its valuation allowance for deferred tax assets associated with net operating losses based on an estimated forecast of business operation profitability as well as material changes in business operations from business events. In the fourth quarter of 2017, the remaining deferred tax assets related to net operating losses were fully reserved. In addition, the fourth quarter of 2017 includes the impact of tax rate changes from enacted tax legislation signed in December 2017. |
The Company (Details)
The Company (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
The Company [Abstract] | |
Number of reportable segments | 3 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Basis of Presentation (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Dec. 31, 2018 | Feb. 01, 2018 |
Medical Device Sales and Service | |||
Goodwill [Line Items] | |||
Total consideration | $ 8,000 | ||
Telerhythmics | |||
Goodwill [Line Items] | |||
Total consideration | $ 1,950 | ||
Monthly rent payments | $ 200 | ||
Gain on sale of Telerhythmics | $ 19 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Abstract] | ||
Unrealized loss on available-for-sale securities | $ 62 | $ 311 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Allowance For Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts | ||
Allowance for doubtful accounts and billing adjustments [Roll Forward] | ||
Beginning balance | $ 553 | $ 531 |
Provision adjustment | 180 | 453 |
Write-offs and recoveries, net | (301) | (431) |
Ending balance | 432 | 553 |
Reserves for Billing Adjustments | ||
Allowance for doubtful accounts and billing adjustments [Roll Forward] | ||
Beginning balance | 9 | 13 |
Provision adjustment | 219 | 133 |
Write-offs and recoveries, net | (210) | (137) |
Ending balance | 18 | 9 |
Reserves for Contractual Allowance | ||
Allowance for doubtful accounts and billing adjustments [Roll Forward] | ||
Beginning balance | 447 | 515 |
Provision adjustment | 19,221 | 19,307 |
Write-offs and recoveries, net | (19,668) | (19,375) |
Ending balance | $ 0 | $ 447 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Reserves For Excess And Obsolete Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Write-off and scarping of inventory, related to product sold | $ 90 | |
Reserve For Excess and Obsolete Inventories | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | 453 | $ 416 |
Provision adjustment | 42 | 81 |
Write-offs and scrap | (115) | (44) |
Ending balance | $ 380 | $ 453 |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies - Long-Lived Assets including Finite Lived Purchased Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of long-lived assets held-for-use | $ 0 | $ 0 |
Minimum | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Useful lives of intangible assets | 3 years | |
Maximum | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Useful lives of intangible assets | 15 years | |
Leasehold Improvements | Minimum | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Estimated useful lives of the long-lived assets | 5 years | |
Leasehold Improvements | Maximum | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Estimated useful lives of the long-lived assets | 20 years | |
Machinery and Equipment | Minimum | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Estimated useful lives of the long-lived assets | 3 years | |
Machinery and Equipment | Maximum | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Estimated useful lives of the long-lived assets | 10 years | |
Computer hardware and software | Minimum | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Estimated useful lives of the long-lived assets | 3 years | |
Computer hardware and software | Maximum | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Estimated useful lives of the long-lived assets | 10 years |
Basis of Presentation and Sig_9
Basis of Presentation and Significant Accounting Policies - Valuation of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Goodwill impairment loss | $ (476) | $ (166) |
DMS Health | Medical Device Sales and Service | ||
Goodwill [Line Items] | ||
Goodwill impairment loss | (2,580) | |
DMS Health | Diagnostic Services | ||
Goodwill [Line Items] | ||
Goodwill impairment loss | 0 | |
Telerhythmics | Medical Device Sales and Service | ||
Goodwill [Line Items] | ||
Goodwill impairment loss | 0 | 0 |
Telerhythmics | Diagnostic Services | ||
Goodwill [Line Items] | ||
Goodwill impairment loss | $ (476) | $ (166) |
Basis of Presentation and Si_10
Basis of Presentation and Significant Accounting Policies - Self-Insured Health Insurance Benefits (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Reserve for estimated claims incurred and unpaid | $ 0.5 | $ 1 |
Basis of Presentation and Si_11
Basis of Presentation and Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Restricted cash and cash equivalents | $ 0.3 | $ 0.3 |
Basis of Presentation and Si_12
Basis of Presentation and Significant Accounting Policies - Debt Issuance Costs (Details) $ in Millions | Dec. 31, 2018USD ($) |
Accounting Policies [Abstract] | |
Unamortized debt issuance costs | $ 0.2 |
Basis of Presentation and Si_13
Basis of Presentation and Significant Accounting Policies - Shipping and Handling Fees and Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Costs of revenue | $ 85,909 | $ 83,436 |
Shipping and Handling | ||
Costs of revenue | $ 800 | $ 900 |
Basis of Presentation and Si_14
Basis of Presentation and Significant Accounting Policies - Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Standard product warranty period | 12 months | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of year | $ 204 | $ 196 |
Charges to cost of revenues | 279 | 351 |
Applied to liability | (286) | (343) |
Balance at end of year | $ 197 | $ 204 |
Basis of Presentation and Si_15
Basis of Presentation and Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Advertising costs | $ 0.3 | $ 0.3 |
Basis of Presentation and Si_16
Basis of Presentation and Significant Accounting Policies - Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||
Loss from continuing operations, net of tax | $ (914) | $ (1,187) | $ (350) | $ (1,388) | $ (22,605) | $ (7,334) | $ (2,846) | $ (2,251) | $ (3,839) | $ (35,036) |
Income (loss) from discontinued operations, net of tax | (680) | (239) | 0 | 5,494 | 622 | (1,565) | 74 | 175 | 4,575 | (694) |
Net income (loss) | $ (1,594) | $ (1,426) | $ (350) | $ 4,106 | $ (21,983) | $ (8,899) | $ (2,772) | $ (2,076) | $ 736 | $ (35,730) |
Weighted average shares outstanding - basic (in shares) | 20,158 | 19,995 | ||||||||
Dilutive potential common shares: | ||||||||||
Weighted average shares outstanding - diluted (in shares) | 20,158 | 19,995 | ||||||||
Net loss from continuing operations per share - basic and diluted (in usd per share) | $ (0.05) | $ (0.06) | $ (0.02) | $ (0.07) | $ (1.13) | $ (0.37) | $ (0.14) | $ (0.11) | $ (0.19) | $ (1.75) |
Net income (loss) from discontinued operations per share - basic and diluted (in usd per share) | $ (0.03) | $ (0.01) | $ 0 | $ 0.27 | $ 0.03 | $ (0.08) | $ 0 | $ 0.01 | 0.23 | (0.04) |
Net income (loss) per share — basic and diluted (in usd per share) | $ 0.04 | $ (1.79) | ||||||||
Antidilutive common shares excluded from computation of net income (in shares) | 497 | 253 | ||||||||
Stock Options | ||||||||||
Dilutive potential common shares: | ||||||||||
Dilutive potential common shares (in shares) | 0 | 0 | ||||||||
Antidilutive common shares excluded from computation of net income (in shares) | 340 | 220 | ||||||||
Restricted Stock Units (RSUs) | ||||||||||
Dilutive potential common shares: | ||||||||||
Dilutive potential common shares (in shares) | 0 | 0 | ||||||||
Antidilutive common shares excluded from computation of net income (in shares) | 157 | 33 |
Basis of Presentation and Si_17
Basis of Presentation and Significant Accounting Policies - Recent Accounting Standards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in net cash used in financing activities for adoption of new accounting guidance | $ (14,156) | $ (8,063) | |
Accounting Standards Update 2016-18 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in net cash used in financing activities for adoption of new accounting guidance | $ 3,000 | ||
Retained Earnings | Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle | $ 17 | ||
Accumulated other comprehensive income (loss) | Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle | $ (17) |
Basis of Presentation and Si_18
Basis of Presentation and Significant Accounting Policies - New Accounting Standards To Be Adopted (Details) - Scenario, Forecast $ in Millions | Jan. 01, 2019USD ($) |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right-of-use assets | $ 3.5 |
Lease liabilities | 3.5 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right-of-use assets | 4.5 |
Lease liabilities | $ 4.5 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Medical Device Sales and Service $ in Millions | Feb. 01, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total consideration | $ 8 |
Held in escrow | $ 0.5 |
Discontinued Operations - Finan
Discontinued Operations - Financial Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating expenses: | ||||||||||
Gain on disposal of discontinued operations | $ (6,161) | |||||||||
Goodwill impairment | 476 | $ 166 | ||||||||
Net income (loss) from discontinued operations | $ (680) | $ (239) | $ 0 | $ 5,494 | $ 622 | $ (1,565) | $ 74 | $ 175 | 4,575 | (694) |
Medical Device Sales And Service Post-Warranty Service Business | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Total revenues | 789 | 13,707 | ||||||||
Total cost of revenues | 555 | 6,501 | ||||||||
Gross profit | 234 | 7,206 | ||||||||
Operating expenses: | ||||||||||
Marketing and sales | 85 | 2,905 | ||||||||
General and administrative | 163 | 774 | ||||||||
Amortization of intangible assets | 13 | 1,667 | ||||||||
Gain on disposal of discontinued operations | (6,161) | 0 | ||||||||
Goodwill impairment | 0 | 2,580 | ||||||||
Total operating expenses | (5,900) | 7,926 | ||||||||
(Loss) income from operations | 6,134 | (720) | ||||||||
Interest expense, net | (26) | (338) | ||||||||
(Loss) income from discontinued operations before income taxes | 6,108 | (1,058) | ||||||||
Income tax (expense) benefit | (1,533) | 364 | ||||||||
Net income (loss) from discontinued operations | $ 4,575 | $ (694) |
Discontinued Operations - Major
Discontinued Operations - Major Classes of Assets and Liabilities Included in Company's Balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Document Period End Date | Dec. 31, 2018 | |
Carrying amounts of assets included as part of discontinued operations | ||
Total assets classified as held for sale as part of discontinued operations | $ 0 | $ 1,735 |
Carrying amounts of liabilities included as part of discontinued operations | ||
Total liabilities classified as held for sale in the consolidated balance sheet | 0 | 835 |
Medical Device Sales And Service Post-Warranty Service Business | ||
Carrying amounts of assets included as part of discontinued operations | ||
Intangible assets, net | 0 | 1,098 |
Goodwill | 0 | 637 |
Total assets classified as held for sale as part of discontinued operations | 0 | 1,735 |
Carrying amounts of liabilities included as part of discontinued operations | ||
Deferred revenue | 0 | 835 |
Total liabilities classified as held for sale in the consolidated balance sheet | $ 0 | $ 835 |
Discontinued Operations - Suppl
Discontinued Operations - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Document Period End Date | Dec. 31, 2018 | |
Gain on disposal of discontinued operations | $ (6,161) | |
Proceeds from sale of discontinued operations | 6,844 | |
Medical Device Sales And Service Post-Warranty Service Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation | 2 | $ 34 |
Amortization of intangible assets | 13 | 1,667 |
Gain on disposal of discontinued operations | (6,161) | 0 |
Share-based compensation | 0 | 18 |
Proceeds from sale of discontinued operations | $ 6,844 | $ 0 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | $ 93,424 | |||||||||
Lease Income | 10,756 | |||||||||
Total Revenues | $ 25,928 | $ 25,707 | $ 27,080 | $ 25,465 | $ 26,312 | $ 25,795 | $ 26,685 | $ 25,840 | 104,180 | $ 104,632 |
Services and goods transferred over time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 94,894 | |||||||||
Services and goods transferred at a point in time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 9,286 | |||||||||
Mobile Imaging and Cardiac Monitoring | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 81,559 | |||||||||
Camera Sales | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 4,914 | |||||||||
Camera Support | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 6,951 | |||||||||
Diagnostic Services | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 48,694 | |||||||||
Lease Income | 562 | |||||||||
Total Revenues | 49,256 | |||||||||
Diagnostic Services | Services and goods transferred over time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 45,862 | |||||||||
Diagnostic Services | Services and goods transferred at a point in time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 3,394 | |||||||||
Diagnostic Services | Mobile Imaging and Cardiac Monitoring | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 48,694 | |||||||||
Diagnostic Services | Camera Sales | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 0 | |||||||||
Diagnostic Services | Camera Support | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 0 | |||||||||
Diagnostic Imaging | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 11,865 | |||||||||
Lease Income | 118 | |||||||||
Total Revenues | 11,983 | |||||||||
Diagnostic Imaging | Services and goods transferred over time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 6,555 | |||||||||
Diagnostic Imaging | Services and goods transferred at a point in time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 5,428 | |||||||||
Diagnostic Imaging | Mobile Imaging and Cardiac Monitoring | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 0 | |||||||||
Diagnostic Imaging | Camera Sales | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 4,914 | |||||||||
Diagnostic Imaging | Camera Support | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 6,951 | |||||||||
Mobile Healthcare | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 32,865 | |||||||||
Lease Income | 10,076 | |||||||||
Total Revenues | 42,941 | |||||||||
Mobile Healthcare | Services and goods transferred over time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 42,477 | |||||||||
Mobile Healthcare | Services and goods transferred at a point in time | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 464 | |||||||||
Mobile Healthcare | Mobile Imaging and Cardiac Monitoring | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 32,865 | |||||||||
Mobile Healthcare | Camera Sales | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | 0 | |||||||||
Mobile Healthcare | Camera Support | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue from Contracts with Customers | $ 0 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Non-current deferred revenue | $ 26 | $ 73 |
Camera Sales | ||
Disaggregation of Revenue [Line Items] | ||
Warranty term | 1 year | |
Minimum | Diagnostic Imaging | Camera Support | ||
Disaggregation of Revenue [Line Items] | ||
Service contract term | 12 months | |
Maximum | Diagnostic Imaging | Camera Support | ||
Disaggregation of Revenue [Line Items] | ||
Service contract term | 48 months |
Revenue - Changes in Deferred R
Revenue - Changes in Deferred Revenue (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Change In Contract With Customer, Liability [Roll Forward] | |
Balance at December 31, 2017 | $ 2,375 |
Revenue recognized that was included in balance at beginning of the year | (1,380) |
Deferred revenue, net, related to contracts entered into during the year | 718 |
Balance at December 31, 2018 | $ 1,713 |
Supplementary Balance Sheet I_3
Supplementary Balance Sheet Information - (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory, Net [Abstract] | |||
Raw materials | $ 2,419 | $ 2,331 | |
Work-in-process | 2,307 | 2,094 | |
Finished goods | 1,056 | 1,529 | |
Total inventories | 5,782 | 5,954 | |
Less reserve for excess and obsolete inventories | (380) | (453) | |
Total inventories, net | 5,402 | 5,501 | |
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 59,438 | 63,883 | |
Accumulated depreciation | (37,793) | (35,518) | |
Total property and equipment, net | 21,645 | 28,365 | |
Depreciation | 7,331 | 7,903 | |
Proceeds from sale of property and equipment | $ 1,500 | ||
Proceeds from sale of buildings | 1,000 | ||
Loss on sale of buildings | $ 500 | 507 | 0 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Gross Carrying Amount | 11,830 | 16,574 | |
Accumulated Amortization | (6,602) | (8,744) | |
Intangible Assets, Net | 5,228 | 7,830 | |
Amortization of intangible assets | 1,377 | 1,494 | |
Amortization expense for intangible assets, 2019 | 1,100 | ||
Amortization expense for intangible assets, 2020 | 1,100 | ||
Amortization expense for intangible assets, 2021 | 1,000 | ||
Amortization expense for intangible assets, 2022 | 500 | ||
Amortization expense for intangible assets, 2023 | 500 | ||
Amortization expense for intangible assets, thereafter | 1,000 | ||
Accrued Liabilities, Current [Abstract] | |||
Professional fees | 358 | 506 | |
Sales and property taxes payable | 324 | 404 | |
Current portion of capital lease obligation | 786 | 796 | |
Facilities and related costs | 259 | 153 | |
Outside services and consulting | 135 | 146 | |
Payable to former DMS Health stockholders | 0 | 170 | |
Other accrued liabilities | 403 | 740 | |
Total other current liabilities | $ 2,265 | $ 2,915 | |
Customer relationships | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Weighted-Average Useful Life (years) | 9 years 9 months 18 days | 9 years 7 months 6 days | |
Gross Carrying Amount | $ 8,453 | $ 10,363 | |
Accumulated Amortization | (4,751) | (4,976) | |
Intangible Assets, Net | $ 3,702 | $ 5,387 | |
Trademarks | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Weighted-Average Useful Life (years) | 6 years | 6 years 4 months 24 days | |
Gross Carrying Amount | $ 3,055 | $ 3,654 | |
Accumulated Amortization | (1,577) | (1,314) | |
Intangible Assets, Net | $ 1,478 | $ 2,340 | |
Distribution Agreement | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Weighted-Average Useful Life (years) | 3 years 3 months | ||
Gross Carrying Amount | $ 2,165 | ||
Accumulated Amortization | (2,165) | ||
Intangible Assets, Net | $ 0 | ||
Patents | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Weighted-Average Useful Life (years) | 15 years | 15 years | |
Gross Carrying Amount | $ 141 | $ 141 | |
Accumulated Amortization | (136) | (134) | |
Intangible Assets, Net | $ 5 | $ 7 | |
Covenants not to compete | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Weighted-Average Useful Life (years) | 5 years | 5 years | |
Gross Carrying Amount | $ 181 | $ 251 | |
Accumulated Amortization | (138) | (155) | |
Intangible Assets, Net | 43 | 96 | |
Land | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 550 | 1,170 | |
Buildings and Leasehold improvements | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 1,989 | 2,946 | |
Machinery and equipment | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | 52,409 | 55,152 | |
Computer hardware and software | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property and equipment, gross | $ 4,490 | $ 4,615 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 159 | $ 208 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 153 | 97 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 6 | 111 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |
Unrealized gains recorded in the period | $ 43 |
Unrealized losses recorded in the period | $ 105 |
Goodwill - (Details)
Goodwill - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 2,393 | |
Goodwill including discontinued operations beginning balance | 3,491 | $ 6,237 |
Goodwill impairment loss | (476) | (166) |
Goodwil impairment including discontinued operations | 476 | 2,746 |
Goodwill, ending balance | 1,745 | 2,393 |
Goodwill including discontinued operations ending balance | 1,745 | 3,491 |
DMS Health | ||
Goodwill [Roll Forward] | ||
Goodwil impairment including discontinued operations | 2,580 | |
Derecognition | 1,098 | |
Telerhythmics | ||
Goodwill [Roll Forward] | ||
Goodwil impairment including discontinued operations | 476 | 166 |
Derecognition | 172 | |
Diagnostic Services | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 2,393 | 2,559 |
Goodwill, ending balance | 1,745 | 2,393 |
Diagnostic Services | DMS Health | ||
Goodwill [Roll Forward] | ||
Goodwill impairment loss | 0 | |
Derecognition | 0 | |
Diagnostic Services | Telerhythmics | ||
Goodwill [Roll Forward] | ||
Goodwill impairment loss | (476) | (166) |
Derecognition | 172 | |
Medical Device Sales and Service | ||
Goodwill [Roll Forward] | ||
Discontinued operation goodwill beginning balance | 3,678 | |
Discontinued operation goodwill ending balance | 0 | |
Medical Device Sales and Service | DMS Health | ||
Goodwill [Roll Forward] | ||
Goodwill impairment loss | (2,580) | |
Derecognition | 1,098 | |
Medical Device Sales and Service | Telerhythmics | ||
Goodwill [Roll Forward] | ||
Goodwill impairment loss | 0 | 0 |
Derecognition | 0 | |
Medical Device Sales And Service Post-Warranty Service Business | ||
Goodwill [Roll Forward] | ||
Discontinued operation goodwill beginning balance | 1,098 | |
Goodwill impairment loss | 0 | (2,580) |
Discontinued operation goodwill ending balance | $ 0 | $ 1,098 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - Line of Credit - Revolving Credit Facility - Credit Facility Due June 2022 - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Amount | $ 9,500 | $ 19,500 |
Interest Rate | 4.87% | 3.902% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jun. 21, 2017USD ($) | Mar. 31, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 30, 2018USD ($) |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 43,000 | $ 709,000 | |||
Fixed charge ratio | |||||
Funded debt to adjusted EBITDA ratio | |||||
Letter of Credit | Revolving Credit Facility | Comerica | |||||
Debt Instrument [Line Items] | |||||
Aggregate amount | $ 200,000 | ||||
Credit Facility Due June 2022 | Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 4.87% | 3.902% | |||
Fixed charge ratio | 1.25 | ||||
Funded debt to adjusted EBITDA ratio | 2.25 | ||||
Credit Facility Due June 2022 | Line of Credit | Revolving Credit Facility | Comerica | |||||
Debt Instrument [Line Items] | |||||
Credit facility term | 5 years | ||||
Maximum credit amount | $ 25,000,000 | $ 20,000,000 | |||
Aggregate amount | $ 1,000,000 | ||||
Borrowing availability | $ 10,300,000 | ||||
Unused line fee | 0.25% | ||||
Credit Facility Due June 2022 | Line of Credit | Revolving Credit Facility | Comerica | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Additional margin rate | 2.35% | ||||
Interest Rate | 2.50% | ||||
Credit Facility Due June 2022 | Line of Credit | Revolving Credit Facility | Comerica | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 0.50% |
Commitments And Contingencies_2
Commitments And Contingencies (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Final settlement amount | $ 1,300 | ||
Operating lease rent expense | $ 4,500 | $ 4,200 | |
Operating Leases | |||
2,019 | 2,147 | ||
2,020 | 1,245 | ||
2,021 | 881 | ||
2,022 | 582 | ||
2,023 | 343 | ||
Thereafter | 0 | ||
Total future minimum lease payments | 5,198 | ||
Capital Leases | |||
2,019 | 899 | ||
2,020 | 804 | ||
2,021 | 778 | ||
2,022 | 219 | ||
2,023 | 27 | ||
Thereafter | 0 | ||
Total future minimum lease payments | 2,727 | ||
Less amounts representing interest | 222 | ||
Present value of obligations | 2,505 | ||
Less: current capital lease obligations | 786 | ||
Total long-term capital lease obligations | $ 1,719 |
Share Based Compensation - Narr
Share Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)plan$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Number of active equity incentive plans | plan | 2 | |
Aggregate number of shares of common stock authorized to issue under the Plans (in shares) | 1,850,000 | |
Shares available for future issuance under the Plans (in shares) | 2,066,965 | |
Number of shares reserved for issuance under the Plans (in shares) | 359,272 | |
Stock options granted (in shares) | 0 | 0 |
Purchase price of granted restricted stock (usd per share) | $ / shares | $ 0 | |
Stock Options | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock options contractual term under the Plans | 2 years 8 months 24 days | |
Stock options granted (in shares) | 0 | |
Unrecognized compensation cost | $ | $ 25 | |
Weighted average period of years | 1 year 1 month 2 days | |
Cash received from stock option exercises | $ | $ 26 | $ 5 |
Total intrinsic value of stock options exercised | $ | $ 36 | $ 12 |
Stock Options | Minimum | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock options requisite service period under the Plans | 1 year | |
Stock options contractual term under the Plans | 7 years | |
Stock Options | Maximum | ||
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] | ||
Weighted average period of years | 2 years 2 months 5 days | |
Weighted average grant-date fair value of the restricted stock units (usd per share) | $ / shares | $ 1.92 | $ 4.77 |
Unrecognized compensation costs | $ | $ 700 | |
Restricted Stock | Minimum | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
restricted stock vesting period under the Plans | 1 year | |
Restricted Stock | Maximum | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
restricted stock vesting period under the Plans | 4 years |
Share Based Compensation - Stoc
Share Based Compensation - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | ||
Options granted (in shares) | 0 | 0 |
Stock Options | ||
Number of Shares | ||
Options exercisable, beginning balance (in shares) | 824 | |
Options outstanding, beginning balance (in shares) | 902 | |
Options granted (in shares) | 0 | |
Options forfeited (in shares) | (17) | |
Options expired (in shares) | (290) | |
Options exercised (in shares) | (37) | |
Options outstanding, ending balance (in shares) | 558 | 902 |
Options exercisable, ending balance (in shares) | 523 | 824 |
Weighted- Average Exercise Price per Share | ||
Options exercisable, weighted-average exercise price per share, beginning balance (usd per share) | $ 2.84 | |
Options outstanding, weighted-average exercise price per share, beginning balance (usd per share) | 3.03 | |
Options granted, weighted-average exercise price per share (usd per share) | 0 | |
Options forfeited, weighted average exercise price per share (usd per share) | 5.12 | |
Options expired, weighted average exercise price per share (usd per share) | 2.68 | |
Options exercised, weighted average exercise price per share (usd per share) | 0.70 | |
Options exercisable, weighted-average exercise price per share, ending balance (usd per share) | 3.18 | $ 2.84 |
Options outstanding, weighted-average exercise price per share, ending balance (usd per share) | $ 3.31 | $ 3.03 |
Options outstanding , weighted average remaining contractual term (in years) | 2 years 8 months 24 days | |
Options exercisable, weighted average remaining contractual term (in years) | 2 years 5 months 6 days | |
Options outstanding, aggregate intrinsic value | $ 0 | |
Options exercisable, aggregate intrinsic value | $ 0 |
Share Based Compensation - Rest
Share Based Compensation - Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | ||
Non-vested restricted stock units outstanding, beginning balance (in shares) | 341 | |
Granted (shares) | 498 | |
Forfeited (shares) | (285) | |
Vested (shares) | (187) | |
Non-vested restricted stock units outstanding, ending balance (in shares) | 367 | 341 |
Weighted-Average Grant Date Fair Value Per Share | ||
Non-vested restricted stock units outstanding, weighted average grant date fair value, beginning balance (usd per share) | $ 4.73 | |
Granted (usd per share) | 1.92 | $ 4.77 |
Forfeited (usd per share) | 2.66 | |
Vested (usd per share) | 4.03 | |
Non-vested restricted stock units outstanding, weighted average grant date fair value, ending balance (usd per share) | $ 2.88 | $ 4.73 |
Fair value on vesting date of vested restricted stock units | $ 364 | $ 798 |
Share Based Compensation - Allo
Share Based Compensation - Allocation of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | $ 634 | $ 852 |
Services | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 34 | 40 |
Product and product-related | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 16 | 19 |
Marketing and sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | 101 | 157 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total share-based compensation expense | $ 483 | $ 636 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current provision: | ||
Federal | $ 0 | $ 0 |
State | 80 | 30 |
Foreign | 45 | 63 |
Total current provision | 125 | 93 |
Deferred (benefit) provision: | ||
Federal | (1,398) | 26,737 |
State | (288) | 1,157 |
Foreign | 0 | 0 |
Total deferred (benefit) provision | (1,686) | 27,894 |
Total income tax (benefit) provision | $ (1,561) | $ 27,987 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Intraperiod tax allocation expense (benefit) | $ 1,500 | $ (400) | |
Valuation allowance for deferred tax assets | (20,241) | (21,168) | |
State income tax net operating loss carryforwards | 26,700 | ||
Unrecognized tax benefits | 3,610 | 3,936 | $ 4,134 |
Tax benefits, if recognized, would reduce effective tax rate | 3,200 | ||
Internal Revenue Service (IRS) | |||
Operating Loss Carryforwards [Line Items] | |||
Federal income tax net operating loss carryforwards | 83,700 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
State loss carryforward subject to expiration | 200 | ||
Federal And California Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Federal and California research and other credit carryforwards | 1,500 | $ 2,100 | |
Expiring In Year Two | State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
State loss carryforward subject to expiration | $ 30 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) at statutory federal rate | 21.00% | 34.00% |
State income tax expense, net of federal benefit | 1.70% | 2.60% |
Permanent differences and other | (4.60%) | 0.00% |
Goodwill | 0.00% | (9.50%) |
Withholding costs | (0.80%) | (0.90%) |
Tax credit | (0.10%) | (0.00%) |
Impact of 2017 Tax Act | 0.00% | (165.00%) |
Change in effective federal and state tax rates | (2.00%) | 0.40% |
Expiration of net operating loss and tax credit carryovers | 0.00% | (0.10%) |
Stock compensation expense | (2.40%) | (1.10%) |
Reserve for uncertain tax positions and other reserves | 0.00% | 0.70% |
Change in valuation allowance | 16.10% | (258.00%) |
Provision (benefit) for income taxes | 28.90% | (396.90%) |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 22,043 | $ 23,451 |
Research and development and other credits | 72 | 44 |
Reserves | 336 | 567 |
Intangibles | 0 | 0 |
Other, net | 1,013 | 1,232 |
Total deferred tax assets | 23,464 | 25,294 |
Deferred tax liabilities: | ||
Fixed assets and other | (2,588) | (3,489) |
Intangibles | (756) | (891) |
Total deferred tax liabilities | (3,344) | (4,380) |
Valuation allowance for deferred tax assets | (20,241) | (21,168) |
Net deferred tax liabilities | $ (121) | $ (254) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 3,936 | $ 4,134 |
Expiration of the statute of limitations for the assessment of taxes | (326) | (198) |
Balance at end of year | $ 3,610 | $ 3,936 |
Employee Retirement Plan (Detai
Employee Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Maximum annual contribution of annual salary per employee | 100.00% | |
The Company's contributions to its retirement plans | $ 0.3 | $ 0.4 |
Related Party Transaction (Deta
Related Party Transaction (Details) - USD ($) $ in Millions | Dec. 14, 2018 | Jul. 27, 2015 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | |||
Investment made as part of Subscription Agreement | $ 1 | ||
Shares acquired (in shares) | 71,429 | ||
Board of Directors Chairman | ATRM Holdings, Inc. | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 17.40% | ||
Series B Preferred Stock | Lone Star Value Co-Invest I, LP | ATRM Holdings, Inc. | |||
Related Party Transaction [Line Items] | |||
Shares acquired (in shares) | 374,562 | ||
Series B Preferred Stock | Lone Star Value Investors, LP | ATRM Holdings, Inc. | |||
Related Party Transaction [Line Items] | |||
Shares owned (in shares) | 222,577 | ||
Series B Preferred Stock | ATRM Holdings, Inc. | |||
Related Party Transaction [Line Items] | |||
Preferred stock, dividend rate percentage | 10.00% | ||
Star Procurement, LLC | |||
Related Party Transaction [Line Items] | |||
Joint venture interest | 50.00% | ||
Capital contribution | $ 1 | ||
ATRM Holdings, Inc. | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Promissory note | $ 0.3 | ||
Minimum | ATRM Holdings, Inc. | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Promissory note, interest rate | 10.00% | ||
Maximum | ATRM Holdings, Inc. | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Promissory note, interest rate | 12.00% |
Segments (Details)
Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Total Revenues | $ 25,928 | $ 25,707 | $ 27,080 | $ 25,465 | $ 26,312 | $ 25,795 | $ 26,685 | $ 25,840 | $ 104,180 | $ 104,632 | |
Consolidated gross profit | 3,739 | 4,358 | 5,567 | 4,607 | 4,536 | 5,370 | 5,688 | 5,602 | 18,271 | 21,196 | |
Consolidated loss from operations | $ (1,398) | $ (1,290) | $ (248) | $ (1,609) | $ (1,745) | $ (105) | $ (1,998) | $ (1,451) | (4,545) | (5,299) | |
Loss on sale of buildings | $ (500) | (507) | 0 | ||||||||
Goodwill impairment | (476) | (166) | |||||||||
Segment loss from operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated loss from operations | (3,562) | (3,794) | |||||||||
Non-US | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 1,200 | 1,000 | |||||||||
Operating Segments | Diagnostic Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 49,256 | 49,016 | |||||||||
Consolidated gross profit | 9,447 | 9,942 | |||||||||
Consolidated loss from operations | 732 | (134) | |||||||||
Operating Segments | Diagnostic Imaging | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 11,983 | 12,081 | |||||||||
Consolidated gross profit | 5,142 | 5,036 | |||||||||
Consolidated loss from operations | (304) | (1,097) | |||||||||
Operating Segments | Mobile Healthcare | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 42,941 | 43,535 | |||||||||
Consolidated gross profit | 3,682 | 6,218 | |||||||||
Consolidated loss from operations | (3,990) | (2,563) | |||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Loss on sale of buildings | (507) | 0 | |||||||||
Goodwill impairment | (476) | (166) | |||||||||
Litigation reserve | $ 0 | $ (1,339) |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total Revenues | $ 25,928 | $ 25,707 | $ 27,080 | $ 25,465 | $ 26,312 | $ 25,795 | $ 26,685 | $ 25,840 | $ 104,180 | $ 104,632 | |
Gross profit | 3,739 | 4,358 | 5,567 | 4,607 | 4,536 | 5,370 | 5,688 | 5,602 | 18,271 | 21,196 | |
Loss from operations | (1,398) | (1,290) | (248) | (1,609) | (1,745) | (105) | (1,998) | (1,451) | (4,545) | (5,299) | |
Loss from continuing operations | (914) | (1,187) | (350) | (1,388) | (22,605) | (7,334) | (2,846) | (2,251) | (3,839) | (35,036) | |
Net income (loss) from discontinued operations | (680) | (239) | 0 | 5,494 | 622 | (1,565) | 74 | 175 | 4,575 | (694) | |
Net income (loss) | $ (1,594) | $ (1,426) | $ (350) | $ 4,106 | $ (21,983) | $ (8,899) | $ (2,772) | $ (2,076) | $ 736 | $ (35,730) | |
Net loss from continuing operations per share - basic and diluted (in usd per share) | $ (0.05) | $ (0.06) | $ (0.02) | $ (0.07) | $ (1.13) | $ (0.37) | $ (0.14) | $ (0.11) | $ (0.19) | $ (1.75) | |
Net income (loss) from discontinued operations per share - basic and diluted (in usd per share) | (0.03) | (0.01) | 0 | 0.27 | 0.03 | (0.08) | 0 | 0.01 | $ 0.23 | $ (0.04) | |
Net income (loss) per share — basic and diluted (in usd per share) | $ (0.08) | $ (0.07) | $ (0.02) | $ 0.20 | $ (1.10) | $ (0.44) | $ (0.14) | $ (0.10) | |||
Proceeds from sale of property and equipment | $ 1,500 | $ 1,500 | |||||||||
Proceeds from sale of buildings | 1,000 | ||||||||||
Loss on sale of buildings | $ 500 | $ 507 | $ 0 |