Apyx Medical (APYX) 10-Q 3 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document And Entity Information
Entity Registrant Name	BOVIE MEDICAL CORP
Entity Central Index Key	719,135
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		30,859,753
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 10,292	$ 14,456
Restricted cash	779	779
Trade accounts receivable, net of allowance of $186 and $118	4,929	4,733
Inventories, net	7,582	6,158
Prepaid expenses and other current assets	538	413
Total current assets	24,120	26,539
Property and equipment, net	6,240	6,449
Brand name and trademark	1,510	1,510
Purchased technology and license rights, net	217	215
Goodwill	185	185
Deposits	66	109
Other assets	218	103
Total assets	32,556	35,110
Current liabilities:
Accounts payable	2,077	1,606
Accrued payroll	416	419
Accrued vacation	375	404
Current portion of mortgage note payable	239	239
Accrued and other liabilities	2,511	2,604
Total current liabilities	5,618	5,272
Mortgage note payable, net of current portion	2,575	2,694
Note payable	140	140
Deferred rents	11	14
Deferred tax liability	564	564
Derivative liabilities	77	203
Total liabilities	8,985	8,887
STOCKHOLDERS' EQUITY
Series B convertible preferred stock, $0.001 par value; 3,588,139 authorized and 975,639 issued and outstanding as of June 30, 2017 and December 31, 2016	1	1
Common stock, $0.001 par value; 40,000,000 shares authorized; 31,002,832 issued and 30,859,753 outstanding as of June 30, 2017 and December 31, 2016	31	31
Additional paid-in capital	49,966	49,625
Accumulated deficit	(26,427)	(23,434)
Total stockholders' equity	23,571	26,223
Total liabilities and stockholders' equity	$ 32,556	$ 35,110

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	31,002,832	31,002,832
Common stock, shares outstanding (in shares)	30,859,753	30,859,753
Series B Preferred Stock
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	3,588,139	3,588,139
Preferred stock, shares issued (in shares)	975,639	975,639
Preferred stock, shares outstanding (in shares)	975,639	975,639

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Sales	$ 9,799	$ 9,295	$ 18,188	$ 17,070
Cost of sales	4,757	4,595	8,920	9,048
Gross profit	5,042	4,700	9,268	8,022
Other costs and expenses:
Research and development	696	592	1,405	1,259
Professional services	480	396	870	753
Salaries and related costs	2,243	2,200	4,703	4,300
Selling, general and administrative	2,929	2,022	5,333	4,213
Total other costs and expenses	6,348	5,210	12,311	10,525
Loss from operations	(1,306)	(510)	(3,043)	(2,503)
Interest expense, net	(36)	(50)	(67)	(88)
Change in fair value of derivative liabilities	38	41	126	128
Total other income (loss), net	2	(9)	59	40
Loss before income taxes	(1,304)	(519)	(2,984)	(2,463)
Income tax expense	4	0	9	0
Net loss	$ (1,308)	$ (519)	$ (2,993)	$ (2,463)
Loss per share
Basic (in dollars per share)	$ (0.04)	$ (0.02)	$ (0.10)	$ (0.09)
Diluted (in dollars per share)	$ (0.04)	$ (0.02)	$ (0.10)	$ (0.09)
Weighted average number of shares outstanding - basic (in shares)	30,860	27,051	30,860	27,051
Weighted average number of shares outstanding - dilutive (in shares)	30,860	27,051	30,860	27,051

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Beginning balance, amount at Dec. 31, 2015	$ 23,404	$ 2	$ 27	$ 42,859	$ (19,484)
Beginning balance (in shares) at Dec. 31, 2015		1,976	27,051
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	360			360
Net loss	(2,463)				(2,463)
Ending balance, amount at Jun. 30, 2016	21,301	$ 2	$ 27	43,219	(21,947)
Ending balance (in shares) at Jun. 30, 2016		1,976	27,051
Beginning balance, amount at Dec. 31, 2016	26,223	$ 1	$ 31	49,625	(23,434)
Beginning balance (in shares) at Dec. 31, 2016		976	30,860
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	341			341
Net loss	(2,993)				(2,993)
Ending balance, amount at Jun. 30, 2017	$ 23,571	$ 1	$ 31	$ 49,966	$ (26,427)
Ending balance (in shares) at Jun. 30, 2017		976	30,860

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net loss	$ (2,993)	$ (2,463)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	356	355
Provision for inventory obsolescence	83	334
Gain on disposal of property and equipment, net	2	14
Stock based compensation	341	360
Change in fair value of derivative liabilities	(126)	(128)
Provision for allowance for doubtful accounts	159	159
Changes in current assets and liabilities:
Trade receivables	(355)	(740)
Prepaid expenses	(125)	(20)
Inventories	(1,507)	(792)
Deposits and other assets	(72)	44
Accounts payable	471	560
Accrued and other liabilities	(128)	(63)
Net cash used in operating activities	(3,894)	(2,380)
Cash flows from investing activities
Purchases of technology, property and equipment	(151)	(41)
Net cash used in investing activities	(151)	(41)
Cash flows from financing activities
Change in restricted cash	0	60
Repayment of mortgage note payable	(119)	(120)
Net cash used in financing activities	(119)	(60)
Net change in cash and cash equivalents	(4,164)	(2,481)
Cash and cash equivalents, beginning of period	14,456	11,805
Cash and cash equivalents, end of period	10,292	9,324
Cash paid for:
Interest paid	$ 67	$ 50

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION Unless the context otherwise indicates, the terms “we,” “our,” “us,” “Bovie,” and similar terms refer to Bovie Medical Corporation and its consolidated subsidiaries. The accompanying unaudited consolidated financial statements have been prepared based upon SEC rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, please refer to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 . These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown, including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year. In the first quarter of 2017, the Company adopted a change in presentation on its Consolidated Statements of Cash Flows in order to present a "Provision for allowance for doubtful accounts". Previously reported information has been modified to conform to this new presentation.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories are stated at the lower of cost or market. Cost is determined on a first in, first out basis. Finished goods and work-in-process inventories include material, labor and overhead costs. Factory overhead costs are allocated to inventory manufactured in-house based upon labor hours. Inventories consisted of the following: (In thousands) June 30, December 31, Raw materials $ 4,887 $ 4,521 Finished goods 4,189 3,048 Gross inventories 9,076 7,569 Less: reserve for obsolescence (1,494 ) (1,411 ) Net inventories $ 7,582 $ 6,158

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	INTANGIBLE ASSETS Intangible assets consisted of the following: (In thousands) June 30, December 31, Brand name and trademark (life indefinite) $ 1,510 $ 1,510 Purchased technology (5-17 year lives) $ 1,497 $ 1,441 Less: accumulated amortization (1,280 ) (1,226 ) Purchased technology, net $ 217 $ 215 Goodwill $ 185 $ 185 With respect to our trademark and brand name, we continue to market products, release new products and product extensions and maintain and promote these trademarks and brand name in the marketplace through legal registration and such methods as advertising, medical education and trade shows. It is our belief that these trademarks and brand names will generate cash flow for an indefinite period of time. Therefore, we believe our trademarks and brand name intangible assets are not impaired. Goodwill resulted from our acquisition of Bovie Bulgaria, EOOD. Amortization of intangible assets was $27,000 and $54,000 for the three and six months ended June 30, 2017 , respectively, as compared with $27,000 and $54,000 for the three and six months ended June 30, 2016 . Amortization expense is classified within selling, general and administration expenses in the consolidated statements of operations.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The purpose of this ASU is to reduce the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this ASU, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted, however we have chosen not to do so. The amendment is not expected to have a material impact on our financial condition or results of operations. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . The new guidance clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, however we have chosen not to do so. The amendment is not expected to have a material impact on our financial condition or results of operations. In March 2016, FASB issued ASU No. 2016-09 Compensation-Stock Compensation - (Topic 718) Improvements to employee share-based payments accounting as part of simplicity initiatives. This update involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For us, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendment has not made a material impact on our financial condition or results of operations. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2018. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The amendment is not expected to have a material impact on our financial condition or results of operations. No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Certain assets and liabilities that are measured at fair value on a recurring basis are measured in accordance with FASB ASC Topic 820-10-05, Fair Value Measurements . FASB ASC Topic 820-10-05 defines fair value, establishes a framework for measuring fair value and expands the disclosure requirements regarding fair value measurements for financial assets and liabilities as well as for non-financial assets and liabilities that are recognized or disclosed at fair value on a recurring basis in the financial statements. The statement requires fair value measurement be classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Our derivative financial instruments that are measured at fair value on a recurring basis are all measured at fair value using Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following represents a reconciliation of the changes in fair value of warrants measured at fair value using Level 3 inputs during the six months ended June 30, 2017 : (in thousands) 2013 Placement Agent Warrants Balance, December 31, 2016 $ 203 Change in fair value (126 ) Balance, June 30, 2017 (1) $ 77 (1) The warrants are valued using a trinomial lattice valuation methodology because that model embodies all of the relevant assumptions that address the features underlying these instruments. Significant assumptions used in the model at June 30, 2017 included the market price of our common stock, an expected dividend yield of zero , the remaining period to the expiration date of the warrants, expected volatility of our common stock over the remaining life of the warrants of 2.0 years , estimated based on a review of our historical volatility of 55.720% and risk-free rates of return of 1.380% for the 2013 warrants based on constant maturity rates published by the U.S. Federal Reserve, applicable to the remaining life of the warrants. We also take into consideration a probability assumption for anti-dilution.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE We compute basic earnings per share (“basic EPS”) by dividing the net income or loss by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share (“diluted EPS”) gives effect to all dilutive potential shares outstanding. The following table provides the computation of basic and diluted earnings per share. Three Months Ended Six Months Ended (in thousands, except per share data) 2017 2016 2017 2016 Numerator: Net loss available to common shareholders $ (1,308 ) $ (519 ) (2,993 ) (2,463 ) Effect of dilutive securities: Derivative liability - warrants — — — — Numerator for dilutive loss per common share (1,308 ) (519 ) (2,993 ) (2,463 ) Denominator: Weighted average shares used to compute basic loss per common share 30,860 27,051 30,860 27,051 Effect of dilutive securities: Derivative liability - warrants — — — — Denominator for dilutive loss per common share 30,860 27,051 30,860 27,051 Basic loss per common share $ (0.04 ) $ (0.02 ) (0.10 ) (0.09 ) Diluted loss per common share $ (0.04 ) $ (0.02 ) (0.10 ) (0.09 )

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Under our stock option plans, our board of directors may grant options to purchase common shares to our key employees, officers, directors and consultants. We account for stock options in accordance with FASB ASC Topic 718, Compensation - Stock Compensation , with option expense amortized over the vesting period based on the trinomial lattice option-pricing model fair value on the grant date, which includes a number of estimates that affect the amount of our expense. We expensed approximately $182,000 and $341,000 in stock-based compensation during the three and six months ended June 30, 2017 , respectively, as compared with $184,000 and $360,000 for the three and six months ended June 30, 2016 . The status of our stock options and stock awards are summarized as follows: Number of options Weighted average exercise price Outstanding at December 31, 2016 3,752,209 $ 3.04 Granted 505,000 3.32 Canceled and forfeited (203,803 ) 4.84 Outstanding at June 30, 2017 4,053,406 $ 2.98 Common shares required to be issued upon the exercise of stock options and warrants would be issued from our authorized and unissued shares. We calculated the fair value of issued options utilizing a trinomial lattice with an expected life calculated via the simplified method as we do not have sufficient history to determine actual expected life. 2017 Grants Option value $ 1.96 - $ 2.34 Risk-free rate 1.5% Expected dividend yield —% Expected volatility 68.0% Expected term (in years) 6

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company's income tax provision was $4,000 with an effective tax rate of 0.0% and $9,000 with an effective tax rate of 0.0% for the three and six months ended June 30, 2017 , respectively, as compared to $0 with an effective tax rate of 0.0% for both the three and six months ended June 30, 2016 The Company's effective tax rate differs from the statutory rate primarily due to the change in the valuation allowance on the Company's net deferred tax assets with a finite life. As a result of historical losses, the Company recorded a valuation allowance on the net deferred tax asset with a finite life and does not anticipate recording an income tax benefit related to these deferred tax assets. The Company will reassess the realization of deferred tax assets each reporting period and will be able to reduce the valuation allowance to the extent that the financial results of these operations improve and it becomes more likely than not that the deferred tax assets are realizable. For the six months ended June 30, 2017 , we do not believe we had any significant uncertain tax positions nor did we have any interest or penalties related to any significant uncertain tax positions. The Company is subject to U.S. federal income tax, state income tax and Bulgarian income tax. Until the respective statutes of limitations expire (which may be as much as 20 years while we have unused NOL's), we are subject to income tax audits in the jurisdictions in which we operate.

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS	COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS Property and Rental Agreements In March 2014, we signed a lease for offices located in Purchase, New York. The lease is for 3,650 square feet of office space with a monthly cost of approximately $9,277 per month for the lease expiring in June 2019. In October 2015, pursuant to our acquisition of Bovie Bulgaria, we are obligated to pay a lease of $4,944 per month, expiring in December 2021, for 16,500 square feet of office, research and manufacturing space in Sofia, Bulgaria. The following is a schedule of approximate future minimum lease payments under operating leases as of June 30, 2017 : (In thousands) 2017 (remaining six months) $ 87 2018 175 2019 118 2020 59 2021 59 Total $ 498 Rent expense was approximately $43,539 and $85,326 for the three and six months ended June 30, 2017 , respectively compared to $37,230 and $82,280 for the three and six months ended June 30, 2016 . Purchase Commitments At June 30, 2017 , we had purchase commitments for inventories totaling approximately $4.0 million , substantially all of which is expected to be purchased by the end of 2017 . Concentrations With respect to receivables, our ten largest customers accounted for approximately 29.2% and 47.6% of trade receivables as of June 30, 2017 and 2016 , respectively and approximately 51.7% and 56.2% of net revenues for the six months ended June 30, 2017 and 2016 , respectively. For the six months ended June 30, 2017 , McKesson and National Distribution & Contracting Inc. accounted for 15.5% and 10.1% of sales, while for the same period in 2016 , McKesson and National Distribution & Contracting Inc. accounted for 16.5% and 9.6% of sales.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Several relatives of Nikolay Shilev, Bovie Bulgaria’s Managing Director, are considered related parties. Teodora Shileva, Mr. Shilev’s spouse is an employee of the company working in the Accounting department. Antoaneta Dimitrova Shileva-Toromanova, Mr. Shilev’s sister, is the Manager of Production and Human Resources. Svetoslav Shilev, Mr. Shilev’s son is an Engineer in the Quality Assurance department. A relative of Moshe Citronowicz, Bovie’s Senior Vice President, is considered a related party. Arik Zoran is a consultant of the Company doing business as AR Logic, Inc., a consulting firm owned by Arik Zoran, Mr. Citronowicz’s brother. The Company has been working with AR Logic since 2011 and as of April 14, 2017, the Company agreed to a renewal contract and terms to continue the consulting arrangement, expiring December 31, 2017. AR Logic was paid consulting fees of approximately $67,533 and $96,033 for the three and six months ended June 30, 2017 , respectively compared to $46,662 and $76,662 for the three and six months ended June 30, 2016 .

LONG TERM DEBT

LONG TERM DEBT	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
LONG TERM DEBT	LONG TERM DEBT On June 28, 2016, the Company entered into a transaction with Bank of Tampa, a Florida banking corporation (“Lender”) wherein Lender amended the terms of a mortgage loan (“the Loan”) originally executed on March 20, 2014 with a principal amount of $3,592,000 . The Initial Maturity Date of the Loan was extended to July 20, 2019 from March 19, 2017, and the Extended Maturity Date was amended to July 20, 2024 from March 20, 2022. In addition, the Lender released as collateral to the Loan, the Company’s working capital accounts in exchange for a negative covenant limited to $2,000,000 of the aggregate indebtedness secured by these accounts. The obligations under the Loan are secured by a first mortgage and security interest in the Company’s Clearwater, Florida facility. In addition, the Company has pledged an interest in a certificate of deposit in the amount of $779,000 as additional collateral. The amount of the additional collateral required declines on a pro rata basis as principal is paid. Borrowings under the Loan bear interest at LIBOR plus 3.5% , with a fixed monthly principal payment of $19,956 . The interest rate at June 30, 2017 was 4.560% . The Loan documents contain customary financial covenants, including a covenant that the Company maintains a minimum liquidity of $750,000 . Should we desire to extend the Loan beyond July 20, 2019, we must maintain a Debt Service Coverage Ratio for each of the preceding four quarters of not less than 1.0 to 1.0 . Our future contractual obligations for agreements with initial terms greater than one year are as follows: (In thousands) Long-term debt 2017 (remaining six months) $ 120 2018 239 2019 2,455 Total $ 2,814

GEOGRAPHIC AND SEGMENT INFORMAT

GEOGRAPHIC AND SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
GEOGRAPHIC AND SEGMENT INFORMATION	GEOGRAPHIC AND SEGMENT INFORMATION Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. Prior to the first quarter of 2017, we disclosed only one reporting segment. Beginning in 2017, our reportable segments are disclosed as principally organized and managed as three operating segments: Core, OEM and Advanced Energy. We adopted reportable segments to align with changes in how we manage our business, review operating performance and allocate resources as a result of the growth in Advanced Energy and the differing behavior of the Core and OEM product lines. The Corporate & Other category includes unallocated corporate, operational, research and development and marketing costs which were not specifically attributed to any reportable segment. Net assets are shared, therefore, not allocated to the reportable segments. The OEM segment is primarily development contract and product driven, all related expenses are recorded as cost of sales, therefore no segment specific operating expenses are incurred. Summarized financial information with respect to reportable segments is as follows: Three Months Ended June 30, 2017 Core OEM Advanced Energy Corporate (Other) Total Sales $ 7,488 $ 498 $ 1,813 $ — $ 9,799 Income (loss) from operations 2,710 205 (1,250 ) (2,971 ) (1,306 ) Interest expense, net — — — (36 ) (36 ) Change in fair value of derivative liabilities — — — 38 38 Income tax expense — — — 4 4 Depreciation and amortization — — — 178 178 Three Months Ended June 30, 2016 Core OEM Advanced Energy Corporate (Other) Total Sales $ 6,881 $ 1,648 $ 766 $ — $ 9,295 Income (loss) from operations 1,836 1,151 (1,090 ) (2,407 ) (510 ) Interest expense, net — — — (50 ) (50 ) Change in fair value of derivative liabilities — — — 41 41 Income tax expense — — — — — Depreciation and amortization — — — 173 173 Six Months Ended June 30, 2017 Core OEM Advanced Energy Corporate (Other) Total Sales $ 14,263 $ 1,505 $ 2,420 $ — $ 18,188 Income (loss) from operations 5,023 708 (2,971 ) (5,803 ) (3,043 ) Interest expense, net — — — (67 ) (67 ) Change in fair value of derivative liabilities — — — 126 126 Income tax expense — — — 9 9 Depreciation and amortization — — — 356 356 Six Months Ended June 30, 2016 Core OEM Advanced Energy Corporate (Other) Total Sales $ 13,359 $ 2,589 $ 1,122 $ — $ 17,070 Income (loss) from operations 2,958 1,808 (2,624 ) (4,645 ) (2,503 ) Interest expense, net — — — (88 ) (88 ) Change in fair value of derivative liabilities — — — 128 128 Income tax expense — — — — — Depreciation and amortization — — — 355 355 We derive revenues from four major product lines: Electrosurgical, Cauteries, Lighting and Other products. We do not review or analyze our four major product lines below net sales. Sales for the product lines are summarized as follows: Three Months Ended Six Months Ended (In thousands) 2017 2016 2017 2016 Sales by Product Line Electrosurgical $ 6,206 $ 5,078 $ 11,536 $ 9,330 Cauteries 1,873 1,720 3,528 3,554 Lighting 948 800 1,393 1,306 Other 772 1,697 1,731 2,880 Total $ 9,799 $ 9,295 $ 18,188 $ 17,070 International sales represented approximately 11.1% and 13.7% of total revenues for the three and six months ended June 30, 2017 , respectively, as compared with 16.6% and 15.9% of total revenues for the three and six months ended June 30, 2016 . Substantially all of these sales are denominated in U.S. dollars. Revenue by geographic region, based on the "ship to" location on the invoice are as follows: Three Months Ended Six Months Ended (In thousands) 2017 2016 2017 2016 Sales by Domestic and International Domestic $ 8,708 $ 7,757 $ 15,700 $ 14,372 International 1,091 1,538 2,488 2,698 Total $ 9,799 $ 9,295 $ 18,188 $ 17,070

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Inventories	Inventories are stated at the lower of cost or market. Cost is determined on a first in, first out basis. Finished goods and work-in-process inventories include material, labor and overhead costs. Factory overhead costs are allocated to inventory manufactured in-house based upon labor hours.
Recent Accounting Pronouncements	In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The purpose of this ASU is to reduce the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this ASU, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted, however we have chosen not to do so. The amendment is not expected to have a material impact on our financial condition or results of operations. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . The new guidance clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, however we have chosen not to do so. The amendment is not expected to have a material impact on our financial condition or results of operations. In March 2016, FASB issued ASU No. 2016-09 Compensation-Stock Compensation - (Topic 718) Improvements to employee share-based payments accounting as part of simplicity initiatives. This update involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For us, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendment has not made a material impact on our financial condition or results of operations. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2018. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The amendment is not expected to have a material impact on our financial condition or results of operations. No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures.
Fair Value Measurements	Certain assets and liabilities that are measured at fair value on a recurring basis are measured in accordance with FASB ASC Topic 820-10-05, Fair Value Measurements . FASB ASC Topic 820-10-05 defines fair value, establishes a framework for measuring fair value and expands the disclosure requirements regarding fair value measurements for financial assets and liabilities as well as for non-financial assets and liabilities that are recognized or disclosed at fair value on a recurring basis in the financial statements. The statement requires fair value measurement be classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Our derivative financial instruments that are measured at fair value on a recurring basis are all measured at fair value using Level 3 inputs. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Schedule of inventory	Inventories consisted of the following: (In thousands) June 30, December 31, Raw materials $ 4,887 $ 4,521 Finished goods 4,189 3,048 Gross inventories 9,076 7,569 Less: reserve for obsolescence (1,494 ) (1,411 ) Net inventories $ 7,582 $ 6,158

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Intangible assets consisted of the following: (In thousands) June 30, December 31, Brand name and trademark (life indefinite) $ 1,510 $ 1,510 Purchased technology (5-17 year lives) $ 1,497 $ 1,441 Less: accumulated amortization (1,280 ) (1,226 ) Purchased technology, net $ 217 $ 215 Goodwill $ 185 $ 185

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Reconciliation of changes in fair value of warrants	The following represents a reconciliation of the changes in fair value of warrants measured at fair value using Level 3 inputs during the six months ended June 30, 2017 : (in thousands) 2013 Placement Agent Warrants Balance, December 31, 2016 $ 203 Change in fair value (126 ) Balance, June 30, 2017 (1) $ 77 (1) The warrants are valued using a trinomial lattice valuation methodology because that model embodies all of the relevant assumptions that address the features underlying these instruments. Significant assumptions used in the model at June 30, 2017 included the market price of our common stock, an expected dividend yield of zero , the remaining period to the expiration date of the warrants, expected volatility of our common stock over the remaining life of the warrants of 2.0 years , estimated based on a review of our historical volatility of 55.720% and risk-free rates of return of 1.380% for the 2013 warrants based on constant maturity rates published by the U.S. Federal Reserve, applicable to the remaining life of the warrants. We also take into consideration a probability assumption for anti-dilution.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Basic and diluted earnings per share	The following table provides the computation of basic and diluted earnings per share. Three Months Ended Six Months Ended (in thousands, except per share data) 2017 2016 2017 2016 Numerator: Net loss available to common shareholders $ (1,308 ) $ (519 ) (2,993 ) (2,463 ) Effect of dilutive securities: Derivative liability - warrants — — — — Numerator for dilutive loss per common share (1,308 ) (519 ) (2,993 ) (2,463 ) Denominator: Weighted average shares used to compute basic loss per common share 30,860 27,051 30,860 27,051 Effect of dilutive securities: Derivative liability - warrants — — — — Denominator for dilutive loss per common share 30,860 27,051 30,860 27,051 Basic loss per common share $ (0.04 ) $ (0.02 ) (0.10 ) (0.09 ) Diluted loss per common share $ (0.04 ) $ (0.02 ) (0.10 ) (0.09 )

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of stock options and stock awards	The status of our stock options and stock awards are summarized as follows: Number of options Weighted average exercise price Outstanding at December 31, 2016 3,752,209 $ 3.04 Granted 505,000 3.32 Canceled and forfeited (203,803 ) 4.84 Outstanding at June 30, 2017 4,053,406 $ 2.98
Schedule of option fair value assumptions	2017 Grants Option value $ 1.96 - $ 2.34 Risk-free rate 1.5% Expected dividend yield —% Expected volatility 68.0% Expected term (in years) 6

COMMITMENTS, CONTINGENCIES AN25

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease payments under operating leases	The following is a schedule of approximate future minimum lease payments under operating leases as of June 30, 2017 : (In thousands) 2017 (remaining six months) $ 87 2018 175 2019 118 2020 59 2021 59 Total $ 498

LONG TERM DEBT (Tables)

LONG TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Summary of long-term debt	Our future contractual obligations for agreements with initial terms greater than one year are as follows: (In thousands) Long-term debt 2017 (remaining six months) $ 120 2018 239 2019 2,455 Total $ 2,814

GEOGRAPHIC AND SEGMENT INFORM27

GEOGRAPHIC AND SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of reporting information by segment	Summarized financial information with respect to reportable segments is as follows: Three Months Ended June 30, 2017 Core OEM Advanced Energy Corporate (Other) Total Sales $ 7,488 $ 498 $ 1,813 $ — $ 9,799 Income (loss) from operations 2,710 205 (1,250 ) (2,971 ) (1,306 ) Interest expense, net — — — (36 ) (36 ) Change in fair value of derivative liabilities — — — 38 38 Income tax expense — — — 4 4 Depreciation and amortization — — — 178 178 Three Months Ended June 30, 2016 Core OEM Advanced Energy Corporate (Other) Total Sales $ 6,881 $ 1,648 $ 766 $ — $ 9,295 Income (loss) from operations 1,836 1,151 (1,090 ) (2,407 ) (510 ) Interest expense, net — — — (50 ) (50 ) Change in fair value of derivative liabilities — — — 41 41 Income tax expense — — — — — Depreciation and amortization — — — 173 173 Six Months Ended June 30, 2017 Core OEM Advanced Energy Corporate (Other) Total Sales $ 14,263 $ 1,505 $ 2,420 $ — $ 18,188 Income (loss) from operations 5,023 708 (2,971 ) (5,803 ) (3,043 ) Interest expense, net — — — (67 ) (67 ) Change in fair value of derivative liabilities — — — 126 126 Income tax expense — — — 9 9 Depreciation and amortization — — — 356 356 Six Months Ended June 30, 2016 Core OEM Advanced Energy Corporate (Other) Total Sales $ 13,359 $ 2,589 $ 1,122 $ — $ 17,070 Income (loss) from operations 2,958 1,808 (2,624 ) (4,645 ) (2,503 ) Interest expense, net — — — (88 ) (88 ) Change in fair value of derivative liabilities — — — 128 128 Income tax expense — — — — — Depreciation and amortization — — — 355 355
Schedule of revenue by product line	Sales for the product lines are summarized as follows: Three Months Ended Six Months Ended (In thousands) 2017 2016 2017 2016 Sales by Product Line Electrosurgical $ 6,206 $ 5,078 $ 11,536 $ 9,330 Cauteries 1,873 1,720 3,528 3,554 Lighting 948 800 1,393 1,306 Other 772 1,697 1,731 2,880 Total $ 9,799 $ 9,295 $ 18,188 $ 17,070
Schedule of revenue by geographic area	Revenue by geographic region, based on the "ship to" location on the invoice are as follows: Three Months Ended Six Months Ended (In thousands) 2017 2016 2017 2016 Sales by Domestic and International Domestic $ 8,708 $ 7,757 $ 15,700 $ 14,372 International 1,091 1,538 2,488 2,698 Total $ 9,799 $ 9,295 $ 18,188 $ 17,070

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 4,887	$ 4,521
Finished goods	4,189	3,048
Gross inventories	9,076	7,569
Less: reserve for obsolescence	(1,494)	(1,411)
Net inventories	$ 7,582	$ 6,158

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Purchased technology, net	$ 217,000		$ 217,000		$ 215,000
Goodwill	185,000		185,000		185,000
Amortization of Intangible Assets	27,000	$ 27,000	54,000	$ 54,000
Brand name and trademark (life indefinite)
Indefinite-lived Intangible Assets [Line Items]
Brand name and trademark	1,510,000		1,510,000		1,510,000
Purchased technology
Finite-Lived Intangible Assets [Line Items]
Purchased technology	1,497,000		1,497,000		1,441,000
Less: accumulated amortization	(1,280,000)		(1,280,000)		(1,226,000)
Purchased technology, net	$ 217,000		$ 217,000		$ 215,000
Purchased technology | Minimum
Finite-Lived Intangible Assets [Line Items]
Intangible asset, useful life (in years)			5 years
Purchased technology | Maximum
Finite-Lived Intangible Assets [Line Items]
Intangible asset, useful life (in years)			17 years

FAIR VALUE MEASUREMENTS - RECON

FAIR VALUE MEASUREMENTS - RECONCILIATION OF CHANGES IN FAIR VALUE OF WARRANTS (Details) - Warrant - Placement Agent Warrant $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 203
Change in fair value	(126)
Ending balance	$ 77

FAIR VALUE MEASUREMENTS - NARRA

FAIR VALUE MEASUREMENTS - NARRATIVE (Details) - Warrant	6 Months Ended
	Jun. 30, 2017
Class of Stock [Line Items]
Expected dividend rate (as a percent)	0.00%
Expected term (in years)	2 years
Expected volatility rate (as a percent)	55.72%
Risk free interest rate (as a percent)	1.38%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net loss available to common shareholders	$ (1,308)	$ (519)	$ (2,993)	$ (2,463)
Derivative liability - warrants	0	0	0	0
Numerator for dilutive loss per common share	$ (1,308)	$ (519)	$ (2,993)	$ (2,463)
Denominator:
Weighted average shares used to compute basic loss per common share (in shares)	30,860	27,051	30,860	27,051
Derivative liability - warrants (in shares)	0	0	0	0
Denominator for diluted loss per common share (in shares)	30,860	27,051	30,860	27,051
Earnings Per Share, Basic and Diluted [Abstract]
Basic loss per common share (in dollars per share)	$ (0.04)	$ (0.02)	$ (0.10)	$ (0.09)
Diluted loss per common share (in dollars per share)	$ (0.04)	$ (0.02)	$ (0.10)	$ (0.09)

EARNINGS PER SHARE - NARRATIVE

EARNINGS PER SHARE - NARRATIVE (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Derivative liability - warrants (in shares)	0	0	0	0
Derivative liability - warrants	$ 0	$ 0	$ 0	$ 0

STOCK-BASED COMPENSATION - NARR

STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation	$ 182,000	$ 184,000	$ 341,000	$ 360,000

STOCK-BASED COMPENSATION - SUMM

STOCK-BASED COMPENSATION - SUMMARY OF STOCK OPTIONS (Details)	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning of period (in shares) | shares	3,752,209
Granted (in shares) | shares	505,000
Canceled and forfeited (in shares) | shares	(203,803)
Outstanding, end of period (in shares) | shares	4,053,406
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 3.04
Granted (in dollars per share) | $ / shares	3.32
Canceled and forfeited (in dollars per share) | $ / shares	4.84
Outstanding, end of period (in dollars per share) | $ / shares	$ 2.98

STOCK-BASED COMPENSATION - FAIR

STOCK-BASED COMPENSATION - FAIR VALUE ASSUMPTIONS (Details)	6 Months Ended
	Jun. 30, 2017$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free rate (as a percent)	1.50%
Expected dividend yield (as a percent)	0.00%
Expected volatility (as a percent)	68.00%
Expected term (in years)	6 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option value (in dollars per share)	$ 1.96
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option value (in dollars per share)	$ 2.34

INCOME TAXES - EFFECTIVE TAX RA

INCOME TAXES - EFFECTIVE TAX RATE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income tax expense	$ 4	$ 0	$ 9	$ 0
Effective income tax rate, percent (as a percent)	0.00%	0.00%	0.00%	0.00%

COMMITMENTS, CONTINGENCIES AN38

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS - FUTURE MINIMUM LEASE PAYMENTS (Details) $ in Thousands	Jun. 30, 2017USD ($)
Future minimum lease payments under operating leases
2017 (remaining six months)	$ 87
2,018	175
2,019	118
2,020	59
2,021	59
Total	$ 498

COMMITMENTS, CONTINGENCIES AN39

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS - NARRATIVE (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Oct. 31, 2015USD ($)ft²	Mar. 31, 2014USD ($)ft²
Other Commitments [Line Items]
Rent expense	$ 43,539	$ 37,230	$ 85,326	$ 82,280
Purchase commitments for inventories	$ 4,000,000		$ 4,000,000
Customer concentration risk | Trade receivable | 10 Largest Customers
Other Commitments [Line Items]
Concentration receivable risk (as a percent)			29.20%	47.60%
Customer concentration risk | Sales Revenue | 10 Largest Customers
Other Commitments [Line Items]
Concentration receivable risk (as a percent)			51.70%	56.20%
Customer concentration risk | Sales Revenue | McKesson
Other Commitments [Line Items]
Concentration receivable risk (as a percent)			15.50%	16.50%
Customer concentration risk | Sales Revenue | National Distribution & Contracting Inc.
Other Commitments [Line Items]
Concentration receivable risk (as a percent)			10.10%	9.60%
Purchase, NY
Other Commitments [Line Items]
Area of real estate property (in square feet) | ft²						3,650
Monthly cost of office space						$ 9,277
Sophia, Bulgaria
Other Commitments [Line Items]
Area of real estate property (in square feet) | ft²					16,500
Monthly cost of office space					$ 4,944

RELATED PARTY TRANSACTIONS - NA

RELATED PARTY TRANSACTIONS - NARRATIVE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Immediate Family Member of Management or Principal Owner | AR Logic
Related Party Transaction [Line Items]
Consulting fees	$ 67,533	$ 46,662	$ 96,033	$ 76,662

LONG TERM DEBT - NARRATIVE (Det

LONG TERM DEBT - NARRATIVE (Details) - Mortgages	Jun. 28, 2016USD ($)	Jun. 30, 2017
Debt Instrument [Line Items]
Mortgage loan, principal amount	$ 3,592,000
Certificate of deposit, amount pledged as collateral	779,000
Fixed monthly principal payment	19,956
Effective interest rate (as a percent)		4.56%
Debt covenant, maximum liquidity	$ 750,000
Debt service coverage ratio for preceding four quarters for extension of loan	1
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.50%
Secured Debt
Debt Instrument [Line Items]
Maximum working capital accounts	$ 2,000,000

LONG TERM DEBT - FUTURE MATURIT

LONG TERM DEBT - FUTURE MATURITIES (Details) $ in Thousands	Jun. 30, 2017USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2017 (remaining six months)	$ 120
2,018	239
2,019	2,455
Total long-term debt	$ 2,814

GEOGRAPHIC AND SEGMENT INFORM43

GEOGRAPHIC AND SEGMENT INFORMATION - REPORTABLE SEGMENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Sales	$ 9,799	$ 9,295	$ 18,188	$ 17,070
Income (loss) from operations	(1,306)	(510)	(3,043)	(2,503)
Interest expense, net	(36)	(50)	(67)	(88)
Change in fair value of derivative liabilities	38	41	126	128
Income tax expense	4	0	9	0
Depreciation and amortization	178	173	356	355
Operating Segments | Core
Segment Reporting Information [Line Items]
Sales	7,488	6,881	14,263	13,359
Income (loss) from operations	2,710	1,836	5,023	2,958
Interest expense, net	0	0	0	0
Change in fair value of derivative liabilities	0	0	0	0
Income tax expense	0	0	0	0
Depreciation and amortization		0	0	0
Operating Segments | OEM
Segment Reporting Information [Line Items]
Sales	498	1,648	1,505	2,589
Income (loss) from operations	205	1,151	708	1,808
Interest expense, net	0	0	0	0
Change in fair value of derivative liabilities	0	0	0	0
Income tax expense	0	0	0	0
Depreciation and amortization		0	0	0
Operating Segments | Advanced Energy
Segment Reporting Information [Line Items]
Sales	1,813	766	2,420	1,122
Income (loss) from operations	(1,250)	(1,090)	(2,971)	(2,624)
Interest expense, net	0	0	0	0
Change in fair value of derivative liabilities	0	0	0	0
Income tax expense	0	0	0	0
Depreciation and amortization		0	0	0
Corporate (Other)
Segment Reporting Information [Line Items]
Sales	0	0	0	0
Income (loss) from operations	(2,971)	(2,407)	(5,803)	(4,645)
Interest expense, net	(36)	(50)	(67)	(88)
Change in fair value of derivative liabilities	38	41	126	128
Income tax expense	4	0	9	0
Depreciation and amortization	$ 178	$ 173	$ 356	$ 355

GEOGRAPHIC AND SEGMENT INFORM44

GEOGRAPHIC AND SEGMENT INFORMATION - PRODUCT LINE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Sales	$ 9,799	$ 9,295	$ 18,188	$ 17,070
Electrosurgical
Segment Reporting Information [Line Items]
Sales	6,206	5,078	11,536	9,330
Cauteries
Segment Reporting Information [Line Items]
Sales	1,873	1,720	3,528	3,554
Lighting
Segment Reporting Information [Line Items]
Sales	948	800	1,393	1,306
Other
Segment Reporting Information [Line Items]
Sales	$ 772	$ 1,697	$ 1,731	$ 2,880

GEOGRAPHIC AND SEGMENT INFORM45

GEOGRAPHIC AND SEGMENT INFORMATION - GEOGRAPHIC (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Sales	$ 9,799	$ 9,295	$ 18,188	$ 17,070
Domestic
Segment Reporting Information [Line Items]
Sales	8,708	7,757	15,700	14,372
International
Segment Reporting Information [Line Items]
Sales	$ 1,091	$ 1,538	$ 2,488	$ 2,698

GEOGRAPHIC AND SEGMENT INFORM46

GEOGRAPHIC AND SEGMENT INFORMATION - NARRATIVE (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017product_linesegment	Jun. 30, 2016	Dec. 31, 2016segment
Segment Reporting [Abstract]
Number of reportable segments (in segments)					1
Number of operating segments (in segments)			3
Number of product lines (in product lines) | product_line			4
Geographic concentration risk | Sales Revenue | International customers
Concentration Risk [Line Items]
Concentration receivable risk (as a percent)	11.10%	16.60%	13.70%	15.90%