Apyx Medical (APYX) 10-Q 3 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 30, 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	Sep. 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		32,860,785
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 9,411	$ 14,456
Restricted cash	779	779
Trade accounts receivable, net of allowance of $154 and $118	4,077	4,733
Inventories, net	7,335	6,158
Prepaid expenses and other current assets	634	413
Total current assets	22,236	26,539
Property and equipment, net	6,376	6,449
Brand name and trademark	1,510	1,510
Purchased technology and license rights, net	189	215
Goodwill	185	185
Deposits	84	109
Other assets	119	103
Total assets	30,699	35,110
Current liabilities:
Accounts payable	1,387	1,606
Accrued payroll	193	419
Accrued vacation	330	404
Current portion of mortgage note payable	239	239
Accrued and other liabilities	2,657	2,604
Total current liabilities	4,806	5,272
Mortgage note payable, net of current portion	2,515	2,694
Note payable	140	140
Deferred rents	11	14
Deferred tax liability	564	564
Derivative liabilities	146	203
Total liabilities	8,182	8,887
STOCKHOLDERS' EQUITY
Series B convertible preferred stock, $0.001 par value; 3,588,139 authorized and zero issued and outstanding as of September 30, 2017 and 3,588,139 authorized and 975,639 issued and outstanding as of December 31, 2016, respectively		1
Common stock, $0.001 par value; 75,000,000 shares authorized; 32,975,174 issued and 32,832,095 outstanding as of September 30, 2017 and 40,000,000 shares authorized; 31,002,832 issued and 30,859,753 outstanding as of December 31, 2016, respectively	33	31
Additional paid-in capital	50,156	49,625
Accumulated deficit	(27,672)	(23,434)
Total stockholders' equity	22,517	26,223
Total liabilities and stockholders' equity	$ 30,699	$ 35,110

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 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)	75,000,000	40,000,000
Common stock, shares issued (in shares)	32,975,174	31,002,832
Common stock, shares outstanding (in shares)	32,832,095	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)	0	975,639
Preferred stock, shares outstanding (in shares)	0	975,639

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Sales	$ 9,347	$ 10,063	$ 27,535	$ 27,133
Cost of sales	4,753	5,002	13,673	14,049
Gross profit	4,594	5,061	13,862	13,084
Other costs and expenses:
Research and development	610	681	2,015	1,941
Professional services	421	292	1,291	1,045
Salaries and related costs	2,080	2,192	6,783	6,492
Selling, general and administrative	2,617	2,141	7,950	6,354
Total other costs and expenses	5,728	5,306	18,039	15,832
Loss from operations	(1,134)	(245)	(4,177)	(2,748)
Interest expense, net	(36)	(37)	(103)	(125)
Change in fair value of derivative liabilities	(69)	(683)	57	(555)
Total other loss, net	(105)	(720)	(46)	(680)
Loss before income taxes	(1,239)	(965)	(4,223)	(3,428)
Income tax expense	6	0	15	0
Net loss	$ (1,245)	$ (965)	$ (4,238)	$ (3,428)
Loss per share
Basic (in dollars per share)	$ (0.04)	$ (0.04)	$ (0.14)	$ (0.13)
Diluted (in dollars per share)	$ (0.04)	$ (0.04)	$ (0.14)	$ (0.13)
Weighted average number of shares outstanding - basic (in shares)	31,078	27,075	30,932	27,059
Weighted average number of shares outstanding - dilutive (in shares)	31,078	27,075	30,932	27,059

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]
Options exercised, shares			31
Options exercised, amount	119			119
Warrants exercised, shares			133
Warrants exercised, amount	316			316
Stock based compensation	533			533
Stock swap to acquire options and warrants, shares			(73)
Stock swap to acquire options and warrants, amount	(315)			(315)
Net loss	(3,428)				(3,428)
Ending balance, amount at Sep. 30, 2016	20,629	$ 2	$ 27	43,512	(22,912)
Ending balance (in shares) at Sep. 30, 2016		1,976	27,142
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]
Options exercised, shares			21
Options exercised, amount	275			275
Conversion of Series B convertible preferred to common stock, shares		(976)	1,951
Conversion of Series B convertible preferred to common stock, amount	0	$ (1)	$ 2	(1)
Stock based compensation	532			532
Stock swap to acquire options and warrants, shares			0
Stock swap to acquire options and warrants, amount	(275)			(275)
Net loss	(4,238)				(4,238)
Ending balance, amount at Sep. 30, 2017	$ 22,517	$ 0	$ 33	$ 50,156	$ (27,672)
Ending balance (in shares) at Sep. 30, 2017		0	32,832

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (4,238)	$ (3,428)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	527	556
Provision for inventory obsolescence	203	365
Gain on disposal of property and equipment, net	3	19
Stock based compensation	532	533
Change in fair value of derivative liabilities	(57)	555
Provision for allowance for doubtful accounts	128	126
Provision for deferred taxes	0	25
Changes in current assets and liabilities:
Trade receivables	528	(1,070)
Prepaid expenses	(221)	(48)
Inventories	(1,380)	(337)
Deposits and other assets	9	312
Accounts payable	(219)	436
Accrued and other liabilities	(250)	(337)
Net cash used in operating activities	(4,435)	(2,293)
Cash flows from investing activities
Purchases of technology, property and equipment	(431)	(182)
Net cash used in investing activities	(431)	(182)
Cash flows from financing activities
Proceeds from stock options/warrants exercised	0	119
Change in restricted cash	0	60
Repayment of mortgage note payable	(179)	(180)
Net cash used in financing activities	(179)	(1)
Net change in cash and cash equivalents	(5,045)	(2,476)
Cash and cash equivalents, beginning of period	14,456	11,805
Cash and cash equivalents, end of period	9,411	9,329
Cash paid for:
Interest paid	$ 103	$ 125

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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) September 30, December 31, Raw materials $ 5,145 $ 4,521 Finished goods 3,804 3,048 Gross inventories 8,949 7,569 Less: reserve for obsolescence (1,614 ) (1,411 ) Net inventories $ 7,335 $ 6,158

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	INTANGIBLE ASSETS Intangible assets consisted of the following: (In thousands) September 30, December 31, Brand name and trademark (life indefinite) $ 1,510 $ 1,510 Purchased technology (5-17 year lives) $ 1,496 $ 1,441 Less: accumulated amortization (1,307 ) (1,226 ) Purchased technology, net $ 189 $ 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 $81,000 for the three and nine months ended September 30, 2017 , respectively, as compared with $27,000 and $81,000 for the three and nine months ended September 30, 2016 . Amortization expense is classified within selling, general and administration expenses in the consolidated statements of operations.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 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. We performed an analysis and concluded that the amendment will not 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	9 Months Ended
	Sep. 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 nine months ended September 30, 2017 : (in thousands) 2013 Placement Agent Warrants Balance, December 31, 2016 $ 203 Change in fair value (57 ) Balance, September 30, 2017 (1) $ 146 (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 September 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 60.290% 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	9 Months Ended
	Sep. 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 Nine Months Ended (in thousands, except per share data) 2017 2016 2017 2016 Numerator: Net loss available to common shareholders $ (1,245 ) $ (965 ) $ (4,238 ) $ (3,428 ) Effect of dilutive securities: Derivative liability - warrants — — — — Numerator for dilutive loss per common share $ (1,245 ) $ (965 ) $ (4,238 ) $ (3,428 ) Denominator: Weighted average shares used to compute basic loss per common share 31,078 27,075 30,932 27,059 Effect of dilutive securities: Derivative liability - warrants — — — — Denominator for dilutive loss per common share 31,078 27,075 30,932 27,059 Basic loss per common share $ (0.04 ) $ (0.04 ) $ (0.14 ) $ (0.13 ) Diluted loss per common share $ (0.04 ) $ (0.04 ) $ (0.14 ) $ (0.13 )

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 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 $191,000 and $532,000 in stock-based compensation during the three and nine months ended September 30, 2017 , respectively, as compared with $173,000 and $533,000 for the three and nine months ended September 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 628,000 3.26 Exercised (104,500 ) 2.64 Canceled and forfeited (196,803 ) 4.99 Outstanding at September 30, 2017 4,078,906 $ 2.99 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 $ 1.73 - $ 2.34 Risk-free rate 1.5% Expected dividend yield —% Expected volatility 68.0% Expected term (in years) 6

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company's income tax expense was $6,000 with an effective tax rate of 0.0% and $15,000 with an effective tax rate of 0.0% for the three and nine months ended September 30, 2017 , respectively, as compared to $0 with an effective tax rate of 0.0% for both the three and nine months ended September 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 nine months ended September 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	9 Months Ended
	Sep. 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 $13,916 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 $5,114 per month, expiring in December 2021, for 18,745 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 September 30, 2017 : (In thousands) 2017 (remaining three months) $ 47 2018 189 2019 132 2020 73 2021 73 Total $ 514 Rent expense was approximately $41,385 and $126,711 for the three and nine months ended September 30, 2017 , respectively compared to $57,720 and $140,000 for the three and nine months ended September 30, 2016 . Purchase Commitments At September 30, 2017 , we had purchase commitments for inventories totaling approximately $3.6 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 35.3% and 41.3% of trade receivables as of September 30, 2017 and 2016 , respectively, and approximately 50.0% and 56.9% of net revenues for the nine months ended September 30, 2017 and 2016 , respectively. For the nine months ended September 30, 2017 , McKesson and National Distribution & Contracting Inc. accounted for 15.7% and 9.3% of sales, while for the same period in 2016 , McKesson and National Distribution & Contracting Inc. accounted for 15.0% and 9.0% of sales.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 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 $33,333 and $129,366 for the three and nine months ended September 30, 2017 , respectively compared to $81,000 and $158,000 for the three and nine months ended September 30, 2016 .

LONG TERM DEBT

LONG TERM DEBT	9 Months Ended
	Sep. 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 September 30, 2017 was 4.732% . The Loan documents contain customary financial covenants, including a covenant that the Company maintains a minimum liquidity, as defined, 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 three months) $ 60 2018 239 2019 2,455 Total $ 2,754

GEOGRAPHIC AND SEGMENT INFORMAT

GEOGRAPHIC AND SEGMENT INFORMATION	9 Months Ended
	Sep. 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 certain 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 September 30, 2017 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 6,696 $ 525 $ 2,126 $ — $ 9,347 Income (loss) from operations (1) 1,699 323 (718 ) (2,438 ) (1,134 ) Interest expense, net — — — (36 ) (36 ) Change in fair value of derivative liabilities — — — (69 ) (69 ) Income tax expense — — — 6 6 Depreciation and amortization — — — 171 171 Three Months Ended September 30, 2016 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 6,902 $ 1,762 $ 1,399 $ — $ 10,063 Income (loss) from operations 2,089 690 (707 ) (2,317 ) (245 ) Interest expense, net — — — (37 ) (37 ) Change in fair value of derivative liabilities — — — (683 ) (683 ) Income tax expense — — — — — Depreciation and amortization — — — 201 201 Nine Months Ended September 30, 2017 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 20,959 $ 2,030 $ 4,546 $ — $ 27,535 Income (loss) from operations (1) 6,471 1,031 (3,821 ) (7,858 ) (4,177 ) Interest expense, net — — — (103 ) (103 ) Change in fair value of derivative liabilities — — — 57 57 Income tax expense — — — 15 15 Depreciation and amortization — — — 527 527 Nine Months Ended September 30, 2016 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 20,261 $ 4,351 $ 2,521 $ — $ 27,133 Income (loss) from operations 5,047 2,498 (3,331 ) (6,962 ) (2,748 ) Interest expense, net — — — (125 ) (125 ) Change in fair value of derivative liabilities — — — (555 ) (555 ) Income tax expense — — — — — Depreciation and amortization — — — 355 556 (1) During the first and second quarter of 2017, marketing expenses were considered as attributable only to the Corporate (Other) segment in the line Income (loss) from operations. Beginning with the third quarter of 2017, it was determined that certain marketing expenses are attributable to specific segments. The disclosure of Income (loss) from operations was updated for the third quarter of 2017 to reflect marketing expense by segment. 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 Nine Months Ended (In thousands) 2017 2016 2017 2016 Sales by Product Line Electrosurgical $ 6,205 $ 5,690 $ 17,741 $ 15,020 Cauteries 1,696 1,863 5,224 5,417 Lighting 573 740 1,966 2,046 Other 873 1,770 2,604 4,650 Total $ 9,347 $ 10,063 $ 27,535 $ 27,133 International sales represented approximately 14.6% and 14.0% of total revenues for the three and nine months ended September 30, 2017 , respectively, as compared with 13.2% and 14.9% of total revenues for the three and nine months ended September 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 Nine Months Ended (In thousands) 2017 2016 2017 2016 Sales by Domestic and International Domestic $ 7,978 $ 8,730 $ 23,678 $ 23,102 International 1,369 1,333 3,857 4,031 Total $ 9,347 $ 10,063 $ 27,535 $ 27,133

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 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. We performed an analysis and concluded that the amendment will not 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)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of inventory	Inventories consisted of the following: (In thousands) September 30, December 31, Raw materials $ 5,145 $ 4,521 Finished goods 3,804 3,048 Gross inventories 8,949 7,569 Less: reserve for obsolescence (1,614 ) (1,411 ) Net inventories $ 7,335 $ 6,158

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Intangible assets consisted of the following: (In thousands) September 30, December 31, Brand name and trademark (life indefinite) $ 1,510 $ 1,510 Purchased technology (5-17 year lives) $ 1,496 $ 1,441 Less: accumulated amortization (1,307 ) (1,226 ) Purchased technology, net $ 189 $ 215 Goodwill $ 185 $ 185

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2017 : (in thousands) 2013 Placement Agent Warrants Balance, December 31, 2016 $ 203 Change in fair value (57 ) Balance, September 30, 2017 (1) $ 146 (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 September 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 60.290% 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)	9 Months Ended
	Sep. 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 Nine Months Ended (in thousands, except per share data) 2017 2016 2017 2016 Numerator: Net loss available to common shareholders $ (1,245 ) $ (965 ) $ (4,238 ) $ (3,428 ) Effect of dilutive securities: Derivative liability - warrants — — — — Numerator for dilutive loss per common share $ (1,245 ) $ (965 ) $ (4,238 ) $ (3,428 ) Denominator: Weighted average shares used to compute basic loss per common share 31,078 27,075 30,932 27,059 Effect of dilutive securities: Derivative liability - warrants — — — — Denominator for dilutive loss per common share 31,078 27,075 30,932 27,059 Basic loss per common share $ (0.04 ) $ (0.04 ) $ (0.14 ) $ (0.13 ) Diluted loss per common share $ (0.04 ) $ (0.04 ) $ (0.14 ) $ (0.13 )

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 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 628,000 3.26 Exercised (104,500 ) 2.64 Canceled and forfeited (196,803 ) 4.99 Outstanding at September 30, 2017 4,078,906 $ 2.99
Schedule of option fair value assumptions	2017 Grants Option value $ 1.73 - $ 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)	9 Months Ended
	Sep. 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 September 30, 2017 : (In thousands) 2017 (remaining three months) $ 47 2018 189 2019 132 2020 73 2021 73 Total $ 514

LONG TERM DEBT (Tables)

LONG TERM DEBT (Tables)	9 Months Ended
	Sep. 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 three months) $ 60 2018 239 2019 2,455 Total $ 2,754

GEOGRAPHIC AND SEGMENT INFORM27

GEOGRAPHIC AND SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 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 September 30, 2017 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 6,696 $ 525 $ 2,126 $ — $ 9,347 Income (loss) from operations (1) 1,699 323 (718 ) (2,438 ) (1,134 ) Interest expense, net — — — (36 ) (36 ) Change in fair value of derivative liabilities — — — (69 ) (69 ) Income tax expense — — — 6 6 Depreciation and amortization — — — 171 171 Three Months Ended September 30, 2016 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 6,902 $ 1,762 $ 1,399 $ — $ 10,063 Income (loss) from operations 2,089 690 (707 ) (2,317 ) (245 ) Interest expense, net — — — (37 ) (37 ) Change in fair value of derivative liabilities — — — (683 ) (683 ) Income tax expense — — — — — Depreciation and amortization — — — 201 201 Nine Months Ended September 30, 2017 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 20,959 $ 2,030 $ 4,546 $ — $ 27,535 Income (loss) from operations (1) 6,471 1,031 (3,821 ) (7,858 ) (4,177 ) Interest expense, net — — — (103 ) (103 ) Change in fair value of derivative liabilities — — — 57 57 Income tax expense — — — 15 15 Depreciation and amortization — — — 527 527 Nine Months Ended September 30, 2016 (In thousands) Core OEM Advanced Energy Corporate (Other) Total Sales $ 20,261 $ 4,351 $ 2,521 $ — $ 27,133 Income (loss) from operations 5,047 2,498 (3,331 ) (6,962 ) (2,748 ) Interest expense, net — — — (125 ) (125 ) Change in fair value of derivative liabilities — — — (555 ) (555 ) Income tax expense — — — — — Depreciation and amortization — — — 355 556 (1) During the first and second quarter of 2017, marketing expenses were considered as attributable only to the Corporate (Other) segment in the line Income (loss) from operations. Beginning with the third quarter of 2017, it was determined that certain marketing expenses are attributable to specific segments. The disclosure of Income (loss) from operations was updated for the third quarter of 2017 to reflect marketing expense by segment.
Schedule of revenue by product line	Sales for the product lines are summarized as follows: Three Months Ended Nine Months Ended (In thousands) 2017 2016 2017 2016 Sales by Product Line Electrosurgical $ 6,205 $ 5,690 $ 17,741 $ 15,020 Cauteries 1,696 1,863 5,224 5,417 Lighting 573 740 1,966 2,046 Other 873 1,770 2,604 4,650 Total $ 9,347 $ 10,063 $ 27,535 $ 27,133
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 Nine Months Ended (In thousands) 2017 2016 2017 2016 Sales by Domestic and International Domestic $ 7,978 $ 8,730 $ 23,678 $ 23,102 International 1,369 1,333 3,857 4,031 Total $ 9,347 $ 10,063 $ 27,535 $ 27,133

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 5,145	$ 4,521
Finished goods	3,804	3,048
Gross inventories	8,949	7,569
Less: reserve for obsolescence	(1,614)	(1,411)
Net inventories	$ 7,335	$ 6,158

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Purchased technology, net	$ 189,000		$ 189,000		$ 215,000
Goodwill	185,000		185,000		185,000
Amortization of Intangible Assets	27,000	$ 27,000	81,000	$ 81,000
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	1,496,000		1,496,000		1,441,000
Less: accumulated amortization	(1,307,000)		(1,307,000)		(1,226,000)
Purchased technology, net	$ 189,000		$ 189,000		$ 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	9 Months Ended
	Sep. 30, 2017USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 203
Change in fair value	(57)
Ending balance	$ 146

FAIR VALUE MEASUREMENTS - NARRA

FAIR VALUE MEASUREMENTS - NARRATIVE (Details) - Warrant	9 Months Ended
	Sep. 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)	60.29%
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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net loss available to common shareholders	$ (1,245)	$ (965)	$ (4,238)	$ (3,428)
Derivative liability - warrants	0	0	0	0
Numerator for dilutive loss per common share	$ (1,245)	$ (965)	$ (4,238)	$ (3,428)
Denominator:
Weighted average shares used to compute basic loss per common share (in shares)	31,078	27,075	30,932	27,059
Derivative liability - warrants (in shares)	0	0	0	0
Denominator for diluted loss per common share (in shares)	31,078	27,075	30,932	27,059
Earnings Per Share, Basic and Diluted [Abstract]
Basic loss per common share (in dollars per share)	$ (0.04)	$ (0.04)	$ (0.14)	$ (0.13)
Diluted loss per common share (in dollars per share)	$ (0.04)	$ (0.04)	$ (0.14)	$ (0.13)

STOCK-BASED COMPENSATION - NARR

STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation	$ 191,000	$ 173,000	$ 532,000	$ 533,000

STOCK-BASED COMPENSATION - SUMM

STOCK-BASED COMPENSATION - SUMMARY OF STOCK OPTIONS (Details)	9 Months Ended
	Sep. 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	628,000
Exercised (in shares) | shares	(104,500)
Canceled and forfeited (in shares) | shares	(196,803)
Outstanding, end of period (in shares) | shares	4,078,906
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	3.26
Exercised (in dollars per share) | $ / shares	2.64
Canceled and forfeited (in dollars per share) | $ / shares	4.99
Outstanding, end of period (in dollars per share) | $ / shares	$ 2.99

STOCK-BASED COMPENSATION - FAIR

STOCK-BASED COMPENSATION - FAIR VALUE ASSUMPTIONS (Details)	9 Months Ended
	Sep. 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)	$ 1.73
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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income tax expense	$ 6	$ 0	$ 15	$ 0
Effective income tax rate, percent (as a percent)	0.00%	0.00%	0.00%	0.00%

COMMITMENTS, CONTINGENCIES AN37

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS - FUTURE MINIMUM LEASE PAYMENTS (Details) $ in Thousands	Sep. 30, 2017USD ($)
Future minimum lease payments under operating leases
2017 (remaining three months)	$ 47
2,018	189
2,019	132
2,020	73
2,021	73
Total	$ 514

COMMITMENTS, CONTINGENCIES AN38

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS - NARRATIVE (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Oct. 31, 2015USD ($)ft²	Mar. 31, 2014USD ($)ft²
Other Commitments [Line Items]
Rent expense	$ 41,385	$ 57,720	$ 126,711	$ 140,000
Purchase commitments for inventories	$ 3,600,000		$ 3,600,000
Customer concentration risk | Trade receivable | 10 Largest Customers
Other Commitments [Line Items]
Concentration receivable risk (as a percent)			35.30%	41.30%
Customer concentration risk | Sales Revenue | 10 Largest Customers
Other Commitments [Line Items]
Concentration receivable risk (as a percent)			50.00%	56.90%
Customer concentration risk | Sales Revenue | McKesson
Other Commitments [Line Items]
Concentration receivable risk (as a percent)			15.70%	15.00%
Customer concentration risk | Sales Revenue | National Distribution & Contracting Inc.
Other Commitments [Line Items]
Concentration receivable risk (as a percent)			9.30%	9.00%
Purchase, NY
Other Commitments [Line Items]
Area of real estate property (in square feet) | ft²						3,650
Monthly cost of office space						$ 13,916
Sophia, Bulgaria
Other Commitments [Line Items]
Area of real estate property (in square feet) | ft²					18,745
Monthly cost of office space					$ 5,114

RELATED PARTY TRANSACTIONS - NA

RELATED PARTY TRANSACTIONS - NARRATIVE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Immediate Family Member of Management or Principal Owner | AR Logic
Related Party Transaction [Line Items]
Consulting fees	$ 33,333	$ 81,000	$ 129,366	$ 158,000

LONG TERM DEBT - NARRATIVE (Det

LONG TERM DEBT - NARRATIVE (Details) - Mortgages	Jun. 28, 2016USD ($)	Sep. 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)		4.732%
Debt covenant, minimum 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	Sep. 30, 2017USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2017 (remaining three months)	$ 60
2,018	239
2,019	2,455
Total long-term debt	$ 2,754

GEOGRAPHIC AND SEGMENT INFORM42

GEOGRAPHIC AND SEGMENT INFORMATION - REPORTABLE SEGMENT (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016	Sep. 30, 2017		Sep. 30, 2016
Segment Reporting Information [Line Items]
Sales	$ 9,347		$ 10,063	$ 27,535		$ 27,133
Income (loss) from operations (1)	(1,134)		(245)	(4,177)		(2,748)
Interest expense, net	(36)		(37)	(103)		(125)
Change in fair value of derivative liabilities	(69)		(683)	57		(555)
Income tax expense	6		0	15		0
Depreciation and amortization	171		201	527		556
Operating Segments | Core
Segment Reporting Information [Line Items]
Sales	6,696		6,902	20,959		20,261
Income (loss) from operations (1)	1,699	[1]	2,089	6,471	[1]	5,047
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		0
Operating Segments | OEM
Segment Reporting Information [Line Items]
Sales	525		1,762	2,030		4,351
Income (loss) from operations (1)	323	[1]	690	1,031	[1]	2,498
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		0
Operating Segments | Advanced Energy
Segment Reporting Information [Line Items]
Sales	2,126		1,399	4,546		2,521
Income (loss) from operations (1)	(718)		(707)	(3,821)		(3,331)
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		0
Corporate (Other)
Segment Reporting Information [Line Items]
Sales	0		0	0		0
Income (loss) from operations (1)	(2,438)	[1]	(2,317)	(7,858)	[1]	(6,962)
Interest expense, net	(36)		(37)	(103)		(125)
Change in fair value of derivative liabilities	(69)		(683)	57		(555)
Income tax expense	6		0	15		0
Depreciation and amortization	$ 171		$ 201	$ 527		$ 355
[1]	During the first and second quarter of 2017, marketing expenses were considered as attributable only to the Corporate (Other) segment in the line Income (loss) from operations. Beginning with the third quarter of 2017, it was determined that certain marketing expenses are attributable to specific segments. The disclosure of Income (loss) from operations was updated for the third quarter of 2017 to reflect marketing expense by segment.

GEOGRAPHIC AND SEGMENT INFORM43

GEOGRAPHIC AND SEGMENT INFORMATION - PRODUCT LINE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Sales	$ 9,347	$ 10,063	$ 27,535	$ 27,133
Electrosurgical
Segment Reporting Information [Line Items]
Sales	6,205	5,690	17,741	15,020
Cauteries
Segment Reporting Information [Line Items]
Sales	1,696	1,863	5,224	5,417
Lighting
Segment Reporting Information [Line Items]
Sales	573	740	1,966	2,046
Other
Segment Reporting Information [Line Items]
Sales	$ 873	$ 1,770	$ 2,604	$ 4,650

GEOGRAPHIC AND SEGMENT INFORM44

GEOGRAPHIC AND SEGMENT INFORMATION - GEOGRAPHIC (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Sales	$ 9,347	$ 10,063	$ 27,535	$ 27,133
Domestic
Segment Reporting Information [Line Items]
Sales	7,978	8,730	23,678	23,102
International
Segment Reporting Information [Line Items]
Sales	$ 1,369	$ 1,333	$ 3,857	$ 4,031

GEOGRAPHIC AND SEGMENT INFORM45

GEOGRAPHIC AND SEGMENT INFORMATION - NARRATIVE (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017product_linesegment	Sep. 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)	14.60%	13.20%	14.00%	14.90%