Apyx Medical (APYX) 10-Q 1 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 25, 2018
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, 2018
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		33,203,517
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 7,875	$ 9,949
Restricted cash	660	719
Trade accounts receivable, net of allowance of $180 and $204	5,592	4,857
Inventories, net	7,533	6,526
Prepaid expenses and other current assets	568	496
Total current assets	22,228	22,547
Property and equipment, net	6,314	6,408
Brand name and trademark	1,510	1,510
Purchased technology and license rights, net	235	179
Goodwill	185	185
Deposits	115	92
Other assets	67	67
Total assets	30,654	30,988
Current liabilities:
Accounts payable	2,745	1,583
Accrued severance and related	439	1,242
Accrued payroll	394	447
Current portion of mortgage note payable	239	239
Accrued and other liabilities	2,420	2,462
Total current liabilities	6,237	5,973
Mortgage note payable, net of current portion	2,335	2,455
Note payable	140	140
Deferred tax liability	368	368
Derivative liabilities	0	20
Total liabilities	9,080	8,956
STOCKHOLDERS’ EQUITY
Common stock, $0.001 par value; 75,000,000 shares authorized; 33,055,131 issued and 32,912,556 outstanding as of June 30, 2018 and 75,000,000 shares authorized; 33,021,170 issued and 32,878,091 outstanding as of December 31, 2017, respectively	33	33
Additional paid-in capital	51,244	50,495
Accumulated deficit	(29,703)	(28,496)
Total stockholders’ equity	21,574	22,032
Total liabilities and stockholders’ equity	$ 30,654	$ 30,988

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	33,055,131	33,021,170
Common stock, shares outstanding (in shares)	32,912,556	32,878,091

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Sales	$ 11,475	$ 9,799	$ 21,391	$ 18,188
Cost of sales	5,198	4,757	10,124	8,920
Gross profit	6,277	5,042	11,267	9,268
Other costs and expenses:
Research and development	816	696	1,378	1,405
Professional services	681	480	1,187	870
Salaries and related costs	2,118	2,243	4,234	4,703
Selling, general and administrative	2,929	2,929	5,599	5,333
Total other costs and expenses	6,544	6,348	12,398	12,311
Loss from operations	(267)	(1,306)	(1,131)	(3,043)
Interest expense, net	(38)	(36)	(72)	(67)
Change in fair value of derivative liabilities	46	38	20	126
Total other income (expense), net	8	2	(52)	59
Loss before income taxes	(259)	(1,304)	(1,183)	(2,984)
Income tax expense	13	4	24	9
Net loss	$ (272)	$ (1,308)	$ (1,207)	$ (2,993)
Loss per share
Basic (in dollars per share)	$ (0.01)	$ (0.04)	$ (0.04)	$ (0.10)
Diluted (in dollars per share)	$ (0.01)	$ (0.04)	$ (0.04)	$ (0.10)
Weighted average number of shares outstanding - basic (in shares)	32,890	30,860	32,884	30,860
Weighted average number of shares outstanding - dilutive (in shares)	32,890	30,860	32,884	30,860

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 (in shares) at Dec. 31, 2016		976	30,860
Beginning balance, amount at Dec. 31, 2016	$ 26,223	$ 1	$ 31	$ 49,625	$ (23,434)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	341			341
Net loss available to common shareholders	(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
Beginning balance (in shares) at Dec. 31, 2017		0	32,878
Beginning balance, amount at Dec. 31, 2017	22,032	$ 0	$ 33	50,495	(28,496)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Options exercised (in shares)			37
Options exercised	83			83
Warrant exercised (in shares)			40
Warrants exercised	95			95
Stock based compensation	749			749
Stock swap to acquire options and warrants (in shares)			(42)
Stock swap to acquire options and warrants	(178)			(178)
Net loss available to common shareholders	(1,207)				(1,207)
Ending balance, amount at Jun. 30, 2018	$ 21,574	$ 0	$ 33	$ 51,244	$ (29,703)
Ending balance (in shares) at Jun. 30, 2018		0	32,913

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net loss	$ (1,207)	$ (2,993)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	371	356
Provision for inventory obsolescence	(52)	83
(Loss) gain on disposal of property and equipment, net	(1)	2
Stock based compensation	749	341
Change in fair value of derivative liabilities	(20)	(126)
Provision for allowance for doubtful accounts	82	159
Changes in current assets and liabilities:
Trade receivables	(817)	(355)
Prepaid expenses	(72)	(125)
Inventories	(955)	(1,507)
Deposits and other assets	(23)	(72)
Accounts payable	1,162	471
Accrued and other liabilities	(898)	(128)
Net cash used in operating activities	(1,681)	(3,894)
Cash flows from investing activities
Purchases of technology, property and equipment	(332)	(151)
Net cash used in investing activities	(332)	(151)
Cash flows from financing activities
Repayment of mortgage note payable	(120)	(119)
Net cash used in financing activities	(120)	(119)
Net change in cash, cash equivalents and restricted cash	(2,133)	(4,164)
Cash, cash equivalents and restricted cash, beginning of period	10,668	15,235
Cash, cash equivalents and restricted cash, end of period	8,535	11,071
Cash paid for:
Interest paid	$ 72	$ 67

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2018
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, 2017 . 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. On July 9, 2018, we entered into a definitive agreement with Specialty Surgical Instrumentation Inc., a subsidiary of Symmetry Surgical Inc. (“Symmetry”), pursuant to which the Company will divest and sell the Core business segment, including the Bovie ® brand and trademarks to Symmetry for gross proceeds of $97 million in cash. The asset purchase agreement was approved by the Company’s Board of Directors and is subject to customary closing conditions, including approval by the Company’s stockholders, and expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The Company is retaining and will continue to operate its Advanced Energy and OEM businesses, its facilities in Clearwater, FL and Sofia, Bulgaria, and certain intellectual property related to specialty generators.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2018
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 $ 6,093 $ 5,163 Finished goods 3,301 3,276 Gross inventories 9,394 8,439 Less: reserve for obsolescence (1,861 ) (1,913 ) Net inventories $ 7,533 $ 6,526

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2018
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) $ 1,623 $ 1,513 Less: accumulated amortization (1,388 ) (1,334 ) Purchased technology, net $ 235 $ 179 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. Based on our annual impairment testing performed, 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 results from our acquisition of Bovie Bulgaria, EOOD. Amortization of purchased technology was $27,000 and $54,000 for the three and six months ended June 30, 2018 and 2017 , respectively. 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, 2018
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. ASU No. 2016-18, Restricted Cash Flows provides guidance on the presentation of restricted cash and restricted cash equivalents, which are now included with cash and cash equivalents when reconciling the beginning and ending cash amounts shown on the statements of cash flows. Using the retrospective transition method required under the standard, the Company has adjusted the presentation of its Condensed Consolidated Statements of Cash Flows for all periods presented. The adoption of ASU No. 2016-18 did not have any other impact on the Company’s Consolidated Financial Statements. The following table provides additional detail by financial statement line item of the ASU 2016-18 impact in our Consolidated Statement of Cash Flows for the six months ended June 30, 2018 and 2017 : (In thousands) As Reported (Pre-Adoption) ASU 2016-18 Reported (Post Adoption) Six Months Ended June 30, 2018 Cash, cash equivalents and restricted cash, beginning of period $ 9,949 $ 719 $ 10,668 Six Months Ended June 30, 2017 Net change in cash, cash equivalents and restricted cash $ (4,164 ) $ — $ (4,164 ) Cash, cash equivalents and restricted cash, beginning of period 14,456 779 15,235 Cash, cash equivalents and restricted cash, end of period $ 10,292 $ 779 $ 11,071 ASU No. 2014-09 (ASC 606), Revenue from Contracts with Customers became effective for us beginning with the first quarter of 2018, and adopted the new accounting standard using the modified retrospective transition approach. The modified retrospective transition approach recognized any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. We record revenue under ASC 606 at a single point in time, when control is transferred to the customer, which is consistent with past practice. We will continue to apply our current business processes, policies, systems and controls to support recognition and disclosure under the new standard. Based on the results of the evaluation, we have determined that the adoption of the new standard presents no material impact on our consolidated financial statements. Application of the transition requirements of the new standard did not have a material impact on opening retained earnings. 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.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2018
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) 2018 2017 2018 2017 Numerator: Net loss available to common shareholders $ (272 ) $ (1,308 ) $ (1,207 ) $ (2,993 ) Effect of dilutive securities: Derivative liability - warrants — — — — Numerator for dilutive loss per common share $ (272 ) $ (1,308 ) $ (1,207 ) $ (2,993 ) Denominator: Weighted average shares used to compute basic loss per common share 32,890 30,860 32,884 30,860 Effect of dilutive securities: Derivative liability - warrants — — — — Denominator for dilutive loss per common share 32,890 30,860 32,884 30,860 Basic loss per common share $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.10 ) Diluted loss per common share $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.10 ) Anti-dilutive instruments excluded from diluted loss per common share: Warrants 14 3 10 16 Options 1,061 500 821 805

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2018
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 $377,000 and $749,000 in stock-based compensation during the three and six months ended June 30, 2018 , as compared with $182,000 and $341,000 for the three and six months ended June 30, 2017 , respectively. The status of our stock options and stock awards are summarized as follows: Number of options Weighted average exercise price Outstanding at December 31, 2017 4,860,157 $ 3.00 Granted 117,000 2.95 Exercised (37,250 ) 2.23 Canceled and forfeited (57,500 ) 6.55 Outstanding at June 30, 2018 4,882,407 $ 2.94 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. 2018 Grants Option value $ 1.46 - $ 1.96 Risk-free rate 1.9% Expected dividend yield — Expected volatility 68.8% Expected term (in years) 6

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s income tax expense was $13,000 and $24,000 with an effective tax rate of 0.0% for the three and six months ended June 30, 2018 , as compared to $4,000 and $9,000 with an effective tax rate of 0.0% for the three and six months ended June 30, 2017 . 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. Management expects the gain from the sale of the Core business segment to Symmetry will utilize substantially all of the historical loss carryforwards and the valuation allowance on the deferred tax asset will be reversed during the third quarter of 2018, when the transaction is approved by the Company’s stockholders. For the six months ended June 30, 2018 , 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 Net Operating Losses), 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, 2018
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. We decided to consolidate operations in the Purchase, NY office with the facility in Clearwater, Florida. Based on this, we determined the office in Purchase, NY was no longer necessary and decided to cease all activity at the location. The remaining $119,000 of the lease was expensed in the fourth quarter of 2017 as part of severance and related expense. These remaining payments expensed in 2017 will be operational cash outflows in 2018 and 2019. In October 2015, pursuant to our acquisition of Bovie Bulgaria, we are obligated to pay a lease of $6,006 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 June 30, 2018 : (In thousands) 2018 (remaining six months) $ 36 2019 72 2020 72 2021 72 Total $ 252 Litigation The medical device industry is characterized by frequent claims and litigation, and we are and may become subject to various claims, lawsuits and proceedings in the ordinary course of our business, including claims by current or former employees, distributors and competitors, and with respect to our products and product liability claims, lawsuits and proceedings. We are involved in a number of legal actions relating to the use of our J-Plasma technology. The outcomes of these legal actions are not within our complete control and may not be known for prolonged periods of time. In the opinion of management, the Company has meritorious defenses, and such claims are adequately covered by insurance, or are not expected, individually or in the aggregate, to result in a material, adverse effect on our financial condition. However, in the event that damages exceed the aggregate coverage limits of our policy or if our insurance carriers disclaim coverage, we believe it is possible that costs associated with these claims could have a material adverse impact on our consolidated earnings, financial position or cash flows. Purchase Commitments At June 30, 2018 , we had purchase commitments for inventories totaling approximately $5.4 million , substantially all of which is expected to be purchased by the end of 2018 . Concentrations Our ten largest customers accounted for approximately 36.7% and 29.2% of trade receivables as of June 30, 2018 and 2017 , respectively, and approximately 39.5% and 51.7% of net revenues for the six months ended June 30, 2018 and 2017 , respectively. For the six months ended June 30, 2018 , McKesson and National Distribution & Contracting Inc. accounted for 15.5% and 7.1% of sales, respectively, while for the same period in 2017 , McKesson and National Distribution & Contracting Inc. accounted for 15.5% and 10.1% of sales, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2018
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.

LONG TERM DEBT

LONG TERM DEBT	6 Months Ended
	Jun. 30, 2018
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 $660,000 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, 2018 was 5.501% . 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 2018 (remaining six months) $ 120 2019 2,454 Total $ 2,574

GEOGRAPHIC AND SEGMENT INFORMAT

GEOGRAPHIC AND SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2018
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. 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 June 30, 2018 (In thousands) Core Advanced Energy OEM Corporate (Other) Total Sales $ 7,784 $ 3,113 $ 578 $ — $ 11,475 Income (loss) from operations 2,666 (792 ) 302 (2,443 ) (267 ) Interest expense, net — — — (38 ) (38 ) Change in fair value of derivative liabilities — — — 46 46 Income tax expense — — — 13 13 Depreciation and amortization — — — 172 172 Three Months Ended June 30, 2017 (In thousands) Core Advanced Energy OEM Corporate (Other) Total Sales $ 7,488 $ 1,813 $ 498 $ — $ 9,799 Income (loss) from operations (1) 2,559 (1,284 ) 205 (2,786 ) (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 Six Months Ended June 30, 2018 (In thousands) Core Advanced Energy OEM Corporate (Other) Total Sales $ 14,303 $ 5,742 $ 1,346 $ — $ 21,391 Income (loss) from operations 4,522 (1,370 ) 708 (4,991 ) (1,131 ) Interest expense, net — — — (72 ) (72 ) Change in fair value of derivative liabilities — — — 20 20 Income tax expense — — — 24 24 Depreciation and amortization — — — 371 371 Six Months Ended June 30, 2017 (In thousands) Core Advanced Energy OEM Corporate (Other) Total Sales $ 14,263 $ 2,420 $ 1,505 $ — $ 18,188 Income (loss) from operations (1) 4,772 (3,103 ) 708 (5,420 ) (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 (1) During the first and second quarter of 2017, marketing expenses were presented as attributable only to the Corporate (Other) segment in the line Income (loss) from operations. It was subsequently determined that certain marketing expenses are attributable to specific segments. The disclosure of Income (loss) from operations was updated for the first and second quarter of 2017 to reflect marketing expense by segment. International sales represented approximately 15.5% and 17.4% of total revenues for the three and six months ended June 30, 2018 , respectively, as compared with 11.1% and 13.7% of total revenues for the three and six months ended June 30, 2017 . 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) 2018 2017 2018 2017 Sales by Domestic and International Domestic $ 9,700 $ 8,708 $ 17,673 $ 15,700 International 1,775 1,091 3,718 2,488 Total $ 11,475 $ 9,799 $ 21,391 $ 18,188

SUBSEQUENT EVENT SUBSEQUENT EVE

SUBSEQUENT EVENT SUBSEQUENT EVENT	6 Months Ended
	Jun. 30, 2018
Subsequent Event [Line Items]
Subsequent events	SUBSEQUENT EVENTS On July 9, 2018, we entered into a definitive agreement with Specialty Surgical Instrumentation Inc., a subsidiary of Symmetry Surgical Inc. (“Symmetry”), pursuant to which the Company will divest and sell the Core business segment, including the Bovie ® brand and trademarks to Symmetry for gross proceeds of $97 million in cash. The asset purchase agreement was approved by the Company’s Board of Directors and is subject to customary closing conditions, including approval by the Company’s stockholders, and expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The Company is retaining and will continue to operate its Advanced Energy and OEM businesses, its facilities in Clearwater, FL and Sofia, Bulgaria, and certain intellectual property related to specialty generators. As of June 30, 2018, the Company concluded that the planned divestitures did not meet the criteria for assets held for sale – discontinued operations set forth in ASC No. 205–20, “Presentation of Financial Statements,” as stockholder approval is required prior to closing of the planned divestiture. The Company continues to classify these businesses in its continuing operations for all periods presented.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2018
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. ASU No. 2016-18, Restricted Cash Flows provides guidance on the presentation of restricted cash and restricted cash equivalents, which are now included with cash and cash equivalents when reconciling the beginning and ending cash amounts shown on the statements of cash flows. Using the retrospective transition method required under the standard, the Company has adjusted the presentation of its Condensed Consolidated Statements of Cash Flows for all periods presented. The adoption of ASU No. 2016-18 did not have any other impact on the Company’s Consolidated Financial Statements. The following table provides additional detail by financial statement line item of the ASU 2016-18 impact in our Consolidated Statement of Cash Flows for the six months ended June 30, 2018 and 2017 : (In thousands) As Reported (Pre-Adoption) ASU 2016-18 Reported (Post Adoption) Six Months Ended June 30, 2018 Cash, cash equivalents and restricted cash, beginning of period $ 9,949 $ 719 $ 10,668 Six Months Ended June 30, 2017 Net change in cash, cash equivalents and restricted cash $ (4,164 ) $ — $ (4,164 ) Cash, cash equivalents and restricted cash, beginning of period 14,456 779 15,235 Cash, cash equivalents and restricted cash, end of period $ 10,292 $ 779 $ 11,071 ASU No. 2014-09 (ASC 606), Revenue from Contracts with Customers became effective for us beginning with the first quarter of 2018, and adopted the new accounting standard using the modified retrospective transition approach. The modified retrospective transition approach recognized any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. We record revenue under ASC 606 at a single point in time, when control is transferred to the customer, which is consistent with past practice. We will continue to apply our current business processes, policies, systems and controls to support recognition and disclosure under the new standard. Based on the results of the evaluation, we have determined that the adoption of the new standard presents no material impact on our consolidated financial statements. Application of the transition requirements of the new standard did not have a material impact on opening retained earnings. 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.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Schedule of inventory	Inventories consisted of the following: (In thousands) June 30, December 31, Raw materials $ 6,093 $ 5,163 Finished goods 3,301 3,276 Gross inventories 9,394 8,439 Less: reserve for obsolescence (1,861 ) (1,913 ) Net inventories $ 7,533 $ 6,526

BASIS OF PRESENTATION BASIS OF

BASIS OF PRESENTATION BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2018
New Accounting Pronouncement, Early Adoption [Abstract]
New accounting pronouncement, early adoption	The following table provides additional detail by financial statement line item of the ASU 2016-18 impact in our Consolidated Statement of Cash Flows for the six months ended June 30, 2018 and 2017 : (In thousands) As Reported (Pre-Adoption) ASU 2016-18 Reported (Post Adoption) Six Months Ended June 30, 2018 Cash, cash equivalents and restricted cash, beginning of period $ 9,949 $ 719 $ 10,668 Six Months Ended June 30, 2017 Net change in cash, cash equivalents and restricted cash $ (4,164 ) $ — $ (4,164 ) Cash, cash equivalents and restricted cash, beginning of period 14,456 779 15,235 Cash, cash equivalents and restricted cash, end of period $ 10,292 $ 779 $ 11,071

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2018
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) $ 1,623 $ 1,513 Less: accumulated amortization (1,388 ) (1,334 ) Purchased technology, net $ 235 $ 179 Goodwill $ 185 $ 185

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
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) 2018 2017 2018 2017 Numerator: Net loss available to common shareholders $ (272 ) $ (1,308 ) $ (1,207 ) $ (2,993 ) Effect of dilutive securities: Derivative liability - warrants — — — — Numerator for dilutive loss per common share $ (272 ) $ (1,308 ) $ (1,207 ) $ (2,993 ) Denominator: Weighted average shares used to compute basic loss per common share 32,890 30,860 32,884 30,860 Effect of dilutive securities: Derivative liability - warrants — — — — Denominator for dilutive loss per common share 32,890 30,860 32,884 30,860 Basic loss per common share $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.10 ) Diluted loss per common share $ (0.01 ) $ (0.04 ) $ (0.04 ) $ (0.10 ) Anti-dilutive instruments excluded from diluted loss per common share: Warrants 14 3 10 16 Options 1,061 500 821 805

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2018
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, 2017 4,860,157 $ 3.00 Granted 117,000 2.95 Exercised (37,250 ) 2.23 Canceled and forfeited (57,500 ) 6.55 Outstanding at June 30, 2018 4,882,407 $ 2.94
Schedule of option fair value assumptions	2018 Grants Option value $ 1.46 - $ 1.96 Risk-free rate 1.9% Expected dividend yield — Expected volatility 68.8% Expected term (in years) 6

COMMITMENTS, CONTINGENCIES AN25

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS (Tables)	6 Months Ended
	Jun. 30, 2018
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, 2018 : (In thousands) 2018 (remaining six months) $ 36 2019 72 2020 72 2021 72 Total $ 252

LONG TERM DEBT (Tables)

LONG TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2018
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 2018 (remaining six months) $ 120 2019 2,454 Total $ 2,574

GEOGRAPHIC AND SEGMENT INFORM27

GEOGRAPHIC AND SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2018
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, 2018 (In thousands) Core Advanced Energy OEM Corporate (Other) Total Sales $ 7,784 $ 3,113 $ 578 $ — $ 11,475 Income (loss) from operations 2,666 (792 ) 302 (2,443 ) (267 ) Interest expense, net — — — (38 ) (38 ) Change in fair value of derivative liabilities — — — 46 46 Income tax expense — — — 13 13 Depreciation and amortization — — — 172 172 Three Months Ended June 30, 2017 (In thousands) Core Advanced Energy OEM Corporate (Other) Total Sales $ 7,488 $ 1,813 $ 498 $ — $ 9,799 Income (loss) from operations (1) 2,559 (1,284 ) 205 (2,786 ) (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 Six Months Ended June 30, 2018 (In thousands) Core Advanced Energy OEM Corporate (Other) Total Sales $ 14,303 $ 5,742 $ 1,346 $ — $ 21,391 Income (loss) from operations 4,522 (1,370 ) 708 (4,991 ) (1,131 ) Interest expense, net — — — (72 ) (72 ) Change in fair value of derivative liabilities — — — 20 20 Income tax expense — — — 24 24 Depreciation and amortization — — — 371 371 Six Months Ended June 30, 2017 (In thousands) Core Advanced Energy OEM Corporate (Other) Total Sales $ 14,263 $ 2,420 $ 1,505 $ — $ 18,188 Income (loss) from operations (1) 4,772 (3,103 ) 708 (5,420 ) (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 (1) During the first and second quarter of 2017, marketing expenses were presented as attributable only to the Corporate (Other) segment in the line Income (loss) from operations. It was subsequently determined that certain marketing expenses are attributable to specific segments. The disclosure of Income (loss) from operations was updated for the first and second quarter of 2017 to reflect marketing expense by segment.
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) 2018 2017 2018 2017 Sales by Domestic and International Domestic $ 9,700 $ 8,708 $ 17,673 $ 15,700 International 1,775 1,091 3,718 2,488 Total $ 11,475 $ 9,799 $ 21,391 $ 18,188

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 6,093	$ 5,163
Finished goods	3,301	3,276
Gross inventories	9,394	8,439
Less: reserve for obsolescence	(1,861)	(1,913)
Net inventories	$ 7,533	$ 6,526

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Purchased technology, net	$ 235		$ 235		$ 179
Goodwill	185		185		185
Amortization of Intangible Assets	27	$ 27	54	$ 54
Brand name and trademark (life indefinite)
Indefinite-lived Intangible Assets [Line Items]
Brand name and trademark	1,510		1,510		1,510
Purchased technology
Finite-Lived Intangible Assets [Line Items]
Purchased technology	1,623		1,623		1,513
Less: accumulated amortization	(1,388)		(1,388)		(1,334)
Purchased technology, net	$ 235		$ 235		$ 179
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

RECENT ACCOUNTING PRONOUNCEME30

RECENT ACCOUNTING PRONOUNCEMENTS BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
New Accounting Pronouncement, Early Adoption [Line Items]
Net change in cash, cash equivalents and restricted cash	$ (2,133)	$ (4,164)
Cash, cash equivalents and restricted cash, beginning of period	10,668	15,235
Cash, cash equivalents and restricted cash, end of period	8,535	11,071
Adjustments for New Accounting Principle, Early Adoption [Member]
New Accounting Pronouncement, Early Adoption [Line Items]
Net change in cash, cash equivalents and restricted cash		0
Cash, cash equivalents and restricted cash, beginning of period	719	779
Cash, cash equivalents and restricted cash, end of period		779
Previously reported
New Accounting Pronouncement, Early Adoption [Line Items]
Net change in cash, cash equivalents and restricted cash		(4,164)
Cash, cash equivalents and restricted cash, beginning of period	$ 9,949	14,456
Cash, cash equivalents and restricted cash, end of period		$ 10,292

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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net loss available to common shareholders	$ (272)	$ (1,308)	$ (1,207)	$ (2,993)
Derivative liability - warrants	0	0	0	0
Numerator for dilutive loss per common share	$ (272)	$ (1,308)	$ (1,207)	$ (2,993)
Denominator:
Weighted average shares used to compute basic loss per common share (in shares)	32,890	30,860	32,884	30,860
Derivative liability - warrants (in shares)	0	0	0	0
Denominator for diluted loss per common share (in shares)	32,890	30,860	32,884	30,860
Earnings Per Share, Basic and Diluted [Abstract]
Basic loss per common share (in dollars per share)	$ (0.01)	$ (0.04)	$ (0.04)	$ (0.10)
Diluted loss per common share (in dollars per share)	$ (0.01)	$ (0.04)	$ (0.04)	$ (0.10)
Warrants
Anti-dilutive securities excluded from diluted loss per share
Anti-dilutive securities excluded from diluted loss per share	14	3	10	16
Options
Anti-dilutive securities excluded from diluted loss per share
Anti-dilutive securities excluded from diluted loss per share	1,061	500	821	805

STOCK-BASED COMPENSATION - NARR

STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock based compensation	$ 377	$ 182	$ 749	$ 341

STOCK-BASED COMPENSATION - SUMM

STOCK-BASED COMPENSATION - SUMMARY OF STOCK OPTIONS (Details)	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning of period (in shares) | shares	4,860,157
Granted (in shares) | shares	117,000
Exercised (in shares) | shares	(37,250)
Canceled and forfeited (in shares) | shares	(57,500)
Outstanding, end of period (in shares) | shares	4,882,407
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
Granted (in dollars per share) | $ / shares	2.95
Exercised (in dollars per share) | $ / shares	2.23
Canceled and forfeited (in dollars per shares) | $ / shares	6.55
Outstanding, end of period (in dollars per share) | $ / shares	$ 2.94

STOCK-BASED COMPENSATION - FAIR

STOCK-BASED COMPENSATION - FAIR VALUE ASSUMPTIONS (Details)	6 Months Ended
	Jun. 30, 2018$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free rate (as a percent)	1.90%
Expected dividend yield (as a percent)	0.00%
Expected volatility (as a percent)	68.80%
Expected term (in years)	6 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option value (in dollars per share)	$ 1.46
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option value (in dollars per share)	$ 1.96

INCOME TAXES - EFFECTIVE TAX RA

INCOME TAXES - EFFECTIVE TAX RATE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income tax expense	$ 13	$ 4	$ 24	$ 9
Effective income tax rate, percent (as a percent)	0.00%	0.00%	0.00%	0.00%

COMMITMENTS, CONTINGENCIES AN36

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS - FUTURE MINIMUM LEASE PAYMENTS (Details) $ in Thousands	Jun. 30, 2018USD ($)
Future minimum lease payments under operating leases
2018 (remaining six months)	$ 36
2,019	72
2,020	72
2,021	72
Total	$ 252

COMMITMENTS, CONTINGENCIES AN37

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS - NARRATIVE (Details)	6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017	Dec. 31, 2017USD ($)	Oct. 31, 2015USD ($)ft²
Other Commitments [Line Items]
Purchase commitments for inventories	$ 5,400,000
Accrued severance and related	439,000		$ 1,242,000
Purchase, NY
Other Commitments [Line Items]
Accrued severance and related	$ 119,000
Customer concentration risk | Trade receivable | 10 Largest Customers
Other Commitments [Line Items]
Concentration receivable risk (as a percent)	36.70%	29.20%
Customer concentration risk | Sales Revenue | 10 Largest Customers
Other Commitments [Line Items]
Concentration receivable risk (as a percent)	39.50%	51.70%
Customer concentration risk | Sales Revenue | McKesson
Other Commitments [Line Items]
Concentration receivable risk (as a percent)	15.50%	15.50%
Customer concentration risk | Sales Revenue | National Distribution & Contracting Inc.
Other Commitments [Line Items]
Concentration receivable risk (as a percent)	7.10%	10.10%
Sophia, Bulgaria
Other Commitments [Line Items]
Area of real estate property (in square feet) | ft²				18,745
Monthly cost of office space				$ 6,006

LONG TERM DEBT - NARRATIVE (Det

LONG TERM DEBT - NARRATIVE (Details) - Mortgages	Jun. 28, 2016USD ($)	Jun. 30, 2018USD ($)
Debt Instrument [Line Items]
Mortgage loan, principal amount	$ 3,592,000
Certificate of deposit, amount pledged as collateral		$ 660,000
Fixed monthly principal payment	19,956
Effective interest rate (as a percent)		5.501%
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	Jun. 30, 2018USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2018 (remaining six months)	$ 120
2,019	2,454
Total long-term debt	$ 2,574

GEOGRAPHIC AND SEGMENT INFORM40

GEOGRAPHIC AND SEGMENT INFORMATION - REPORTABLE SEGMENT (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017		Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Sales	$ 11,475	$ 9,799		$ 21,391	$ 18,188
Income (loss) from operations	(267)	(1,306)		(1,131)	(3,043)
Interest expense, net	(38)	(36)		(72)	(67)
Change in fair value of derivative liabilities	46	38		20	126
Income tax expense	13	4		24	9
Depreciation and amortization	172	178		371	356
Operating Segments | Core
Segment Reporting Information [Line Items]
Sales	7,784	7,488		14,303	14,263
Income (loss) from operations	2,666	2,559	[1]	4,522	4,772	[1]
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	3,113	1,813		5,742	2,420
Income (loss) from operations	(792)	(1,284)	[1]	(1,370)	(3,103)	[1]
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	578	498		1,346	1,505
Income (loss) from operations	302	205	[1]	708	708	[1]
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	(2,443)	(2,786)	[1]	(4,991)	(5,420)	[1]
Interest expense, net	(38)	(36)		(72)	(67)
Change in fair value of derivative liabilities	46	38		20	126
Income tax expense	13	4		24	9
Depreciation and amortization	$ 172	$ 178		$ 371	$ 356
[1]	During the first and second quarter of 2017, marketing expenses were presented as attributable only to the Corporate (Other) segment in the line Income (loss) from operations. It was subsequently determined that certain marketing expenses are attributable to specific segments. The disclosure of Income (loss) from operations was updated for the first and second quarter of 2017 to reflect marketing expense by segment.

GEOGRAPHIC AND SEGMENT INFORM41

GEOGRAPHIC AND SEGMENT INFORMATION - GEOGRAPHIC (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Sales	$ 11,475	$ 9,799	$ 21,391	$ 18,188
Domestic
Segment Reporting Information [Line Items]
Sales	9,700	8,708	17,673	15,700
International
Segment Reporting Information [Line Items]
Sales	$ 1,775	$ 1,091	$ 3,718	$ 2,488

GEOGRAPHIC AND SEGMENT INFORM42

GEOGRAPHIC AND SEGMENT INFORMATION - NARRATIVE (Details) - segment	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting [Abstract]
Number of operating segments (in segments)			3
Geographic concentration risk | Sales Revenue | International customers
Concentration Risk [Line Items]
Concentration receivable risk (as a percent)	15.50%	11.10%	17.40%	13.70%

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) $ in Millions	Jul. 09, 2018USD ($)
Subsequent Event [Member]
Subsequent Event [Line Items]
Gross cash consideration	$ 97