Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 9-May-14 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'ICAD | ' |
Entity Registrant Name | 'ICAD INC | ' |
Entity Central Index Key | '0000749660 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 14,222,352 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $38,395 | $11,880 |
Trade accounts receivable, net of allowance for doubtful accounts of $63 in 2014 and $73 in 2013 | 7,548 | 7,623 |
Inventory, net | 1,965 | 1,891 |
Prepaid expenses and other current assets | 639 | 649 |
Total current assets | 48,547 | 22,043 |
Property and equipment, net of accumulated depreciation and amortization of $3,819 in 2014 and $4,265 in 2013 | 1,664 | 1,671 |
Other assets | 350 | 419 |
Intangible assets, net of accumulated amortization of $12,841 in 2014 and $12,468 in 2013 | 13,316 | 13,674 |
Goodwill | 21,109 | 21,109 |
Total assets | 84,986 | 58,916 |
Current liabilities: | ' | ' |
Accounts payable | 1,201 | 2,000 |
Accrued and other expenses | 3,365 | 3,799 |
Interest payable | 578 | 483 |
Notes and lease payable - current portion | 3,882 | 3,878 |
Warrant liability | 2,850 | 3,986 |
Deferred revenue | 8,403 | 8,306 |
Total current liabilities | 20,279 | 22,452 |
Deferred revenue, long-term portion | 1,509 | 1,726 |
Other long-term liabilities | 1,154 | 1,356 |
Capital lease - long-term portion | 198 | 235 |
Notes payable - long-term portion | 11,905 | 11,770 |
Total liabilities | 35,045 | 37,539 |
Commitments and Contingencies (Note 6) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $ .01 par value: authorized 1,000,000 shares; none issued. | ' | ' |
Common stock, $ .01 par value: authorized 20,000,000 shares; issued 13,958,183 in 2014 and 11,084,119 in 2013; outstanding 13,772,352 in 2014 and 10,898,288 in 2013 | 140 | 111 |
Additional paid-in capital | 195,460 | 166,735 |
Accumulated deficit | -144,244 | -144,054 |
Treasury stock at cost, 185,831 shares in 2014 and 2013 | -1,415 | -1,415 |
Total stockholders' equity | 49,941 | 21,377 |
Total liabilities and stockholders' equity | $84,986 | $58,916 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts on trade accounts receivable | $63 | $73 |
Property and equipment, accumulated depreciation and amortization | 3,819 | 4,265 |
Intangible assets, accumulated amortization | $12,841 | $12,468 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 13,958,183 | 11,084,119 |
Common stock, shares outstanding | 13,772,352 | 10,898,288 |
Treasury stock, shares | 185,831 | 185,831 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue: | ' | ' |
Products | $4,209 | $4,834 |
Service and supplies | 4,311 | 3,096 |
Total revenue | 8,520 | 7,930 |
Cost of revenue: | ' | ' |
Products | 1,199 | 1,162 |
Service and supplies | 1,146 | 887 |
Amortization of acquired intangibles | 241 | 233 |
Total cost of revenue | 2,586 | 2,282 |
Gross profit | 5,934 | 5,648 |
Operating expenses: | ' | ' |
Engineering and product development | 2,027 | 1,866 |
Marketing and sales | 2,619 | 2,438 |
General and administrative | 1,748 | 1,672 |
Total operating expenses | 6,394 | 5,976 |
Loss from operations | -460 | -328 |
Gain from change in fair value of warrant | 1,136 | 431 |
Interest expense | -817 | -826 |
Other income | 4 | 6 |
Other income (expense), net | 323 | -389 |
Loss before income tax expense | -137 | -717 |
Tax expense | -53 | -10 |
Net loss and comprehensive loss | ($190) | ($727) |
Net loss per share: | ' | ' |
Basic and diluted | ($0.02) | ($0.07) |
Weighted average number of shares used in computing loss per share: | ' | ' |
Basic and diluted | 11,429 | 10,820 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flow from operating activities: | ' | ' |
Net loss | ($190) | ($727) |
Adjustments to reconcile net loss to net cash used for operating activities: | ' | ' |
Depreciation | 209 | 183 |
Amortization | 373 | 430 |
Bad debt (benefit) provision | -14 | 35 |
Gain from change in fair value of warrant | -1,136 | -431 |
Loss on disposal of assets | ' | 25 |
Stock-based compensation expense | 325 | 307 |
Amortization of debt discount and debt costs | 183 | 198 |
Interest on settlement obligations | 52 | 75 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 88 | -521 |
Inventory | -74 | 346 |
Prepaid and other current assets | 30 | -63 |
Accounts payable | -799 | -215 |
Accrued expenses | -593 | -1,403 |
Deferred revenue | -119 | 592 |
Total adjustments | -1,475 | -442 |
Net cash used for operating activities | -1,665 | -1,169 |
Cash flow from investing activities: | ' | ' |
Additions to patents, technology and other | -15 | -2 |
Additions to property and equipment | -202 | -97 |
Net cash used for investing activities | -217 | -99 |
Cash flow from financing activities: | ' | ' |
Issuance of common stock for cash, net | 28,243 | ' |
Stock option exercises | 287 | ' |
Taxes paid related to restricted stock issuance | -101 | -7 |
Payments of capital lease obligations | -32 | ' |
Net cash provided by (used for) financing activities | 28,397 | -7 |
Increase (decrease) in cash and equivalents | 26,515 | -1,275 |
Cash and equivalents, beginning of period | 11,880 | 13,948 |
Cash and equivalents, end of period | 38,395 | 12,673 |
Supplemental disclosure of cash flow information: | ' | ' |
Interest paid | 483 | 499 |
Taxes paid | $56 | $25 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies | ' |
Note 1 - Basis of Presentation and Significant Accounting Policies | |
The accompanying condensed consolidated financial statements of iCAD, Inc. and subsidiary (“iCAD” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). In the opinion of management, these unaudited interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial position at March 31, 2014, the results of operations for the three month period ended March 31, 2014 and 2013, respectively, and cash flows for the three month period ended March 31, 2014 and 2013, respectively. Although the Company believes that the disclosures in these financial statements are adequate to make the information presented not misleading, certain information normally included in the footnotes prepared in accordance with US GAAP has been omitted as permitted by the rules and regulations of the Securities and Exchange Commission (“SEC”). The accompanying financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10–K for the fiscal year ended December 31, 2013 filed with the SEC on March 3, 2014. The results for the three month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014, or any future period. | |
Revenue Recognition | |
The Company recognizes revenue primarily from the sale of products and from the sale of services and supplies. Revenue is recognized when delivery has occurred, persuasive evidence of an arrangement exists, fees are fixed or determinable and collectability of the related receivable is probable. For product revenue, delivery has occurred upon shipment provided title and risk of loss have passed to the customer. Services and supplies revenue are considered to be delivered as the services are performed or over the estimated life of the supply agreement. | |
The Company recognizes revenue from the sale of its digital, film-based CAD and eBx products and services in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Update No. 2009-13, “Multiple-Deliverable Revenue Arrangements” (“ASU 2009-13”) and ASC Update No. 2009-14, “Certain Arrangements That Contain Software Elements” (“ASU 2009-14”) and ASC 985-605, “Software” (“ASC 985-605”). Revenue for the sale of certain CAD products is recognized in accordance with ASC 840 “Leases” (“ASC 840”). For multiple element arrangements, revenue is allocated to all deliverables based on their relative selling prices. In such circumstances, a hierarchy is used to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of the selling price (“BESP”). VSOE generally exists only when the deliverable is sold separately and is the price actually charged for that deliverable. The process for determining BESP for deliverables without VSOE or TPE considers multiple factors including relative selling prices; competitive prices in the marketplace, and management judgment, however, these may vary depending upon the unique facts and circumstances related to each deliverable. | |
The Company uses customer purchase orders that are subject to the Company’s terms and conditions or, in the case of an Original Equipment Manufacturer (“OEM”) are governed by distribution agreements. In accordance with the Company’s distribution agreements, the OEM does not have a right of return, and title and risk of loss passes to the OEM upon shipment. The Company generally ships Free On Board shipping point and uses shipping documents and third-party proof of delivery to verify delivery and transfer of title. In addition, the Company assesses whether collection is probable by considering a number of factors, including past transaction history with the customer and the creditworthiness of the customer, as obtained from third party credit references. | |
If the terms of the sale include customer acceptance provisions and compliance with those provisions cannot be demonstrated, all revenue is deferred and not recognized until such acceptance occurs. The Company considers all relevant facts and circumstances in determining when to recognize revenue, including contractual obligations to the customer, the customer’s post-delivery acceptance provisions, if any, and the installation process. | |
The Company has determined that iCAD’s digital, and film based sales generally follow the guidance of FASB ASC Topic 605 “Revenue Recognition” (“ASC 605”) as the software has been considered essential to the functionality of the product per the guidance of ASU 2009-14. Typically, the responsibility for the installation process lies with the OEM partner. On occasion, when iCAD is responsible for product installation, the installation element is considered a separate unit of accounting because the delivered product has stand-alone value to the customer. In these instances, the Company allocates the deliverables based on the framework established within ASU 2009-13. Therefore, the installation and training revenue is recognized as the services are performed according to the BESP of the element. Revenue from the digital and film based equipment when there is installation, is recognized based on the relative selling price allocation of the BESP. | |
Revenue from the Company’s MRI products is recognized in accordance with ASC 985-605. Sales of this product include third level OEM support, and the Company has established VSOE for this element based on substantive renewal rates for support as specified in the agreement. Product revenue is determined based on the residual value in the arrangement, and is recognized when delivered. Revenue for third-party support is deferred and recognized over the support period which is typically on an annual basis. | |
Sales of the Company’s eBx product typically include a controller, accessories, and service and source agreements. The Company allocates revenue to the deliverables in the arrangement based on the BESP in accordance with ASU 2009-13. Product revenue is generally recognized when the product has been delivered and service and source revenue is typically recognized over the life of the service and source agreement. | |
The Company defers revenue from the sale of service contracts related to future periods and recognizes revenue on a straight-line basis in accordance with ASC Topic 605-20, “Services”. The Company provides for estimated warranty costs on original product warranties at the time of sale. | |
The Company has reclassified on the statement of operations for the three months ended March 31, 2013, revenue for disposable applicators and supplies of approximately $226,000 to service and supply revenue that was previously included in product revenue to conform to current period classification. | |
Cost of Revenue | |
Cost of revenue consists of the costs of products purchased for resale, costs relating to service include costs of service contracts to maintain equipment after the warranty period, product installation, training, customer support, certain warranty repair costs, inbound freight and duty, cost of supplies, manufacturing, warehousing, material movement, inspection, scrap, rework, depreciation and in-house product warranty repairs. The Company has reclassified on the statement of operations for the three months ended March 31, 2013, cost of revenue for disposable applicators and supplies and other related expenses of approximately $193,000 to service and supply cost of revenue that was previously included in cost of product revenue to conform to current period classification. For the three months ended March 31, 2014 and 2013, approximately $179,000 and $137,000, respectively related to Medical Device Excise tax is included in cost of product revenue. | |
Segments | |
The Company reports the results of two segments, Cancer Detection (“Detection”) and Cancer Therapy (“Therapy”). The Detection segment consists of our advanced image analysis and workflow products, and the Therapy segment consists of our radiation therapy (“Axxent”) products. |
Net_Loss_per_Common_Share
Net Loss per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Loss per Common Share | ' | ||||||||
Note 2 - Net Loss per Common Share | |||||||||
The Company’s basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period and, if there are dilutive securities, diluted loss per share is computed by including common stock equivalents which includes shares issuable upon the exercise of stock options, net of shares assumed to have been purchased with the proceeds, using the treasury stock method. | |||||||||
A summary of the Company’s calculation of net loss per share is as follows (in thousands except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net loss | $ | (190 | ) | $ | (727 | ) | |||
Basic shares used in the calculation of net loss per share | 11,429 | 10,820 | |||||||
Effect of dilutive securities: | |||||||||
Stock options | — | — | |||||||
Restricted stock | — | — | |||||||
Diluted shares used in the calculation of net loss per share | 11,429 | 10,820 | |||||||
Net loss per share - basic | $ | (0.02 | ) | $ | (0.07 | ) | |||
Net loss per share - diluted | $ | (0.02 | ) | $ | (0.07 | ) | |||
The shares of the Company’s common stock, issuable upon the exercise of stock options and warrants and vesting of restricted stock that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive is as follows: | |||||||||
Period Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Stock Options | 1,320,156 | 1,426,077 | |||||||
Warrants | 550,000 | 550,000 | |||||||
Restricted Stock | 157,484 | 220,250 | |||||||
Stock options, warrants and restricted stock | 2,027,640 | 2,196,327 | |||||||
Long_Term_Debt
Long Term Debt | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long Term Debt | ' | ||||||||
Note 3 - Long Term Debt | |||||||||
In December, 2011, the Company entered into several agreements with entities affiliated with Deerfield Management, a healthcare investment fund (“Deerfield”), pursuant to which Deerfield agreed to provide $15 million in funding to the Company. The agreements consist of a Facility Agreement (the “Facility Agreement”), a Revenue Purchase Agreement (the “Revenue Purchase Agreement”) and the issuance of Warrants to purchase up to 550,000 shares of the Company’s Common Stock at an exercise price of $3.50 (the “Warrants”). In accordance with the Facility Agreement, the Company is obligated to repay $15 million in three payments due as follows: $3.75 million due December 2014, $3.75 million due December 2015, and $7.5 million due December 2016, together with interest on the outstanding obligation at 5.75% per annum. The agreement also specified the Company could extend the final payment of $7.5 million to $3.75 million in December 2016 and $3.75 million in December 2017. In accordance with the Revenue Purchase agreement, the Company is obligated to pay 4.25% of annual revenues up to $25 million, 2.75% of annual revenues from $25 million to $50 million during 2013 and 2014, and 2.25% of annual revenues during 2015, 2016 and 2017 (if the Facility agreement was extended), and 1.0% of annual revenues in excess of $50 million. | |||||||||
On April 30, 2014, the Company agreed to pay Deerfield $4.1 million to terminate the Revenue Purchase Agreement, and modified the Facility Agreement to eliminate the ability to extend the last debt payment for an additional year which would also eliminate the payment obligation for 2017 under the Revenue Purchase Agreement. In addition, Deerfield exercised their warrants, for an aggregate purchase price of $1,575,000, and the Company issued 450,000 shares of Common Stock to Deerfield, pursuant to the terms of the Warrants. The Warrants to purchase an additional 100,000 shares of Common Stock were cancelled, since said Warrants were exercisable only in the event the Company extended the last debt payment for an additional year. | |||||||||
The following amounts are included in the consolidated balance sheet as of March 31, 2014 related to the Facility Agreement and Revenue Purchase Agreement: (in thousands) | |||||||||
Principal Amount of Facility Agreement | $ | 15,000 | |||||||
Unamortized discount | (2,816 | ) | |||||||
Carrying amount of Facility Agreement | 12,184 | ||||||||
Revenue Purchase Agreement | 3,471 | ||||||||
Less current portion of Facility Agreement | (3,750 | ) | |||||||
Notes payable long-term portion | $ | 11,905 | |||||||
The following amounts comprise interest included in our consolidated statement of operations for the three months ended March 31, 2014 and 2013: (in thousands) | |||||||||
Three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Cash interest expense | $ | 578 | $ | 553 | |||||
Non-cash amortization of debt discount | 135 | 154 | |||||||
Amortization of debt costs | 48 | 44 | |||||||
Amortization of settlement obligations | 52 | 75 | |||||||
Interest expense capital lease | 4 | — | |||||||
Total interest expense | $ | 817 | $ | 826 | |||||
Cash interest expense represents the amount of interest expected to be paid in cash under the Facility Agreement and the Revenue Purchase Agreement, which represents the interest of 5.75% on the Facility Agreement and the expected cash payments on the Revenue Purchase Agreement for the period. Non-cash amortization is the amortization of the discount on the Facility Agreement. The amortization of debt costs represents the costs incurred with the financing, which is primarily a facility fee and a finder’s fee that were capitalized and, expensed using the effective interest method. The amortization of the settlement obligation represent the interest associated with the settlement agreements for both Carl Zeiss Meditec AG and Hologic, Inc. Interest expense capital lease represents interest related to the capital lease as described in Note 4. |
Lease_Commitments
Lease Commitments | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Lease Commitments | ' | ||||
Note 4 - Lease Commitments | |||||
Operating leases | |||||
Facilities are leased under operating leases expiring at various dates through September, 2017. Certain of these leases contain renewal options. For the three month period ended March 31, 2014 and 2013, rent expense under operating leases was $162,000 and $169,000, respectively. | |||||
As of March 31, 2014, future minimum lease payments under non-cancelable operating leases were as follows: (in thousands) | |||||
Fiscal Year | Operating | ||||
Leases | |||||
2014 | $ | 368 | |||
2015 | 481 | ||||
2016 | 490 | ||||
2017 | 255 | ||||
$ | 1,594 | ||||
Capital leases | |||||
The Company entered into a capital lease agreement for the purchase of certain equipment in August 2013 for approximately $409,000. Under the guidance of ASC Topic 840, “Leases” (“ASC 840”) the Company determined that the lease was a capital lease as it contained a bargain purchase option wherein the Company has the option to buy the equipment for $1 at the end of the lease term. Accordingly, the equipment has been capitalized and a liability has been recorded. The equipment cost of $409,000 is reflected as property and equipment in the balance sheet and will be depreciated over its useful life. | |||||
Future minimum lease payments under this lease are as follows: (in thousands) | |||||
Fiscal Year | Capital | ||||
Leases | |||||
2014 | 108 | ||||
2015 | 145 | ||||
2016 | 97 | ||||
subtotal minimum lease obligation | 350 | ||||
less interest | (20 | ) | |||
Total, net | 330 | ||||
less current portion | (132 | ) | |||
long term portion | $ | 198 | |||
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||
Stock-Based Compensation | ' | ||||||||
Note 5 - Stock-Based Compensation | |||||||||
The Company follows the guidance in ASC Topic 718, “Compensation - Stock Compensation”, (“ASC 718”). | |||||||||
Options granted under the Company’s stock incentive plans were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Average risk-free interest rate | 0.80% | 0.58% | |||||||
Expected dividend yield | None | None | |||||||
Expected life | 3.5 years | 3.5 years | |||||||
Expected volatility | 64.2% to 65.6% | 61.5% to 68.9% | |||||||
Weighted average exercise price | $11.95 | $5.15 | |||||||
Weighted average fair value | $5.54 | $2.28 | |||||||
As of March 31, 2014 unrecognized compensation cost related to unexercisable options and unvested restricted stock and the weighted average remaining period is as follows: | |||||||||
Remaining expense | $ | 1,321,865 | |||||||
Weighted average term | 1.0 years | ||||||||
The Company’s aggregate intrinsic value for stock options and restricted stock outstanding is as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
Aggregate intrinsic value | 2014 | 2013 | |||||||
Stock options | $ | 6,492,797 | $ | 1,962,883 | |||||
Restricted stock | 1,442,553 | 1,099,048 |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Note 6 - Commitments and Contingencies | |
Foreign Tax Claim | |
In July 2007, a dissolved former Canadian subsidiary of the Company, CADx Medical Systems Inc. (“CADx Medical”), received a tax re-assessment of approximately $6,800,000 from the Canada Revenue Agency (“CRA”) resulting from CRA’s audit of CADx Medical’s Canadian federal tax return for the year ended December 31, 2002. In February 2010 the CRA reviewed the matter and reduced the tax re-assessment to approximately $703,000, excluding interest and penalties. The Company believes that it is not liable for the re-assessment against CADx Medical and no accrual has been recorded for this matter as of March 31, 2014. | |
Settlement Obligations | |
In connection with the acquisition of Xoft, the Company recorded a royalty obligation pursuant to a settlement agreement entered into between Xoft and Hologic in August 2007. Xoft received a nonexclusive, irrevocable, perpetual, worldwide license, including the right to sublicense certain Hologic patents, and a non-compete covenant as well as an agreement not to seek further damages with respect to the alleged patent violations. In return, the Company has a remaining obligation to pay a minimum annual royalty payment to Hologic, of $250,000 payable through 2016. In addition to the minimum annual royalty payments, the litigation settlement agreement with Hologic also provided for payment of royalties based upon a specified percentage of future net sales on any products that practice the licensed rights. The estimated fair value of the patent license and non-compete covenant is $100,000 and is being amortized over the then estimated remaining useful life of approximately six years. In addition, a liability has been recorded within accrued expenses and long-term settlement cost for future payment and for future minimum royalty obligations totaling $587,000. The Company recorded interest expense of approximately $24,000 in the three months ended March 31, 2014, and $30,000 in the three months ended March 31, 2013, related to this obligation. | |
In December, 2011, the Company agreed to a settlement related to the litigation with Carl Zeiss Meditec AG. The Company is obligated to pay $0.5 million in June 2015 and $0.5 million in June 2017, for an aggregate remaining total of $1.0 million. As of March 31, 2014, the remaining liability recorded within accrued expenses and long-term settlement cost for future payment and for future minimum royalty obligations is $754,000. The Company recorded interest expense of approximately $28,000 in the three months ended March 31, 2014, and $45,000 in the three months ended March 31, 2013, related to this obligation. | |
Other Commitments | |
The Company is obligated to pay approximately $1.5 million for firm purchase obligations to suppliers for future product deliverables. | |
Litigation | |
On February 18, 2011, in the Orange County Superior Court (Docket No. 30-2011-00451816-CU-PL-CXC), named plaintiffs Jane Doe and John Doe filed a complaint against Xoft, the Company, and Hoag Memorial Hospital Presbyterian asserting causes of action for general negligence, breach of warranty, and strict liability and seeking unlimited damages in excess of $25,000. On March 2, 2011, the Company received a Statement of Damages – specifying that the damages being sought aggregated an amount of at least approximately $14.5 million. On April 6, 2011, plaintiffs Jane Doe and John Doe amended their complaint alleging only medical malpractice against Hoag Memorial Hospital Presbyterian. On April 8, 2011, another complaint was filed in the Orange County Superior Court (Docket No. 30-2011-00465448-CU-MM-CXC) on behalf of four additional Jane Doe plaintiffs and two John Doe spouses with identical allegations against the same defendants. One John Doe spouse from this group of plaintiffs was later dismissed on August 18, 2011. On April 19, 2011, a sixth Jane Doe plaintiff filed an identical complaint in the Orange County Superior Court (Docket No. 30-2011-00468687-CU-MM-CXC), and on May 4, 2011, a seventh Jane Doe plaintiff and John Doe spouse filed another complaint in the Orange County Superior Court (Docket No. 30-2011-00473120-CU-PO-CXC), again with identical allegations against the same defendants. On July 12, 2011, an eighth Jane Doe plaintiff and John Doe spouse filed a complaint in the Orange County Superior Court (Docket No. 30-2011-00491068-CU-PL-CXC), and on July 14, 2011, a ninth Jane Doe plaintiff and John Doe spouse filed another complaint in the Orange County Superior Court (Docket No. 30-2011-00491497-CU-PL-CXC), each with identical allegations as the previously filed complaints. On August 18, 2011, these two groups of Jane Doe plaintiffs and John Doe spouses amended their complaints to correct certain deficiencies. Additionally on August 18, 2011, a tenth Jane Doe plaintiff and two additional John Doe spouses filed a complaint in the Orange County Superior Court (Docket No. 30-2011-501448-CU-PL-CXC), again with identical allegations against the same defendants. On January 18, 2012, three additional Jane Doe plaintiffs and one additional John Doe spouse filed a complaint in the Orange County Superior Court (Docket No. 30-2012-00538423-CU-PL-CXC) with identical allegations against the same defendants. On April 11, 2012, the above-referenced cases were consolidated for all purposes, excluding trial. On May 2, 2012, plaintiffs filed a master consolidated complaint, with the same case number as the original filed complaint. On August 2, 2012, plaintiffs filed fictitious name amendments adding defendants, Mel Silverstein, M.D., Peter Chen, M.D., Lisa Guerrera, M.D., Ralph Mackintosh, Ph.D., Robert Dillman, M.D., and Jack Cox. On September 14, 2012, an additional Jane Doe plaintiff and John Doe spouse filed a complaint in the Orange County Superior Court (Docket No. 30-2012-00598740-CU-PL-CXC) with identical allegations as plaintiffs above against the same original defendants. On October 17, 2012, plaintiff John Doe No. 11 dismissed his complaint, with prejudice, as to all defendants. On November 26, 2012, plaintiffs filed an additional fictitious name amendment adding defendant, American Ceramic Technology, Inc. On January 15, 2013, plaintiffs filed a dismissal, with prejudice, as to defendant, Mel Silverstein, M.D., only. On May 28, 2013, plaintiffs filed an additional fictitious name amendment adding defendant, American Ceramic Technology. On July 11, 2013, American Ceramic Technology filed a cross-complaint for express and implied indemnity, apportionment, contribution and declaratory relief against all defendants. On October 24, 2013, plaintiff’s filed an amended master consolidated complaint. On January 17, 2014, Ralph Mackintosh, Ph.D., Robert Dillman, M.D., Jack Cox, and Hoag Memorial Hospital Presbyterian each filed a cross-complaint for equitable indemnity, contribution and declaratory relief against American Ceramic Technology. It is alleged that each Jane Doe plaintiff was a patient who was treated with the Axxent Electronic Brachytherapy System that incorporated the Axxent Flexishield Mini. The Company believes that all of the Jane Doe plaintiffs were part of the group of 29 patients treated using the Axxent Flexishield Mini as part of a clinical trial. The Axxent Flexishield Mini was the subject of a voluntary recall. These claims are still in the early stages. Based upon our preliminary analysis, the Company plans to vigorously defend the lawsuits however a loss is reasonably possible. Since the amount of the potential damages in the event of an adverse result is not reasonably estimable, we are unable to estimate a range of loss and no expense has been recorded with respect to the contingent liability associated with this matter. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 7 - Fair Value Measurements | |||||||||||||||||
The Company follows the provisions of ASC Topic 820, “Fair Value Measurement and Disclosures”, (“ASC 820”). This topic defines fair value, establishes a framework for measuring fair value under US GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: | |||||||||||||||||
• | Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value. | ||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. | |||||||||||||||||
Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities and our notes payable. The carrying amounts of our cash and cash equivalents (which are comprised primarily of deposit and overnight sweep accounts), accounts receivable, accounts payable and certain accrued liabilities approximate fair value due to the short maturity of these instruments. The carrying value of our notes payable approximates fair value due to the market rate of the stated interest rate. | |||||||||||||||||
The Company’s assets that are measured at fair value on a recurring basis relate to the Company’s money market accounts. The Company’s liabilities that are measured at fair value on a recurring basis relate to contingent consideration resulting from the acquisition of Xoft and the Warrants issued in connection with the Deerfield Facility Agreement. | |||||||||||||||||
The Company’s money market funds are included in cash and cash equivalents in the accompanying balance sheet, and are considered a Level 1 investment as they are valued at quoted market prices in active markets. | |||||||||||||||||
The following table sets forth Company’s assets and liabilities which are measured at fair value on a recurring basis by level within the fair value hierarchy. | |||||||||||||||||
Fair value measurements using: (000’s) as of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Money market accounts | $ | 7,572 | $ | — | $ | — | $ | 7,572 | |||||||||
Total Assets | $ | 7,572 | $ | — | $ | — | $ | 7,572 | |||||||||
Liabilities | |||||||||||||||||
Contingent Consideration | $ | — | $ | — | $ | — | $ | — | |||||||||
Warrants | — | — | 3,986 | 3,986 | |||||||||||||
Total Liabilities | $ | — | $ | — | $ | 3,986 | $ | 3,986 | |||||||||
Fair value measurements using: (000’s) as of March 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Money market accounts | $ | 36,057 | $ | — | $ | — | $ | 36,057 | |||||||||
Total Assets | $ | 36,057 | $ | — | $ | — | $ | 36,057 | |||||||||
Liabilities | |||||||||||||||||
Warrant Liability | $ | — | $ | — | $ | 2,850 | $ | 2,850 | |||||||||
Total Liabilities | $ | — | $ | — | $ | 2,850 | $ | 2,850 | |||||||||
As discussed in Note 3, the Company issued 450,000 immediately exercisable warrants to Deerfield. The warrant liability for the warrants associated with the debt is valued using the binomial lattice-based valuation methodology because that model embodies all of the relevant assumptions that address the features underlying these instruments. Significant assumptions in valuing the warrant liability were as follows as of December 31, 2013 and March 31, 2014. | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Warrants | |||||||||||||||||
Exercise price | $ | 3.5 | $ | 3.5 | |||||||||||||
Volatility | 52.7 | % | 56.2 | % | |||||||||||||
Equivalent term (years) | 3.77 | 4 | |||||||||||||||
Risk-free interest rate | 1.3 | % | 1.3 | % | |||||||||||||
The volatility was determined based on the definition in the Warrants, and the risk-free interest rate was determined using the six year LIBOR rate as of the measurement date. | |||||||||||||||||
In addition the other significant assumptions include the probability of voluntary exercise versus a major transaction (as defined in the Warrants); and assuming a major transaction, the probability of cashless major exercise; and assuming a cashless major exercise, the annual probabilities for a major transaction. The Company had estimated a low probability of these items as of March 31, 2014. On April 30, 2014, Deerfield exercised the warrants, for an aggregate purchase price of $1,575,000, and the Company issued 450,000 shares of Common Stock. The Warrant obligation was fully satisfied following that exercise. | |||||||||||||||||
The following sets forth a reconciliation of the changes in the fair value of warrants payable during the period: | |||||||||||||||||
Warrants | Amount | ||||||||||||||||
Balance as of December 31, 2013 | 3,986 | ||||||||||||||||
Gain from change in fair value of warrant | (1,136 | ) | |||||||||||||||
Balance as of March 31, 2014 | $ | 2,850 | |||||||||||||||
Items Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
Certain assets, including our goodwill, are measured at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be impaired. We did not consider any assets to be impaired during the three months ended March 31, 2014. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Note 8 - Income Taxes | |
At March 31, 2014, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required under ASC 740, “Income Taxes”. The Company does not expect that the unrecognized tax benefits will materially increase within the next twelve months. The Company did not recognize any interest or penalties related to uncertain tax positions at March 31, 2014. The Company files United States federal income tax returns and income tax returns in various states and local jurisdictions. The Company’s three preceding tax years remain subject to examination by federal and state taxing authorities. In addition, because the Company has net operating loss carry-forwards, the Internal Revenue Service and state jurisdictions are permitted to audit earlier years and propose adjustments up to the amount of net operating loss generated in those years. The Company is not under examination by any other federal or state jurisdiction for any tax years. |
Goodwill
Goodwill | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill | ' | ||||||||||||
Note 9 - Goodwill | |||||||||||||
In accordance with FASB Accounting Standards Codification (“ASC”) Topic 350-20, “Intangibles - Goodwill and Other”, (“ASC 350-20”), the Company tests goodwill for impairment on an annual basis and between annual tests if events and circumstances indicate it is more likely than not that the fair value of the Company is less than the carrying value of the Company. | |||||||||||||
Factors the Company considers important, which could trigger an impairment of such asset, include the following: | |||||||||||||
• | significant underperformance relative to historical or projected future operating results; | ||||||||||||
• | significant changes in the manner or use of the assets or the strategy for the Company’s overall business; | ||||||||||||
• | significant negative industry or economic trends; | ||||||||||||
• | significant decline in the Company’s stock price for a sustained period; and | ||||||||||||
• | a decline in the Company’s market capitalization below net book value. | ||||||||||||
The Company’s CODM is the Chief Executive Officer (“CEO”). In the second quarter of 2013, we changed the manner in which Company financial information is reported to the CODM. The Company’s reportable segments have been identified primarily based on the types of products sold. Each reportable segment generates revenue from the sale of medical equipment and related services and/or sale of supplies. The Company has determined there are two segments, Cancer Detection (“Detection”) and Cancer Therapy (“Therapy”). Goodwill was allocated to the reporting units based on the relative fair value of the reporting units as of June 2013. | |||||||||||||
The Company performed an annual impairment assessment at October 1, 2013 based on the new reporting structure and compared the fair value of each of reporting unit to its carrying value as of this date. Fair value of each reporting unit exceeded the carry value by approximately 362% for the Detection reporting unit and 179% for the Therapy reporting unit. The carrying values of the reporting units were determined based on an allocation of our assets and liabilities through specific allocation of certain assets and liabilities, to the reporting units and an apportionment based on the relative size of the reporting units’ revenues and operating expenses compared to the Company as a whole. The determination of reporting units also requires management judgment. | |||||||||||||
The Company would record an impairment charge if such an assessment were to indicate that the fair value of a reporting unit was less than the carrying value. In evaluating potential impairments outside of the annual measurement date, judgment is required in determining whether an event has occurred that may impair the value of goodwill or intangible assets. The Company utilizes either discounted cash flow models or other valuation models, such as comparative transactions and market multiples, to determine the fair value of our reporting unit. The Company makes assumptions about future cash flows, future operating plans, discount rates, comparable companies, market multiples, purchase price premiums and other factors in those models. Different assumptions and judgment determinations could yield different conclusions that would result in an impairment charge to income in the period that such change or determination was made. | |||||||||||||
The Company determined the fair values for each reporting unit using a weighting of the income approach and the market approach. For purposes of the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk adjusted rate. The Company used internal forecasts to estimate future cash flows and includes an estimate of long-term future growth rates based on the most recent views of the long-term forecast for each segment. Accordingly, actual results can differ from those assumed in the forecasts. The discount rate of approximately 25% is derived from a capital asset pricing model and analyzing published rates for industries relevant to the reporting units to estimate the cost of equity financing. The Company uses discount rates that are commensurate with the risks and uncertainty inherent in the respective businesses and in the internally developed forecasts. | |||||||||||||
In the market approach, the Company uses a valuation technique in which values are derived based on market prices of publicly traded companies with similar operating characteristics and industries. A market approach allows for comparison to actual market transactions and multiples. It can be somewhat limited in its application because the population of potential comparable publicly-traded companies can be limited due to differing characteristics of the comparative business and ours, as well as market data may not be available for divisions within larger conglomerates or non-public subsidiaries that could otherwise qualify as comparable, and the specific circumstances surrounding a market transaction (e.g., synergies between the parties, terms and conditions of the transaction, etc.) may be different or irrelevant with respect to the business. | |||||||||||||
The Company corroborated the total fair values of the reporting units using a market capitalization approach; however, this approach cannot be used to determine the fair value of each reporting unit value. The blend of the income approach and market approach is more closely aligned to the business profile of the Company, including markets served and products available. In addition, required rates of return, along with uncertainties inherent in the forecast of future cash flows, are reflected in the selection of the discount rate. In addition, under the blended approach, reasonably likely scenarios and associated sensitivities can be developed for alternative future states that may not be reflected in an observable market price. The Company will assess each valuation methodology based upon the relevance and availability of the data at the time the valuation is performed and weight the methodologies appropriately. | |||||||||||||
A rollforward of goodwill activity by reportable segment is as follows: | |||||||||||||
Detection | Therapy | Total | |||||||||||
Accumulated Goodwill | $ | — | $ | — | $ | 47,937 | |||||||
Accumulated impairment | — | — | (26,828 | ) | |||||||||
Fair value allocation | 7,663 | 13,446 | — | ||||||||||
Balance at December 31, 2013 | 7,663 | 13,446 | 21,109 | ||||||||||
— | — | — | |||||||||||
Balance at March 31, 2014 | $ | 7,663 | $ | 13,446 | $ | 21,109 | |||||||
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting | ' | ||||||||
Note 10 - Segment Reporting | |||||||||
In accordance with FASB Topic ASC 280, “Segments”, operating segments, are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. | |||||||||
The Company’s CODM is the Chief Executive Officer (“CEO”). In the second quarter of 2013, we changed the manner in which Company financial information is reported to the CODM. The Company’s reportable segments have been identified primarily based on the types of products sold. Each reportable segment generates revenue from the sale of medical equipment and related services and/or sale of supplies. The Company has determined there are two segments, Cancer Detection (“Detection”) and Cancer Therapy (“Therapy”). | |||||||||
The Detection segment consists of our advanced image analysis and workflow products, and the Therapy segment consists of our radiation therapy (“Axxent”) products. The primary factors used by our CODM to allocate resources are based on revenues, operating income or loss, and earnings or loss before interest, taxes, depreciation, amortization, and other specific and non-recurring items (“Adjusted EBITDA”) of each segment. Included in segment operating income are stock compensation, amortization of technology and depreciation expense. There are no intersegment revenues. | |||||||||
We do not track our assets by operating segment and our CODM does not use asset information by segment to allocate resources or make operating decisions. | |||||||||
Segment revenues, segment operating income or loss, and a reconciliation of segment operating income or loss to GAAP loss before income tax is as follows (including prior periods which have been presented for consistency): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Segment revenues: | |||||||||
Detection | $ | 4,175 | $ | 4,638 | |||||
Therapy | 4,345 | 3,292 | |||||||
Total Revenue | $ | 8,520 | $ | 7,930 | |||||
Segment operating income (loss): | |||||||||
Detection | $ | 1,516 | $ | 1,574 | |||||
Therapy | (228 | ) | (230 | ) | |||||
Segment operating income (loss) | $ | 1,288 | $ | 1,344 | |||||
General and administrative expenses | $ | (1,748 | ) | $ | (1,672 | ) | |||
Interest expense | (817 | ) | (826 | ) | |||||
Gain on fair value of warrant | 1,136 | 431 | |||||||
Other income | 4 | 6 | |||||||
Loss before income tax | $ | (137 | ) | $ | (717 | ) | |||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Note 11 - Recent Accounting Pronouncements | |
We describe recent pronouncements that have had or may have a significant effect on our financial statements or on our disclosures. We do not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to our financial condition, results of operations, or related disclosures, and accordingly there are none noted. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Fair Value Disclosures [Abstract] | ' | |||
Revenue Recognition | ' | |||
Revenue Recognition | ||||
The Company recognizes revenue primarily from the sale of products and from the sale of services and supplies. Revenue is recognized when delivery has occurred, persuasive evidence of an arrangement exists, fees are fixed or determinable and collectability of the related receivable is probable. For product revenue, delivery has occurred upon shipment provided title and risk of loss have passed to the customer. Services and supplies revenue are considered to be delivered as the services are performed or over the estimated life of the supply agreement. | ||||
The Company recognizes revenue from the sale of its digital, film-based CAD and eBx products and services in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Update No. 2009-13, “Multiple-Deliverable Revenue Arrangements” (“ASU 2009-13”) and ASC Update No. 2009-14, “Certain Arrangements That Contain Software Elements” (“ASU 2009-14”) and ASC 985-605, “Software” (“ASC 985-605”). Revenue for the sale of certain CAD products is recognized in accordance with ASC 840 “Leases” (“ASC 840”). For multiple element arrangements, revenue is allocated to all deliverables based on their relative selling prices. In such circumstances, a hierarchy is used to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of the selling price (“BESP”). VSOE generally exists only when the deliverable is sold separately and is the price actually charged for that deliverable. The process for determining BESP for deliverables without VSOE or TPE considers multiple factors including relative selling prices; competitive prices in the marketplace, and management judgment, however, these may vary depending upon the unique facts and circumstances related to each deliverable. | ||||
The Company uses customer purchase orders that are subject to the Company’s terms and conditions or, in the case of an Original Equipment Manufacturer (“OEM”) are governed by distribution agreements. In accordance with the Company’s distribution agreements, the OEM does not have a right of return, and title and risk of loss passes to the OEM upon shipment. The Company generally ships Free On Board shipping point and uses shipping documents and third-party proof of delivery to verify delivery and transfer of title. In addition, the Company assesses whether collection is probable by considering a number of factors, including past transaction history with the customer and the creditworthiness of the customer, as obtained from third party credit references. | ||||
If the terms of the sale include customer acceptance provisions and compliance with those provisions cannot be demonstrated, all revenue is deferred and not recognized until such acceptance occurs. The Company considers all relevant facts and circumstances in determining when to recognize revenue, including contractual obligations to the customer, the customer’s post-delivery acceptance provisions, if any, and the installation process. | ||||
The Company has determined that iCAD’s digital, and film based sales generally follow the guidance of FASB ASC Topic 605 “Revenue Recognition” (“ASC 605”) as the software has been considered essential to the functionality of the product per the guidance of ASU 2009-14. Typically, the responsibility for the installation process lies with the OEM partner. On occasion, when iCAD is responsible for product installation, the installation element is considered a separate unit of accounting because the delivered product has stand-alone value to the customer. In these instances, the Company allocates the deliverables based on the framework established within ASU 2009-13. Therefore, the installation and training revenue is recognized as the services are performed according to the BESP of the element. Revenue from the digital and film based equipment when there is installation, is recognized based on the relative selling price allocation of the BESP. | ||||
Revenue from the Company’s MRI products is recognized in accordance with ASC 985-605. Sales of this product include third level OEM support, and the Company has established VSOE for this element based on substantive renewal rates for support as specified in the agreement. Product revenue is determined based on the residual value in the arrangement, and is recognized when delivered. Revenue for third-party support is deferred and recognized over the support period which is typically on an annual basis. | ||||
Sales of the Company’s eBx product typically include a controller, accessories, and service and source agreements. The Company allocates revenue to the deliverables in the arrangement based on the BESP in accordance with ASU 2009-13. Product revenue is generally recognized when the product has been delivered and service and source revenue is typically recognized over the life of the service and source agreement. | ||||
The Company defers revenue from the sale of service contracts related to future periods and recognizes revenue on a straight-line basis in accordance with ASC Topic 605-20, “Services”. The Company provides for estimated warranty costs on original product warranties at the time of sale. | ||||
The Company has reclassified on the statement of operations for the three months ended March 31, 2013, revenue for disposable applicators and supplies of approximately $226,000 to service and supply revenue that was previously included in product revenue to conform to current period classification. | ||||
Cost of Revenue | ' | |||
Cost of Revenue | ||||
Cost of revenue consists of the costs of products purchased for resale, costs relating to service include costs of service contracts to maintain equipment after the warranty period, product installation, training, customer support, certain warranty repair costs, inbound freight and duty, cost of supplies, manufacturing, warehousing, material movement, inspection, scrap, rework, depreciation and in-house product warranty repairs. The Company has reclassified on the statement of operations for the three months ended March 31, 2013, cost of revenue for disposable applicators and supplies and other related expenses of approximately $193,000 to service and supply cost of revenue that was previously included in cost of product revenue to conform to current period classification. For the three months ended March 31, 2014 and 2013, approximately $179,000 and $137,000, respectively related to Medical Device Excise tax is included in cost of product revenue. | ||||
Compensation - Stock Compensation | ' | |||
The Company follows the guidance in ASC Topic 718, “Compensation - Stock Compensation”, (“ASC 718”). | ||||
Fair Value Measurement and Disclosures | ' | |||
The Company follows the provisions of ASC Topic 820, “Fair Value Measurement and Disclosures”, (“ASC 820”). This topic defines fair value, establishes a framework for measuring fair value under US GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: | ||||
• | Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||
• | Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||
• | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value. | |||
Income Taxes | ' | |||
At March 31, 2014, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required under ASC 740, “Income Taxes”. The Company does not expect that the unrecognized tax benefits will materially increase within the next twelve months. The Company did not recognize any interest or penalties related to uncertain tax positions at March 31, 2014. The Company files United States federal income tax returns and income tax returns in various states and local jurisdictions. The Company’s three preceding tax years remain subject to examination by federal and state taxing authorities. In addition, because the Company has net operating loss carry-forwards, the Internal Revenue Service and state jurisdictions are permitted to audit earlier years and propose adjustments up to the amount of net operating loss generated in those years. The Company is not under examination by any other federal or state jurisdiction for any tax years. | ||||
Intangibles - Goodwill and Other | ' | |||
In accordance with FASB Accounting Standards Codification (“ASC”) Topic 350-20, “Intangibles - Goodwill and Other”, (“ASC 350-20”), the Company tests goodwill for impairment on an annual basis and between annual tests if events and circumstances indicate it is more likely than not that the fair value of the Company is less than the carrying value of the Company. | ||||
Segments | ' | |||
In accordance with FASB Topic ASC 280, “Segments”, operating segments, are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. |
Net_Loss_per_Common_Share_Tabl
Net Loss per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Calculation of Net Loss Per Share | ' | ||||||||
A summary of the Company’s calculation of net loss per share is as follows (in thousands except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net loss | $ | (190 | ) | $ | (727 | ) | |||
Basic shares used in the calculation of net loss per share | 11,429 | 10,820 | |||||||
Effect of dilutive securities: | |||||||||
Stock options | — | — | |||||||
Restricted stock | — | — | |||||||
Diluted shares used in the calculation of net loss per share | 11,429 | 10,820 | |||||||
Net loss per share - basic | $ | (0.02 | ) | $ | (0.07 | ) | |||
Net loss per share - diluted | $ | (0.02 | ) | $ | (0.07 | ) | |||
Exercise of Stock Options and Warrants and Vesting of Restricted | ' | ||||||||
The shares of the Company’s common stock, issuable upon the exercise of stock options and warrants and vesting of restricted stock that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive is as follows: | |||||||||
Period Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Stock Options | 1,320,156 | 1,426,077 | |||||||
Warrants | 550,000 | 550,000 | |||||||
Restricted Stock | 157,484 | 220,250 | |||||||
Stock options, warrants and restricted stock | 2,027,640 | 2,196,327 | |||||||
Long_Term_Debt_Tables
Long Term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Amount Related to Facility and Revenue Purchase Agreements | ' | ||||||||
The following amounts are included in the consolidated balance sheet as of March 31, 2014 related to the Facility Agreement and Revenue Purchase Agreement: (in thousands) | |||||||||
Principal Amount of Facility Agreement | $ | 15,000 | |||||||
Unamortized discount | (2,816 | ) | |||||||
Carrying amount of Facility Agreement | 12,184 | ||||||||
Revenue Purchase Agreement | 3,471 | ||||||||
Less current portion of Facility Agreement | (3,750 | ) | |||||||
Notes payable long-term portion | $ | 11,905 | |||||||
Interest Included in Consolidated Income Statement | ' | ||||||||
The following amounts comprise interest included in our consolidated statement of operations for the three months ended March 31, 2014 and 2013: (in thousands) | |||||||||
Three months ended March 31, | |||||||||
2014 | 2013 | ||||||||
Cash interest expense | $ | 578 | $ | 553 | |||||
Non-cash amortization of debt discount | 135 | 154 | |||||||
Amortization of debt costs | 48 | 44 | |||||||
Amortization of settlement obligations | 52 | 75 | |||||||
Interest expense capital lease | 4 | — | |||||||
Total interest expense | $ | 817 | $ | 826 | |||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Lease Payments under Non-cancelable Operating Leases | ' | ||||
As of March 31, 2014, future minimum lease payments under non-cancelable operating leases were as follows: (in thousands) | |||||
Fiscal Year | Operating | ||||
Leases | |||||
2014 | $ | 368 | |||
2015 | 481 | ||||
2016 | 490 | ||||
2017 | 255 | ||||
$ | 1,594 | ||||
Future Minimum Lease Payments under Non-cancelable Capital Leases | ' | ||||
Future minimum lease payments under this lease are as follows: (in thousands) | |||||
Fiscal Year | Capital | ||||
Leases | |||||
2014 | 108 | ||||
2015 | 145 | ||||
2016 | 97 | ||||
subtotal minimum lease obligation | 350 | ||||
less interest | (20 | ) | |||
Total, net | 330 | ||||
less current portion | (132 | ) | |||
long term portion | $ | 198 | |||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||
Options Granted under Company's Stock Incentive Plans, Valuation Assumptions and Fair Values | ' | ||||||||
Options granted under the Company’s stock incentive plans were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Average risk-free interest rate | 0.80% | 0.58% | |||||||
Expected dividend yield | None | None | |||||||
Expected life | 3.5 years | 3.5 years | |||||||
Expected volatility | 64.2% to 65.6% | 61.5% to 68.9% | |||||||
Weighted average exercise price | $11.95 | $5.15 | |||||||
Weighted average fair value | $5.54 | $2.28 | |||||||
Unrecognized Compensation Cost Related to Unexercisable Options and Unvested Restricted Stock and the Weighted Average Remaining Period | ' | ||||||||
As of March 31, 2014 unrecognized compensation cost related to unexercisable options and unvested restricted stock and the weighted average remaining period is as follows: | |||||||||
Remaining expense | $ | 1,321,865 | |||||||
Weighted average term | 1.0 years | ||||||||
Aggregate Intrinsic Value | ' | ||||||||
The Company’s aggregate intrinsic value for stock options and restricted stock outstanding is as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
Aggregate intrinsic value | 2014 | 2013 | |||||||
Stock options | $ | 6,492,797 | $ | 1,962,883 | |||||
Restricted stock | 1,442,553 | 1,099,048 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table sets forth Company’s assets and liabilities which are measured at fair value on a recurring basis by level within the fair value hierarchy. | |||||||||||||||||
Fair value measurements using: (000’s) as of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Money market accounts | $ | 7,572 | $ | — | $ | — | $ | 7,572 | |||||||||
Total Assets | $ | 7,572 | $ | — | $ | — | $ | 7,572 | |||||||||
Liabilities | |||||||||||||||||
Contingent Consideration | $ | — | $ | — | $ | — | $ | — | |||||||||
Warrants | — | — | 3,986 | 3,986 | |||||||||||||
Total Liabilities | $ | — | $ | — | $ | 3,986 | $ | 3,986 | |||||||||
Fair value measurements using: (000’s) as of March 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Money market accounts | $ | 36,057 | $ | — | $ | — | $ | 36,057 | |||||||||
Total Assets | $ | 36,057 | $ | — | $ | — | $ | 36,057 | |||||||||
Liabilities | |||||||||||||||||
Warrant Liability | $ | — | $ | — | $ | 2,850 | $ | 2,850 | |||||||||
Total Liabilities | $ | — | $ | — | $ | 2,850 | $ | 2,850 | |||||||||
Assumptions in Valuing Warrant Liability | ' | ||||||||||||||||
Significant assumptions in valuing the warrant liability were as follows as of December 31, 2013 and March 31, 2014. | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Warrants | |||||||||||||||||
Exercise price | $ | 3.5 | $ | 3.5 | |||||||||||||
Volatility | 52.7 | % | 56.2 | % | |||||||||||||
Equivalent term (years) | 3.77 | 4 | |||||||||||||||
Risk-free interest rate | 1.3 | % | 1.3 | % | |||||||||||||
Reconciliation of Changes in Fair Value of Warrants | ' | ||||||||||||||||
The following sets forth a reconciliation of the changes in the fair value of warrants payable during the period: | |||||||||||||||||
Warrants | Amount | ||||||||||||||||
Balance as of December 31, 2013 | 3,986 | ||||||||||||||||
Gain from change in fair value of warrant | (1,136 | ) | |||||||||||||||
Balance as of March 31, 2014 | $ | 2,850 | |||||||||||||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Rollforward of Goodwill Activity by Reportable Segment | ' | ||||||||||||
A rollforward of goodwill activity by reportable segment is as follows: | |||||||||||||
Detection | Therapy | Total | |||||||||||
Accumulated Goodwill | $ | — | $ | — | $ | 47,937 | |||||||
Accumulated impairment | — | — | (26,828 | ) | |||||||||
Fair value allocation | 7,663 | 13,446 | — | ||||||||||
Balance at December 31, 2013 | 7,663 | 13,446 | 21,109 | ||||||||||
— | — | — | |||||||||||
Balance at March 31, 2014 | $ | 7,663 | $ | 13,446 | $ | 21,109 | |||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Summary of Segment Revenues, Segment Operating Income or Loss and Reconciliation of Segment Operating Income or Loss to GAAP Loss | ' | ||||||||
Segment revenues, segment operating income or loss, and a reconciliation of segment operating income or loss to GAAP loss before income tax is as follows (including prior periods which have been presented for consistency): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Segment revenues: | |||||||||
Detection | $ | 4,175 | $ | 4,638 | |||||
Therapy | 4,345 | 3,292 | |||||||
Total Revenue | $ | 8,520 | $ | 7,930 | |||||
Segment operating income (loss): | |||||||||
Detection | $ | 1,516 | $ | 1,574 | |||||
Therapy | (228 | ) | (230 | ) | |||||
Segment operating income (loss) | $ | 1,288 | $ | 1,344 | |||||
General and administrative expenses | $ | (1,748 | ) | $ | (1,672 | ) | |||
Interest expense | (817 | ) | (826 | ) | |||||
Gain on fair value of warrant | 1,136 | 431 | |||||||
Other income | 4 | 6 | |||||||
Loss before income tax | $ | (137 | ) | $ | (717 | ) | |||
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Segment | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' |
Revenue for disposable applicators and supplies | $4,311,000 | $3,096,000 |
Cost of revenue related to Medical Device Excise tax | 179,000 | 137,000 |
Cost of revenue | 1,146,000 | 887,000 |
Business segment | 2 | ' |
Disposable Applicators and Supplies and Other Related Expenses [Member] | ' | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' |
Cost of revenue | 193,000 | ' |
Disposable Applicators And Supplies [Member] | ' | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' |
Revenue for disposable applicators and supplies | $226,000 | ' |
Net_Loss_per_Common_Share_Calc
Net Loss per Common Share - Calculation of Net Loss per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Net loss | ($190) | ($727) |
Basic shares used in the calculation of net loss per share | 11,429 | 10,820 |
Effect of dilutive securities: | ' | ' |
Diluted shares used in the calculation of net loss per share | 11,429 | 10,820 |
Net loss per share - basic | ($0.02) | ($0.07) |
Net loss per share - diluted | ($0.02) | ($0.07) |
Stock Options [Member] | ' | ' |
Effect of dilutive securities: | ' | ' |
Incremental common shares attributable to share-based payment arrangements | ' | ' |
Restricted Stock [Member] | ' | ' |
Effect of dilutive securities: | ' | ' |
Incremental common shares attributable to share-based payment arrangements | ' | ' |
Net_Loss_per_Common_Share_Exer
Net Loss per Common Share - Exercise of Stock Options and Warrants and Vesting of Restricted (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock options, warrants and restricted stock | 2,027,640 | 2,196,327 |
Stock Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock options, warrants and restricted stock | 1,320,156 | 1,426,077 |
Warrants [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock options, warrants and restricted stock | 550,000 | 550,000 |
Restricted Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock options, warrants and restricted stock | 157,484 | 220,250 |
Long_Term_Debt_Additional_Info
Long Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2011 | Apr. 30, 2014 | |
Warrants [Member] | Subsequent Event [Member] | 2013 [Member] | 2014 [Member] | 2015 [Member] | 2016 [Member] | 2017 [Member] | Facility Agreement [Member] | Facility Agreement [Member] | Facility Agreement [Member] | Facility Agreement [Member] | Facility Agreement [Member] | Deerfield Agreement [Member] | Revenue Purchase Agreement [Member] | |||
December 2014 [Member] | December 2015 [Member] | December 2016 [Member] | December 2017 [Member] | Subsequent Event [Member] | ||||||||||||
Financing Arrangements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount provided in funding to company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,000,000 | ' |
Repayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,750,000 | 3,750,000 | 7,500,000 | ' | ' | ' |
Long term debt maturities repayment terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'December 2014 | 'December 2015 | 'December 2016 | ' | ' | ' |
Extended final repayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,750,000 | 3,750,000 | ' | ' |
Interest on facility agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.75% | ' | ' | ' | ' | ' | ' |
Percentage of revenue under condition one | 4.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of revenue under condition two due in year one and two | ' | ' | ' | ' | 2.75% | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of revenue under condition three due in year three and four | ' | ' | ' | ' | ' | ' | 2.25% | 2.25% | 2.25% | ' | ' | ' | ' | ' | ' | ' |
Percentage of revenue under condition four | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of revenue under condition one | '25 and Less | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of revenue under condition two | '25 to 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of revenue under condition three | '50 and Above | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common stock shares issued | ' | ' | 550,000 | 450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment for termination of agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 |
Aggregate purchase price of warrants | ' | ' | ' | $1,575,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued | 13,958,183 | 11,084,119 | ' | 450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancellation of warrants to purchase number of additional shares of common stock | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long_Term_Debt_Amount_Related_
Long Term Debt - Amount Related to Facility and Revenue Purchase Agreements (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Credit Facility [Line Items] | ' | ' |
Less current portion of Facility Agreement | ($3,750) | ' |
Notes payable long-term portion | 11,905 | 11,770 |
Facility Agreement [Member] | ' | ' |
Credit Facility [Line Items] | ' | ' |
Principal Amount of Facility Agreement | 15,000 | ' |
Unamortized discount | -2,816 | ' |
Carrying amount of Facility Agreement | 12,184 | ' |
Revenue Purchase Agreement [Member] | ' | ' |
Credit Facility [Line Items] | ' | ' |
Carrying amount of Facility Agreement | $3,471 | ' |
Long_Term_Debt_Interest_Includ
Long Term Debt - Interest Included in Consolidated Income Statement (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Expense Debt [Abstract] | ' | ' |
Cash interest expense | $578 | $553 |
Non-cash amortization of debt discount | 135 | 154 |
Amortization of debt costs | 48 | 44 |
Amortization of settlement obligations | 52 | 75 |
Interest expense capital lease | 4 | ' |
Total interest expense | $817 | $826 |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Leases [Abstract] | ' | ' |
Rent expense under operating leases | $162,000 | $169,000 |
Capital lease | 409,000 | ' |
Capital lease bargain purchase option amount | $1 | ' |
Lease_Commitments_Future_Minim
Lease Commitments - Future Minimum Lease Payments under Non-cancelable Operating Leases (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $368 |
2015 | 481 |
2016 | 490 |
2017 | 255 |
Total | $1,594 |
Lease_Commitments_Future_Minim1
Lease Commitments - Future Minimum Lease Payments under Non-cancelable Capital Leases (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Leases [Abstract] | ' | ' |
2014 | $108 | ' |
2015 | 145 | ' |
2016 | 97 | ' |
subtotal minimum lease obligation | 350 | ' |
less interest | -20 | ' |
Total, net | 330 | ' |
less current portion | -132 | ' |
long term portion | $198 | $235 |
StockBased_Compensation_Option
Stock-Based Compensation - Options Granted under Company's Stock Incentive Plans, Valuation Assumptions and Fair Values (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average exercise price | $11.95 | $5.15 |
Weighted average fair value | $5.54 | $2.28 |
Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Average risk-free interest rate | 0.80% | 0.58% |
Expected dividend yield | ' | ' |
Expected life | '3 years 6 months | '3 years 6 months |
Minimum [Member] | Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected volatility | 64.20% | 61.50% |
Maximum [Member] | Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected volatility | 65.60% | 68.90% |
StockBased_Compensation_Unreco
Stock-Based Compensation - Unrecognized Compensation Cost Related to Unexercisable Options and Unvested Restricted Stock and the Weighted Average Remaining Period (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized [Abstract] | ' |
Remaining expense | $1,321,865 |
Weighted average term | '1 year |
StockBased_Compensation_Aggreg
Stock-Based Compensation - Aggregate Intrinsic Value (Detail) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Aggregate intrinsic value, Stock option | $6,492,797 | $1,962,883 |
Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Aggregate intrinsic value, Restricted stock | $1,442,553 | $1,099,048 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | ||||||
Mar. 31, 2014 | Mar. 02, 2011 | Feb. 18, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Feb. 28, 2010 | Jul. 31, 2007 | |
Patient | Minimum [Member] | Hologic [Member] | Hologic [Member] | Zeiss [Member] | Zeiss [Member] | CADx Medical Systems Inc. [Member] | CADx Medical Systems Inc. [Member] | ||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax re-assessment received | ' | ' | ' | ' | ' | ' | ' | ' | $6,800,000 |
Reduced tax re-assessment received | ' | ' | ' | ' | ' | ' | ' | 703,000 | ' |
Minimum annual royalty payment | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of patent license | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Patent license, Estimated Amortizable Life | '6 years | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum royalty obligations | 587,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense royalty obligation | ' | ' | ' | 24,000 | 30,000 | 28,000 | 45,000 | ' | ' |
Jun-15 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Jun-17 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation and settlement obligation, Total | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty obligation non-current | 754,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase obligations to suppliers for future product deliverables | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Unlimited damages sought by plaintiffs | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' |
Aggregate amount of damages sought | ' | $14,500,000 | ' | ' | ' | ' | ' | ' | ' |
Number of patients treated using the Axxent Flexishield Mini as part of a clinical trial | 29 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Total Assets | $36,057 | $7,572 |
Liabilities | ' | ' |
Total Liabilities | 2,850 | 3,986 |
Money Market Accounts [Member] | ' | ' |
Assets | ' | ' |
Total Assets | 36,057 | 7,572 |
Contingent Consideration [Member] | ' | ' |
Liabilities | ' | ' |
Total Liabilities | ' | ' |
Warrants [Member] | ' | ' |
Liabilities | ' | ' |
Total Liabilities | 2,850 | 3,986 |
Level 1 [Member] | ' | ' |
Assets | ' | ' |
Total Assets | 36,057 | 7,572 |
Liabilities | ' | ' |
Total Liabilities | ' | ' |
Level 1 [Member] | Money Market Accounts [Member] | ' | ' |
Assets | ' | ' |
Total Assets | 36,057 | 7,572 |
Level 1 [Member] | Contingent Consideration [Member] | ' | ' |
Liabilities | ' | ' |
Total Liabilities | ' | ' |
Level 1 [Member] | Warrants [Member] | ' | ' |
Liabilities | ' | ' |
Total Liabilities | ' | ' |
Level 2 [Member] | ' | ' |
Assets | ' | ' |
Total Assets | ' | ' |
Liabilities | ' | ' |
Total Liabilities | ' | ' |
Level 2 [Member] | Money Market Accounts [Member] | ' | ' |
Assets | ' | ' |
Total Assets | ' | ' |
Level 2 [Member] | Contingent Consideration [Member] | ' | ' |
Liabilities | ' | ' |
Total Liabilities | ' | ' |
Level 2 [Member] | Warrants [Member] | ' | ' |
Liabilities | ' | ' |
Total Liabilities | ' | ' |
Level 3 [Member] | ' | ' |
Assets | ' | ' |
Total Assets | ' | ' |
Liabilities | ' | ' |
Total Liabilities | 2,850 | 3,986 |
Level 3 [Member] | Money Market Accounts [Member] | ' | ' |
Assets | ' | ' |
Total Assets | ' | ' |
Level 3 [Member] | Contingent Consideration [Member] | ' | ' |
Liabilities | ' | ' |
Total Liabilities | ' | ' |
Level 3 [Member] | Warrants [Member] | ' | ' |
Liabilities | ' | ' |
Total Liabilities | $2,850 | $3,986 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2014 | Apr. 30, 2014 | |
Deerfield Agreement [Member] | Subsequent Event [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ' | ' | ' |
Warrant or right exercisable | ' | 450,000 | ' |
Period of LIBOR rate | '6 years | ' | ' |
Aggregate purchase price of warrants | ' | ' | $1,575,000 |
Number of common stock shares issued | ' | ' | 450,000 |
Asset impairment charges | $0 | ' | ' |
Fair_Value_Measurements_Assump
Fair Value Measurements - Assumptions in Valuing Warrant Liability (Detail) (Warrants [Member], USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Warrants [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Exercise price | $3.50 | $3.50 |
Volatility | 52.70% | 56.20% |
Equivalent term (years) | '3 years 9 months 7 days | '4 years |
Risk-free interest rate | 1.30% | 1.30% |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Changes in Fair Value of Warrants (Detail) (Warrants [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Warrants [Member] | ' |
Fair Value Of Financial Instruments [Line Items] | ' |
Beginning balance | $3,986 |
Gain from change in fair value of warrant | -1,136 |
Ending Balance | $2,850 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Unrecognized tax benefits | $0 |
Adjustment to liabilities or operations | 0 |
Interest or penalties related to uncertain tax positions | $0 |
Company preceding tax years | '3 years |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Goodwill [Line Items] | ' |
Number of reporting segments | 2 |
Percentage of discount derived from capital asset pricing model | 25.00% |
Detection [Member] | ' |
Goodwill [Line Items] | ' |
Percentage of fair value of each reporting unit | 362.00% |
Therapy [Member] | ' |
Goodwill [Line Items] | ' |
Percentage of fair value of each reporting unit | 179.00% |
Goodwill_Rollforward_of_Goodwi
Goodwill - Rollforward of Goodwill Activity by Reportable Segment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2014 |
Goodwill [Line Items] | ' | ' |
Accumulated Goodwill | $47,937 | ' |
Accumulated impairment | -26,828 | ' |
Fair value allocation | ' | ' |
Goodwill Balance | 21,109 | 21,109 |
Detection [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Accumulated Goodwill | ' | ' |
Accumulated impairment | ' | ' |
Fair value allocation | 7,663 | ' |
Goodwill Balance | 7,663 | 7,663 |
Therapy [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Accumulated Goodwill | ' | ' |
Accumulated impairment | ' | ' |
Fair value allocation | 13,446 | ' |
Goodwill Balance | $13,446 | $13,446 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment | ||
Schedule Of Geographical Information [Line Items] | ' | ' |
Number of reporting segments | 2 | ' |
Inter-segment revenues | $8,520 | $7,930 |
Intersegment Eliminations [Member] | ' | ' |
Schedule Of Geographical Information [Line Items] | ' | ' |
Inter-segment revenues | $0 | ' |
Segment_Reporting_Summary_of_S
Segment Reporting - Summary of Segment Revenues, Segment Operating Income or Loss and Reconciliation of Segment Operating Income or Loss to GAAP Loss (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment revenues: | ' | ' |
Total revenue | $8,520 | $7,930 |
Segment operating income (loss): | ' | ' |
Segment operating income (loss) | -460 | -328 |
General and administrative expenses | -1,748 | -1,672 |
Interest expense | -817 | -826 |
Gain on fair value of warrant | 1,136 | 431 |
Other income | 4 | 6 |
Loss before income tax expense | -137 | -717 |
Detection [Member] | ' | ' |
Segment revenues: | ' | ' |
Total revenue | 4,175 | 4,638 |
Segment operating income (loss): | ' | ' |
Segment operating income (loss) | 1,516 | 1,574 |
Therapy [Member] | ' | ' |
Segment revenues: | ' | ' |
Total revenue | 4,345 | 3,292 |
Segment operating income (loss): | ' | ' |
Segment operating income (loss) | -228 | -230 |
All Reporting Segments [Member] | ' | ' |
Segment operating income (loss): | ' | ' |
Segment operating income (loss) | $1,288 | $1,344 |