Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 06, 2015 | Jun. 28, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ICAD | ||
Entity Registrant Name | ICAD INC | ||
Entity Central Index Key | 749660 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 15,635,282 | ||
Entity Public Float | $85,718,366 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $32,220 | $11,880 |
Trade accounts receivable, net of allowance for doubtful accounts of $203 in 2014 and $73 in 2013 | 9,642 | 7,623 |
Inventory, net | 2,214 | 1,891 |
Prepaid expenses and other current assets | 540 | 649 |
Total current assets | 44,616 | 22,043 |
Property and equipment: | ||
Equipment | 8,430 | 5,245 |
Leasehold improvements | 62 | 108 |
Furniture and fixtures | 293 | 283 |
Marketing assets | 331 | 300 |
Total property and equipment | 9,116 | 5,936 |
Less accumulated depreciation and amortization | 4,861 | 4,265 |
Net property and equipment | 4,255 | 1,671 |
Other assets: | ||
Other assets | 132 | 419 |
Intangible assets, net of accumulated amortization of $14,738 in 2014 and $12,468 in 2013 | 17,504 | 13,674 |
Goodwill | 27,263 | 21,109 |
Total other assets | 44,899 | 35,202 |
Total assets | 93,770 | 58,916 |
Current liabilities: | ||
Accounts payable | 2,151 | 2,000 |
Accrued expenses | 5,554 | 3,799 |
Interest payable | 180 | 483 |
Notes and capital lease payable, short-term portion | 5,044 | 3,878 |
Warrant liability | 3,986 | |
Deferred revenue | 9,120 | 8,306 |
Total current liabilities | 22,049 | 22,452 |
Other long-term liabilities | 51 | 68 |
Deferred revenue, long-term portion | 1,525 | 1,726 |
Settlement costs, long-term portion | 744 | 1,288 |
Capital lease-long-term portion | 1,020 | 235 |
Notes payable, long-term portion | 5,602 | 11,770 |
Total liabilities | 30,991 | 37,539 |
Commitments and contingencies (Notes 2 and 8) | ||
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 15,732,177 in 2014 and 11,084,119 in 2013; outstanding 15,546,346 in 2014 and 10,898,288 in 2013 | 157 | 111 |
Additional paid-in capital | 209,100 | 166,735 |
Accumulated deficit | -145,063 | -144,054 |
Treasury stock at cost, 185,831 shares in 2014 and 2013 | -1,415 | -1,415 |
Total stockholders' equity | 62,779 | 21,377 |
Total liabilities and stockholders' equity | $93,770 | $58,916 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 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 | $203 | $73 |
Intangible assets, accumulated amortization | $14,738 | $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 | 15,732,177 | 11,084,119 |
Common stock, shares outstanding | 15,546,346 | 10,898,288 |
Treasury stock, shares | 185,831 | 185,831 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||
Products | $18,683 | $18,536 | $17,233 |
Service and supplies | 25,241 | 14,531 | 11,042 |
Total revenue | 43,924 | 33,067 | 28,275 |
Cost of Revenue: | |||
Products | 4,912 | 4,668 | 3,730 |
Service and supplies | 6,000 | 4,009 | 3,188 |
Amortization and depreciation | 1,785 | 1,305 | 1,326 |
Total cost of revenue | 12,697 | 9,982 | 8,244 |
Gross profit | 31,227 | 23,085 | 20,031 |
Operating expenses: | |||
Engineering and product development | 8,159 | 7,043 | 7,031 |
Marketing and sales | 12,468 | 10,328 | 10,584 |
General and administrative | 8,044 | 6,365 | 6,359 |
Amortization and depreciation | 1,741 | 1,125 | 1,469 |
Total operating expenses | 30,412 | 24,861 | 25,443 |
Income (loss) from operations | 815 | -1,776 | -5,412 |
Other (expense) income: | |||
Interest expense | -2,640 | -3,277 | -3,415 |
Gain (loss) from change in fair value of warrant liability | 1,835 | -2,448 | -539 |
Loss from extinguishment of debt | -903 | ||
Interest income | 37 | 19 | 35 |
Other expense, net | -1,671 | -5,706 | -3,919 |
Loss before income tax expense | -856 | -7,482 | -9,331 |
Income tax expense | 153 | 126 | 43 |
Net loss and comprehensive loss | ($1,009) | ($7,608) | ($9,374) |
Net loss per share: | |||
Basic | ($0.07) | ($0.70) | ($0.87) |
Diluted | ($0.07) | ($0.70) | ($0.87) |
Weighted average number of shares used in computing loss per share: | |||
Basic | 14,096 | 10,842 | 10,796 |
Diluted | 14,096 | 10,842 | 10,796 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2011 | $36,055 | $110 | $164,432 | ($127,072) | ($1,415) |
Beginning Balance, shares at Dec. 31, 2011 | 10,950,902 | ||||
Issuance of common stock relative to vesting of restricted stock, net of 4,789, 5,249 and 9,904 shares forfeited for tax obligations in 2012, 2013 and 2014 respectively | -12 | -12 | |||
Issuance of common stock relative to vesting of restricted stock, net of 4,789, 5,249 and 9,904 shares forfeited for tax obligations in 2012, 2013 and 2014 respectively, shares | 43,031 | ||||
Stock-based compensation | 996 | 996 | |||
Net income (loss) | -9,374 | -9,374 | |||
Ending Balance at Dec. 31, 2012 | 27,665 | 110 | 165,416 | -136,446 | -1,415 |
Ending Balance, shares at Dec. 31, 2012 | 10,993,933 | ||||
Issuance of common stock relative to vesting of restricted stock, net of 4,789, 5,249 and 9,904 shares forfeited for tax obligations in 2012, 2013 and 2014 respectively | -28 | -28 | |||
Issuance of common stock relative to vesting of restricted stock, net of 4,789, 5,249 and 9,904 shares forfeited for tax obligations in 2012, 2013 and 2014 respectively, shares | 41,759 | ||||
Issuance of common stock pursuant to stock option plans | 146 | 1 | 145 | ||
Issuance of common stock pursuant to stock option plans,Shares | 48,427 | 48,427 | |||
Stock-based compensation | 1,202 | 1,202 | |||
Net income (loss) | -7,608 | -7,608 | |||
Ending Balance at Dec. 31, 2013 | 21,377 | 111 | 166,735 | -144,054 | -1,415 |
Ending Balance, shares at Dec. 31, 2013 | 11,084,119 | ||||
Issuance of common stock relative to vesting of restricted stock, net of 4,789, 5,249 and 9,904 shares forfeited for tax obligations in 2012, 2013 and 2014 respectively | -110 | 1 | -111 | ||
Issuance of common stock relative to vesting of restricted stock, net of 4,789, 5,249 and 9,904 shares forfeited for tax obligations in 2012, 2013 and 2014 respectively, shares | 75,530 | ||||
Issuance of common stock for warrants exercised | 3,726 | 4 | 3,722 | ||
Issuance of common stock for warrants exercised, shares | 450,000 | ||||
Issuance of stock for acquisitions | 8,556 | 12 | 8,544 | ||
Issuance of stock for acquisitions, shares | 1,200,000 | ||||
Issuance of common stock pursuant to stock option plans | 708 | 1 | 707 | ||
Issuance of common stock pursuant to stock option plans,Shares | 162,528 | 162,528 | |||
Sale of common stock | 28,214 | 28 | 28,186 | ||
Sale of common stock, shares | 2,760,000 | ||||
Stock-based compensation | 1,318 | 1,318 | |||
Net income (loss) | -1,009 | -1,009 | |||
Ending Balance at Dec. 31, 2014 | $62,779 | $157 | $209,100 | ($145,063) | ($1,415) |
Ending Balance, shares at Dec. 31, 2014 | 15,732,177 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shares forfeited for tax obligations | 9,904 | 5,249 | 4,789 |
Common Stock [Member] | |||
Shares forfeited for tax obligations | 9,904 | 5,249 | 4,789 |
Additional Paid-in Capital [Member] | |||
Shares forfeited for tax obligations | 9,904 | 5,249 | 4,789 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flow from operating activities: | |||
Net loss | ($1,009) | ($7,608) | ($9,374) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | |||
Depreciation | 1,256 | 706 | 891 |
Amortization | 2,270 | 1,724 | 1,904 |
Bad debt provision | 167 | 35 | |
Loss on extinguishment of debt | 903 | ||
Loss on disposal of assets | 53 | 174 | |
Loss (gain) from change in fair value of warrant liability | -1,835 | 2,448 | 539 |
Stock-based compensation expense | 1,318 | 1,202 | 996 |
Amortization of debt discount and debt costs | 1,246 | 856 | 1,012 |
Interest on settlement obligations | 206 | 266 | 388 |
Changes in operating assets and liabilities, net of acquisition: | |||
Accounts receivable | -840 | -2,678 | -976 |
Inventory | -323 | 228 | -79 |
Prepaid and other assets | 11 | -126 | 469 |
Accounts payable | 150 | 60 | 815 |
Accrued expenses | 296 | -609 | -1,775 |
Deferred revenue | -612 | 2,010 | 812 |
Total adjustments | 4,213 | 6,175 | 5,170 |
Net cash provided by (used for) operating activities | 3,204 | -1,433 | -4,204 |
Cash flow from investing activities: | |||
Additions to patents, technology and other | -50 | -168 | -70 |
Additions to property and equipment | -1,214 | -539 | -665 |
Acquisition of Radion Inc, and DermEbx | -3,482 | ||
Net cash used for investing activities | -4,746 | -707 | -735 |
Cash flow from financing activities: | |||
Issuance of common stock for cash, net | 28,214 | ||
Stock option exercises | 708 | 146 | |
Warrant exercise | 1,575 | ||
Taxes paid related to restricted stock issuance | -110 | -28 | -14 |
Principal payments of capital lease obligations | -655 | -46 | |
Principal repayment of debt financing, net | -7,850 | ||
Proceeds from debt financing, net | 14,325 | ||
Net cash provided by financing activities | 21,882 | 72 | 14,311 |
Increase (decrease) in cash and equivalents | 20,340 | -2,068 | 9,372 |
Cash and equivalents, beginning of year | 11,880 | 13,948 | 4,576 |
Cash and equivalents, end of year | 32,220 | 11,880 | 13,948 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 1,637 | 2,163 | 1,516 |
Taxes paid | 157 | 78 | 55 |
Equipment purchased under capital lease | 409 | ||
Non-cash items from investing and financing activities: | |||
Settlement of warrant liability with purchase of common stock | 2,151 | ||
Issuance of common stock related to acquisition of Radion, Inc and DermEbx | $8,556 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Summary of Significant Accounting Policies | -1 | Summary of Significant Accounting Policies | |||||||||||||||
(a) Nature of Operations and Use of Estimates | |||||||||||||||||
iCAD, Inc. and subsidiaries (the “Company” or “iCAD”) is an industry-leading provider of advanced image analysis, workflow solutions and radiation therapy for the early identification and treatment of cancer. | |||||||||||||||||
The Company has grown primarily through acquisitions to become a broad player in the oncology market. Its industry-leading solutions include advanced image analysis and workflow solutions that enable healthcare professionals to better serve patients by identifying pathologies and pinpointing the most prevalent cancers earlier, a comprehensive range of high-performance, upgradeable Computer-Aided Detection (CAD) systems and workflow solutions for mammography, MRI and CT, and the Xoft eBx system which is an isotope-free cancer treatment platform technology. CAD is reimbursable in the U.S. under federal and most third-party insurance programs. | |||||||||||||||||
The Company intends to continue the extension of its image analysis and clinical decision support solutions for mammography, MRI and CT imaging. iCAD believes that advances in digital imaging techniques should bolster its efforts to develop additional commercially viable CAD/advanced image analysis and workflow products. The Company’s belief is that early detection in combination with earlier targeted intervention will provide patients and care providers with the best tools available to achieve better clinical outcomes resulting in a market demand that will drive top line growth. | |||||||||||||||||
The Company’s headquarters are located in Nashua, New Hampshire, with manufacturing and contract manufacturing facilities in New Hampshire and Massachusetts and, an operation, research, development, manufacturing and warehousing facility in San Jose, California. | |||||||||||||||||
The Company operates in 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 products. The Company sells its products throughout the world through its direct sales organization as well as through various OEM partners, distributors and resellers. See Note 7 for segment, major customer and geographical information. | |||||||||||||||||
The Company has reclassified on the statement of operations revenue for disposable applicators and supplies of to service and supplies revenue that was previously included in product revenue to conform to current period classification. The Company has reclassified on the statement of operations for the revenue for disposable applicators and supplies and other related expenses service and supplies cost of revenue that was previously included in cost of product revenue to conform to current period classification. The Company reclassified depreciation previously included in product and service cost of revenue to amortization and depreciation as a separate component of cost of revenue. | |||||||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that changes may occur in the near term that would affect management’s estimates with respect to assets and liabilities. | |||||||||||||||||
(b) Principles of Consolidation | |||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries; Xoft, Inc. and Xoft Solutions, LLC. All material inter-company transactions and balances have been eliminated in consolidation. | |||||||||||||||||
(c) Cash and cash equivalents | |||||||||||||||||
The Company defines cash and cash equivalents as all bank accounts, money market funds, deposits and other money market instruments with original maturities of 90 days or less, which are unrestricted as to withdrawal. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. Insurance coverage is $250,000 per depositor at each financial institution, and the Company’s non-interest bearing cash balances exceed federally insured limits. Interest-bearing amounts on deposit in excess of federally insured limits at December 31, 2014 approximated $31.1 million. | |||||||||||||||||
(d) Financial instruments | |||||||||||||||||
Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, notes payable and warrants. Due to their short term nature and market rates of interest, the carrying amounts of the financial instruments approximated fair value as of December 31, 2014 and 2013, with the exception of warrants. The fair value of warrants is more fully described in Note 1(r). | |||||||||||||||||
(e) Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||||||
Accounts receivable are customer obligations due under normal trade terms. Credit limits are established through a process of reviewing the financial history and stability of each customer. The Company performs continuing credit evaluations of its customers’ financial condition and generally does not require collateral. | |||||||||||||||||
The Company’s policy is to maintain allowances for estimated losses from the inability of its customers to make required payments. The Company’s senior management reviews accounts receivable on a periodic basis to determine if any receivables may potentially be uncollectible. The Company includes any accounts receivable balances that it determines may likely be uncollectible, along with a general reserve for estimated probable losses based on historical experience, in its overall allowance for doubtful accounts. An amount would be written off against the allowance after all attempts to collect the receivable had failed. Based on the information available, the Company believes the allowance for doubtful accounts as of December 31, 2014 and 2013 is adequate. | |||||||||||||||||
The following table summarizes the allowance for doubtful accounts for the three years ended December 31, 2014 (in thousands): | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance at beginning of period | $ | 73 | $ | 48 | $ | 54 | |||||||||||
Additions charged to costs and expenses | 167 | 35 | — | ||||||||||||||
Reductions | (37 | ) | (10 | ) | (6 | ) | |||||||||||
Balance at end of period | $ | 203 | $ | 73 | $ | 48 | |||||||||||
(f) Inventory | |||||||||||||||||
Inventory is valued at the lower of cost or market value, with cost determined by the first-in, first-out method. The Company regularly reviews inventory quantities on hand and records an allowance for excess and/or obsolete inventory primarily based upon the estimated usage of its inventory as well as other factors. At December 31, 2014 and 2013 respectively inventories consisted of the following (in thousands): | |||||||||||||||||
As of December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Raw materials | $ | 955 | $ | 581 | |||||||||||||
Work in process | 54 | 38 | |||||||||||||||
Finished Goods | 1,205 | 1,272 | |||||||||||||||
Inventory | $ | 2,214 | $ | 1,891 | |||||||||||||
(g) Property and Equipment | |||||||||||||||||
Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets or the remaining lease term, whichever is shorter for leasehold improvements (see below). | |||||||||||||||||
Estimated life | |||||||||||||||||
Equipment | 3-5 years | ||||||||||||||||
Leasehold improvements | 3-5 years | ||||||||||||||||
Furniture and fixtures | 3-5 years | ||||||||||||||||
Marketing assets | 3-5 years | ||||||||||||||||
(h) Long Lived Assets | |||||||||||||||||
Long-lived assets, other than goodwill, are evaluated for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows from the use of these assets. When any such impairment exists, the related assets are written down to fair value. The Company did not record any impairment losses in the years ended December 31, 2014, 2013 or 2012. | |||||||||||||||||
Intangible assets subject to amortization consist primarily of patents, technology, customer relationships and trade names purchased in the Company’s previous acquisitions. These assets, which include assets from the acquisition of the assets of DermEbx and Radion and the acquisition of Xoft, Inc., are amortized on a straight-line basis consistent with the pattern of economic benefit over their estimated useful lives of 5 to 15 years. A summary of intangible assets for 2014 and 2013 are as follows (in thousands): | |||||||||||||||||
2014 | 2013 | Weighted | |||||||||||||||
average | |||||||||||||||||
useful life | |||||||||||||||||
Gross Carrying Amount | |||||||||||||||||
Patents and licenses | $ | 767 | $ | 737 | 5 years | ||||||||||||
Technology | 25,639 | 24,909 | 10 years | ||||||||||||||
Customer relationships | 5,548 | 248 | 7 years | ||||||||||||||
Tradename | 288 | 248 | 10 years | ||||||||||||||
Total amortizable intangible assets | 32,242 | 26,142 | |||||||||||||||
Accumulated Amortization | |||||||||||||||||
Patents and licenses | $ | 517 | $ | 471 | |||||||||||||
Technology | 13,076 | 11,589 | |||||||||||||||
Customer relationships | 896 | 160 | |||||||||||||||
Tradename | 249 | 248 | |||||||||||||||
Total accumulated amortization | 14,738 | 12,468 | |||||||||||||||
Total amortizable intangible assets, net | $ | 17,504 | $ | 13,674 | |||||||||||||
Amortization expense related to intangible assets was approximately $2,270, $1,724 and $1,904 for the years ended December 31, 2014, 2013, and 2012, respectively. Estimated remaining amortization of the Company’s intangible assets is as follows (in thousands): | |||||||||||||||||
For the years ended December 31: | Estimated | ||||||||||||||||
amortization | |||||||||||||||||
expense | |||||||||||||||||
2015 | $ | 3,095 | |||||||||||||||
2016 | 2,462 | ||||||||||||||||
2017 | 2,254 | ||||||||||||||||
2018 | 1,934 | ||||||||||||||||
2019 | 1,659 | ||||||||||||||||
Thereafter | 6,100 | ||||||||||||||||
$ | 17,504 | ||||||||||||||||
(i) 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. | ||||||||||||||||
In June 2013, the Company determined that it had two reporting units and two reportable segments based on the information provided to the Chief Operating Decision Maker (“CODM”). 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, 2014 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 315% for the Detection reporting unit and 255% 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 of the remaining net assets 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 17% 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 | ||||||||||||||
Acquistion of DermEbx and Radion | — | 6,154 | 6,154 | ||||||||||||||
Balance at December 31, 2014 | $ | 7,663 | $ | 19,600 | $ | 27,263 | |||||||||||
(j) 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 cancer therapy 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 revenue to 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, when delivered. | |||||||||||||||||
Revenue from the certain CAD products is recognized in accordance with ASC 985-605. Sales of this product include training, and the Company has established VSOE for this element. Product revenue is determined based on the residual value in the arrangement, and is recognized when delivered. Revenue for training is deferred and recognized when the training has been completed. | |||||||||||||||||
The Company recognizes post contract customer support revenue together with the initial licensing fee for certain MRI products in accordance with 985-605-25-71. | |||||||||||||||||
Sales of the Company’s Therapy segment products typically include a controller, accessories, source agreements and services. 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 includes in service and supplies revenue the following: the sale of physics and management services, the lease of electronic brachytherapy equipment, development fees, supplies and the right to use the Company’s AxxentHub | |||||||||||||||||
software. Physics and management services revenue and development fees are considered to be delivered as the services are performed or over the estimated life of the agreement. The Company typically bills items monthly over the life of the agreement except for development fees, which are generally billed in advance or over a 12 month period and the fee for treatment supplies which is generally billed in advance. | |||||||||||||||||
The Company defers revenue from the sale of certain service contracts and recognizes the related 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. | |||||||||||||||||
(k) Cost of Revenue | |||||||||||||||||
Cost of revenue consists of the costs of products purchased for resale, cost relating to service including costs of service contracts to maintain equipment after the warranty period, inbound freight and duty, manufacturing, warehousing, material movement, inspection, scrap, rework, depreciation and in-house product warranty repairs, amortization of acquired technology and medical device tax. | |||||||||||||||||
(l) Warranty Costs | |||||||||||||||||
The Company provides for the estimated cost of standard product warranty against defects in material and workmanship based on historical warranty trends, including in the volume and cost of product returns during the warranty period. Warranty provisions and claims for the years ended December 31, 2014, 2013 and 2012, were as follows (in thousands): | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Beginning accrual balance | $ | 25 | $ | 36 | $ | 89 | |||||||||||
Warranty provision | 58 | 96 | 37 | ||||||||||||||
Usage | (69 | ) | (107 | ) | (90 | ) | |||||||||||
Ending accrual balance | $ | 14 | $ | 25 | $ | 36 | |||||||||||
The warranty costs above include long-term warranty obligations of $5,000, $8,000 and $10,000 for the years ended December 31, 2014, 2013 and 2011, respectively. | |||||||||||||||||
(m) Engineering and Product Development Costs | |||||||||||||||||
Engineering and product development costs relate to research and development efforts including Company sponsored clinical trials which are expensed as incurred. | |||||||||||||||||
(n) Advertising Costs | |||||||||||||||||
The Company expenses advertising costs as incurred. Advertising expense for the years ended December 31, 2014, 2013 and 2012 was approximately $882,000, $639,000 and $762,000 respectively. | |||||||||||||||||
(o) Net Loss per Common Share | |||||||||||||||||
The Company follows FASB ASC 260-10, “Earnings per Share”, which requires the presentation of both basic and diluted earnings per share on the face of the statements of operations. 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 income 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): | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Net loss available to common shareholders | $ | (1,009 | ) | $ | (7,608 | ) | $ | (9,374 | ) | ||||||||
Basic shares used in the calculation of earnings per share | 14,096 | 10,842 | 10,796 | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | — | — | — | ||||||||||||||
Restricted stock | — | — | — | ||||||||||||||
Diluted shares used in the calculation of earnings per share | 14,096 | 10,842 | 10,796 | ||||||||||||||
Net loss per share : | |||||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.70 | ) | $ | (0.87 | ) | ||||||||
Diluted | $ | (0.07 | ) | $ | (0.70 | ) | $ | (0.87 | ) | ||||||||
The following table summarizes the number of shares of common stock for securities, warrants and restricted stock that were not included in the calculation of diluted net loss per share because such shares are antidilutive: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Common stock options | 1,417,887 | 1,334,955 | 1,434,945 | ||||||||||||||
Warrants | — | 550,000 | 550,000 | ||||||||||||||
Restricted Stock | 309,317 | 216,250 | 67,075 | ||||||||||||||
1,727,204 | 2,101,205 | 2,052,020 | |||||||||||||||
Restricted common stock can be issued to directors, executives or employees of the Company and are subject to time-based vesting. These potential shares were excluded from the computation of basic loss per share as these shares are not considered outstanding until vested. | |||||||||||||||||
(p) Income Taxes | |||||||||||||||||
The Company follows the liability method under ASC Topic 740, “Income Taxes”, (“ASC 740”). The primary objectives of accounting for taxes under ASC 740 are to (a) recognize the amount of tax payable for the current year and (b) recognize the amount of deferred tax liability or asset for the future tax consequences of events that have been reflected in the Company’s financial statements or tax returns. The Company has provided a full valuation allowance against its deferred tax assets at December 31, 2014 and 2013, as it is more likely than not that the deferred tax asset will not be realized. Any subsequent changes in the valuation allowance will be recorded through operations in the provision (benefit) for income taxes. | |||||||||||||||||
ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10 also provides guidance on de-recognition, classification, interest and penalties, disclosure and transition. | |||||||||||||||||
(q) Stock-Based Compensation | |||||||||||||||||
The Company maintains stock-based incentive plans, under which it provides stock incentives to employees, directors and contractors. The Company may grant to employees, directors and contractors, options to purchase common stock at an exercise price equal to the market value of the stock at the date of grant. The Company may grant restricted stock to employees and directors. The underlying shares of the restricted stock grant are not issued until the shares vest, and compensation expense is based on the stock price of the shares at the time of grant. The Company follows FASB ASC Topic 718, “Compensation – Stock Compensation” (“ASC 718”), for all stock-based compensation. Under this application, the Company is required to record compensation expense over the vesting period for all awards granted. | |||||||||||||||||
The Company uses the Black-Scholes option pricing model to value stock options which requires extensive use of accounting judgment and financial estimates, including estimates of the expected term participants will retain their vested stock options before exercising them, the estimated volatility of its common stock price over the expected term, the risk free rate, expected dividend yield, and the number of options that will be forfeited prior to the completion of their vesting requirements. Fair value of restricted stock is determined based on the stock price of the underlying option on the date of the grant. Application of alternative assumptions could produce significantly different estimates of the fair value of stock-based compensation and consequently, the related amounts recognized in the Consolidated Statements of Operations. | |||||||||||||||||
(r) Fair Value Measurements | |||||||||||||||||
The Company follows the provisions of FASB ASC Topic 820, “Fair Value Measurement and Disclosures” (“ASC 820”). This topic defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles 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. | |||||||||||||||||
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 financing arrangement. | |||||||||||||||||
The 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 fair value measurement for the contingent consideration liability is valued using Level 3 inputs. In connection with the acquisition of Xoft, the Company recorded a contingent consideration liability of $5.0 million based upon the estimated fair value of the additional earn-out potential for the sellers that is tied to cumulative net revenue of Xoft products from January 1, 2011 through December 31, 2013, payable January, 2014. As of December 31, 2013, the Company did not meet the cumulative net revenue criteria and accordingly the value of the contingent consideration was $0.0 million. | |||||||||||||||||
In connection with the financing as further described in Note 3 the Company issued 550,000 warrants to Deerfield in December 2011. On April 30, 2014, Deerfield exercised 450,000 warrants for an aggregate purchase price of $1,575,000, and the Company issued 450,000 shares of common stock, and cancelled the remaining 100,000 warrants issued to Deerfield, since these 100,000 warrants were exercisable only in the event the Company extended the last debt payment for an additional year. The warrant obligation was fully satisfied following that exercise. The liability for the warrants associated with the debt was valued using the binomial lattice-based valuation methodology because that model embodies all of the relevant assumptions that address the features underlying these instruments. The warrant was valued at $2,151,000 as of April 30, 2014 immediately prior to exercise which included a gain of $699,000. Significant assumptions in valuing the warrant liability were as follows as of December 31, 2013 and April 30, 2014. | |||||||||||||||||
April 30, 2014 | December 31, 2013 | ||||||||||||||||
Warrants | |||||||||||||||||
Exercise price | $ | 3.5 | $ | 3.5 | |||||||||||||
Volatility | 40.8 | % | 56.2 | % | |||||||||||||
Equivalent term (years) | 0 | 4 | |||||||||||||||
Risk-free interest rate | 0.1 | % | 1.3 | % | |||||||||||||
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, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Money market accounts | $ | 26,530 | $ | — | $ | — | $ | 26,530 | |||||||||
Total Assets | $ | 26,530 | $ | — | $ | — | $ | 26,530 | |||||||||
Liabilities | |||||||||||||||||
Warrants | — | — | — | — | |||||||||||||
Total Liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||
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 | |||||||||
The following table provides a summary of changes in the fair value of the warrants during the period are as follows (in thousands): | |||||||||||||||||
Warrants | Amount | ||||||||||||||||
Balance as of December 31, 2012 | $ | 1,538 | |||||||||||||||
Loss from change in fair value of warrant | 2,448 | ||||||||||||||||
Balance as of December 31, 2013 | 3,986 | ||||||||||||||||
Gain from change in fair value of warrant | (1,835 | ) | |||||||||||||||
Warrant exercise | (2,151 | ) | |||||||||||||||
Balance as of December 31, 2014 | $ | — | |||||||||||||||
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 recorded an estimated impairment charge for goodwill of $26.8 million during the year ended December 31, 2011. We did not consider any assets to be impaired during the years ended December 31, 2014, 2013 or 2012. | |||||||||||||||||
(s) Recently Issued Accounting Standards | |||||||||||||||||
In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The new standard requires the Company to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The adoption of ASU 2014-15 is not expected to have a material impact on the Company’s financial position, results of operations or cash flows. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers” (“ASU 2014-09”), which amends ASC 605 “Revenue Recognition” and creates a new Topic 606 “Revenue from Contracts with Customers.” This update provides guidance on how an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Upon initial application, the provisions of this update are required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. This update also expands the disclosure requirements surrounding revenue recorded from contracts with customers. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is currently evaluating the effect of this update on its financial statements and have not yet determined the method of initial application that it will use. |
Acquisition_of_the_assets_of_D
Acquisition of the assets of DermEbx and Radion | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisition of the assets of DermEbx and Radion | -2 | Acquisition of the assets of DermEbx and Radion | |||||||
On July 15, 2014 (the “Closing Date”), the Company entered into two Asset Purchase Agreements, one with Radion, the other with DermEbx (the “Acquisition”). Pursuant to the Asset Purchase Agreement with DermEbx, the Company purchased substantially all of the assets of DermEbx, including all of DermEbx’s intellectual property and customer contracts. The Company paid to DermEbx the following consideration: (i) $1,600,000 in cash and (ii) the issuance to DermEbx of 600,000 restricted shares of the Company’s common stock, $0.01 par value per share. The Company held back $500,000 of the cash consideration for purposes of a purchase price adjustment based on the working capital of DermEbx, which adjustment is in the settlement process. The 600,000 restricted shares are subject to the following provisions; 25% shall be restricted from resale up until the date that is two trading days after the Company announces its fourth quarter 2014 earnings; 30% of the shares shall be restricted from resale for a period of twenty-four (24) months from the date of the agreement; and 30% of the shares shall be restricted from resale for a period of thirty-six (36) months from the date of the agreement. In addition the Company delivered the remaining 15%, or 90,000, of the restricted shares to US Bank, N.A., as escrow agent, to be held in escrow for a period of eighteen (18) months pursuant to the terms of an escrow agreement. The 90,000 escrow shares will act as the source of payment for the indemnification of the Company by DermEbx under the DermEbx Asset Purchase Agreement. | |||||||||
Pursuant to the terms of the Asset Purchase Agreement with Radion, the Company purchased substantially all of the assets of Radion, including all of Radion’s intellectual property and customer contracts. The Company paid to Radion the following consideration: (i) $2,382,000 in cash which included $182,000 payoff of an existing note payable and (ii) the issuance to Radion of 600,000 restricted shares of the Company’s common stock. The 600,000 restricted shares are subject to the following provisions; 25% shall be restricted from resale until the date that is two trading days after the Company announces its fourth quarter 2014 earnings; 30% of the shares shall restricted from resale for a period of twenty-four (24) months from the date of the agreement; and 30% of the shares shall be restricted from resale for a period of thirty-six (36) months from the date of the agreement. In addition the Company delivered the remaining 15% or 90,000 of the restricted shares to US Bank, N.A., as escrow agent, to be held in escrow for a period of eighteen (18) months pursuant to the terms of an escrow agreement. The 90,000 escrow shares will act as the source of payment for the indemnification of the Company by Radion under the Radion Asset Purchase Agreement. | |||||||||
As a result of the acquisitions of the assets of DermEbx and Radion the Company now offers solutions that enable dermatologists and radiation oncologists to develop, launch and manage their eBx programs for the treatment of non-melanoma skin cancer, which we believe will provide opportunities to drive additional revenues in our Cancer Therapy segment. We do not anticipate significant synergies from this business; however we were able to consolidate the business operations of DermEbx and Radion in our San Jose, California facility. | |||||||||
The amounts allocated to purchased and developed software, customer relationships, trade names, employee non-compete agreements and backlog were estimated primarily through the use of discounted cash flow valuation techniques. Appraisal assumptions utilized under these methods include a forecast of estimated future net cash flows, as well as discounting the future net cash flows to their present value. Acquired intangible assets are being amortized over the estimated useful lives as set forth in the following table. The following is a summary of the preliminary allocation of the total purchase price based on the estimated fair values of the assets acquired and liabilities assumed as of the date of the acquisition and the amortizable lives of the intangible assets: | |||||||||
Amount | Estimated Amortizable Life | ||||||||
Current assets | $ | 3,457 | |||||||
Property and equipment | 2,625 | 3–7 Years | |||||||
Identifiable intangible assets | 6,050 | 5–10 Years | |||||||
Goodwill | 6,154 | ||||||||
Current liabilities | (4,316 | ) | |||||||
Long-term liabilities | (2,114 | ) | |||||||
Purchase price | $ | 11,856 | |||||||
The goodwill of $6.2 million is deductible for income tax purposes. | |||||||||
The Condensed Consolidated Financial statements include the operations of DermEbx and Radion from the Closing Date through December 31, 2014, which represents revenue of approximately $7.9 million in the statement of operations. | |||||||||
The unaudited proforma operating results for the Company for the years ended December 30, 2014 and 2013, respectively assuming the acquisition of the assets of DermEbx and Radion occurred as of January 1, 2013 are as follows (in thousands except per share amounts): | |||||||||
31-Dec | |||||||||
2014 | 2013 | ||||||||
Revenue | $ | 48,145 | $ | 35,639 | |||||
Income (loss) from operations | 2,518 | (5,402 | ) | ||||||
Net income (loss) | 538 | (11,376 | ) | ||||||
Basic net income (loss) per share | $ | 0.04 | $ | (1.05 | ) | ||||
Diluted net income (loss) per share | 0.04 | (1.05 | ) | ||||||
Basic shares | 14,096 | 10,842 | |||||||
Diluted shares | 15,097 | 10,842 |
Financing_Arrangements
Financing Arrangements | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Financing Arrangements | -3 | Financing Arrangements | |||||||
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. On October 29, 2014, the Company paid $3.75 million that was due in December 2014 to Deerfield under the Facility Agreement. The original 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 was 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, which eliminated the ability to extend the last debt payment for an additional year and eliminated the payment obligation for 2017 under the Revenue Purchase Agreement. The Company recorded a loss of $0.9 million in connection with termination of 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 these 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 December 31, 2014 and 2013, respectively related to the Facility and Revenue Purchase agreements: | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Principal Amount of Facility Agreement | $ | 15,000 | $ | 15,000 | |||||
Unamortized discount | (1,898 | ) | (3,116 | ) | |||||
Principal repayment | (3,750 | ) | — | ||||||
Carrying amount of Facility Agreement | 9,352 | 11,884 | |||||||
Revenue Purchase Agreement | — | 3,636 | |||||||
Less current portion of Facility Agreement | (3,750 | ) | (3,750 | ) | |||||
Notes payable long-term portion | $ | 5,602 | $ | 11,770 | |||||
The following amounts are included in interest expense in our consolidated statement of operations for the years ended December 31, 2014 and 2013: | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Cash interest expense | $ | 1,271 | $ | 2,155 | |||||
Non-cash amortization of debt discount | 1,053 | 674 | |||||||
Amortization of debt costs | 110 | 182 | |||||||
Amortization of settlement obligations | 206 | 266 | |||||||
Total interest expense | $ | 2,640 | $ | 3,277 | |||||
Cash interest expense represents the amount of interest expected to be paid in cash under the agreements, which represents the interest of 5.75% on the Facility Agreement and the cash payments on the Revenue Purchase Agreement that was terminated in April 2014. 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 the facility fee and the finder’s fee which has been capitalized and is expensed using the effective interest method. The amortization of the settlement obligations represent the interest associated with the settlement agreements for both Zeiss and Hologic, Inc. (”Hologic”), see Note 8(f) to our Consolidated Financial Statements. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Expenses | -4 | Accrued Expenses | |||||||
Accrued expenses consist of the following at December 31, (in thousands): | |||||||||
2014 | 2013 | ||||||||
Accrued salary and related expenses | $ | 2,518 | $ | 2,020 | |||||
Accrued accounts payable | 1,589 | 1,012 | |||||||
Accrued professional fees | 414 | 284 | |||||||
Accrued short term settlement costs | 698 | 221 | |||||||
Other accrued expenses | 287 | 216 | |||||||
Deferred rent | 48 | 46 | |||||||
$ | 5,554 | $ | 3,799 | ||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Stockholders' Equity | -5 | Stockholders’ Equity | |||||||||||
(a) Stock Options | |||||||||||||
The Company has five stock option or stock incentive plans, which are described as follows: | |||||||||||||
The 2001 Stock Option Plan (the “2001 Plan”). | |||||||||||||
The 2001 Plan was adopted by the Company’s stockholders in August 2001. The 2001 Plan provides for the granting of non-qualifying and incentive stock options to employees and other persons to purchase up to an aggregate of 240,000 shares of the Company’s common stock. The purchase price of each share for which an option is granted is determined by the Board of Directors or the Committee appointed by the Board of Directors provided that the purchase price of each share for which an incentive option is granted cannot be less than the fair market value of the Company’s common stock on the date of grant, except for options granted to 10% stockholders for whom the exercise price cannot be less than 110% of the market price. Incentive options granted to date under the 2001 Plan vest 100% over periods extending from six months to five years from the date of grant and expire no later than ten years after the date of grant, except for 10% holders whose options shall expire not later than five years after the date of grant. Non-qualifying options granted under the 2001 Plan are generally exercisable over a ten year period, vesting 1/3 each on the first, second, and third anniversaries of the date of grant. At December 31, 2014 there are no further options available for grant under this plan. | |||||||||||||
The 2002 Stock Option Plan (the “2002 Plan”). | |||||||||||||
The 2002 Plan was adopted by the Company’s stockholders in June 2002. The 2002 Plan provides for the granting of non-qualifying and incentive stock options to employees and other persons to purchase up to an aggregate of 100,000 shares of the Company’s common stock. The purchase price of each share for which an option is granted is determined by the Board of Directors or the Committee appointed by the Board of Directors provided that the purchase price of each share for which an incentive option is granted cannot be less than the fair market value of the Company’s common stock on the date of grant, except for options granted to 10% stockholders for whom the exercise price cannot be less than 110% of the market price. Incentive options granted to date under the 2002 Plan vest 100% over periods extending from six months to five years from the date of grant and expire no later than ten years after the date of grant, except for 10% holders whose options expire not later than five years after the date of grant. Non-qualifying options granted under the 2002 Plan are generally exercisable over a ten year period, vesting 1/3 each on the first, second, and third anniversaries of the date of grant. At December 31, 2014, there are no further options available for grant under the 2002 Plan. | |||||||||||||
The 2004 Stock Incentive Plan (the “2004 Plan”). | |||||||||||||
The 2004 Plan was adopted by the Company’s stockholders in June 2004. The 2004 Plan provides for the grant of any or all of the following types of awards: (a) stock options, (b) restricted stock, (c) deferred stock and (d) other stock-based awards. The 2004 Plan provides for the granting of non-qualifying and incentive stock options to employees and other persons to purchase up to an aggregate of 200,000 shares of the Company’s common stock. The purchase price of each share for which an option is granted is determined by the Board of Directors or the Committee appointed by the Board of Directors provided that the purchase price of each share for which an option is granted cannot be less than the fair market value of the Company’s common stock on the date of grant, except for incentive options granted to 10% stockholders for whom the exercise price cannot be less than 110% of the market price. Incentive options granted under the 2004 Plan generally vest 100% over periods extending from the date of grant to five years from the date of grant and expire not later than ten years after the date of grant, except for 10% holders whose options expire not later than five years after the date of grant. Non-qualifying options granted under the 2004 Plan are generally exercisable over a ten year period, vesting 1/3 each on the first, second, and third anniversaries of the date of grant. At December 31, 2014, there are no further shares available for grant under the 2004 Plan. | |||||||||||||
The 2005 Stock Incentive Plan (the “2005 Plan”). | |||||||||||||
The 2005 Plan was adopted by the Company’s stockholders in June 2005. The 2005 Plan provides for the grant of any or all of the following types of awards: (a) stock options, (b) restricted stock, (c) deferred stock and (d) other stock-based awards. The 2005 Plan provides for the granting of non-qualifying and incentive stock options to employees and other persons to purchase up to an aggregate of 120,000 shares of the Company’s common stock. The purchase price of each share for which an option is granted is determined by the Board of Directors or the Committee appointed by the Board of Directors provided that the purchase price of each share for which an option is granted cannot be less than the fair market value of the Company’s common stock on the date of grant, except for incentive options granted to 10% stockholders for whom the exercise price cannot be less than 110% of the market price. Incentive options granted under the 2005 Plan generally vest 100% over periods extending from the date of grant to three years from the date of grant and expire not later than five years after the date of grant, except for 10% stockholders whose options expire not later than five years after the date of grant. Non-qualifying options granted under the 2005 Plan are generally exercisable over a ten year period, vesting 1/3 each on the first, second, and third anniversaries of the date of grant. At December 31, 2014, there were 9,773 shares available for issuance under the 2005 Plan. | |||||||||||||
The 2007 Stock Incentive Plan (the “2007 Plan”). | |||||||||||||
The 2007 Plan was adopted by the Company’s stockholders in July 2007 and amended in June 2009. The 2007 Plan provides for the grant of any or all of the following types of awards: (a) stock options, (b) restricted stock, (c) deferred stock and (d) other stock-based awards. Awards may be granted singly, in combination, or in tandem. Subject to anti-dilution adjustments as provided in the 2007 Plan, (i) the 2007 Plan provides for a total of 1,050,000 shares of the Company’s common stock to be available for distribution pursuant to the 2007 Plan, and (ii) the maximum number of shares of the Company’s common stock with respect to which stock options, restricted stock, deferred stock, or other stock-based awards may be granted to any participant under the 2007 Plan during any calendar year or part of a year may not exceed 160,000 shares. | |||||||||||||
The 2007 Plan provides that it will be administered by the Company’s Board of Directors (“Board”) or a committee of two or more members of the Board appointed by the Board. The administrator will generally have the authority to administer the 2007 Plan, determine participants who will be granted awards under the 2007 Plan, the size and types of awards, the terms and conditions of awards and the form and content of the award agreements representing awards. Awards under the 2007 Plan may be granted to employees, directors, consultants and advisors of the Company and its subsidiaries. However, only employees of the Company and its subsidiaries will be eligible to receive options that are designated as incentive stock options. | |||||||||||||
With respect to options granted under the 2007 Plan, the exercise price must be at least 100% (110% in the case of an incentive stock option granted to a 10% stockholder) of the fair market value of the common stock subject to the award, determined as of the date of grant. Restricted stock awards are shares of common stock that are awarded subject to the satisfaction of the terms and conditions established by the administrator. In general, awards that do not require exercise may be made in exchange for such lawful consideration, including services, as determined by the administrator. At December 31, 2014, there were 28,854 shares available for issuance under the 2007 Plan. | |||||||||||||
The 2012 Stock Incentive Plan (the “2012 Plan”). | |||||||||||||
The 2012 Plan was adopted by the Company’s stockholders in May 2012 and amended in May 2014. The 2012 Plan, as amended, provides for the grant of any or all of the following types of awards: (a) stock options, (b) restricted stock, (c) deferred stock and (d) other stock-based awards. Awards may be granted singly, in combination, or in tandem. Subject to anti-dilution adjustments as provided in the amended 2012 Plan, (i) the amended 2012 Plan provides for a total of 1,600,000 shares of the Company’s common stock to be available for distribution pursuant to the amended 2012 Plan, and (ii) the maximum number of shares of the Company’s common stock with respect to which stock options, restricted stock, deferred stock, or other stock-based awards may be granted to any participant under the amended 2012 Plan during any calendar year or part of a year may not exceed 250,000 shares. | |||||||||||||
The 2012 Plan provides that it will be administered by the Company’s Board of Directors (“Board”) or a committee of two or more members of the Board appointed by the Board. The administrator will generally have the authority to administer the 2012 Plan, determine participants who will be granted awards under the 2012 Plan, the size and types of awards, the terms and conditions of awards and the form and content of the award agreements representing awards. Awards under the 2012 Plan may be granted to employees, directors, consultants and advisors of the Company and its subsidiaries. However, only employees of the Company and its subsidiaries will be eligible to receive options that are designated as incentive stock options. | |||||||||||||
With respect to options granted under the 2012 Plan, the exercise price must be at least 100% (110% in the case of an incentive stock option granted to a 10% stockholder) of the fair market value of the common stock subject to the award, determined as of the date of grant. Restricted stock awards are shares of common stock that are awarded subject to the satisfaction of the terms and conditions established by the administrator. In general, awards that do not require exercise may be made in exchange for such lawful consideration, including services, as determined by the administrator. At December 31, 2014, there were 627,721 shares available for issuance under the 2012 Plan. | |||||||||||||
A summary of stock option activity for all stock option plans is as follows: | |||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||
Shares | Exercise Price | Remaining | |||||||||||
Contractual Term | |||||||||||||
Outstanding, January 1, 2012 | 1,080,722 | $ | 9.75 | ||||||||||
Granted | 693,601 | $ | 2.43 | ||||||||||
Exercised | — | $ | 0 | ||||||||||
Forfeited | (339,378 | ) | $ | 15.95 | |||||||||
Outstanding, December 31, 2012 | 1,434,945 | $ | 4.75 | ||||||||||
Granted | 46,537 | $ | 5.42 | ||||||||||
Exercised | (48,427 | ) | $ | 3 | |||||||||
Forfeited | (98,100 | ) | $ | 11.62 | |||||||||
Outstanding, December 31, 2013 | 1,334,955 | $ | 4.34 | ||||||||||
Granted | 281,043 | $ | 8.08 | ||||||||||
Exercised | (162,528 | ) | $ | 4.36 | |||||||||
Forfeited | (35,583 | ) | $ | 13.62 | |||||||||
Outstanding, December 31, 2014 | 1,417,887 | $ | 4.84 | 6.6 years | |||||||||
Exercisable at December 31, 2012 | 485,553 | $ | 7.06 | ||||||||||
Exercisable at December 31, 2013 | 743,910 | $ | 5.09 | ||||||||||
Exercisable at December 31, 2014 | 955,210 | $ | 4.43 | 5.8 years | |||||||||
Available for future grants at December 31, 2014 from all plans: 666,348 | |||||||||||||
The Company’s stock-based compensation expense, including options and restricted stock by category is as follows (amounts in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cost of revenue | $ | 13 | $ | 21 | $ | 15 | |||||||
Engineering and product development | 165 | 228 | 178 | ||||||||||
Marketing and sales | 353 | 273 | 242 | ||||||||||
General and administrative expense | 787 | 680 | 561 | ||||||||||
$ | 1,318 | $ | 1,202 | $ | 996 | ||||||||
As of December 31, 2014, there was $2.2 million of total unrecognized compensation costs related to unvested options and restricted stock. That cost is expected to be recognized over a weighted average period of 1.19 years. | |||||||||||||
Options granted under the stock incentive plans were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Average risk-free interest rate | 0.85% | 0.53% | 0.98% | ||||||||||
Expected dividend yield | None | None | None | ||||||||||
Expected life | 3.5 years | 3.5 years | 3.5 years | ||||||||||
Expected volatility | 64.2% to 69.4% | 57.6% to 68.9% | 65.9% to 68.9% | ||||||||||
Weighted average exercise price | $ | 8.09 | $ | 5.42 | $ | 2.43 | |||||||
Weighted average fair value | $ | 3.84 | $ | 2.35 | $ | 1.17 | |||||||
The Company’s 2014, 2013 and 2012, average expected volatility and average expected life is based on the average of the Company’s historical information. The risk-free rate is based on the rate of U.S. Treasury zero-coupon issues with a remaining term equal to the expected life of option grants. The Company has paid no dividends on its common stock in the past and does not anticipate paying any dividends in the future | |||||||||||||
The aggregate intrinsic value of options outstanding at December 31, 2014, 2013 and 2012 was $6.3 million, $10.0 million and $1.8 million, respectively. The aggregate intrinsic value of the options exercisable at December 31, 2014, 2013 and 2012 was $4.6 million, $5.1 million and $0.3 million, respectively. The aggregate intrinsic value of stock options exercised during 2014, 2013 and 2012 was $1.0 million, $0.5 million and $0, respectively. The Company used the closing market price of $9.17, $11.66 and $4.79 per share at December 31, 2014, 2013 and 2012, respectively, to determine the aggregate intrinsic values of options outstanding and exercisable. | |||||||||||||
(b) Restricted Stock | |||||||||||||
The Company’s restricted stock awards typically vest in either one year or three equal annual installments with the first installment vesting one year from grant date. A summary of restricted stock activity for all equity incentive plans is as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Beginning outstanding balance | 216,250 | 67,075 | 122,795 | ||||||||||
Granted | 180,500 | 196,250 | — | ||||||||||
Vested | (85,434 | ) | (47,008 | ) | (47,820 | ) | |||||||
Forfeited | (1,999 | ) | (67 | ) | (7,900 | ) | |||||||
Ending outstanding balance | 309,317 | 216,250 | 67,075 | ||||||||||
The aggregate intrinsic value of restricted stock outstanding at December 31, 2014, 2013 and 2012 was $2.8 million, $2.5 million, and $0.3 million, respectively. The aggregate intrinsic value of restricted stock vested during 2014, 2013 and 2012 was $0.8 million, $0.5 million and $0.2 million, respectively. The Company used the closing market price of $9.17, $11.66 and $4.79 per share at December 31, 2014, 2013 and 2012, respectively, to determine the aggregate intrinsic values. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | -5 | Income Taxes | |||||||||||
The components of income tax expense for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current provision (benefit): | |||||||||||||
Federal | $ | 0 | $ | — | $ | — | |||||||
State | 126 | 43 | 76 | ||||||||||
$ | 126 | $ | 43 | $ | 76 | ||||||||
A summary of the differences between the Company’s effective income tax rate and the Federal statutory income tax rate for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||
State income taxes, net of federal benefit | 5.5 | % | 2.3 | % | 4 | % | |||||||
Net state impact of deferred rate change | 13 | % | 0.1 | % | 0.1 | % | |||||||
Stock compensation expense | (9.6 | %) | (2.0 | %) | (1.8 | %) | |||||||
Tax amortization on goodwill | (9.0 | %) | 0 | % | 0 | % | |||||||
Goodwill impairment | 0 | % | 0 | % | 0 | % | |||||||
Contingent consideration | 0 | % | 0 | % | 0 | % | |||||||
Loss on warrant | 71.6 | % | 0 | % | 0 | % | |||||||
Other permanent differences | (1.1 | %) | (11.7 | %) | (2.4 | %) | |||||||
Change in valuation allowance | (222.6 | %) | (27.6 | %) | (34.4 | %) | |||||||
Other | 100.8 | % | 3.3 | % | 0 | % | |||||||
Effective income tax | (17.4 | %) | (1.6 | %) | (0.5 | %) | |||||||
Deferred tax assets and liabilities are recognized for the expected future tax consequences of net operating loss carryforwards, tax credit carryforwards and temporary differences between the financial statement carrying amounts and the income tax basis of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on the available evidence, it is more likely than not that the deferred tax assets will not be realized. | |||||||||||||
Deferred income taxes reflect the impact of “temporary differences” between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. The Company has fully reserved the net deferred tax assets, as it is more likely than not that the deferred tax assets will not be utilized. Deferred tax assets (liabilities) are comprised of the following at December 31 (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Inventory (Section 263A) | $ | 191 | $ | 233 | |||||||||
Inventory reserves | 106 | 156 | |||||||||||
Receivable reserves | 197 | 29 | |||||||||||
Other accruals | 887 | 938 | |||||||||||
Deferred revenue | 1,142 | 1,256 | |||||||||||
Accumulated depreciation/amortization | (2,876 | ) | (2 | ) | |||||||||
Stock options | 2,252 | 2,070 | |||||||||||
Developed technology | 0 | (3,464 | ) | ||||||||||
Tax credits | 3,054 | 2,176 | |||||||||||
NOL carryforward | 34,690 | 34,059 | |||||||||||
Net deferred tax assets | 39,643 | 37,451 | |||||||||||
Valuation allowance | (39,643 | ) | (37,451 | ) | |||||||||
Goodwill tax amortization | (79 | ) | — | ||||||||||
Deferred tax liability | $ | (79 | ) | $ | — | ||||||||
The increase in net deferred tax asset and corresponding valuation allowance is primarily attributable to additional research and development credits and differences in amortization periods on the Company’s intangible assets. | |||||||||||||
As of December 31, 2014, the Company has net operating loss carryforwards totaling approximately $94.9 million expiring between 2016 and 2034. A portion of the total net operating loss carryforwards amounting to approximately $25.2 million relate to the acquisition of Xoft, Inc. As of December 31, 2014, the Company has provided a valuation allowance for its net operating loss carryforwards due to the uncertainty of the Company’s ability to generate sufficient taxable income in future years to obtain the benefit from the utilization of the net operating loss carryforwards. In the event of a deemed change in control, an annual limitation imposed on the utilization of the net operating losses may result in the expiration of all or a portion of the net operating loss carryforwards. There were no net operating losses utilized for the years ended December 31, 2014 and 2013. | |||||||||||||
The Company currently has approximately $15.2 million (including approximately $9.5 million that relate to Xoft, Inc.) in net operating losses that are subject to limitations, of which approximately $2.0 million (including approximately $473,000 that relate to Xoft, Inc.) can be used annually through 2034. The Company has available tax credit carryforwards (adjusted to reflect provisions of the Tax Reform Act of 1986) to offset future income tax liabilities totaling approximately $2.2 million. The Company currently has approximately $3.9 million (including approximately $1.8 million that relate to Xoft, Inc.) in tax credit carryforwards that are subject to limitations. The tax credits related to Xoft have been fully reserved for and as a result no deferred tax asset has been recorded. The credits expire in various years through 2034. | |||||||||||||
ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. | |||||||||||||
As of December 31, 2014 and 2013, the Company had no unrecognized tax benefits and no adjustments to liabilities or operations were required under ASC 740-10. The Company’s practice was and continues to be to recognize interest and penalty expenses related to uncertain tax positions in income tax expense, which was zero for the years ended December 31, 2014, 2013 and 2012. The Company files United States federal and various state income tax returns. Generally, the Company’s three preceding tax years remain subject to examination by federal and state taxing authorities. The Company completed an examination by the Internal Revenue Service with respect to the 2008 tax year in January 2011, which resulted in no changes to the tax return originally filed. The Company is not under examination by any other federal or state jurisdiction for any tax year. | |||||||||||||
The Company does not anticipate that it is reasonably possible that unrecognized tax benefits as of December 31, 2014 will significantly change within the next 12 months. |
Segment_Reporting_Geographical
Segment Reporting, Geographical Information and Major Customers | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Reporting, Geographical Information and Major Customers | -7 | Segment Reporting, Geographical Information and Major Customers | |||||||||||
(a) 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”). 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, and related services. The primary factors used by our CODM to allocate resources are based on revenues, gross profit, 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, gross profit, segment operating income or loss, and a reconciliation of segment operating income or loss to GAAP loss before income tax is as follows (in thousands, including prior periods which have been presented for consistency): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Segment revenues: | |||||||||||||
Detection | $ | 18,604 | $ | 16,905 | $ | 17,262 | |||||||
Therapy | 25,320 | 16,162 | 11,013 | ||||||||||
Total Revenue | $ | 43,924 | $ | 33,067 | $ | 28,275 | |||||||
Segment gross profit: | |||||||||||||
Detection | $ | 15,276 | $ | 13,576 | $ | 13,936 | |||||||
Therapy | 15,951 | 9,509 | 6,095 | ||||||||||
Segment gross profit | $ | 31,227 | $ | 23,085 | $ | 20,031 | |||||||
Segment operating income (loss): | |||||||||||||
Detection | $ | 7,231 | $ | 5,016 | $ | 4,274 | |||||||
Therapy | 1,868 | (52 | ) | (2,720 | ) | ||||||||
Segment operating income | $ | 9,099 | $ | 4,964 | $ | 1,554 | |||||||
General, administrative, depreciation and amortization expense | $ | (8,284 | ) | $ | (6,740 | ) | $ | (6,966 | ) | ||||
Interest expense | (2,640 | ) | (3,277 | ) | (3,415 | ) | |||||||
Gain on fair value of warrant | 1,835 | (2,448 | ) | (539 | ) | ||||||||
Other income | 37 | 19 | 35 | ||||||||||
Loss on debt extinguishment | (903 | ) | — | — | |||||||||
Loss before income tax | $ | (856 | ) | $ | (7,482 | ) | $ | (9,331 | ) | ||||
Segment depreciation and amortization included in segment operating income (loss) is as follows (in thousands): | |||||||||||||
Detection depreciation and amortization | |||||||||||||
Depreciation | 188 | 175 | 144 | ||||||||||
Amortization | 515 | 517 | 519 | ||||||||||
Therapy depreciation and amortization | |||||||||||||
Depreciation | 844 | 424 | 595 | ||||||||||
Amortization | 1,739 | 939 | 931 | ||||||||||
(b) Geographic Information | |||||||||||||
The Company’s sales are made to customers, distributors and dealers of mammography, electronic brachytherapy equipment and other medical equipment, and to foreign distributors of mammography and electronic brachytherapy equipment. Export sales to a single country did not exceed 10% of total revenue in any year. Total export sales were approximately $1.8 million or 4% of total revenue in 2014, $1.9 million or 6% of total revenue in 2013 and $2.9 million or 10% of total revenue in 2012. | |||||||||||||
As of December 31, 2014 and 2013, the Company had outstanding receivables of $0.3 million from distributors and customers of its products who are located outside of the U.S. | |||||||||||||
(c) Major Customers | |||||||||||||
The Company had one major customer, GE Healthcare, with approximately $4.1 million in 2014, $3.7 million in 2013, and $4.5 million in 2012 or 9.4%, 11%, and 16% of total revenue, respectively. Cancer detection products are also sold through OEM partners, including GE Healthcare, Fuji Medical Systems, Siemens Medical and Invivo. These four OEM partners composed approximately 53% of Detection revenues and 22% of revenue overall. | |||||||||||||
OEM partners represented $1.9 million or 22% of outstanding receivables as of December 31, 2014, with GE Healthcare accounting for $1.3 million or 15% of this amount. The two largest Cancer Therapy customers composed $0.9 million or 10% of outstanding receivables as of December 31, 2014. These six customers in total represented $2.9 million or 33% of outstanding receivables as of December 31, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | (8) Commitments and Contingencies | ||||
(a) Lease Obligations | |||||
As of December 31, 2014, the Company had three lease obligations related to its facilities. The Company’s executive offices are located in Nashua, New Hampshire and are leased pursuant to a five-year lease (the “Lease”) that commenced on December 15, 2006, and renewed on January 1, 2012 (the “Premises”). The Lease renewal provided for annual base rent of $181,764 for the first year; $187,272 for the second year; $192,780 for the third year; $198,288 for the fourth year and $203,796 for the fifth year. Additionally, the Company is required to pay its proportionate share of the building and real estate tax expenses and obtain insurance for the Premises. The Company also has the right to extend the term of the Lease for an additional five year period at the then current market rent rate (but not less than the last annual rent paid by the Company). | |||||
The Company leases a facility in San Jose California under a non-cancelable operating lease which commenced in September, 2012. The facility has approximately 24,250 square feet of office, manufacturing and warehousing space. The operating lease provides for an annual base rent of $248,376, increasing to $260,064 in October 2013, $271,752 beginning October 2014, $283,440 beginning October 2015 and $295,140 beginning October 2016 through September 2017, with all amounts payable in equal monthly installments, with the right to extend the lease for an additional 3 year period. Additionally, the Company is required to pay its proportionate share of the building and real estate tax expenses and obtain insurance for the facility. | |||||
In addition to the foregoing leases relating to its principal properties, the Company also has a lease for an additional facility in Nashua, New Hampshire used for product repairs, manufacturing and warehousing. | |||||
Rent expense for all leases for the years ended December 31, 2014, 2013 and 2012 was $643,000, $697,000 and $799,000, respectively. | |||||
Future minimum rental payments due under these agreements as of December 31, 2014 are as follows (in thousands): | |||||
Fiscal Year | Operating | ||||
Leases | |||||
2015 | 482 | ||||
2016 | 490 | ||||
2017 | 255 | ||||
$ | 1,227 | ||||
(b) Capital leases obligations | |||||
The Company entered into a capital lease agreement for the purchase of certain equipment in August 2013 for approximately $409,000 at a rate of 3.99%. Under the guidance of ASC Topic 840, “Leases” 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. As of December 31, 2014, the remaining obligation is $0.2 million. | |||||
In connection with the Acquisition, the Company assumed two separate equipment lease obligations with payments totaling approximately $2.6 million through May, 2017. The leases were determined to be capital leases and accordingly the equipment was capitalized and a liability of $2.5 million was recorded. As of December 31, 2014, the outstanding liability for the acquired equipment leases was approximately $2.1 million. | |||||
Future minimum lease payments under all outstanding capital leases are as follows: (in thousands) | |||||
Future minimum lease payments under this lease are as follows: | |||||
Fiscal Year | Capital Leases | ||||
2015 | 1,513 | ||||
2016 | 1,004 | ||||
2017 | 89 | ||||
subtotal minimum lease obligation | 2,606 | ||||
less interest | (292 | ) | |||
Total, net | 2,314 | ||||
less current portion | (1,294 | ) | |||
long term portion | $ | 1,020 | |||
(c) Other Commitments | |||||
The Company has non-cancelable purchase orders with three key suppliers executed in the normal course of business that total approximately $1.0 million. In connection with our employee savings plans, our matching contribution for 2014 was approximately $0.4 million in cash. Our matching contribution for 2015 is estimated to be approximately $0.5 million in cash. | |||||
(d) Employment Agreements | |||||
The Company has entered into employment agreements with certain key executives. The employment agreements provide for minimum annual salaries and performance-based annual bonus compensation as defined in their respective agreements. In addition, the employment agreements provide that if employment is terminated without cause, the executive will receive an amount equal to their respective base salary then in effect for the greater of the remainder of the original term of employment or, for Mr. Ferry, a period of two years from the date of termination, for Mr. Burns, a period of eighteen months from the date of termination and for all other executives a period of one year from the date of termination, in each case, plus the pro rata portion of any annual bonus earned in any employment year through the date of termination. | |||||
(e) 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 CRA has the right to pursue the matter until July 2017. The Company believes that it is not liable for the re-assessment against CADx Medical and continues to defend this position. As the Company believes that a probability of a loss is remote, no accrual was recorded as of December 31, 2014. | |||||
(f) Royalty Obligations | |||||
In connection with prior litigation, the Company 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 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 if such royalties exceed the minimum payment 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 estimated remaining useful life of approximately four 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 $0.6 million | |||||
During December, 2011, the Company settled litigation with Zeiss and as of December 31, 2014 has a remaining obligation to pay $0.5 million in June 2015 and $0.5 million in June 2017, for a total of $1.0 million. The present value of the liability is estimated at approximately $0.8 million as of December 31, 2014. | |||||
(g) Litigation | |||||
The Company is a party to various legal proceedings and claims arising out of the ordinary course of its business. Although the final results of all such matters and claims cannot be predicted with certainty, the Company currently believes that there are no current proceedings or claims pending against it of which the ultimate resolution would have a material adverse effect on its financial condition or results of operations. However, should we fail to prevail in any legal matter or should several legal matters be resolved against us in the same reporting period, such matters could have a material adverse effect on our operating results and cash flows for that particular period. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies. Legal costs are expensed as incurred. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Quarterly Financial Data | (9) Quarterly Financial Data (unaudited in thousands, except per share data) | ||||||||||||||||||||
Net | Gross | Net | Income (loss) | Weighted | |||||||||||||||||
sales | profit | income (loss) | per share | average | |||||||||||||||||
number of | |||||||||||||||||||||
shares outstanding | |||||||||||||||||||||
2014 | |||||||||||||||||||||
First quarter | $ | 8,520 | $ | 5,934 | $ | (190 | ) | ($ | 0.02 | ) | 11,429 | ||||||||||
Second quarter | 9,667 | 6,830 | $ | (997 | ) | ($ | 0.07 | ) | 14,074 | ||||||||||||
Third quarter | 12,572 | 9,167 | $ | 274 | $ | 0.02 | 15,283 | ||||||||||||||
Fourth quarter | 13,165 | 9,296 | $ | (96 | ) | ($ | 0.01 | ) | 15,541 | ||||||||||||
2013 | |||||||||||||||||||||
First quarter | $ | 7,930 | $ | 5,648 | $ | (727 | ) | ($ | 0.07 | ) | 10,820 | ||||||||||
Second quarter | 7,712 | 5,222 | $ | (1,882 | ) | ($ | 0.17 | ) | 10,836 | ||||||||||||
Third quarter | 8,290 | 5,926 | $ | (589 | ) | ($ | 0.05 | ) | 10,849 | ||||||||||||
Fourth quarter | 9,135 | 6,289 | $ | (4,410 | ) | ($ | 0.41 | ) | 10,863 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Nature of Operations and Use of Estimates | (a) Nature of Operations and Use of Estimates | ||||||||||||||||
iCAD, Inc. and subsidiaries (the “Company” or “iCAD”) is an industry-leading provider of advanced image analysis, workflow solutions and radiation therapy for the early identification and treatment of cancer. | |||||||||||||||||
The Company has grown primarily through acquisitions to become a broad player in the oncology market. Its industry-leading solutions include advanced image analysis and workflow solutions that enable healthcare professionals to better serve patients by identifying pathologies and pinpointing the most prevalent cancers earlier, a comprehensive range of high-performance, upgradeable Computer-Aided Detection (CAD) systems and workflow solutions for mammography, MRI and CT, and the Xoft eBx system which is an isotope-free cancer treatment platform technology. CAD is reimbursable in the U.S. under federal and most third-party insurance programs. | |||||||||||||||||
The Company intends to continue the extension of its image analysis and clinical decision support solutions for mammography, MRI and CT imaging. iCAD believes that advances in digital imaging techniques should bolster its efforts to develop additional commercially viable CAD/advanced image analysis and workflow products. The Company’s belief is that early detection in combination with earlier targeted intervention will provide patients and care providers with the best tools available to achieve better clinical outcomes resulting in a market demand that will drive top line growth. | |||||||||||||||||
The Company’s headquarters are located in Nashua, New Hampshire, with manufacturing and contract manufacturing facilities in New Hampshire and Massachusetts and, an operation, research, development, manufacturing and warehousing facility in San Jose, California. | |||||||||||||||||
The Company operates in 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 products. The Company sells its products throughout the world through its direct sales organization as well as through various OEM partners, distributors and resellers. See Note 7 for segment, major customer and geographical information. | |||||||||||||||||
The Company has reclassified on the statement of operations revenue for disposable applicators and supplies of to service and supplies revenue that was previously included in product revenue to conform to current period classification. The Company has reclassified on the statement of operations for the revenue for disposable applicators and supplies and other related expenses service and supplies cost of revenue that was previously included in cost of product revenue to conform to current period classification. The Company reclassified depreciation previously included in product and service cost of revenue to amortization and depreciation as a separate component of cost of revenue. | |||||||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that changes may occur in the near term that would affect management’s estimates with respect to assets and liabilities. | |||||||||||||||||
Principles of Consolidation | (b) Principles of Consolidation | ||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries; Xoft, Inc. and Xoft Solutions, LLC. All material inter-company transactions and balances have been eliminated in consolidation. | |||||||||||||||||
Cash and Cash Equivalents | (c) Cash and cash equivalents | ||||||||||||||||
The Company defines cash and cash equivalents as all bank accounts, money market funds, deposits and other money market instruments with original maturities of 90 days or less, which are unrestricted as to withdrawal. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. Insurance coverage is $250,000 per depositor at each financial institution, and the Company’s non-interest bearing cash balances exceed federally insured limits. Interest-bearing amounts on deposit in excess of federally insured limits at December 31, 2014 approximated $31.1 million. | |||||||||||||||||
Financial Instruments | (d) Financial instruments | ||||||||||||||||
Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, notes payable and warrants. Due to their short term nature and market rates of interest, the carrying amounts of the financial instruments approximated fair value as of December 31, 2014 and 2013, with the exception of warrants. The fair value of warrants is more fully described in Note 1(r). | |||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | (e) Accounts Receivable and Allowance for Doubtful Accounts | ||||||||||||||||
Accounts receivable are customer obligations due under normal trade terms. Credit limits are established through a process of reviewing the financial history and stability of each customer. The Company performs continuing credit evaluations of its customers’ financial condition and generally does not require collateral. | |||||||||||||||||
The Company’s policy is to maintain allowances for estimated losses from the inability of its customers to make required payments. The Company’s senior management reviews accounts receivable on a periodic basis to determine if any receivables may potentially be uncollectible. The Company includes any accounts receivable balances that it determines may likely be uncollectible, along with a general reserve for estimated probable losses based on historical experience, in its overall allowance for doubtful accounts. An amount would be written off against the allowance after all attempts to collect the receivable had failed. Based on the information available, the Company believes the allowance for doubtful accounts as of December 31, 2014 and 2013 is adequate. | |||||||||||||||||
The following table summarizes the allowance for doubtful accounts for the three years ended December 31, 2014 (in thousands): | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance at beginning of period | $ | 73 | $ | 48 | $ | 54 | |||||||||||
Additions charged to costs and expenses | 167 | 35 | — | ||||||||||||||
Reductions | (37 | ) | (10 | ) | (6 | ) | |||||||||||
Balance at end of period | $ | 203 | $ | 73 | $ | 48 | |||||||||||
Inventory | (f) Inventory | ||||||||||||||||
Inventory is valued at the lower of cost or market value, with cost determined by the first-in, first-out method. The Company regularly reviews inventory quantities on hand and records an allowance for excess and/or obsolete inventory primarily based upon the estimated usage of its inventory as well as other factors. At December 31, 2014 and 2013 respectively inventories consisted of the following (in thousands): | |||||||||||||||||
As of December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Raw materials | $ | 955 | $ | 581 | |||||||||||||
Work in process | 54 | 38 | |||||||||||||||
Finished Goods | 1,205 | 1,272 | |||||||||||||||
Inventory | $ | 2,214 | $ | 1,891 | |||||||||||||
Property and Equipment | (g) Property and Equipment | ||||||||||||||||
Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets or the remaining lease term, whichever is shorter for leasehold improvements (see below). | |||||||||||||||||
Estimated life | |||||||||||||||||
Equipment | 3-5 years | ||||||||||||||||
Leasehold improvements | 3-5 years | ||||||||||||||||
Furniture and fixtures | 3-5 years | ||||||||||||||||
Marketing assets | 3-5 years | ||||||||||||||||
Long Lived Assets | (h) Long Lived Assets | ||||||||||||||||
Long-lived assets, other than goodwill, are evaluated for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows from the use of these assets. When any such impairment exists, the related assets are written down to fair value. The Company did not record any impairment losses in the years ended December 31, 2014, 2013 or 2012. | |||||||||||||||||
Intangible assets subject to amortization consist primarily of patents, technology, customer relationships and trade names purchased in the Company’s previous acquisitions. These assets, which include assets from the acquisition of the assets of DermEbx and Radion and the acquisition of Xoft, Inc., are amortized on a straight-line basis consistent with the pattern of economic benefit over their estimated useful lives of 5 to 15 years. A summary of intangible assets for 2014 and 2013 are as follows (in thousands): | |||||||||||||||||
2014 | 2013 | Weighted | |||||||||||||||
average | |||||||||||||||||
useful life | |||||||||||||||||
Gross Carrying Amount | |||||||||||||||||
Patents and licenses | $ | 767 | $ | 737 | 5 years | ||||||||||||
Technology | 25,639 | 24,909 | 10 years | ||||||||||||||
Customer relationships | 5,548 | 248 | 7 years | ||||||||||||||
Tradename | 288 | 248 | 10 years | ||||||||||||||
Total amortizable intangible assets | 32,242 | 26,142 | |||||||||||||||
Accumulated Amortization | |||||||||||||||||
Patents and licenses | $ | 517 | $ | 471 | |||||||||||||
Technology | 13,076 | 11,589 | |||||||||||||||
Customer relationships | 896 | 160 | |||||||||||||||
Tradename | 249 | 248 | |||||||||||||||
Total accumulated amortization | 14,738 | 12,468 | |||||||||||||||
Total amortizable intangible assets, net | $ | 17,504 | $ | 13,674 | |||||||||||||
Amortization expense related to intangible assets was approximately $2,270, $1,724 and $1,904 for the years ended December 31, 2014, 2013, and 2012, respectively. Estimated remaining amortization of the Company’s intangible assets is as follows (in thousands): | |||||||||||||||||
For the years ended December 31: | Estimated | ||||||||||||||||
amortization | |||||||||||||||||
expense | |||||||||||||||||
2015 | $ | 3,095 | |||||||||||||||
2016 | 2,462 | ||||||||||||||||
2017 | 2,254 | ||||||||||||||||
2018 | 1,934 | ||||||||||||||||
2019 | 1,659 | ||||||||||||||||
Thereafter | 6,100 | ||||||||||||||||
$ | 17,504 | ||||||||||||||||
Goodwill | (i) 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. | ||||||||||||||||
In June 2013, the Company determined that it had two reporting units and two reportable segments based on the information provided to the Chief Operating Decision Maker (“CODM”). 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, 2014 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 315% for the Detection reporting unit and 255% 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 of the remaining net assets 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 17% 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 | ||||||||||||||
Acquistion of DermEbx and Radion | — | 6,154 | 6,154 | ||||||||||||||
Balance at December 31, 2014 | $ | 7,663 | $ | 19,600 | $ | 27,263 | |||||||||||
Revenue Recognition | (j) 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 cancer therapy 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 revenue to 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, when delivered. | |||||||||||||||||
Revenue from the certain CAD products is recognized in accordance with ASC 985-605. Sales of this product include training, and the Company has established VSOE for this element. Product revenue is determined based on the residual value in the arrangement, and is recognized when delivered. Revenue for training is deferred and recognized when the training has been completed. | |||||||||||||||||
The Company recognizes post contract customer support revenue together with the initial licensing fee for certain MRI products in accordance with 985-605-25-71. | |||||||||||||||||
Sales of the Company’s Therapy segment products typically include a controller, accessories, source agreements and services. 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 includes in service and supplies revenue the following: the sale of physics and management services, the lease of electronic brachytherapy equipment, development fees, supplies and the right to use the Company’s AxxentHub | |||||||||||||||||
software. Physics and management services revenue and development fees are considered to be delivered as the services are performed or over the estimated life of the agreement. The Company typically bills items monthly over the life of the agreement except for development fees, which are generally billed in advance or over a 12 month period and the fee for treatment supplies which is generally billed in advance. | |||||||||||||||||
The Company defers revenue from the sale of certain service contracts and recognizes the related 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. | |||||||||||||||||
Cost of Revenue | (k) Cost of Revenue | ||||||||||||||||
Cost of revenue consists of the costs of products purchased for resale, cost relating to service including costs of service contracts to maintain equipment after the warranty period, inbound freight and duty, manufacturing, warehousing, material movement, inspection, scrap, rework, depreciation and in-house product warranty repairs, amortization of acquired technology and medical device tax. | |||||||||||||||||
Warranty Costs | (l) Warranty Costs | ||||||||||||||||
The Company provides for the estimated cost of standard product warranty against defects in material and workmanship based on historical warranty trends, including in the volume and cost of product returns during the warranty period. Warranty provisions and claims for the years ended December 31, 2014, 2013 and 2012, were as follows (in thousands): | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Beginning accrual balance | $ | 25 | $ | 36 | $ | 89 | |||||||||||
Warranty provision | 58 | 96 | 37 | ||||||||||||||
Usage | (69 | ) | (107 | ) | (90 | ) | |||||||||||
Ending accrual balance | $ | 14 | $ | 25 | $ | 36 | |||||||||||
The warranty costs above include long-term warranty obligations of $5,000, $8,000 and $10,000 for the years ended December 31, 2014, 2013 and 2011, respectively. | |||||||||||||||||
Engineering and Product Development Costs | (m) Engineering and Product Development Costs | ||||||||||||||||
Engineering and product development costs relate to research and development efforts including Company sponsored clinical trials which are expensed as incurred. | |||||||||||||||||
Advertising Costs | (n) Advertising Costs | ||||||||||||||||
The Company expenses advertising costs as incurred. Advertising expense for the years ended December 31, 2014, 2013 and 2012 was approximately $882,000, $639,000 and $762,000 respectively. | |||||||||||||||||
Net Loss per Common Share | (o) Net Loss per Common Share | ||||||||||||||||
The Company follows FASB ASC 260-10, “Earnings per Share”, which requires the presentation of both basic and diluted earnings per share on the face of the statements of operations. 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 income 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): | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Net loss available to common shareholders | $ | (1,009 | ) | $ | (7,608 | ) | $ | (9,374 | ) | ||||||||
Basic shares used in the calculation of earnings per share | 14,096 | 10,842 | 10,796 | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | — | — | — | ||||||||||||||
Restricted stock | — | — | — | ||||||||||||||
Diluted shares used in the calculation of earnings per share | 14,096 | 10,842 | 10,796 | ||||||||||||||
Net loss per share : | |||||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.70 | ) | $ | (0.87 | ) | ||||||||
Diluted | $ | (0.07 | ) | $ | (0.70 | ) | $ | (0.87 | ) | ||||||||
The following table summarizes the number of shares of common stock for securities, warrants and restricted stock that were not included in the calculation of diluted net loss per share because such shares are antidilutive: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Common stock options | 1,417,887 | 1,334,955 | 1,434,945 | ||||||||||||||
Warrants | — | 550,000 | 550,000 | ||||||||||||||
Restricted Stock | 309,317 | 216,250 | 67,075 | ||||||||||||||
1,727,204 | 2,101,205 | 2,052,020 | |||||||||||||||
Restricted common stock can be issued to directors, executives or employees of the Company and are subject to time-based vesting. These potential shares were excluded from the computation of basic loss per share as these shares are not considered outstanding until vested. | |||||||||||||||||
Income Taxes | (p) Income Taxes | ||||||||||||||||
The Company follows the liability method under ASC Topic 740, “Income Taxes”, (“ASC 740”). The primary objectives of accounting for taxes under ASC 740 are to (a) recognize the amount of tax payable for the current year and (b) recognize the amount of deferred tax liability or asset for the future tax consequences of events that have been reflected in the Company’s financial statements or tax returns. The Company has provided a full valuation allowance against its deferred tax assets at December 31, 2014 and 2013, as it is more likely than not that the deferred tax asset will not be realized. Any subsequent changes in the valuation allowance will be recorded through operations in the provision (benefit) for income taxes. | |||||||||||||||||
ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10 also provides guidance on de-recognition, classification, interest and penalties, disclosure and transition. | |||||||||||||||||
Stock-Based Compensation | (q) Stock-Based Compensation | ||||||||||||||||
The Company maintains stock-based incentive plans, under which it provides stock incentives to employees, directors and contractors. The Company may grant to employees, directors and contractors, options to purchase common stock at an exercise price equal to the market value of the stock at the date of grant. The Company may grant restricted stock to employees and directors. The underlying shares of the restricted stock grant are not issued until the shares vest, and compensation expense is based on the stock price of the shares at the time of grant. The Company follows FASB ASC Topic 718, “Compensation – Stock Compensation” (“ASC 718”), for all stock-based compensation. Under this application, the Company is required to record compensation expense over the vesting period for all awards granted. | |||||||||||||||||
The Company uses the Black-Scholes option pricing model to value stock options which requires extensive use of accounting judgment and financial estimates, including estimates of the expected term participants will retain their vested stock options before exercising them, the estimated volatility of its common stock price over the expected term, the risk free rate, expected dividend yield, and the number of options that will be forfeited prior to the completion of their vesting requirements. Fair value of restricted stock is determined based on the stock price of the underlying option on the date of the grant. Application of alternative assumptions could produce significantly different estimates of the fair value of stock-based compensation and consequently, the related amounts recognized in the Consolidated Statements of Operations. | |||||||||||||||||
Fair Value Measurements | (r) Fair Value Measurements | ||||||||||||||||
The Company follows the provisions of FASB ASC Topic 820, “Fair Value Measurement and Disclosures” (“ASC 820”). This topic defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles 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. | |||||||||||||||||
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 financing arrangement. | |||||||||||||||||
The 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 fair value measurement for the contingent consideration liability is valued using Level 3 inputs. In connection with the acquisition of Xoft, the Company recorded a contingent consideration liability of $5.0 million based upon the estimated fair value of the additional earn-out potential for the sellers that is tied to cumulative net revenue of Xoft products from January 1, 2011 through December 31, 2013, payable January, 2014. As of December 31, 2013, the Company did not meet the cumulative net revenue criteria and accordingly the value of the contingent consideration was $0.0 million. | |||||||||||||||||
In connection with the financing as further described in Note 3 the Company issued 550,000 warrants to Deerfield in December 2011. On April 30, 2014, Deerfield exercised 450,000 warrants for an aggregate purchase price of $1,575,000, and the Company issued 450,000 shares of common stock, and cancelled the remaining 100,000 warrants issued to Deerfield, since these 100,000 warrants were exercisable only in the event the Company extended the last debt payment for an additional year. The warrant obligation was fully satisfied following that exercise. The liability for the warrants associated with the debt was valued using the binomial lattice-based valuation methodology because that model embodies all of the relevant assumptions that address the features underlying these instruments. The warrant was valued at $2,151,000 as of April 30, 2014 immediately prior to exercise which included a gain of $699,000. Significant assumptions in valuing the warrant liability were as follows as of December 31, 2013 and April 30, 2014. | |||||||||||||||||
April 30, 2014 | December 31, 2013 | ||||||||||||||||
Warrants | |||||||||||||||||
Exercise price | $ | 3.5 | $ | 3.5 | |||||||||||||
Volatility | 40.8 | % | 56.2 | % | |||||||||||||
Equivalent term (years) | 0 | 4 | |||||||||||||||
Risk-free interest rate | 0.1 | % | 1.3 | % | |||||||||||||
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, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Money market accounts | $ | 26,530 | $ | — | $ | — | $ | 26,530 | |||||||||
Total Assets | $ | 26,530 | $ | — | $ | — | $ | 26,530 | |||||||||
Liabilities | |||||||||||||||||
Warrants | — | — | — | — | |||||||||||||
Total Liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||
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 | |||||||||
The following table provides a summary of changes in the fair value of the warrants during the period are as follows (in thousands): | |||||||||||||||||
Warrants | Amount | ||||||||||||||||
Balance as of December 31, 2012 | $ | 1,538 | |||||||||||||||
Loss from change in fair value of warrant | 2,448 | ||||||||||||||||
Balance as of December 31, 2013 | 3,986 | ||||||||||||||||
Gain from change in fair value of warrant | (1,835 | ) | |||||||||||||||
Warrant exercise | (2,151 | ) | |||||||||||||||
Balance as of December 31, 2014 | $ | — | |||||||||||||||
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 recorded an estimated impairment charge for goodwill of $26.8 million during the year ended December 31, 2011. We did not consider any assets to be impaired during the years ended December 31, 2014, 2013 or 2012. | |||||||||||||||||
Segment Reporting | (a) 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. | |||||||||||||||||
Leases | Under the guidance of ASC Topic 840, “Leases” 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. | ||||||||||||||||
Litigation | (g) Litigation | ||||||||||||||||
The Company is a party to various legal proceedings and claims arising out of the ordinary course of its business. Although the final results of all such matters and claims cannot be predicted with certainty, the Company currently believes that there are no current proceedings or claims pending against it of which the ultimate resolution would have a material adverse effect on its financial condition or results of operations. However, should we fail to prevail in any legal matter or should several legal matters be resolved against us in the same reporting period, such matters could have a material adverse effect on our operating results and cash flows for that particular period. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies. Legal costs are expensed as incurred. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Schedule of Allowance for Doubtful Accounts | The following table summarizes the allowance for doubtful accounts for the three years ended December 31, 2014 (in thousands): | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Balance at beginning of period | $ | 73 | $ | 48 | $ | 54 | |||||||||||
Additions charged to costs and expenses | 167 | 35 | — | ||||||||||||||
Reductions | (37 | ) | (10 | ) | (6 | ) | |||||||||||
Balance at end of period | $ | 203 | $ | 73 | $ | 48 | |||||||||||
Schedule of Current Inventory | At December 31, 2014 and 2013 respectively inventories consisted of the following (in thousands): | ||||||||||||||||
As of December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Raw materials | $ | 955 | $ | 581 | |||||||||||||
Work in process | 54 | 38 | |||||||||||||||
Finished Goods | 1,205 | 1,272 | |||||||||||||||
Inventory | $ | 2,214 | $ | 1,891 | |||||||||||||
Schedule of Property and Equipment Estimated Useful Lives | Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets or the remaining lease term, whichever is shorter for leasehold improvements (see below). | ||||||||||||||||
Estimated life | |||||||||||||||||
Equipment | 3-5 years | ||||||||||||||||
Leasehold improvements | 3-5 years | ||||||||||||||||
Furniture and fixtures | 3-5 years | ||||||||||||||||
Marketing assets | 3-5 years | ||||||||||||||||
Schedule of Intangible Assets | A summary of intangible assets for 2014 and 2013 are as follows (in thousands): | ||||||||||||||||
2014 | 2013 | Weighted | |||||||||||||||
average | |||||||||||||||||
useful life | |||||||||||||||||
Gross Carrying Amount | |||||||||||||||||
Patents and licenses | $ | 767 | $ | 737 | 5 years | ||||||||||||
Technology | 25,639 | 24,909 | 10 years | ||||||||||||||
Customer relationships | 5,548 | 248 | 7 years | ||||||||||||||
Tradename | 288 | 248 | 10 years | ||||||||||||||
Total amortizable intangible assets | 32,242 | 26,142 | |||||||||||||||
Accumulated Amortization | |||||||||||||||||
Patents and licenses | $ | 517 | $ | 471 | |||||||||||||
Technology | 13,076 | 11,589 | |||||||||||||||
Customer relationships | 896 | 160 | |||||||||||||||
Tradename | 249 | 248 | |||||||||||||||
Total accumulated amortization | 14,738 | 12,468 | |||||||||||||||
Total amortizable intangible assets, net | $ | 17,504 | $ | 13,674 | |||||||||||||
Schedule of Expected Amortization Expense | Estimated remaining amortization of the Company’s intangible assets is as follows (in thousands): | ||||||||||||||||
For the years ended December 31: | Estimated | ||||||||||||||||
amortization | |||||||||||||||||
expense | |||||||||||||||||
2015 | $ | 3,095 | |||||||||||||||
2016 | 2,462 | ||||||||||||||||
2017 | 2,254 | ||||||||||||||||
2018 | 1,934 | ||||||||||||||||
2019 | 1,659 | ||||||||||||||||
Thereafter | 6,100 | ||||||||||||||||
$ | 17,504 | ||||||||||||||||
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 | ||||||||||||||
Acquistion of DermEbx and Radion | — | 6,154 | 6,154 | ||||||||||||||
Balance at December 31, 2014 | $ | 7,663 | $ | 19,600 | $ | 27,263 | |||||||||||
Roll forward of Warranty Cost | Warranty provisions and claims for the years ended December 31, 2014, 2013 and 2012, were as follows (in thousands): | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Beginning accrual balance | $ | 25 | $ | 36 | $ | 89 | |||||||||||
Warranty provision | 58 | 96 | 37 | ||||||||||||||
Usage | (69 | ) | (107 | ) | (90 | ) | |||||||||||
Ending accrual balance | $ | 14 | $ | 25 | $ | 36 | |||||||||||
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): | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Net loss available to common shareholders | $ | (1,009 | ) | $ | (7,608 | ) | $ | (9,374 | ) | ||||||||
Basic shares used in the calculation of earnings per share | 14,096 | 10,842 | 10,796 | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options | — | — | — | ||||||||||||||
Restricted stock | — | — | — | ||||||||||||||
Diluted shares used in the calculation of earnings per share | 14,096 | 10,842 | 10,796 | ||||||||||||||
Net loss per share : | |||||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.70 | ) | $ | (0.87 | ) | ||||||||
Diluted | $ | (0.07 | ) | $ | (0.70 | ) | $ | (0.87 | ) | ||||||||
Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share | The following table summarizes the number of shares of common stock for securities, warrants and restricted stock that were not included in the calculation of diluted net loss per share because such shares are antidilutive: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Common stock options | 1,417,887 | 1,334,955 | 1,434,945 | ||||||||||||||
Warrants | — | 550,000 | 550,000 | ||||||||||||||
Restricted Stock | 309,317 | 216,250 | 67,075 | ||||||||||||||
1,727,204 | 2,101,205 | 2,052,020 | |||||||||||||||
Schedule of Fair Value of Warrants | Significant assumptions in valuing the Warrant liability were as follows as of December 31, 2013 and April 30, 2014. | ||||||||||||||||
April 30, 2014 | December 31, 2013 | ||||||||||||||||
Warrants | |||||||||||||||||
Exercise price | $ | 3.5 | $ | 3.5 | |||||||||||||
Volatility | 40.8 | % | 56.2 | % | |||||||||||||
Equivalent term (years) | 0 | 4 | |||||||||||||||
Risk-free interest rate | 0.1 | % | 1.3 | % | |||||||||||||
Assets and Liabilities which are Measured at Fair Value on a 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, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Money market accounts | $ | 26,530 | $ | — | $ | — | $ | 26,530 | |||||||||
Total Assets | $ | 26,530 | $ | — | $ | — | $ | 26,530 | |||||||||
Liabilities | |||||||||||||||||
Warrants | — | — | — | — | |||||||||||||
Total Liabilities | $ | — | $ | — | $ | — | $ | — | |||||||||
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 | |||||||||
Summary of Changes in the Fair Value of Warrants | The following table provides a summary of changes in the fair value of the warrants during the period are as follows (in thousands): | ||||||||||||||||
Warrants | Amount | ||||||||||||||||
Balance as of December 31, 2012 | $ | 1,538 | |||||||||||||||
Loss from change in fair value of warrant | 2,448 | ||||||||||||||||
Balance as of December 31, 2013 | 3,986 | ||||||||||||||||
Gain from change in fair value of warrant | (1,835 | ) | |||||||||||||||
Warrant exercise | (2,151 | ) | |||||||||||||||
Balance as of December 31, 2014 | $ | — | |||||||||||||||
Acquisition_of_the_assets_of_D1
Acquisition of the assets of DermEbx and Radion (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Preliminary Allocation of Purchase Price Based on Estimated Fair Values of Assets Acquired and liabilities Assumed | The following is a summary of the preliminary allocation of the total purchase price based on the estimated fair values of the assets acquired and liabilities assumed as of the date of the acquisition and the amortizable lives of the intangible assets: | ||||||||
Amount | Estimated Amortizable Life | ||||||||
Current assets | $ | 3,457 | |||||||
Property and equipment | 2,625 | 3–7 Years | |||||||
Identifiable intangible assets | 6,050 | 5–10 Years | |||||||
Goodwill | 6,154 | ||||||||
Current liabilities | (4,316 | ) | |||||||
Long-term liabilities | (2,114 | ) | |||||||
Purchase price | $ | 11,856 | |||||||
Summary of Unaudited Proforma Operating Results, Acquisition | The unaudited proforma operating results for the Company for the years ended December 30, 2014 and 2013, respectively assuming the acquisition of the assets of DermEbx and Radion occurred as of January 1, 2013 are as follows (in thousands except per share amounts): | ||||||||
31-Dec | |||||||||
2014 | 2013 | ||||||||
Revenue | $ | 48,145 | $ | 35,639 | |||||
Income (loss) from operations | 2,518 | (5,402 | ) | ||||||
Net income (loss) | 538 | (11,376 | ) | ||||||
Basic net income (loss) per share | $ | 0.04 | $ | (1.05 | ) | ||||
Diluted net income (loss) per share | 0.04 | (1.05 | ) | ||||||
Basic shares | 14,096 | 10,842 | |||||||
Diluted shares | 15,097 | 10,842 |
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 12 Months Ended | ||||||||
Dec. 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 December 31, 2014 and 2013, respectively related to the Facility and Revenue Purchase agreements: | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Principal Amount of Facility Agreement | $ | 15,000 | $ | 15,000 | |||||
Unamortized discount | (1,898 | ) | (3,116 | ) | |||||
Principal repayment | (3,750 | ) | — | ||||||
Carrying amount of Facility Agreement | 9,352 | 11,884 | |||||||
Revenue Purchase Agreement | — | 3,636 | |||||||
Less current portion of Facility Agreement | (3,750 | ) | (3,750 | ) | |||||
Notes payable long-term portion | $ | 5,602 | $ | 11,770 | |||||
Interest Expense in Consolidated Income Statement | The following amounts are included in interest expense in our consolidated statement of operations for the years ended December 31, 2014 and 2013: | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Cash interest expense | $ | 1,271 | $ | 2,155 | |||||
Non-cash amortization of debt discount | 1,053 | 674 | |||||||
Amortization of debt costs | 110 | 182 | |||||||
Amortization of settlement obligations | 206 | 266 | |||||||
Total interest expense | $ | 2,640 | $ | 3,277 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Expenses | Accrued expenses consist of the following at December 31, (in thousands): | ||||||||
2014 | 2013 | ||||||||
Accrued salary and related expenses | $ | 2,518 | $ | 2,020 | |||||
Accrued accounts payable | 1,589 | 1,012 | |||||||
Accrued professional fees | 414 | 284 | |||||||
Accrued short term settlement costs | 698 | 221 | |||||||
Other accrued expenses | 287 | 216 | |||||||
Deferred rent | 48 | 46 | |||||||
$ | 5,554 | $ | 3,799 | ||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Summary of Stock Option Activity for all Stock Option Plans | A summary of stock option activity for all stock option plans is as follows: | ||||||||||||
Number of | Weighted Average | Weighted Average | |||||||||||
Shares | Exercise Price | Remaining | |||||||||||
Contractual Term | |||||||||||||
Outstanding, January 1, 2012 | 1,080,722 | $ | 9.75 | ||||||||||
Granted | 693,601 | $ | 2.43 | ||||||||||
Exercised | — | $ | 0 | ||||||||||
Forfeited | (339,378 | ) | $ | 15.95 | |||||||||
Outstanding, December 31, 2012 | 1,434,945 | $ | 4.75 | ||||||||||
Granted | 46,537 | $ | 5.42 | ||||||||||
Exercised | (48,427 | ) | $ | 3 | |||||||||
Forfeited | (98,100 | ) | $ | 11.62 | |||||||||
Outstanding, December 31, 2013 | 1,334,955 | $ | 4.34 | ||||||||||
Granted | 281,043 | $ | 8.08 | ||||||||||
Exercised | (162,528 | ) | $ | 4.36 | |||||||||
Forfeited | (35,583 | ) | $ | 13.62 | |||||||||
Outstanding, December 31, 2014 | 1,417,887 | $ | 4.84 | 6.6 years | |||||||||
Exercisable at December 31, 2012 | 485,553 | $ | 7.06 | ||||||||||
Exercisable at December 31, 2013 | 743,910 | $ | 5.09 | ||||||||||
Exercisable at December 31, 2014 | 955,210 | $ | 4.43 | 5.8 years | |||||||||
Stock-Based Compensation Expense Including Options and Restricted Stock by Category | The Company’s stock-based compensation expense, including options and restricted stock by category is as follows (amounts in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cost of revenue | $ | 13 | $ | 21 | $ | 15 | |||||||
Engineering and product development | 165 | 228 | 178 | ||||||||||
Marketing and sales | 353 | 273 | 242 | ||||||||||
General and administrative expense | 787 | 680 | 561 | ||||||||||
$ | 1,318 | $ | 1,202 | $ | 996 | ||||||||
Options Granted under the Company's Stock Incentive Plans, Valuation Assumptions and Fair Values | Options granted under the stock incentive plans were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Average risk-free interest rate | 0.85% | 0.53% | 0.98% | ||||||||||
Expected dividend yield | None | None | None | ||||||||||
Expected life | 3.5 years | 3.5 years | 3.5 years | ||||||||||
Expected volatility | 64.2% to 69.4% | 57.6% to 68.9% | 65.9% to 68.9% | ||||||||||
Weighted average exercise price | $ | 8.09 | $ | 5.42 | $ | 2.43 | |||||||
Weighted average fair value | $ | 3.84 | $ | 2.35 | $ | 1.17 | |||||||
Summary of Restricted Stock Activity for All Equity Incentive Plans | A summary of restricted stock activity for all equity incentive plans is as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Beginning outstanding balance | 216,250 | 67,075 | 122,795 | ||||||||||
Granted | 180,500 | 196,250 | — | ||||||||||
Vested | (85,434 | ) | (47,008 | ) | (47,820 | ) | |||||||
Forfeited | (1,999 | ) | (67 | ) | (7,900 | ) | |||||||
Ending outstanding balance | 309,317 | 216,250 | 67,075 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of Income Tax Expense | The components of income tax expense for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current provision (benefit): | |||||||||||||
Federal | $ | (44 | ) | $ | — | $ | — | ||||||
State | 118 | 126 | 43 | ||||||||||
$ | 74 | $ | 126 | $ | 43 | ||||||||
Deferred provision: | |||||||||||||
Federal | $ | 65 | $ | — | $ | — | |||||||
State | 14 | — | — | ||||||||||
$ | 79 | $ | — | $ | — | ||||||||
Total | $ | 153 | $ | 126 | $ | 43 | |||||||
Summary of Effective and the Federal Statutory Income Tax Rate | A summary of the differences between the Company’s effective income tax rate and the Federal statutory income tax rate for the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal statutory rate | 34 | % | 34 | % | 34 | % | |||||||
State income taxes, net of federal benefit | 5.5 | % | 2.3 | % | 4 | % | |||||||
Net state impact of deferred rate change | 13 | % | 0.1 | % | 0.1 | % | |||||||
Stock compensation expense | (9.6 | %) | (2.0 | %) | (1.8 | %) | |||||||
Tax amortization on goodwill | (9.0 | %) | 0 | % | 0 | % | |||||||
Loss on warrant | 71.6 | % | 0 | % | 0 | % | |||||||
Other permanent differences | (1.1 | %) | (11.7 | %) | (2.4 | %) | |||||||
Change in valuation allowance | (222.6 | %) | (27.6 | %) | (34.4 | %) | |||||||
Tax credits | 100.8 | % | 3.3 | % | 0 | % | |||||||
Effective income tax | (17.4 | %) | (1.6 | %) | (0.5 | %) | |||||||
Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) are comprised of the following at December 31 (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Inventory (Section 263A) | $ | 191 | $ | 233 | |||||||||
Inventory reserves | 106 | 156 | |||||||||||
Receivable reserves | 197 | 29 | |||||||||||
Other accruals | 887 | 938 | |||||||||||
Deferred revenue | 1,142 | 1,256 | |||||||||||
Accumulated depreciation/amortization | 65 | (2 | ) | ||||||||||
Stock options | 2,252 | 2,070 | |||||||||||
Developed technology | (2,941 | ) | (3,464 | ) | |||||||||
Tax credits | 3,054 | 2,176 | |||||||||||
NOL carryforward | 34,690 | 34,059 | |||||||||||
Net deferred tax assets | 39,643 | 37,451 | |||||||||||
Valuation allowance | (39,643 | ) | (37,451 | ) | |||||||||
Goodwill tax amortization | (79 | ) | — | ||||||||||
Deferred tax liability | $ | (79 | ) | $ | — | ||||||||
Segment_Reporting_Geographical1
Segment Reporting, Geographical Information and Major Customers (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Summary of Segment Revenues, Gross Profit, Segment Operating Income or Loss and Reconciliation of Segment Operating Income or Loss to GAAP Loss | Segment revenues, gross profit, segment operating income or loss, and a reconciliation of segment operating income or loss to GAAP loss before income tax is as follows (in thousands, including prior periods which have been presented for consistency): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Segment revenues: | |||||||||||||
Detection | $ | 18,604 | $ | 16,905 | $ | 17,262 | |||||||
Therapy | 25,320 | 16,162 | 11,013 | ||||||||||
Total Revenue | $ | 43,924 | $ | 33,067 | $ | 28,275 | |||||||
Segment gross profit: | |||||||||||||
Detection | $ | 15,276 | $ | 13,576 | $ | 13,936 | |||||||
Therapy | 15,951 | 9,509 | 6,095 | ||||||||||
Segment gross profit | $ | 31,227 | $ | 23,085 | $ | 20,031 | |||||||
Segment operating income (loss): | |||||||||||||
Detection | $ | 7,231 | $ | 5,016 | $ | 4,274 | |||||||
Therapy | 1,868 | (52 | ) | (2,720 | ) | ||||||||
Segment operating income | $ | 9,099 | $ | 4,964 | $ | 1,554 | |||||||
General, administrative, depreciation and amortization expense | $ | (8,284 | ) | $ | (6,740 | ) | $ | (6,966 | ) | ||||
Interest expense | (2,640 | ) | (3,277 | ) | (3,415 | ) | |||||||
Gain on fair value of warrant | 1,835 | (2,448 | ) | (539 | ) | ||||||||
Other income | 37 | 19 | 35 | ||||||||||
Loss on debt extinguishment | (903 | ) | — | — | |||||||||
Loss before income tax | $ | (856 | ) | $ | (7,482 | ) | $ | (9,331 | ) | ||||
Summary of Segment Depreciation and Amortization Included in Segment Operating Income (Loss) | Segment depreciation and amortization included in segment operating income (loss) is as follows (in thousands): | ||||||||||||
Detection depreciation and amortization | |||||||||||||
Depreciation | 188 | 175 | 144 | ||||||||||
Amortization | 515 | 517 | 519 | ||||||||||
Therapy depreciation and amortization | |||||||||||||
Depreciation | 844 | 424 | 595 | ||||||||||
Amortization | 1,739 | 939 | 931 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Future Minimum Rental Payments | Future minimum rental payments due under these agreements as of December 31, 2014 are as follows (in thousands): | ||||
Fiscal Year | Operating | ||||
Leases | |||||
2015 | 482 | ||||
2016 | 490 | ||||
2017 | 255 | ||||
$ | 1,227 | ||||
Future Minimum Lease Payments under Non-cancelable Capital Leases | Future minimum lease payments under this lease are as follows: | ||||
Fiscal Year | Capital Leases | ||||
2015 | 1,513 | ||||
2016 | 1,004 | ||||
2017 | 89 | ||||
subtotal minimum lease obligation | 2,606 | ||||
less interest | (292 | ) | |||
Total, net | 2,314 | ||||
less current portion | (1,294 | ) | |||
long term portion | $ | 1,020 | |||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Quarterly Financial Data | Net | Gross | Net | Income (loss) | Weighted | ||||||||||||||||
sales | profit | income (loss) | per share | average | |||||||||||||||||
number of | |||||||||||||||||||||
shares outstanding | |||||||||||||||||||||
2014 | |||||||||||||||||||||
First quarter | $ | 8,520 | $ | 5,934 | $ | (190 | ) | ($ | 0.02 | ) | 11,429 | ||||||||||
Second quarter | 9,667 | 6,830 | $ | (997 | ) | ($ | 0.07 | ) | 14,074 | ||||||||||||
Third quarter | 12,572 | 9,167 | $ | 274 | $ | 0.02 | 15,283 | ||||||||||||||
Fourth quarter | 13,165 | 9,296 | $ | (96 | ) | ($ | 0.01 | ) | 15,541 | ||||||||||||
2013 | |||||||||||||||||||||
First quarter | $ | 7,930 | $ | 5,648 | $ | (727 | ) | ($ | 0.07 | ) | 10,820 | ||||||||||
Second quarter | 7,712 | 5,222 | $ | (1,882 | ) | ($ | 0.17 | ) | 10,836 | ||||||||||||
Third quarter | 8,290 | 5,926 | $ | (589 | ) | ($ | 0.05 | ) | 10,849 | ||||||||||||
Fourth quarter | 9,135 | 6,289 | $ | (4,410 | ) | ($ | 0.41 | ) | 10,863 | ||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2014 | Dec. 31, 2010 | Dec. 31, 2001 | |
Segment | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Business segment | 2 | ||||||
Maturity for cash and cash equivalents | 90 days | ||||||
Insurance coverage | $250,000 | ||||||
Interest-bearing amounts on deposit in excess of federally | 31,100,000 | ||||||
Impairment losses on long lived assets | 0 | 0 | 0 | ||||
Amortization expense related to intangible assets | 2,270,000 | 1,724,000 | 1,904,000 | ||||
Percentage of discount derived from capital asset pricing model | 17.00% | ||||||
Long term warranty obligations | 5,000 | 8,000 | 10,000 | ||||
Advertising expense | 882,000 | 639,000 | 762,000 | ||||
Contingent consideration liability | 0 | 5,000,000 | |||||
Number of common stock shares issued | 450,000 | ||||||
Gain from warrant exercise | -1,835,000 | 2,448,000 | 539,000 | ||||
Goodwill impairment | 26,800,000 | ||||||
Warrants [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Warrant value | 2,151,000 | ||||||
Gain from warrant exercise | 699,000 | ||||||
Deerfield Agreement [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Warrant or right exercisable | 550,000 | 450,000 | 100,000 | ||||
Aggregate purchase price of warrants | 1,575,000 | ||||||
Number of common stock shares cancelled | 100,000 | ||||||
Detection [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Amortization expense related to intangible assets | 515,000 | 517,000 | 519,000 | ||||
Percentage of fair value of each reporting unit | 315.00% | ||||||
Therapy [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Amortization expense related to intangible assets | $1,739,000 | $939,000 | $931,000 | ||||
Percentage of fair value of each reporting unit | 255.00% | ||||||
Minimum [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of Long-lived assets | 5 years | ||||||
Maximum [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of Long-lived assets | 15 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | |||
Balance at beginning of period | $73 | $48 | $54 |
Additions charged to costs and expenses | 167 | 35 | |
Reductions | -37 | -10 | -6 |
Balance at end of period | $203 | $73 | $48 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Schedule of Current Inventory (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Raw materials | $955 | $581 |
Work in process | 54 | 38 |
Finished Goods | 1,205 | 1,272 |
Inventory | $2,214 | $1,891 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 3 years |
Minimum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 3 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 3 years |
Minimum [Member] | Marketing Assets [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 3 years |
Maximum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 5 years |
Maximum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 5 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 5 years |
Maximum [Member] | Marketing Assets [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 5 years |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Gross Carrying Amount | ||
Gross Carrying Amount | $32,242 | $26,142 |
Accumulated Amortization | ||
Accumulated Amortization | 14,738 | 12,468 |
Total amortizable intangible assets, net | 17,504 | 13,674 |
Patents and Licenses [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | 767 | 737 |
Weighted average useful life | 5 years | |
Accumulated Amortization | ||
Accumulated Amortization | 517 | 471 |
Technology [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | 25,639 | 24,909 |
Weighted average useful life | 10 years | |
Accumulated Amortization | ||
Accumulated Amortization | 13,076 | 11,589 |
Customer Relationships [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | 5,548 | 248 |
Weighted average useful life | 7 years | |
Accumulated Amortization | ||
Accumulated Amortization | 896 | 160 |
Tradename [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | 288 | 248 |
Weighted average useful life | 10 years | |
Accumulated Amortization | ||
Accumulated Amortization | $249 | $248 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Schedule of Expected Amortization Expense (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
2015 | $3,095 | |
2016 | 2,462 | |
2017 | 2,254 | |
2018 | 1,934 | |
2019 | 1,659 | |
Thereafter | 6,100 | |
Total amortizable intangible assets, net | $17,504 | $13,674 |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Roll Forward of Goodwill Activity by Reportable Segment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Accumulated Goodwill | $47,937 | |
Accumulated impairment | -26,828 | |
Goodwill Balance | 21,109 | |
Goodwill Balance | 27,263 | 21,109 |
DermEbx and Radion [Member] | ||
Goodwill [Line Items] | ||
Acquisitions of DermEbx and Radion | 6,154 | |
Detection [Member] | ||
Goodwill [Line Items] | ||
Fair value allocation | 7,663 | |
Goodwill Balance | 7,663 | |
Goodwill Balance | 7,663 | |
Therapy [Member] | ||
Goodwill [Line Items] | ||
Fair value allocation | 13,446 | |
Goodwill Balance | 13,446 | |
Goodwill Balance | 19,600 | |
Therapy [Member] | DermEbx and Radion [Member] | ||
Goodwill [Line Items] | ||
Acquisitions of DermEbx and Radion | $6,154 |
Recovered_Sheet1
Summary of Significant Accounting Policies - Roll Forward of Warranty Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Beginning accrual balance | $25 | $36 | $89 |
Warranty provision | 58 | 96 | 37 |
Usage | -69 | -107 | -90 |
Ending accrual balance | $14 | $25 | $36 |
Recovered_Sheet2
Summary of Significant Accounting Policies - Calculation of Net Loss Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net loss available to common shareholders | ($96) | $274 | ($997) | ($190) | ($4,410) | ($589) | ($1,882) | ($727) | ($1,009) | ($7,608) | ($9,374) |
Basic shares used in the calculation of earnings per share | 14,096 | 10,842 | 10,796 | ||||||||
Effect of dilutive securities: | |||||||||||
Diluted shares used in the calculation of earnings per share | 14,096 | 10,842 | 10,796 | ||||||||
Basic | ($0.07) | ($0.70) | ($0.87) | ||||||||
Diluted | ($0.07) | ($0.70) | ($0.87) | ||||||||
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 |
Recovered_Sheet3
Summary of Significant Accounting Policies - Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock options, warrants and restricted stock | 1,727,204 | 2,101,205 | 2,052,020 |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock options, warrants and restricted stock | 1,417,887 | 1,334,955 | 1,434,945 |
Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock options, warrants and restricted stock | 550,000 | 550,000 | |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock options, warrants and restricted stock | 309,317 | 216,250 | 67,075 |
Recovered_Sheet4
Summary of Significant Accounting Policies - Schedule of Fair Value of Warrants (Detail) (Warrants [Member], USD $) | 1 Months Ended | 12 Months Ended |
Apr. 30, 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 | 40.80% | 56.20% |
Equivalent term (years) | 0 years | 4 years |
Risk-free interest rate | 0.10% | 1.30% |
Recovered_Sheet5
Summary of Significant Accounting Policies - Assets and Liabilities which are Measured at Fair Value on a Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Total Assets | $26,530 | $7,572 |
Liabilities | ||
Total Liabilities | 3,986 | |
Money Market Accounts [Member] | ||
Assets | ||
Total Assets | 26,530 | 7,572 |
Warrants [Member] | ||
Liabilities | ||
Total Liabilities | 3,986 | |
Level 1 [Member] | ||
Assets | ||
Total Assets | 26,530 | 7,572 |
Level 1 [Member] | Money Market Accounts [Member] | ||
Assets | ||
Total Assets | 26,530 | 7,572 |
Level 3 [Member] | ||
Liabilities | ||
Total Liabilities | 3,986 | |
Level 3 [Member] | Warrants [Member] | ||
Liabilities | ||
Total Liabilities | $3,986 |
Recovered_Sheet6
Summary of Significant Accounting Policies - Summary of Changes in the Fair Value of Warrants (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | |||
Beginning Balance | $3,986 | $1,538 | |
Gain (Loss) from change in fair value of warrant | -1,835 | 2,448 | 539 |
Warrant exercise | -2,151 | ||
Ending Balance | $3,986 | $1,538 |
Acquisition_of_the_assets_of_D2
Acquisition of the assets of DermEbx and Radion - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 15, 2014 | |
Business Acquisition [Line Items] | ||||||||||||
Common stock, par value | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||
Goodwill deductible for income tax purposes | $27,263,000 | $21,109,000 | $27,263,000 | $21,109,000 | ||||||||
Revenue | 13,165,000 | 12,572,000 | 9,667,000 | 8,520,000 | 9,135,000 | 8,290,000 | 7,712,000 | 7,930,000 | 43,924,000 | 33,067,000 | 28,275,000 | |
Radion Inc [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business acquisition paid in cash | 2,382,000 | |||||||||||
Restricted shares provisions description | The 600,000 restricted shares are subject to the following provisions; 25% shall be locked up until the date that is two trading days after the Company announces its fourth quarter 2014 earnings; 30% of the shares shall be locked up for a period of twenty-four (24) months from the date of the agreement; and 30% of the shares shall be locked up for a period of thirty-six (36) months from the date of the agreement. | |||||||||||
Percentage of restricted shares held in escrow | 15.00% | |||||||||||
Restricted shares held in escrow | 90,000 | |||||||||||
Restricted shares held in escrow, period | 18 months | |||||||||||
Repayment of note payable | 182,000 | |||||||||||
Goodwill deductible for income tax purposes | 6,200,000 | 6,200,000 | 6,154,000 | |||||||||
Radion Inc [Member] | Restricted Stock [Member] | Common Stock [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business acquisition restricted shares issued | 600,000 | |||||||||||
DermEbx [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business acquisition paid in cash | 1,600,000 | |||||||||||
Cash consideration held back for purpose of purchase price adjustment | 500,000 | |||||||||||
Restricted shares provisions description | The 600,000 restricted shares are subject to the following provisions; 25% shall be locked up until the date that is two trading days after the Company announces its fourth quarter 2014 earnings; 30% of the shares shall be locked up for a period of twenty-four (24) months from the date of the agreement; and 30% of the shares shall be locked up for a period of thirty-six (36) months from the date of the agreement. | |||||||||||
Percentage of restricted shares held in escrow | 15.00% | |||||||||||
Restricted shares held in escrow | 90,000 | |||||||||||
Restricted shares held in escrow, period | 18 months | |||||||||||
DermEbx [Member] | Restricted Stock [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Common stock, par value | $0.01 | |||||||||||
DermEbx [Member] | Restricted Stock [Member] | Common Stock [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business acquisition restricted shares issued | 600,000 | |||||||||||
DermEbx and Radion [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Revenue | $7,900,000 |
Acquisition_of_the_assets_of_D3
Acquisition of the assets of DermEbx and Radion - Preliminary Allocation of Purchase Price Based on Estimated Fair Values of Assets Acquired and liabilities Assumed (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jul. 15, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||
Goodwill | 27,263 | $21,109 | |
Radion Inc [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | 3,457 | ||
Property and equipment | 2,625 | ||
Identifiable intangible assets | 6,050 | ||
Goodwill | 6,200 | 6,154 | |
Current liabilities | -4,316 | ||
Long-term liabilities | -2,114 | ||
Purchase price | 11,856 | ||
Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Estimated amortizable life | 5 years | ||
Minimum [Member] | Radion Inc [Member] | |||
Business Acquisition [Line Items] | |||
Property and equipment, Estimated amortizable life | 3 years | ||
Estimated amortizable life | 5 years | ||
Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Estimated amortizable life | 15 years | ||
Maximum [Member] | Radion Inc [Member] | |||
Business Acquisition [Line Items] | |||
Property and equipment, Estimated amortizable life | 7 years | ||
Estimated amortizable life | 10 years |
Acquisition_of_the_assets_of_D4
Acquisition of the assets of DermEbx and Radion - Summary of Unaudited Proforma Operating Results, Acquisition (Detail) (DermEbx and Radion [Member], USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
DermEbx and Radion [Member] | ||
Business Acquisition [Line Items] | ||
Revenue | $48,145 | $35,639 |
Income (loss) from operations | 2,518 | -5,402 |
Net income (loss) | 538 | -11,386 |
Basic net income (loss) per share | $0.04 | ($1.05) |
Diluted net income (loss) per share | $0.04 | ($1.05) |
Basic shares | 14,096 | 10,842 |
Diluted shares | $15,097 | $10,842 |
Financing_Arrangements_Additio
Financing Arrangements - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Apr. 30, 2014 | Dec. 31, 2014 | Oct. 29, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Financing Arrangements [Line Items] | |||||
Percentage of revenue under condition one | 4.25% | ||||
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 | 450,000 | ||||
Aggregate purchase price of warrants | $1,575,000 | ||||
Common stock, shares issued | 450,000 | 15,732,177 | 11,084,119 | ||
Cancellation of warrants to purchase number of additional shares of common stock | 100,000 | ||||
Warrants [Member] | |||||
Financing Arrangements [Line Items] | |||||
Number of common stock shares issued | 550,000 | ||||
Exercise price of warrants | 3.5 | ||||
2013 [Member] | |||||
Financing Arrangements [Line Items] | |||||
Percentage of revenue under condition two due in year one and two | 2.75% | ||||
2014 [Member] | |||||
Financing Arrangements [Line Items] | |||||
Percentage of revenue under condition two due in year one and two | 2.75% | ||||
2015 [Member] | |||||
Financing Arrangements [Line Items] | |||||
Percentage of revenue under condition three due in year three and four | 2.25% | ||||
2016 [Member] | |||||
Financing Arrangements [Line Items] | |||||
Percentage of revenue under condition three due in year three and four | 2.25% | ||||
2017 [Member] | |||||
Financing Arrangements [Line Items] | |||||
Percentage of revenue under condition three due in year three and four | 2.25% | ||||
Revenue Purchase Agreement [Member] | |||||
Financing Arrangements [Line Items] | |||||
Interest on facility agreement | 5.75% | ||||
Facility Agreement [Member] | |||||
Financing Arrangements [Line Items] | |||||
Interest on facility agreement | 5.75% | ||||
Revenue Purchase Agreement [Member] | |||||
Financing Arrangements [Line Items] | |||||
Payment for termination of agreement | 4,100,000 | ||||
recorded loss in connection with termination agreement | 900,000 | ||||
December 2014 [Member] | Facility Agreement [Member] | |||||
Financing Arrangements [Line Items] | |||||
Repayment of debt | 3,750,000 | ||||
Long term debt maturities repayment terms | Dec-14 | ||||
December 2015 [Member] | Facility Agreement [Member] | |||||
Financing Arrangements [Line Items] | |||||
Repayment of debt | 3,750,000 | ||||
Long term debt maturities repayment terms | Dec-15 | ||||
December 2016 [Member] | Facility Agreement [Member] | |||||
Financing Arrangements [Line Items] | |||||
Repayment of debt | 7,500,000 | ||||
Long term debt maturities repayment terms | Dec-16 | ||||
Extended final repayment of debt | 3,750,000 | ||||
December 2017 [Member] | Facility Agreement [Member] | |||||
Financing Arrangements [Line Items] | |||||
Extended final repayment of debt | 3,750,000 | ||||
Deerfield Agreement [Member] | |||||
Financing Arrangements [Line Items] | |||||
Amount provided in funding to company | 15,000,000 | ||||
Deerfield Agreement [Member] | December 2014 [Member] | |||||
Financing Arrangements [Line Items] | |||||
Repayment of debt | $3,750,000 |
Financing_Arrangements_Amount_
Financing Arrangements - Amount Related to Facility and Revenue Purchase Agreements (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Credit Facility [Line Items] | ||
Less current portion of Facility Agreement | ($3,750) | ($3,750) |
Notes payable long-term portion | 5,602 | 11,770 |
Facility Agreement [Member] | ||
Credit Facility [Line Items] | ||
Principal amount of Facility Agreement | 15,000 | 15,000 |
Unamortized discount | -1,898 | -3,116 |
Principal repayment | -3,750 | |
Carrying amount of Facility Agreement | 9,352 | 11,884 |
Revenue Purchase Agreement [Member] | ||
Credit Facility [Line Items] | ||
Principal amount of Facility Agreement | $3,636 |
Financing_Arrangements_Interes
Financing Arrangements - Interest Expense in Consolidated Income Statement (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Expense, Debt [Abstract] | |||
Cash interest expense | $1,271 | $2,155 | |
Non-cash amortization of debt discount | 1,053 | 674 | |
Amortization of debt costs | 110 | 182 | |
Amortization of settlement obligations | 206 | 266 | 388 |
Total interest expense | $2,640 | $3,277 | $3,415 |
Accrued_Expenses_Accrued_Expen
Accrued Expenses - Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued salary and related expenses | $2,518 | $2,020 |
Accrued accounts payable | 1,589 | 1,012 |
Accrued professional fees | 414 | 284 |
Accrued short term settlement costs | 698 | 221 |
Other accrued expenses | 287 | 216 |
Deferred rent | 48 | 46 |
Accrued Expenses Total | $5,554 | $3,799 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock option | 5 | ||
Available for future grants | 666,348 | ||
Total unrecognized compensation costs | $2,200,000 | ||
Period of expected recognized over a weighted average | 1 year 2 months 9 days | ||
Dividends paid on common stock | 0 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of options granted | 1 year | ||
Aggregate intrinsic values of closing market price | $9.17 | $11.66 | $4.79 |
Aggregate intrinsic value of options outstanding | 2,800,000 | 2,500,000 | 300,000 |
Aggregate intrinsic value of the options vested in period | 800,000 | 500,000 | 200,000 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of options outstanding | 6,300,000 | 10,000,000 | 1,800,000 |
Aggregate intrinsic value of the options exercisable | 4,600,000 | 5,100,000 | 300,000 |
Aggregate intrinsic value of stock options exercised | $1,000,000 | $500,000 | $0 |
Aggregate intrinsic values of closing market price | $9.17 | $11.66 | $4.79 |
2001 Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate purchase of Company's common stock | 240,000 | ||
Percentage of stockholders exercise price | 10.00% | ||
Percentage of market Price for calculation of purchase price | 110.00% | ||
Percentage of options granted | 100.00% | ||
Period of expiration | 10 years | ||
Number of percentage of stockholders | 10.00% | ||
Period of expiration for specific stockholders | 5 years | ||
Period of exercisable stock option granted | 10 years | ||
Vesting date of grant, First anniversaries | 33.00% | ||
Vesting date of grant, Second anniversaries | 33.00% | ||
Vesting date of grant, Third anniversaries | 33.00% | ||
Number of share options available for grant | 0 | ||
2001 Stock Option Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of options granted | 6 months | ||
2001 Stock Option Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of options granted | 5 years | ||
2002 Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate purchase of Company's common stock | 100,000 | ||
Percentage of stockholders exercise price | 10.00% | ||
Percentage of market Price for calculation of purchase price | 110.00% | ||
Percentage of options granted | 100.00% | ||
Period of expiration | 10 years | ||
Number of percentage of stockholders | 10.00% | ||
Period of expiration for specific stockholders | 5 years | ||
Period of exercisable stock option granted | 10 years | ||
Vesting date of grant, First anniversaries | 33.00% | ||
Vesting date of grant, Second anniversaries | 33.00% | ||
Vesting date of grant, Third anniversaries | 33.00% | ||
Number of share options available for grant | 0 | ||
2002 Stock Option Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of options granted | 6 months | ||
2002 Stock Option Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of options granted | 5 years | ||
2007 Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate purchase of Company's common stock | 1,050,000 | ||
Percentage of stockholders exercise price | 10.00% | ||
Percentage of market Price for calculation of purchase price | 110.00% | ||
Percentage of options granted | 100.00% | ||
Number of share options available for grant | 28,854 | ||
Aggregate purchase of Company's common stock, maximum | 160,000 | ||
2012 Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate purchase of Company's common stock | 1,600,000 | ||
Percentage of stockholders exercise price | 10.00% | ||
Percentage of market Price for calculation of purchase price | 110.00% | ||
Percentage of options granted | 100.00% | ||
Number of share options available for grant | 627,721 | ||
Aggregate purchase of Company's common stock, maximum | 250,000 | ||
2004 Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of stockholders exercise price | 10.00% | ||
Percentage of market Price for calculation of purchase price | 110.00% | ||
Percentage of options granted | 100.00% | ||
Period of options granted | 5 years | ||
Period of expiration | 10 years | ||
Number of percentage of stockholders | 10.00% | ||
Period of expiration for specific stockholders | 5 years | ||
Period of exercisable stock option granted | 10 years | ||
Vesting date of grant, First anniversaries | 33.00% | ||
Vesting date of grant, Second anniversaries | 33.00% | ||
Vesting date of grant, Third anniversaries | 33.00% | ||
Number of share options available for grant | 0 | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 200,000 | ||
2005 Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate purchase of Company's common stock | 120,000 | ||
Percentage of stockholders exercise price | 10.00% | ||
Percentage of market Price for calculation of purchase price | 110.00% | ||
Percentage of options granted | 100.00% | ||
Period of options granted | 3 years | ||
Period of expiration | 5 years | ||
Number of percentage of stockholders | 10.00% | ||
Period of expiration for specific stockholders | 5 years | ||
Period of exercisable stock option granted | 10 years | ||
Vesting date of grant, First anniversaries | 33.00% | ||
Vesting date of grant, Second anniversaries | 33.00% | ||
Vesting date of grant, Third anniversaries | 33.00% | ||
Number of share options available for grant | 9,773 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Stock Option Activity for all Stock Option Plans (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Beginning balance | 1,334,955 | 1,434,945 | 1,080,722 |
Granted | 281,043 | 46,537 | 693,601 |
Exercised | -162,528 | -48,427 | |
Forfeited | -35,583 | -98,100 | -339,378 |
Ending balance | 1,417,887 | 1,334,955 | 1,434,945 |
Weighted Average, Beginning Balance | $4.34 | $4.75 | $9.75 |
Granted | $8.08 | $5.42 | $2.43 |
Exercised | $4.36 | $3 | $0 |
Forfeited | $13.62 | $11.62 | $15.95 |
Weighted Average, Ending Balance | $4.84 | $4.34 | $4.75 |
Exercisable, Number of Shares | 955,210 | 743,910 | 485,553 |
Exercisable, Weighted Average Exercise Price | $4.43 | $5.09 | $7.06 |
Stockholders_Equity_StockBased
Stockholders' Equity - Stock-Based Compensation Expense by Categories (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | $1,318 | $1,202 | $996 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 13 | 21 | 15 |
Engineering and Product Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 165 | 228 | 178 |
Marketing and Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 353 | 273 | 242 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | $787 | $680 | $561 |
Stockholders_Equity_Options_Gr
Stockholders' Equity - Options Granted Under the Company's Stock Incentive Plans, Valuation Assumptions and Fair Values (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average exercise price | $8.08 | $5.42 | $2.43 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 0.85% | 0.53% | 0.98% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected life | 3 years 6 months | 3 years 6 months | 3 years 6 months |
Weighted average exercise price | $8.09 | $5.42 | $2.43 |
Weighted average fair value | $3.84 | $2.35 | $1.17 |
Minimum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 64.20% | 57.60% | 65.90% |
Maximum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 69.40% | 68.90% | 68.90% |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of Restricted Stock Activity for All Equity Incentive Plans (Detail) (Restricted Stock [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning outstanding balance | 216,250 | 67,075 | 122,795 |
Granted | 180,500 | 196,250 | |
Vested | -85,434 | -47,008 | -47,820 |
Forfeited | -1,999 | -67 | -7,900 |
Ending outstanding balance | 309,317 | 216,250 | 67,075 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current provision (benefit): | |||
Federal | ($44) | ||
State | 118 | 126 | 43 |
Current provision (benefit), Total | 74 | 126 | 43 |
Deferred provision: | |||
Federal | 65 | ||
State | 14 | ||
Deferred provision, Total | 79 | 0 | |
Total | $153 | $126 | $43 |
Income_Taxes_Summary_of_Effect
Income Taxes - Summary of Effective And the Federal Statutory Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 34.00% | 34.00% | 34.00% |
State income taxes, net of federal benefit | 5.50% | 2.30% | 4.00% |
Net state impact of deferred rate change | 13.00% | 0.10% | 0.10% |
Stock compensation expense | -9.60% | -2.00% | -1.80% |
Tax amortization on goodwill | -9.00% | 0.00% | 0.00% |
Loss on warrant | 71.60% | 0.00% | 0.00% |
Other permanent differences | -1.10% | -11.70% | -2.40% |
Change in valuation allowance | -222.60% | -27.60% | -34.40% |
Tax credits | 100.80% | 3.30% | 0.00% |
Effective income tax | -17.40% | -1.60% | -0.50% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets (Liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Inventory (Section 263A) | $191 | $233 |
Inventory reserves | 106 | 156 |
Receivable reserves | 197 | 29 |
Other accruals | 887 | 938 |
Deferred revenue | 1,142 | 1,256 |
Accumulated depreciation/amortization | 65 | -2 |
Stock options | 2,252 | 2,070 |
Developed technology | -2,941 | -3,464 |
Tax credits | 3,054 | 2,176 |
NOL carryforward | 34,690 | 34,059 |
Net deferred tax assets | 39,643 | 37,451 |
Valuation allowance | -39,643 | -37,451 |
Goodwill tax amortization | -79 | |
Deferred tax liability | ($79) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Income Tax Expense [Line Items] | |||
NOL carryforward | $95,600,000 | ||
Total net operating loss carryforward | 34,690,000 | 34,059,000 | |
Net operating losses | 815,000 | -1,776,000 | -5,412,000 |
Adjustment to liabilities or operations | 79,000 | 0 | |
Operating losses carryforwards | 13,800,000 | ||
Net operating losses | 2,000,000 | ||
Future Income tax liabilities offset With operation loss carryforward | 3,100,000 | ||
Tax credit carryforwards | 5,800,000 | ||
Tax credit carryforward expiration year | 2034 | ||
Unrecognized tax benefits | 0 | 0 | |
Xoft Inc [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Tax credit carryforwards | 1,800,000 | ||
Deferred tax assets | 0 | ||
Xoft Inc [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Total net operating loss carryforward | 25,200,000 | ||
Net operating losses | 0 | 0 | |
Xoft, Inc. Acquisition [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Operating losses carryforwards | 9,500,000 | ||
Net operating losses | $473,000 | ||
Minimum [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Expiring date of net operating loss carryforward | 2016 | ||
Maximum [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Expiring date of net operating loss carryforward | 2034 |
Segment_Reporting_Geographical2
Segment Reporting, Geographical Information and Major Customers - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | |||||||||||
Customer | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Number of reporting segments | 2 | ||||||||||
Total Export Sales | $13,165,000 | $12,572,000 | $9,667,000 | $8,520,000 | $9,135,000 | $8,290,000 | $7,712,000 | $7,930,000 | $43,924,000 | $33,067,000 | $28,275,000 |
Percentage of export sales to any single country | 10.00% | ||||||||||
Number of major customers | 1 | ||||||||||
GE Healthcare [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Outstanding receivables | 1,300,000 | 1,300,000 | |||||||||
Two Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Outstanding receivables | 900,000 | 900,000 | |||||||||
Oem [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Outstanding receivables | 1,900,000 | 1,900,000 | |||||||||
Six Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Outstanding receivables | 2,900,000 | 2,900,000 | |||||||||
Detection [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Total Export Sales | 18,604,000 | 16,905,000 | 17,262,000 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Total Export Sales | 0 | ||||||||||
Sales [Member] | GE Healthcare [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Total revenue | 4,100,000 | 3,700,000 | 4,500,000 | ||||||||
Sales [Member] | Customer Concentration Risk [Member] | GE Healthcare [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 9.40% | 11.00% | 16.00% | ||||||||
Sales [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 22.00% | ||||||||||
Sales [Member] | Detection [Member] | Customer Concentration Risk [Member] | Four Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 53.00% | ||||||||||
Accounts Receivable [Member] | GE Healthcare [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 15.00% | ||||||||||
Accounts Receivable [Member] | Two Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 10.00% | ||||||||||
Accounts Receivable [Member] | Oem [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 22.00% | ||||||||||
Accounts Receivable [Member] | Six Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 33.00% | ||||||||||
Foreign [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Total Export Sales | 1,800,000 | 1,900,000 | 2,900,000 | ||||||||
Percentage of export sales of total sale | 4.00% | 6.00% | 10.00% | ||||||||
Outstanding receivables | $300,000 | $300,000 | $300,000 | $300,000 |
Segment_Reporting_Summary_of_S
Segment Reporting - Summary of Segment Revenues, Gross Profit, Segment Operating Income or Loss and Reconciliation of Segment Operating Income or Loss to GAAP Loss (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment revenues: | |||||||||||
Total revenue | $13,165,000 | $12,572,000 | $9,667,000 | $8,520,000 | $9,135,000 | $8,290,000 | $7,712,000 | $7,930,000 | $43,924,000 | $33,067,000 | $28,275,000 |
Segment gross profit | 9,296,000 | 9,167,000 | 6,830,000 | 5,934,000 | 6,289,000 | 5,926,000 | 5,222,000 | 5,648,000 | 31,227,000 | 23,085,000 | 20,031,000 |
Segment operating income (loss): | |||||||||||
Segment operating income | 815,000 | -1,776,000 | -5,412,000 | ||||||||
General, administrative, depreciation and amortization expense | -8,284,000 | -6,740,000 | -6,966,000 | ||||||||
Interest expense | -2,640,000 | -3,277,000 | -3,415,000 | ||||||||
Gain on fair value of warrant | 1,835,000 | -2,448,000 | -539,000 | ||||||||
Other income | 37,000 | 19,000 | 35,000 | ||||||||
Loss on debt extinguishment | -903,000 | ||||||||||
Loss before income tax expense | -856,000 | -7,482,000 | -9,331,000 | ||||||||
Detection [Member] | |||||||||||
Segment revenues: | |||||||||||
Total revenue | 18,604,000 | 16,905,000 | 17,262,000 | ||||||||
Segment gross profit | 15,276,000 | 13,576,000 | 13,936,000 | ||||||||
Segment operating income (loss): | |||||||||||
Segment operating income | 7,231,000 | 5,016,000 | 4,274,000 | ||||||||
Therapy [Member] | |||||||||||
Segment revenues: | |||||||||||
Total revenue | 25,320,000 | 16,162,000 | 11,013,000 | ||||||||
Segment gross profit | 15,951,000 | 9,509,000 | 6,095,000 | ||||||||
Segment operating income (loss): | |||||||||||
Segment operating income | 1,868,000 | -52,000 | -2,720,000 | ||||||||
All Reporting Segments [Member] | |||||||||||
Segment operating income (loss): | |||||||||||
Segment operating income | $9,099,000 | $4,964,000 | $1,554,000 |
Segment_Reporting_Geographical3
Segment Reporting, Geographical Information and Major Customers - Summary of Segment Depreciation and Amortization Included in Segment Operating Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Depreciation | $1,256 | $706 | $891 |
Amortization | 2,270 | 1,724 | 1,904 |
Detection [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Depreciation | 188 | 175 | 144 |
Amortization | 515 | 517 | 519 |
Therapy [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Depreciation | 844 | 424 | 595 |
Amortization | $1,739 | $939 | $931 |
Commitment_and_Contingencies_A
Commitment and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2010 | Jul. 31, 2007 | Dec. 31, 2015 | Aug. 31, 2013 | |
Lease | |||||||
sqft | |||||||
Loss Contingencies [Line Items] | |||||||
Lease obligations | 3 | ||||||
Annual base rent for the first year | $1,513,000 | ||||||
Rent for the second year | 1,004,000 | ||||||
Rent for the third year | 89,000 | ||||||
Operating lease, annual base rent, first year | 482,000 | ||||||
Operating lease, annual rent, second year | 490,000 | ||||||
Operating lease, annual rent, third year | 255,000 | ||||||
Rent expense | 643,000 | 697,000 | 799,000 | ||||
Capital lease | 409,000 | ||||||
Capital lease agreement interest percentage | 3.99% | ||||||
Capital lease bargain purchase option amount | 1 | ||||||
Remaining purchase obligation | 200,000 | ||||||
Outstanding liability on equipment leases | 1,020,000 | 235,000 | |||||
Purchase obligations to suppliers for future product deliverables | 1,000,000 | ||||||
Minimum annual royalty payment | 250,000 | ||||||
Fair value of patent license | 100,000 | ||||||
Patent license, Estimated Amortizable Life | 4 years | ||||||
Minimum royalty obligations | 600,000 | ||||||
Estimated value of liability | 800,000 | ||||||
Jun-15 | 500,000 | ||||||
Jun-17 | 500,000 | ||||||
Litigation and settlement obligation, Total | 1,000,000 | ||||||
Area of office, manufacturing and warehousing space | 24,250 | ||||||
Employer matching Contribution | 400,000 | ||||||
Employer matching Contribution to be paid in next fiscal year | 500,000 | ||||||
CADx Medical Systems Inc. [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Tax re-assessment received | 6,800,000 | ||||||
Reduced tax re-assessment received | 703,000 | ||||||
DermEbx and Radion [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of equipment lease obligation | 2 | ||||||
Assumed capital leases | 2,600,000 | ||||||
Liability recorded on capital leases | 2,500,000 | ||||||
Outstanding liability on equipment leases | 2,100,000 | ||||||
Nashua [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Term of lease | 5 years | ||||||
Annual base rent for the first year | 181,764 | ||||||
Rent for the second year | 187,272 | ||||||
Rent for the third year | 192,780 | ||||||
Rent for the fourth year | 198,288 | ||||||
Rent for the fifth year | 203,796 | ||||||
Additional period to extend term of lease | 5 years | ||||||
San Jose California [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Operating lease, annual base rent, first year | 248,376 | ||||||
Operating lease, annual rent, second year | 260,064 | ||||||
Operating lease, annual rent, third year | 271,752 | ||||||
Operating lease, annual rent, fourth year | 283,440 | ||||||
Operating lease, annual rent, fifth year | $295,140 | ||||||
Lease extension period | 0 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future Minimum Rental Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $482 |
2016 | 490 |
2017 | 255 |
Total | $1,227 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments under Non-cancelable Capital Leases (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ||
2015 | $1,513 | |
2016 | 1,004 | |
2017 | 89 | |
subtotal minimum lease obligation | 2,606 | |
less interest | -292 | |
Total, net | 2,314 | |
less current portion | -1,294 | |
long term portion | $1,020 | $235 |
Quarterly_Financial_Data_Quart
Quarterly Financial Data - Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $13,165 | $12,572 | $9,667 | $8,520 | $9,135 | $8,290 | $7,712 | $7,930 | $43,924 | $33,067 | $28,275 |
Gross profit | 9,296 | 9,167 | 6,830 | 5,934 | 6,289 | 5,926 | 5,222 | 5,648 | 31,227 | 23,085 | 20,031 |
Net income (loss) | ($96) | $274 | ($997) | ($190) | ($4,410) | ($589) | ($1,882) | ($727) | ($1,009) | ($7,608) | ($9,374) |
Loss per share available to common stockholders | ($0.01) | $0.02 | ($0.07) | ($0.02) | ($0.41) | ($0.05) | ($0.17) | ($0.07) | |||
Weighted average number of shares outstanding | 15,541 | 15,283 | 14,074 | 11,429 | 10,863 | 10,849 | 10,836 | 10,820 |