Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 5-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ICAD | |
Entity Registrant Name | ICAD INC | |
Entity Central Index Key | 749660 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,669,239 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $20,274 | $32,220 |
Trade accounts receivable, net of allowance for doubtful accounts of $82 in 2015 and $203 in 2014 | 10,333 | 9,642 |
Inventory, net | 2,712 | 2,214 |
Prepaid expenses and other current assets | 599 | 540 |
Total current assets | 33,918 | 44,616 |
Property and equipment, net of accumulated depreciation of $5,248 in 2015 and $4,861 in 2014 | 4,101 | 4,255 |
Other assets | 94 | 132 |
Intangible assets, net of accumulated amortization of $15,510 in 2015 and $14,738 in 2014 | 16,725 | 17,504 |
Goodwill | 27,379 | 27,263 |
Total assets | 82,217 | 93,770 |
Current liabilities: | ||
Accounts payable | 2,165 | 2,151 |
Accrued and other expenses | 4,464 | 5,554 |
Interest payable | 180 | |
Notes and lease payable - current portion | 1,458 | 5,044 |
Deferred revenue | 9,942 | 9,120 |
Total current liabilities | 18,029 | 22,049 |
Deferred revenue, long-term portion | 1,134 | 1,525 |
Other long-term liabilities | 720 | 795 |
Capital lease - long-term portion | 737 | 1,020 |
Notes payable - long-term portion | 5,602 | |
Total liabilities | 20,620 | 30,991 |
Commitments and Contingencies (Note 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 15,844,320 in 2015 and 15,732,177 in 2014; outstanding 15,658,489 in 2015 and 15,546,346 in 2014 | 158 | 157 |
Additional paid-in capital | 209,774 | 209,100 |
Accumulated deficit | -146,920 | -145,063 |
Treasury stock at cost, 185,831 shares in 2015 and 2014 | -1,415 | -1,415 |
Total stockholders' equity | 61,597 | 62,779 |
Total liabilities and stockholders' equity | $82,217 | $93,770 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts on trade accounts receivable | $82 | $203 |
Property and equipment, accumulated depreciation and amortization | 5,248 | 4,861 |
Intangible assets, accumulated amortization | $15,510 | $14,738 |
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 | 15,844,320 | 15,732,177 |
Common stock, shares outstanding | 15,658,489 | 15,546,346 |
Treasury stock, shares | 185,831 | 185,831 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue: | ||
Products | $3,958 | $4,209 |
Service and supplies | 9,262 | 4,311 |
Total revenue | 13,220 | 8,520 |
Cost of revenue: | ||
Products | 941 | 1,180 |
Service and supplies | 2,278 | 1,075 |
Amortization and depreciation | 639 | 331 |
Total cost of revenue | 3,858 | 2,586 |
Gross profit | 9,362 | 5,934 |
Operating expenses: | ||
Engineering and product development | 2,256 | 1,862 |
Marketing and sales | 3,830 | 2,592 |
General and administrative | 2,213 | 1,689 |
Amortization and depreciation | 620 | 251 |
Total operating expenses | 8,919 | 6,394 |
Income (loss) from operations | 443 | -460 |
Loss from extinguishment of debt | -1,723 | |
Gain from change in fair value of warrant | 0 | 1,136 |
Interest expense | -507 | -817 |
Other income | 9 | 4 |
Other income (expense), net | -2,221 | 323 |
Loss before income tax | -1,778 | -137 |
Tax expense | -79 | -53 |
Net loss and comprehensive loss | ($1,857) | ($190) |
Net loss per share: | ||
Basic | ($0.12) | ($0.02) |
Diluted | ($0.12) | ($0.02) |
Weighted average number of shares used in computing loss per share: | ||
Basic | 15,605 | 11,429 |
Diluted | 15,605 | 11,429 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flow from operating activities: | ||
Net loss | ($1,857) | ($190) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Amortization | 774 | 373 |
Depreciation | 485 | 209 |
Bad debt provision | 32 | 14 |
Stock-based compensation expense | 444 | 325 |
Amortization of debt discount and debt costs | 300 | 183 |
Interest on settlement obligations | 45 | 52 |
Deferred tax provision | 118 | |
Loss on extinguishment of debt | 1,723 | |
Gain from change in fair value of warrant | 0 | -1,136 |
Loss on disposal of assets | 102 | |
Changes in operating assets and liabilities (net of the effect of the acquisition): | ||
Accounts receivable | -723 | 60 |
Inventory | -383 | -74 |
Prepaid and other current assets | -112 | 30 |
Accounts payable | 15 | -799 |
Accrued expenses | -1,562 | -593 |
Deferred revenue | 431 | -119 |
Total adjustments | 1,689 | -1,475 |
Net cash used for operating activities | -168 | -1,665 |
Cash flow from investing activities: | ||
Additions to patents, technology and other | -11 | -15 |
Additions to property and equipment | -534 | -202 |
Net cash used for investing activities | -545 | -217 |
Cash flow from financing activities: | ||
Issuance of common stock for cash, net | 28,243 | |
Stock option exercises | 291 | 287 |
Taxes paid related to restricted stock issuance | -60 | -101 |
Principal payments of capital lease obligations | -214 | -32 |
Principal repayment of debt financing, net | -11,250 | |
Net cash provided by (used for) financing activities | -11,233 | 28,397 |
Increase (decrease) in cash and equivalents | -11,946 | 26,515 |
Cash and equivalents, beginning of period | 32,220 | 11,880 |
Cash and equivalents, end of period | 20,274 | 38,395 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 367 | 483 |
Taxes paid | $38 | $56 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Note 1 - Basis of Presentation and Significant Accounting Policies |
The accompanying condensed consolidated financial statements of iCAD, Inc. and subsidiaries (“iCAD” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). In the opinion of management, these unaudited interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial position of the Company at March 31, 2015, the results of operations of the Company for the three month period ended March 31, 2015 and 2014, respectively, and cash flows of the Company for the three month period ended March 31, 2015 and 2014, respectively. Although the Company believes that the disclosures in these financial statements are adequate to make the information presented not misleading, certain information normally included in the footnotes prepared in accordance with US GAAP has been omitted as permitted by the rules and regulations of the Securities and Exchange Commission (“SEC”). The accompanying financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on March 13, 2015. The results for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2015, or any future period. | |
Revenue Recognition | |
The Company recognizes revenue primarily from the sale of products and from the sale of services and supplies. Revenue is recognized when delivery has occurred, persuasive evidence of an arrangement exists, fees are fixed or determinable and collectability of the related receivable is probable. For product revenue, delivery has occurred upon shipment provided title and risk of loss have passed to the customer. Services and supplies revenue are considered to be delivered as the services are performed or over the estimated life of the supply agreement. | |
The Company recognizes revenue from the sale of its digital, film-based CAD and 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 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 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 ASC 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 the following in service and supplies revenue: 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 | |
Cost of revenue consists of the costs of products purchased for resale, costs relating to service including personnel costs for physicists, management services and radiation therapists, costs of service contracts to maintain equipment after the warranty period, product installation, training, customer support, certain warranty repair costs, inbound freight and duty, cost of supplies, manufacturing, warehousing, material movement, inspection, scrap, rework, amortization, depreciation and in-house product warranty repairs. | |
In September 2014, 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. For the three months ended March 31, 2014, approximately $331,000 was reclassified to conform to current period classification. Included in cost of revenue related to the Medical Device Excise tax is approximately $199,000 and $179,000, for the three months ended March 31, 2015 and March 31, 2014, respectively. | |
Segments | |
The Company reports the results of two segments, Cancer Detection (“Detection”) and Cancer Therapy (“Therapy”). The Detection segment consists of our advanced image analysis and workflow products. The Therapy segment consists of our radiation therapy (“Axxent”) products, physics and management services, development fees, supplies, and the right to use the AxxentHub software platform. |
Loss_per_Common_Share
Loss per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Loss per Common Share | Note 2 - Loss per Common Share | ||||||||
The Company’s basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. | |||||||||
A summary of the Company’s calculation of net loss per share is as follows (in thousands except per share amounts): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss | $ | (1,857 | ) | $ | (190 | ) | |||
Basic shares used in the calculation of net loss per share | 15,605 | 11,429 | |||||||
Effect of dilutive securities: | |||||||||
Stock options | — | — | |||||||
Restricted stock | — | — | |||||||
Diluted shares used in the calculation of net loss per share | 15,605 | 11,429 | |||||||
Net loss per share - basic | $ | (0.12 | ) | $ | (0.02 | ) | |||
Net loss per share - diluted | $ | (0.12 | ) | $ | (0.02 | ) | |||
The shares of the Company’s common stock, issuable upon the exercise of stock options and warrants and vesting of restricted stock that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive is as follows: | |||||||||
Period Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Stock Options | 1,521,607 | 1,320,156 | |||||||
Warrants | — | 550,000 | |||||||
Restricted Stock | 509,902 | 157,484 | |||||||
Stock options, warrants and restricted stock | 2,031,509 | 2,027,640 | |||||||
Acquisition_of_DermEbx_and_Rad
Acquisition of DermEbx and Radion | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Business Combinations [Abstract] | |||||||
Acquisition of DermEbx and Radion | Note 3 – Acquisition of DermEbx and Radion | ||||||
On July 15, 2014, the Company entered into two Asset Purchase Agreements, one with Radion, Inc. (“Radion”) the other with DermEbx, a series of Radion Capital Partners LLC (“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 the following consideration to DermEbx: (i) $1,600,000 in cash and (ii) 600,000 restricted shares of the Company’s common stock, $0.01 par value per share. The 600,000 restricted shares are subject to the following provisions; 25% was locked up until the date that was two trading days after the Company announced its fourth quarter 2014 earnings, which occurred on March 2, 2015; 30% of the shares shall be locked up for a period of 24 months from the date of the agreement; and 30% of the shares shall be locked up for a period of 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 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 the following consideration to Radion: (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% of the shares were locked up until the date that is two trading days after the Company announces its fourth quarter 2014 earnings, which occurred on March 2, 2015; 30% of the shares shall be locked up for a period of 24 months from the date of the agreement; and 30% of the shares shall be locked up for a period of 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 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. Prior to the acquisition, the Sellers represented one of the Company’s significant customers in the Therapy segment. The Company recognized approximately $0.7 million of Therapy product revenue and approximately $0.2 million of Therapy service revenue, for a total of $0.9 million related to Sellers, in the quarter ended March 31, 2014. | |||||||
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 | 6,270 | ||||||
Current liabilities | (4,382 | ) | |||||
Long-term liabilities | (2,164 | ) | |||||
Purchase price | $ | 11,856 | |||||
The assets obtained in the acquisition of DermEbx and Radion and the resulting revenues are included in the Therapy segment and, accordingly, the goodwill resulting from the preliminary purchase price allocation is included in goodwill of the Therapy segment. | |||||||
The goodwill of approximately $6.3 million is deductible for income tax purposes. | |||||||
The unaudited proforma operating results for the Company for the three months ended March 31, 2014, assuming the acquisition of the assets of DermEbx and Radion occurred as of January 1, 2014 are as follows (in thousands except per share amounts): | |||||||
March 31, 2014 | |||||||
Three months | |||||||
Revenue | $ | 10,593 | |||||
Income from operations | 119 | ||||||
Net income | 296 | ||||||
Net income per share-basic | $ | 0.02 | |||||
Net income per share-diluted | $ | 0.02 | |||||
Basic | 12,629 | ||||||
Diluted | 13,337 |
Inventory
Inventory | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventory | Note 4 – Inventory | ||||||||
The components of inventory, net of allowance for obsolete, unmarketable or slow-moving inventories, are summarized as follows: | |||||||||
as of March 31, | as of December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 944 | $ | 955 | |||||
Work in process | 104 | 54 | |||||||
Finished Goods | 1,664 | 1,205 | |||||||
Inventory | $ | 2,712 | $ | 2,214 | |||||
Long_Term_Debt
Long Term Debt | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long Term Debt | Note 5 – Long Term Debt | ||||||||
On March 31, 2015, the Company repaid in full the aggregate amount outstanding under the Deerfield Facility Agreement, dated as of December 29, 2011 (as amended, supplemented or otherwise modified to the date hereof, the “Facility Agreement”), by and among the Company, Deerfield Private Design Fund II, L.P., Deerfield Private Design International II, L.P., and Deerfield Special Situations Fund, L.P. and, for itself and as assignee of the obligations held by Deerfield Special Situations Fund International Master Fund, L.P. The Facility Agreement and related documents were terminated as of March 31, 2015. The Facility Agreement was to mature on December 29, 2016 and was able to be repaid prior to the maturity date at the Company’s option without penalty or premium. On March 31, 2015, the Company used cash on hand to pay the $11.25 million outstanding principal amount due under the Facility Agreement and approximately $162,000 in accrued and unpaid interest on such principal amount. | |||||||||
The Company recorded a loss on the extinguishment of debt of approximately $1.7 million for the quarter ended March 31, 2015. | |||||||||
The following amounts compose interest expense included in our consolidated statement of operations for the three months ended March 31, 2015 and 2014: (in thousands) | |||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Cash interest expense | $ | 162 | $ | 578 | |||||
Non-cash amortization of debt discount | 254 | 135 | |||||||
Amortization of debt costs | 13 | 48 | |||||||
Amortization of settlement obligations | 45 | 52 | |||||||
Interest expense capital lease | 33 | 4 | |||||||
Total interest expense | $ | 507 | $ | 817 | |||||
Cash interest expense represents the amount of interest paid in cash under the Facility Agreement which represents the interest of 5.75% on the Facility Agreement for the three months ended March 31, 2015, Non-cash amortization is the amortization of the discount on the Facility Agreement. The amortization of debt costs relates to the costs incurred with the financing, which is primarily a facility fee and a finder’s fee that were capitalized and are being expensed using the effective interest method. The amortization of the settlement obligation represents the interest associated with the settlement agreements for both Carl Zeiss Meditec AG and Hologic, Inc (see Note 8). Interest expense capital lease represents interest related to the capital lease as described in Note 6. |
Lease_Commitments
Lease Commitments | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Lease Commitments | Note 6 – Lease Commitments | ||||
Operating leases | |||||
Facilities are leased under operating leases expiring at various dates through September, 2017. Certain of these leases contain renewal options. Rent expense under operating leases was $165,000 and $162,000 for the three month period ended March 31, 2015 and 2014, respectively. | |||||
Future minimum lease payments as of March 31, 2015 under operating leases are as follows: (in thousands) | |||||
Fiscal Year | Operating | ||||
Leases | |||||
2015 | $ | 381 | |||
2016 | 499 | ||||
2017 | 255 | ||||
$ | 1,135 | ||||
Capital leases | |||||
The Company entered into a capital lease agreement for the purchase of certain equipment in August 2013 for approximately $409,000. Under the guidance of ASC Topic 840, “Leases” (“ASC 840”) the Company determined that the lease was a capital lease as it contained a bargain purchase option whereby 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 is being depreciated over its useful life. | |||||
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 March 31, 2015, the outstanding liability for the acquired equipment leases was approximately $2.2 million. | |||||
Future minimum lease payments under all outstanding capital leases are as follows: (in thousands) | |||||
Fiscal Year | Capital | ||||
Leases | |||||
2015 | $ | 1,289 | |||
2016 | 1,039 | ||||
2017 | 89 | ||||
Subtotal minimum lease obligation | 2,417 | ||||
Less interest | (222 | ) | |||
Total, net | 2,195 | ||||
Less current portion | (1,458 | ) | |||
Long term portion | $ | 737 | |||
Kamal Gogineni is an employee of one of the Company’s subsidiaries and a beneficial owner of more than 5% of the Company’s common stock. Additionally, Mr. Gogineni is a 19% significant shareholder of Radion Capital Partners (“RCP”). RCP was the lessor under a lease between RCP and DermEbx (the “Lease”). In connection with the Company’s acquisition of assets of Radion and DermEbx that closed in July 2014, one of the assets and obligations that the Company acquired was the Lease. Pursuant to the Lease, the Company is obligated to pay a total of $1.0 million as of March 31, 2015 and the liability is included in the minimum lease payments above, with annual payments of $574,000 for the remainder of 2015, $396,000 in 2016 and $76,000 in 2017. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock-Based Compensation | Note 7 - Stock-Based Compensation | ||||||||
The Company follows the guidance in ASC Topic 718, “Compensation – Stock Compensation”, (“ASC 718”). | |||||||||
Options granted under the Company’s stock incentive plans were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Average risk-free interest rate | 0.88% | 0.80% | |||||||
Expected dividend yield | None | None | |||||||
Expected life | 3.5 years | 3.5 years | |||||||
Expected volatility | 65.3% to 67.1% | 64.2% to 65.6% | |||||||
Weighted average exercise price | $9.45 | $11.95 | |||||||
Weighted average fair value | $4.43 | $5.54 | |||||||
As of March 31, 2015 unrecognized compensation cost related to unexercisable options and unvested restricted stock and the weighted average remaining period is as follows: | |||||||||
Remaining expense | $ | 5,115,032 | |||||||
Weighted average term | 1.39 years | ||||||||
The Company’s aggregate intrinsic value for stock options and restricted stock outstanding is as follows (in thousands): | |||||||||
Period Ended | |||||||||
March 31, | |||||||||
Aggregate intrinsic value | 2015 | 2014 | |||||||
Stock options | $ | 6,651 | $ | 6,493 | |||||
Restricted stock | 4,885 | 1,443 |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 - Commitments and Contingencies |
Foreign Tax Claim | |
In July 2007, a dissolved former Canadian subsidiary of the Company, CADx Medical Systems Inc. (“CADx Medical”), received a tax re-assessment of approximately $6,800,000 from the Canada Revenue Agency (“CRA”) resulting from CRA’s audit of CADx Medical’s Canadian federal tax return for the year ended December 31, 2002. In February 2010 the CRA reviewed the matter and reduced the tax re-assessment to approximately $703,000, excluding interest and penalties. The Company believes that it is not liable for the re-assessment against CADx Medical and no accrual has been recorded for this matter as of March 31, 2015. | |
Settlement Obligations | |
In connection with the acquisition of Xoft, the Company recorded a royalty obligation pursuant to a settlement agreement entered into between Xoft and Hologic in August 2007. Xoft received a nonexclusive, irrevocable, perpetual, worldwide license, including the right to sublicense certain Hologic patents, and a non-compete covenant as well as an agreement not to seek further damages with respect to the alleged patent violations. In return, the Company has a remaining obligation to pay a minimum annual royalty payment to Hologic, of $250,000 payable through 2016. In addition to the minimum annual royalty payments, the litigation settlement agreement with Hologic also provided for payment of royalties based upon a specified percentage of future net sales on any products that utilize the licensed rights. The estimated fair value of the patent license and non-compete covenant is $100,000 and is being amortized over the then estimated remaining useful life of approximately six years. In addition, a liability has been recorded within accrued expenses and long-term settlement cost for future payment and for future minimum royalty obligations totaling $423,000. The Company recorded interest expense of approximately $18,000 and $24,000 in the three months ended March 31, 2015 and March 31, 2014, respectively, related to this obligation. | |
In December, 2011, the Company agreed to a settlement related to the litigation with Carl Zeiss Meditec AG. The Company is obligated to pay $0.5 million in June 2015 and $0.5 million in June 2017, for an aggregate remaining total of $1.0 million. As of March 31, 2015, the remaining liability recorded within accrued expenses and long-term settlement cost for future payment and for future minimum royalty obligations is $867,000. The Company recorded interest expense of approximately $28,000 in the three months ended March 31, 2015 and March 31, 2014, respectively, related to this obligation. | |
Other Commitments | |
The Company is obligated to pay approximately $2.3 million for firm purchase obligations to suppliers for future product deliverables. | |
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. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Note 9 - Fair Value Measurements | ||||||||||||||||
The Company follows the provisions of ASC Topic 820, “Fair Value Measurement and Disclosures”, (“ASC 820”). This topic defines fair value, establishes a framework for measuring fair value under US GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: | |||||||||||||||||
• | Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value. | ||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. | |||||||||||||||||
Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities and our notes payable. The carrying amounts of our cash and cash equivalents (which are composed primarily of deposit and overnight sweep accounts), accounts receivable, accounts payable and certain accrued liabilities approximate fair value due to the short maturity of these instruments. The carrying value of our notes payable approximates fair value due to the market rate of the stated interest rate. | |||||||||||||||||
The Company’s assets that are measured at fair value on a recurring basis relate to the Company’s money market accounts. | |||||||||||||||||
The Company’s money market funds are included in cash and cash equivalents in the accompanying balance sheets, and are considered a Level 1 investment as they are valued at quoted market prices in active markets. | |||||||||||||||||
The following table sets forth the 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 | |||||||||
Fair value measurements using: (000’s) as of March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Money market accounts | $ | 15,128 | $ | — | $ | — | $ | 15,128 | |||||||||
Total Assets | $ | 15,128 | $ | — | $ | — | $ | 15,128 | |||||||||
Items Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
Certain assets, including our goodwill, are measured at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be impaired. We did not consider any assets to be impaired during the three months ended March 31, 2015. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 - Income Taxes |
The provision for income taxes was $79,000 and $53,000, in the three months ended March 31, 2015 and 2014, respectively. The income tax provision relates primarily to state taxes. At March 31, 2015, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required under ASC 740, “Income Taxes”. The Company does not expect that the unrecognized tax benefits will materially increase within the next twelve months. The Company did not recognize any interest or penalties related to uncertain tax positions at March 31, 2015. The Company files United States federal income tax returns and income tax returns in various states and local jurisdictions. The Company’s three preceding tax years remain subject to examination by federal and state taxing authorities. In addition, because the Company has net operating loss carry-forwards, the Internal Revenue Service and state jurisdictions are permitted to audit earlier years and propose adjustments up to the amount of net operating loss generated in those years. The Company is not under examination by any federal or state jurisdiction for any tax years. |
Goodwill
Goodwill | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Goodwill | Note 10 – Goodwill | ||||||||||||
In accordance with FASB ASC Topic 350-20, “Intangibles – Goodwill and Other”, (“ASC 350-20”), the Company tests goodwill for impairment on an annual basis and between annual tests if events and circumstances indicate it is more likely than not that the fair value of the Company is less than the carrying value of the Company. | |||||||||||||
Factors the Company considers important, which could trigger an impairment of such asset, include the following: | |||||||||||||
• | significant underperformance relative to historical or projected future operating results; | ||||||||||||
• | significant changes in the manner or use of the assets or the strategy for the Company’s overall business; | ||||||||||||
• | significant negative industry or economic trends; | ||||||||||||
• | significant decline in the Company’s stock price for a sustained period; and | ||||||||||||
• | a decline in the Company’s market capitalization below net book value. | ||||||||||||
The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer (“CEO”). The two segments and reporting units are Cancer Detection (“Detection”) and Cancer Therapy (“Therapy”). Each reportable segment generates revenue from the sale of medical equipment and related services and/or sale of supplies. Goodwill was allocated to the reporting units based on the relative fair value of the reporting units as of June 2013, when the Company determined there were two segments. The assets obtained in the acquisition of DermEbx and Radion and the resulting revenues are included in the Therapy segment and, accordingly, the goodwill resulting from the preliminary purchase price allocation is included in goodwill of the Therapy segment. | |||||||||||||
The Company performed the 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. | |||||||||||||
We 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. When we evaluate potential impairments outside of our annual measurement date, judgment is required in determining whether an event has occurred that may impair the value of goodwill or intangible assets. We utilize 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. We make 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. | |||||||||||||
We 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. We use our internal forecasts to estimate future cash flows and include an estimate of long-term future growth rates based on our most recent views of the long-term forecast for each segment. Accordingly, actual results can differ from those assumed in our forecasts. Our discount rate of approximately 17% is derived from a capital asset pricing model and analyzing published rates for industries relevant to our reporting units to estimate the cost of equity financing. We use discount rates that are commensurate with the risks and uncertainty inherent in the respective businesses and in our internally developed forecasts. | |||||||||||||
In the market approach, we use 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 the fact that 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 our business. | |||||||||||||
We 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 our business profile, 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. Equally important, 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. We assess each valuation methodology based upon the relevance and availability of the data at the time we perform the valuation and weight the methodologies appropriately. | |||||||||||||
A roll forward 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 | — | ||||||||||
Acquisition of DermEbx and Radion | — | 6,270 | 6,270 | ||||||||||
Balance at March 31, 2015 | 7,663 | 19,716 | 27,379 | ||||||||||
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Reporting | Note 12 – 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 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, 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): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Segment revenues: | |||||||||
Detection | $ | 4,788 | $ | 4,175 | |||||
Therapy | 8,432 | 4,345 | |||||||
Total Revenue | $ | 13,220 | $ | 8,520 | |||||
Segment gross profit: | |||||||||
Detection | $ | 3,947 | $ | 3,364 | |||||
Therapy | 5,415 | 2,570 | |||||||
Segment gross profit | $ | 9,362 | $ | 5,934 | |||||
Segment operating income (loss): | |||||||||
Detection | 1,860 | 1,516 | |||||||
Therapy | 1,132 | (228 | ) | ||||||
Segment operating income | $ | 2,992 | $ | 1,288 | |||||
General, administrative, depreciation and amortization expense | $ | (2,549 | ) | $ | (1,748 | ) | |||
Interest expense | (507 | ) | (817 | ) | |||||
Gain on fair value of warrant | — | 1,136 | |||||||
Other income | 9 | 4 | |||||||
Loss on debt extinguishment | (1,723 | ) | — | ||||||
Loss before income tax | $ | (1,778 | ) | $ | (137 | ) | |||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Text Block [Abstract] | |
Recent Accounting Pronouncements | Note 13 - Recent Accounting Pronouncements |
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. We are currently evaluating the effect of this update on our financial statements and have not yet determined the method of initial application we will use. |
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 14 - Subsequent Event |
In April 2015, the Company purchased the VuComp M-Vu Breast Density software for a purchase price of $1.7 million, which was paid in cash at closing. | |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Revenue Recognition | Revenue Recognition | |||
The Company recognizes revenue primarily from the sale of products and from the sale of services and supplies. Revenue is recognized when delivery has occurred, persuasive evidence of an arrangement exists, fees are fixed or determinable and collectability of the related receivable is probable. For product revenue, delivery has occurred upon shipment provided title and risk of loss have passed to the customer. Services and supplies revenue are considered to be delivered as the services are performed or over the estimated life of the supply agreement. | ||||
The Company recognizes revenue from the sale of its digital, film-based CAD and 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 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 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 ASC 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 the following in service and supplies revenue: 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 | Cost of Revenue | |||
Cost of revenue consists of the costs of products purchased for resale, costs relating to service including personnel costs for physicists, management services and radiation therapists, costs of service contracts to maintain equipment after the warranty period, product installation, training, customer support, certain warranty repair costs, inbound freight and duty, cost of supplies, manufacturing, warehousing, material movement, inspection, scrap, rework, amortization, depreciation and in-house product warranty repairs. | ||||
In September 2014, 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. For the three months ended March 31, 2014, approximately $331,000 was reclassified to conform to current period classification. Included in cost of revenue related to the Medical Device Excise tax is approximately $199,000 and $179,000, for the three months ended March 31, 2015 and March 31, 2014, respectively. | ||||
Leases | Under the guidance of ASC Topic 840, “Leases” (“ASC 840”) the Company determined that the lease was a capital lease as it contained a bargain purchase option whereby 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. | |||
Compensation - Stock Compensation | The Company follows the guidance in ASC Topic 718, “Compensation – Stock Compensation”, (“ASC 718”). | |||
Litigation | 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. | ||||
Fair Value Measurement and Disclosures | The Company follows the provisions of ASC Topic 820, “Fair Value Measurement and Disclosures”, (“ASC 820”). This topic defines fair value, establishes a framework for measuring fair value under US GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: | |||
• | Level 1 – Quoted prices in active markets for identical assets or liabilities. | |||
• | Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||
• | Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value. | |||
Income Taxes | The provision for income taxes was $79,000 and $53,000, in the three months ended March 31, 2015 and 2014, respectively. The income tax provision relates primarily to state taxes. At March 31, 2015, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required under ASC 740, “Income Taxes”. The Company does not expect that the unrecognized tax benefits will materially increase within the next twelve months. The Company did not recognize any interest or penalties related to uncertain tax positions at March 31, 2015. The Company files United States federal income tax returns and income tax returns in various states and local jurisdictions. The Company’s three preceding tax years remain subject to examination by federal and state taxing authorities. In addition, because the Company has net operating loss carry-forwards, the Internal Revenue Service and state jurisdictions are permitted to audit earlier years and propose adjustments up to the amount of net operating loss generated in those years. The Company is not under examination by any federal or state jurisdiction for any tax years. | |||
Intangibles - Goodwill and Other | In accordance with FASB ASC Topic 350-20, “Intangibles – Goodwill and Other”, (“ASC 350-20”), the Company tests goodwill for impairment on an annual basis and between annual tests if events and circumstances indicate it is more likely than not that the fair value of the Company is less than the carrying value of the Company. | |||
Segments | In accordance with FASB Topic ASC 280, “Segments”, operating segments, are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. |
Loss_per_Common_Share_Tables
Loss per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Calculation of Net Loss per Share | A summary of the Company’s calculation of net loss per share is as follows (in thousands except per share amounts): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss | $ | (1,857 | ) | $ | (190 | ) | |||
Basic shares used in the calculation of net loss per share | 15,605 | 11,429 | |||||||
Effect of dilutive securities: | |||||||||
Stock options | — | — | |||||||
Restricted stock | — | — | |||||||
Diluted shares used in the calculation of net loss per share | 15,605 | 11,429 | |||||||
Net loss per share - basic | $ | (0.12 | ) | $ | (0.02 | ) | |||
Net loss per share - diluted | $ | (0.12 | ) | $ | (0.02 | ) | |||
Exercise of Stock Options and Warrants and Vesting of Restricted | The shares of the Company’s common stock, issuable upon the exercise of stock options and warrants and vesting of restricted stock that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive is as follows: | ||||||||
Period Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Stock Options | 1,521,607 | 1,320,156 | |||||||
Warrants | — | 550,000 | |||||||
Restricted Stock | 509,902 | 157,484 | |||||||
Stock options, warrants and restricted stock | 2,031,509 | 2,027,640 | |||||||
Acquisition_of_DermEbx_and_Rad1
Acquisition of DermEbx and Radion (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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 | 6,270 | ||||||
Current liabilities | (4,382 | ) | |||||
Long-term liabilities | (2,164 | ) | |||||
Purchase price | $ | 11,856 | |||||
Summary of Unaudited Proforma Operating Results, Acquisition | The unaudited proforma operating results for the Company for the three months ended March 31, 2014, assuming the acquisition of the assets of DermEbx and Radion occurred as of January 1, 2014 are as follows (in thousands except per share amounts): | ||||||
March 31, 2014 | |||||||
Three months | |||||||
Revenue | $ | 10,593 | |||||
Income from operations | 119 | ||||||
Net income | 296 | ||||||
Net income per share-basic | $ | 0.02 | |||||
Net income per share-diluted | $ | 0.02 | |||||
Basic | 12,629 | ||||||
Diluted | 13,337 |
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Components of Inventory | The components of inventory, net of allowance for obsolete, unmarketable or slow-moving inventories, are summarized as follows: | ||||||||
as of March 31, | as of December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 944 | $ | 955 | |||||
Work in process | 104 | 54 | |||||||
Finished Goods | 1,664 | 1,205 | |||||||
Inventory | $ | 2,712 | $ | 2,214 | |||||
Long_Term_Debt_Tables
Long Term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Interest Expense Included in Consolidated Income Statement | The following amounts compose interest expense included in our consolidated statement of operations for the three months ended March 31, 2015 and 2014: (in thousands) | ||||||||
Three months ended March 31, | |||||||||
2015 | 2014 | ||||||||
Cash interest expense | $ | 162 | $ | 578 | |||||
Non-cash amortization of debt discount | 254 | 135 | |||||||
Amortization of debt costs | 13 | 48 | |||||||
Amortization of settlement obligations | 45 | 52 | |||||||
Interest expense capital lease | 33 | 4 | |||||||
Total interest expense | $ | 507 | $ | 817 | |||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Future Minimum Lease Payments under Operating Leases | Future minimum lease payments as of March 31, 2015 under operating leases are as follows: (in thousands) | ||||
Fiscal Year | Operating | ||||
Leases | |||||
2015 | $ | 381 | |||
2016 | 499 | ||||
2017 | 255 | ||||
$ | 1,135 | ||||
Future Minimum Lease Payments under Non-cancelable Capital Leases | Future minimum lease payments under all outstanding capital leases are as follows: (in thousands) | ||||
Fiscal Year | Capital | ||||
Leases | |||||
2015 | $ | 1,289 | |||
2016 | 1,039 | ||||
2017 | 89 | ||||
Subtotal minimum lease obligation | 2,417 | ||||
Less interest | (222 | ) | |||
Total, net | 2,195 | ||||
Less current portion | (1,458 | ) | |||
Long term portion | $ | 737 | |||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Options Granted under Company's Stock Incentive Plans, Valuation Assumptions and Fair Values | Options granted under the Company’s stock incentive plans were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Average risk-free interest rate | 0.88% | 0.80% | |||||||
Expected dividend yield | None | None | |||||||
Expected life | 3.5 years | 3.5 years | |||||||
Expected volatility | 65.3% to 67.1% | 64.2% to 65.6% | |||||||
Weighted average exercise price | $9.45 | $11.95 | |||||||
Weighted average fair value | $4.43 | $5.54 | |||||||
Unrecognized Compensation Cost Related to Unexercisable Options and Unvested Restricted Stock and Weighted Average Remaining Period | As of March 31, 2015 unrecognized compensation cost related to unexercisable options and unvested restricted stock and the weighted average remaining period is as follows: | ||||||||
Remaining expense | $ | 5,115,032 | |||||||
Weighted average term | 1.39 years | ||||||||
Aggregate Intrinsic Value | The Company’s aggregate intrinsic value for stock options and restricted stock outstanding is as follows (in thousands): | ||||||||
Period Ended | |||||||||
March 31, | |||||||||
Aggregate intrinsic value | 2015 | 2014 | |||||||
Stock options | $ | 6,651 | $ | 6,493 | |||||
Restricted stock | 4,885 | 1,443 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Assets and Liabilities which are Measured at Fair Value on a Recurring Basis | The following table sets forth the 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 | |||||||||
Fair value measurements using: (000’s) as of March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets | |||||||||||||||||
Money market accounts | $ | 15,128 | $ | — | $ | — | $ | 15,128 | |||||||||
Total Assets | $ | 15,128 | $ | — | $ | — | $ | 15,128 | |||||||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Roll Forward of Goodwill Activity by Reportable Segment | A roll forward of goodwill activity by reporting unit is as follows: | ||||||||||||
Detection | Therapy | Total | |||||||||||
Accumulated Goodwill | $ | — | $ | — | $ | 47,937 | |||||||
Accumulated impairment | — | — | (26,828 | ) | |||||||||
Fair value allocation | 7,663 | 13,446 | — | ||||||||||
Acquisition of DermEbx and Radion | — | 6,154 | 6,154 | ||||||||||
Balance at December 31, 2014 | 7,663 | 19,600 | 27,263 | ||||||||||
Acquisition measurement period adjustments | — | 116 | 116 | ||||||||||
Balance at March 31, 2015 | $ | 7,663 | $ | 19,716 | $ | 27,379 | |||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Segment revenues: | |||||||||
Detection | $ | 4,788 | $ | 4,175 | |||||
Therapy | 8,432 | 4,345 | |||||||
Total Revenue | $ | 13,220 | $ | 8,520 | |||||
Segment gross profit: | |||||||||
Detection | $ | 3,947 | $ | 3,364 | |||||
Therapy | 5,415 | 2,570 | |||||||
Segment gross profit | $ | 9,362 | $ | 5,934 | |||||
Segment operating income (loss): | |||||||||
Detection | 1,860 | 1,516 | |||||||
Therapy | 1,132 | (228 | ) | ||||||
Segment operating income | $ | 2,992 | $ | 1,288 | |||||
General, administrative, depreciation and amortization expense | $ | (2,549 | ) | $ | (1,748 | ) | |||
Interest expense | (507 | ) | (817 | ) | |||||
Gain on fair value of warrant | — | 1,136 | |||||||
Other income | 9 | 4 | |||||||
Loss on debt extinguishment | (1,723 | ) | — | ||||||
Loss before income tax | $ | (1,778 | ) | $ | (137 | ) | |||
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Segment | ||
Basis Of Presentation And Significant Accounting Policies [Abstract] | ||
Cost of revenue related to Medical Device Excise tax | $199,000 | $179,000 |
Cost of revenue excluding depreciation and amortization | $331,000 | |
Business segment | 2 |
Loss_per_Common_Share_Calculat
Loss per Common Share - Calculation of Net Loss per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net loss | ($1,857) | ($190) |
Basic shares used in the calculation of net loss per share | 15,605 | 11,429 |
Effect of dilutive securities: | ||
Diluted shares used in the calculation of net loss per share | 15,605 | 11,429 |
Net loss per share - basic | ($0.12) | ($0.02) |
Net loss per share - diluted | ($0.12) | ($0.02) |
Stock Options [Member] | ||
Effect of dilutive securities: | ||
Incremental common shares attributable to share-based payment arrangements | 0 | 0 |
Restricted Stock [Member] | ||
Effect of dilutive securities: | ||
Incremental common shares attributable to share-based payment arrangements | 0 | 0 |
Loss_per_Common_Share_Exercise
Loss per Common Share - Exercise of Stock Options and Warrants and Vesting of Restricted (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options, warrants and restricted stock | 2,031,509 | 2,027,640 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options, warrants and restricted stock | 1,521,607 | 1,320,156 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options, warrants and restricted stock | 550,000 | |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options, warrants and restricted stock | 509,902 | 157,484 |
Acquisition_of_DermEbx_and_Rad2
Acquisition of DermEbx and Radion - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jul. 15, 2014 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||||
Common stock, par value | $0.01 | $0.01 | ||
Revenue from products | $3,958,000 | $4,209,000 | ||
Revenue from services | 9,262,000 | 4,311,000 | ||
Total revenue | 13,220,000 | 8,520,000 | ||
Goodwill deductible for income tax purposes | 27,379,000 | 27,263,000 | ||
Cancer Therapy [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenue from products | 700,000 | |||
Revenue from services | 200,000 | |||
Total revenue | 900,000 | |||
Goodwill deductible for income tax purposes | 19,716,000 | 19,600,000 | ||
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% of the shares were locked up until the date that is two trading days after the Company announces its fourth quarter 2014 earnings, which occurred on March 2, 2015; 30% of the shares shall be locked up for a period of 24 months from the date of the agreement; and 30% of the shares shall be locked up for a period of 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 | 6,300,000 | 6,270,000 | ||
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 | |||
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 |
Acquisition_of_DermEbx_and_Rad3
Acquisition of DermEbx and Radion - Preliminary Allocation of Purchase Price Based on Estimated Fair Values of Assets Acquired and liabilities Assumed (Detail) (USD $) | 0 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 15, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $27,379 | $27,263 | |
Radion Inc [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | 3,457 | ||
Property and equipment | 2,625 | ||
Identifiable intangible assets | 6,050 | ||
Goodwill | 6,270 | 6,300 | |
Current liabilities | -4,382 | ||
Long-term liabilities | -2,164 | ||
Purchase price | 11,856 | ||
Minimum [Member] | Radion Inc [Member] | |||
Business Acquisition [Line Items] | |||
Property and equipment, Estimated amortizable life | 3 years | ||
Estimated amortizable life | 5 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_DermEbx_and_Rad4
Acquisition of DermEbx and Radion - Summary of Unaudited Proforma Operating Results, Acquisition (Detail) (DermEbx and Radion [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
DermEbx and Radion [Member] | |
Business Acquisition [Line Items] | |
Revenue | $10,593 |
Income from operations | 119 |
Net income | 296 |
Net income per share-basic | $0.02 |
Net income per share-diluted | $0.02 |
Basic | 12,629 |
Diluted | $13,337 |
Components_of_Inventory_Detail
Components of Inventory (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $944 | $955 |
Work in process | 104 | 54 |
Finished Goods | 1,664 | 1,205 |
Inventory | $2,712 | $2,214 |
Long_Term_Debt_Additional_Info
Long Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Financing Arrangements [Line Items] | ||
Payment of accrued and unpaid interest | $367,000 | $483,000 |
Repayment of debt | 11,250,000 | |
Loss on extinguishment of debt | -1,723,000 | |
Facility Agreement [Member] | ||
Financing Arrangements [Line Items] | ||
Debt instrument, maturity date | 29-Dec-16 | |
Payment of accrued and unpaid interest | 162,000 | |
Repayment of debt | $11,250,000 | |
Interest on facility agreement | 5.75% |
Long_Term_Debt_Interest_Expens
Long Term Debt - Interest Expense Included in Consolidated Income Statement (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest Expense, Debt [Abstract] | ||
Cash interest expense | $162 | $578 |
Non-cash amortization of debt discount | 254 | 135 |
Amortization of debt costs | 13 | 48 |
Amortization of settlement obligations | 45 | 52 |
Interest expense capital lease | 33 | 4 |
Total interest expense | $507 | $817 |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Aug. 31, 2013 | |
Schedule Of Leases [Line Items] | ||||
Rent expense under operating leases | $165,000 | $162,000 | ||
Operating leases expiring description | Facilities are leased under operating leases expiring at various dates through September, 2017. | |||
Capital lease | 409,000 | |||
Capital lease bargain purchase option amount | 1 | |||
Outstanding liability on equipment leases | 737,000 | 1,020,000 | ||
Employee stock ownership percentage | 51.00% | |||
Annual lease payments in 2015 | 1,289,000 | |||
Annual lease payments in 2016 | 1,039,000 | |||
Annual lease payments in 2017 | 89,000 | |||
Total lease payments | 2,195,000 | |||
Minimum [Member] | ||||
Schedule Of Leases [Line Items] | ||||
Employee stock ownership percentage | 5.00% | |||
DermEbx and Radion [Member] | ||||
Schedule Of Leases [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 | 2,200,000 | |||
Annual lease payments in 2015 | 574,000 | |||
Annual lease payments in 2016 | 396,000 | |||
Annual lease payments in 2017 | 76,000 | |||
Total lease payments | $1,000,000 |
Lease_Commitments_Future_Minim
Lease Commitments - Future Minimum Lease Payments under Operating Leases (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
2015 | $381 |
2016 | 499 |
2017 | 255 |
Total | $1,135 |
Lease_Commitments_Future_Minim1
Lease Commitments - Future Minimum Lease Payments under Non-cancelable Capital Leases (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Leases [Abstract] | ||
2015 | $1,289 | |
2016 | 1,039 | |
2017 | 89 | |
Subtotal minimum lease obligation | 2,417 | |
Less interest | -222 | |
Total, net | 2,195 | |
Less current portion | -1,458 | |
Long term portion | $737 | $1,020 |
StockBased_Compensation_Option
Stock-Based Compensation - Options Granted under Company's Stock Incentive Plans, Valuation Assumptions and Fair Values (Detail) (Stock Options [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average risk-free interest rate | 0.88% | 0.80% |
Expected dividend yield | 0.00% | 0.00% |
Expected life | 3 years 6 months | 3 years 6 months |
Weighted average exercise price | $9.45 | $11.95 |
Weighted average fair value | $4.43 | $5.54 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 65.30% | 64.20% |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 67.10% | 65.60% |
StockBased_Compensation_Unreco
Stock-Based Compensation - Unrecognized Compensation Cost Related to Unexercisable Options and Unvested Restricted Stock and Weighted Average Remaining Period (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | |
Remaining expense | $5,115,032 |
Weighted average term | 1 year 4 months 21 days |
StockBased_Compensation_Aggreg
Stock-Based Compensation - Aggregate Intrinsic Value (Detail) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value, Stock option | $6,651 | $6,493 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value, Restricted stock | $4,885 | $1,443 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2015 | Feb. 28, 2010 | Jul. 31, 2007 | Mar. 31, 2014 | |
Loss Contingencies [Line Items] | ||||
Minimum annual royalty payment | $250,000 | |||
Fair value of patent license | 100,000 | |||
Patent license, estimated amortizable life | 6 years | |||
Minimum royalty obligations | 423,000 | |||
Jun-15 | 500,000 | |||
Jun-17 | 500,000 | |||
Litigation and settlement obligation, Total | 1,000,000 | |||
Royalty obligation non-current | 867,000 | |||
Purchase obligations to suppliers for future product deliverables | 2,300,000 | |||
CADx Medical Systems Inc. [Member] | ||||
Loss Contingencies [Line Items] | ||||
Tax re-assessment received | 6,800,000 | |||
Reduced tax re-assessment received | 703,000 | |||
Hologic [Member] | ||||
Loss Contingencies [Line Items] | ||||
Interest expense royalty obligation | 18,000 | 24,000 | ||
Zeiss [Member] | ||||
Loss Contingencies [Line Items] | ||||
Interest expense royalty obligation | $28,000 | $28,000 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities which are Measured at Fair Value on a Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Total Assets | $15,128 | $26,530 |
Money Market Accounts [Member] | ||
Assets | ||
Total Assets | 15,128 | 26,530 |
Level 1 [Member] | ||
Assets | ||
Total Assets | 15,128 | 26,530 |
Level 1 [Member] | Money Market Accounts [Member] | ||
Assets | ||
Total Assets | $15,128 | $26,530 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Asset impairment charges | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $0 | |
Adjustment to liabilities or operations | 0 | |
Interest or penalties related to uncertain tax positions | 0 | |
Company preceding tax years | 3 years | |
Income tax provision | $79,000 | $53,000 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Segment | ||
Goodwill [Line Items] | ||
Number of reporting segments | 2 | |
Percentage of discount derived from capital asset pricing model | 17.00% | |
Detection [Member] | ||
Goodwill [Line Items] | ||
Percentage of fair value of each reporting unit | 315.00% | |
Cancer Therapy [Member] | ||
Goodwill [Line Items] | ||
Percentage of fair value of each reporting unit | 255.00% |
Goodwill_Roll_Forward_of_Goodw
Goodwill - Roll Forward of Goodwill Activity by Reportable Segment (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Line Items] | |
Accumulated Goodwill | $47,937 |
Accumulated impairment | -26,828 |
Acquisition of DermEbx and Radion | 6,154 |
Goodwill Balance | 27,263 |
Acquisition measurement period adjustments | 116 |
Goodwill Balance | 27,379 |
Detection [Member] | |
Goodwill [Line Items] | |
Fair value allocation | 7,663 |
Goodwill Balance | 7,663 |
Goodwill Balance | 7,663 |
Cancer Therapy [Member] | |
Goodwill [Line Items] | |
Fair value allocation | 13,446 |
Acquisition of DermEbx and Radion | 6,154 |
Goodwill Balance | 19,600 |
Acquisition measurement period adjustments | 116 |
Goodwill Balance | $19,716 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment | ||
Schedule Of Geographical Information [Line Items] | ||
Number of reporting segments | 2 | |
Total export sales | $13,220 | $8,520 |
Intersegment Eliminations [Member] | ||
Schedule Of Geographical Information [Line Items] | ||
Total export sales | $0 |
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 | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment revenues: | ||
Total revenue | $13,220 | $8,520 |
Segment gross profit: | ||
Segment gross profit | 9,362 | 5,934 |
Segment operating income (loss): | ||
Segment operating income | 443 | -460 |
General, administrative, depreciation and amortization expense | -2,549 | -1,748 |
Interest expense | -507 | -817 |
Gain on fair value of warrant | 0 | 1,136 |
Other income | 9 | 4 |
Loss on debt extinguishment | -1,723 | |
Loss before income tax | -1,778 | -137 |
Cancer Therapy [Member] | ||
Segment revenues: | ||
Total revenue | 900 | |
Operating Segments [Member] | ||
Segment revenues: | ||
Total revenue | 13,220 | 8,520 |
Segment operating income (loss): | ||
Segment operating income | 2,992 | 1,288 |
Operating Segments [Member] | Detection [Member] | ||
Segment revenues: | ||
Total revenue | 4,788 | 4,175 |
Segment gross profit: | ||
Segment gross profit | 3,947 | 3,364 |
Segment operating income (loss): | ||
Segment operating income | 1,860 | 1,516 |
Operating Segments [Member] | Cancer Therapy [Member] | ||
Segment revenues: | ||
Total revenue | 8,432 | 4,345 |
Segment gross profit: | ||
Segment gross profit | 5,415 | 2,570 |
Segment operating income (loss): | ||
Segment operating income | $1,132 | ($228) |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (VuComp M-Vu Breast Density Software [Member], Subsequent Event [Member], USD $) | 1 Months Ended |
Apr. 30, 2015 | |
VuComp M-Vu Breast Density Software [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Purchase price | $1.70 |