Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 21, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ICAD | ||
Entity Registrant Name | ICAD INC | ||
Entity Central Index Key | 749,660 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 16,157,466 | ||
Entity Public Float | $ 70,242,336 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 8,585 | $ 15,280 |
Trade accounts receivable, net of allowance for doubtful accounts of $172 in 2016 and $236 in 2015 | 5,189 | 7,488 |
Inventory, net | 3,727 | 4,315 |
Prepaid expenses and other current assets | 1,128 | 684 |
Assets held for sale | 1,304 | |
Total current assets | 19,933 | 27,767 |
Property and equipment: | ||
Equipment | 7,180 | 7,049 |
Leasehold improvements | 62 | 62 |
Furniture and fixtures | 305 | 295 |
Marketing assets | 376 | 376 |
Total property and equipment | 7,923 | 7,782 |
Less accumulated depreciation and amortization | 6,538 | 5,475 |
Net property and equipment | 1,385 | 2,307 |
Other assets: | ||
Other assets | 53 | 94 |
Intangible assets, net of accumulated amortization of $7,518 in 2016 and $10,896 in 2015 | 3,183 | 4,274 |
Goodwill | 14,097 | 14,198 |
Total other assets | 17,333 | 18,566 |
Total assets | 38,651 | 48,640 |
Current liabilities: | ||
Accounts payable | 1,577 | 1,593 |
Accrued expenses | 4,988 | 4,220 |
Capital lease payable, short-term portion | 86 | 969 |
Deferred revenue | 5,372 | 7,497 |
Liabilities held for sale | 832 | |
Total current liabilities | 12,855 | 14,279 |
Other long-term liabilities | 83 | 29 |
Deferred revenue, long-term portion | 668 | 1,079 |
Settlement costs, long-term portion | 421 | |
Capital lease - long-term portion | 0 | 86 |
Deferred tax | 7 | |
Total liabilities | 13,613 | 15,894 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock, $ .01 par value: authorized 1,000,000 shares; none issued. | ||
Common stock, $ .01 par value: authorized 30,000,000 shares; issued 16,260,663 in 2016 and 15,923,349 in 2015; outstanding 16,074,832 in 2016 and 15,737,518 in 2015 | 163 | 159 |
Additional paid-in capital | 213,899 | 211,512 |
Accumulated deficit | (187,609) | (177,510) |
Treasury stock at cost, 185,831 shares in 2016 and 2015 | (1,415) | (1,415) |
Total stockholders' equity | 25,038 | 32,746 |
Total liabilities and stockholders' equity | $ 38,651 | $ 48,640 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts on trade accounts receivable | $ 172 | $ 236 |
Intangible assets, accumulated amortization | $ 7,518 | $ 10,896 |
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 | 30,000,000 | 30,000,000 |
Common stock, shares issued | 16,260,663 | 15,923,349 |
Common stock, shares outstanding | 16,074,832 | 15,737,518 |
Treasury stock, shares | 185,831 | 185,831 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | |||
Products | $ 10,471 | $ 14,198 | $ 18,683 |
Service and supplies | 15,867 | 27,356 | 25,241 |
Total revenue | 26,338 | 41,554 | 43,924 |
Cost of Revenue: | |||
Products | 918 | 3,130 | 4,912 |
Service and supplies | 5,713 | 7,357 | 6,000 |
Amortization and depreciation | 1,189 | 1,717 | 1,785 |
Total cost of revenue | 7,820 | 12,204 | 12,697 |
Gross profit | 18,518 | 29,350 | 31,227 |
Operating expenses: | |||
Engineering and product development | 9,518 | 9,163 | 8,159 |
Marketing and sales | 10,179 | 12,404 | 12,468 |
General and administrative | 7,675 | 8,788 | 8,044 |
Amortization and depreciation | 1,116 | 1,631 | 1,741 |
Goodwill and long-lived asset impairment | 27,443 | ||
Total operating expenses | 28,488 | 59,429 | 30,412 |
Income (loss) from operations | (9,970) | (30,079) | 815 |
Other (expense) income: | |||
Interest expense | (63) | (650) | (2,640) |
Gain from change in fair value of warrant liability | 1,835 | ||
Loss from extinguishment of debt | (1,723) | (903) | |
Interest income | 10 | 21 | 37 |
Other expense, net | (53) | (2,352) | (1,671) |
Loss before income tax expense | (10,023) | (32,431) | (856) |
Income tax expense | 76 | 16 | 153 |
Net loss and comprehensive loss | $ (10,099) | $ (32,447) | $ (1,009) |
Net loss per share: | |||
Basic | $ (0.63) | $ (2.07) | $ (0.07) |
Diluted | $ (0.63) | $ (2.07) | $ (0.07) |
Weighted average number of shares used in computing loss per share: | |||
Basic | 15,932 | 15,686 | 14,096 |
Diluted | 15,932 | 15,686 | 14,096 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2013 | $ 21,377 | $ 111 | $ 166,735 | $ (144,054) | $ (1,415) |
Beginning Balance, shares at Dec. 31, 2013 | 11,084,119 | ||||
Issuance of common stock relative to vesting of restricted stock, net of 9,904, 13,058 and 27,299 shares forfeited for tax obligations in 2014, 2015 and 2016 respectively | (111) | $ 1 | (112) | ||
Issuance of common stock relative to vesting of restricted stock, net of 9,904, 13,058 and 27,299 shares forfeited for tax obligations in 2014, 2015 and 2016 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 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 | ||||
Issuance of common stock relative to vesting of restricted stock, net of 9,904, 13,058 and 27,299 shares forfeited for tax obligations in 2014, 2015 and 2016 respectively | (87) | $ 1 | (88) | ||
Issuance of common stock relative to vesting of restricted stock, net of 9,904, 13,058 and 27,299 shares forfeited for tax obligations in 2014, 2015 and 2016 respectively,Shares | 111,700 | ||||
Issuance of common stock pursuant to stock option plans | $ 366 | $ 1 | 365 | ||
Issuance of common stock pursuant to stock option plans, shares | 79,472 | 79,472 | |||
Stock-based compensation | $ 2,135 | 2,135 | |||
Net loss | (32,447) | (32,447) | |||
Ending Balance at Dec. 31, 2015 | 32,746 | $ 159 | 211,512 | (177,510) | (1,415) |
Ending Balance, shares at Dec. 31, 2015 | 15,923,349 | ||||
Issuance of common stock relative to vesting of restricted stock, net of 9,904, 13,058 and 27,299 shares forfeited for tax obligations in 2014, 2015 and 2016 respectively | (114) | $ 3 | (117) | ||
Issuance of common stock relative to vesting of restricted stock, net of 9,904, 13,058 and 27,299 shares forfeited for tax obligations in 2014, 2015 and 2016 respectively,Shares | 261,731 | ||||
Issuance of common stock pursuant to stock option plans | $ 198 | $ 1 | 197 | ||
Issuance of common stock pursuant to stock option plans, shares | 75,583 | 75,583 | |||
Stock-based compensation | $ 2,307 | 2,307 | |||
Net loss | (10,099) | (10,099) | |||
Ending Balance at Dec. 31, 2016 | $ 25,038 | $ 163 | $ 213,899 | $ (187,609) | $ (1,415) |
Ending Balance, shares at Dec. 31, 2016 | 16,260,663 |
Consolidated Statements of Sha6
Consolidated Statements of Shareholders' Equity (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares forfeited for tax obligations | 27,299 | 13,058 | 9,904 |
Common Stock [Member] | |||
Shares forfeited for tax obligations | 27,299 | 13,058 | 9,904 |
Additional Paid-in Capital [Member] | |||
Shares forfeited for tax obligations | 27,299 | 13,058 | 9,904 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flow from operating activities: | |||
Net loss | $ (10,099,000) | $ (32,447,000) | $ (1,009,000) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | |||
Amortization | 983,000 | 1,768,000 | 2,270,000 |
Depreciation | 1,322,000 | 1,580,000 | 1,256,000 |
Bad debt provision | 177,000 | 383,000 | 167,000 |
Stock-based compensation expense | 2,307,000 | 2,135,000 | 1,318,000 |
Amortization of debt discount and debt costs | (23,000) | 341,000 | 1,246,000 |
Gain from acquisition settlement | (249,000) | ||
Goodwill and long-lived asset impairment | 27,443,000 | ||
Interest on settlement obligations | 82,000 | 146,000 | 206,000 |
Deferred tax liability | 7,000 | ||
Loss (gain) from change in fair value of warrant liability | (1,835,000) | ||
Loss on disposal of assets | 10,000 | 125,000 | |
Loss on extinguishment of debt | 1,723,000 | 903,000 | |
Changes in operating assets and liabilities, net of acquisition: | |||
Accounts receivable | 2,201,000 | 1,772,000 | (840,000) |
Inventory | 596,000 | (1,987,000) | (323,000) |
Prepaid and other assets | (504,000) | (197,000) | 11,000 |
Accounts payable | (16,000) | (557,000) | 150,000 |
Accrued expenses | 309,000 | (2,060,000) | 296,000 |
Deferred revenue | (2,581,000) | (2,068,000) | (612,000) |
Total adjustments | 4,621,000 | 30,547,000 | 4,213,000 |
Net cash (used for) provided by operating activities | (5,478,000) | (1,900,000) | 3,204,000 |
Cash flow from investing activities: | |||
Additions to patents, technology and other | (12,000) | (40,000) | (50,000) |
Additions to property and equipment | (337,000) | (932,000) | (1,214,000) |
Net cash used for investing activities | (355,000) | (2,672,000) | (4,746,000) |
Cash flow from financing activities: | |||
Issuance of common stock for cash, net | 28,214,000 | ||
Stock option exercises | 198,000 | 366,000 | 708,000 |
Warrant exercise | 1,575,000 | ||
Taxes paid related to restricted stock issuance | (114,000) | (87,000) | (110,000) |
Principal payments of capital lease obligations | (946,000) | (1,397,000) | (655,000) |
Principal repayment of debt financing, net | (11,250,000) | (7,850,000) | |
Net cash (used for) provided by financing activities | (862,000) | (12,368,000) | 21,882,000 |
Increase (decrease) in cash and equivalents | (6,695,000) | (16,940,000) | 20,340,000 |
Cash and equivalents, beginning of year | 15,280,000 | 32,220,000 | 11,880,000 |
Cash and equivalents, end of year | 8,585,000 | 15,280,000 | 32,220,000 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 70,000 | 558,000 | 1,637,000 |
Taxes paid | 67,000 | 128,000 | 157,000 |
Non-cash items from investing and financing activities: | |||
Settlement of warrant liability with purchase of common stock | 2,151,000 | ||
Issuance of common stock related to acquisition of Radion, Inc and DermEbx | 8,556,000 | ||
VuComp M-Vu CAD [Member] | |||
Cash flow from investing activities: | |||
Acquisition | $ (6,000) | ||
VuComp M-Vu Breast Density Product [Member] | |||
Cash flow from investing activities: | |||
Acquisition | $ (1,700,000) | ||
DermEbx and Radion [Member] | |||
Cash flow from investing activities: | |||
Acquisition | $ (3,482,000) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 a 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 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 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 management believes 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 operations, 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 advanced image analysis and workflow products, and the Therapy segment consists of 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 8 for segment, major customer and geographical information. 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 (d) Financial instruments Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and notes payable. 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, 2016 and 2015. (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, 2016 and 2015 is adequate. The following table summarizes the allowance for doubtful accounts for the three years ended December 31, 2016 (in thousands): 2016 2015 2014 Balance at beginning of period $ 236 $ 203 $ 73 Additions charged to costs and expenses 177 383 167 Reductions (241 ) (350 ) (37 ) Balance at end of period $ 172 $ 236 $ 203 (f) Inventory Inventory is valued at the lower of cost or market value, with cost determined by the first-in, first-out As of December 31, 2016 2015 Raw materials $ 2,503 $ 2,900 Work in process 75 154 Finished Goods 1,149 1,261 Inventory $ 3,727 $ 4,315 (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, if shorter, for leasehold improvements (see below). Estimated life Equipment 3-5 years Leasehold improvements 3-5 Furniture and fixtures 3-5 Marketing assets 3-5 (h) Long Lived Assets In accordance with FASB ASC Topic 360, “Property, Plant and Equipment”, (“ASC 360”), the Company assesses long-lived assets for impairment if events and circumstances indicate it is more likely than not that the fair value of the asset group is less than the carrying value of the asset group. ASC 360-10-35 360-10-35-21, • A significant decrease in the market price of a long-lived asset (asset group); • A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; • A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; • An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); • A current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group). As a result of external factors and general uncertainty related to reimbursement for the treatment of non-melanoma In accordance with ASC 360-10-35-17, In connection with the preparation of the financial statements for the second quarter ended June 30, 2015, the Company completed its analysis pursuant to ASC 360-10-35-17 A considerable amount of judgment and assumptions are required in performing the impairment tests, principally in determining the fair value of the Asset Group. While the Company believes the judgments and assumptions are reasonable, different assumptions could change the estimated fair values, and, therefore additional impairment charges could be required. Significant negative industry or economic trends, disruptions to the Company’s business, loss of significant customers, inability to effectively integrate acquired businesses, unexpected significant changes or planned changes in use of the assets may adversely impact the assumptions used in the fair value estimates and ultimately result in future impairment charges. 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 VuComp, 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 2016 and 2015 are as follows (in thousands): 2016 2015 Weighted Gross Carrying Amount Patents and licenses $ 583 $ 579 5 years Technology 9,567 14,075 10 years Customer relationships 292 268 7 years Tradename 259 248 10 years Total amortizable intangible assets 10,701 15,170 Accumulated Amortization Patents and licenses $ 477 $ 451 Technology 6,754 9,996 Customer relationships 28 201 Tradename 259 248 Total accumulated amortization 7,518 10,896 Total amortizable intangible assets, net $ 3,183 $ 4,274 Amortization expense related to intangible assets was approximately $983,000, $1,768,000 and $2,270,000 for the years ended December 31, 2016, 2015, and 2014, respectively. Estimated remaining amortization of the Company’s intangible assets is as follows (in thousands): For the years ended December 31: Estimated 2017 $ 574 2018 511 2019 499 2020 370 2021 311 Thereafter 918 $ 3,183 (i) Goodwill In accordance with FASB Accounting Standards Codification (“ASC”) Topic 350-20, “Intangibles - Goodwill and Other” 350-20”), 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 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 reporting units. 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. As a result of external factors and general uncertainty related to reimbursement for non-melanoma The implied fair value of the Therapy reporting unit was determined in the same manner as the manner in which the amount of goodwill recognized in a business combination is determined. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied amount of goodwill. The Company identified the intangible assets that were valued during this process, including technology, customer relationships and trade-names. The allocation process was performed only for purposes of testing goodwill for impairment. The Company determined the fair value of the Therapy reporting unit based on the present value of estimated future cash flows, discounted at an appropriate risk adjusted rate. This approach was selected as it measures the income producing assets, primarily technology and customer relationships. This method estimates the fair value based upon the ability to generate future cash flows, which is particularly applicable when future profit margins and growth are expected to vary significantly from historical operating results. The Company uses 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 the reporting unit. 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 unit 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. Other significant assumptions include terminal value margin rates, future capital expenditures, and changes in future working capital requirements. While there are inherent uncertainties related to the assumptions used and to the application of these assumptions to this analysis, the income approach provides a reasonable estimate of the fair value of the Therapy reporting unit. The Step 2 test resulted in an approximate fair value of goodwill of $5.7 million which resulted in a goodwill impairment loss of $14.0 million for the quarter ended June 30, 2015. The Company performed an annual impairment assessment at October 1, 2016 and compared the fair value of each reporting unit to its carrying value as of this date. Fair value was approximately 816% of carrying value for the Detection reporting unit and 126% of carrying value 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 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 15% 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 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. In April 2015, the Company acquired VuComp’s M-Vu ® In January 2016, the Company completed the acquisition of VuComp’s M-Vu In December, 2016, the Company entered into an Asset Purchase Agreement with Invivo Corporation. The Company will sell and convey to Buyer all right, title and interest to certain intellectual property relating to the VersaVue Software and the DynaCAD product and related assets. As a result of the agreement, the Company determined that it had assets held for sale as of December 31, 2016 and the sale constituted the sale of a business. As of December 31, 2016, the Company allocated $394,000 of goodwill to assets held for sale. The allocation was based on the fair value of the assets sold relative to the fair value of the Detection reporting unit as of the date of the agreement. A rollforward of goodwill activity by reportable segment is as follows (in thousands): 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 Acquisition of VuComp 800 — 800 Impairment — (13,981 ) (13,981 ) Balance at December 31, 2015 8,463 5,735 14,198 Acquisition of VuComp 293 — 293 Sale of MRI assets (394 ) — (394 ) Balance at December 31, 2016 $ 8,362 $ 5,735 $ 14,097 Accumulated Goodwill 699 6,270 54,906 Fair value allocation 7,663 13,446 — Accumulated impairment — (13,981 ) (40,809 ) Balance at December 31, 2016 $ 8,362 $ 5,735 $ 14,097 (j) Revenue Recognition The Company recognizes revenue primarily from the sale of products, 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 Arrangement 2009-13”) No. 2009-14, Certain Arrangements That Contain Software Elements 2009-14”) 985-605, “Software” 985-605”). Leases” 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 2009-14. 2009-13. Revenue from certain CAD products is recognized in accordance with ASC 985-605. 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. 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 (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 (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 the cost of product returns during the warranty period. Warranty provisions and claims for the years ended December 31, 2016, 2015 and 2014, were as follows (in thousands): 2016 2015 2014 Beginning accrual balance $ 19 $ 14 $ 25 Warranty provision 47 54 58 Usage (55 ) (49 ) (69 ) Ending accrual balance $ 11 $ 19 $ 14 The warranty accrual above includes long-term warranty obligations of $0, $2,000 and $5,000 for the years ended December 31, 2016, 2015 and 2014 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, 2016, 2015 and 2014 was approximately $955,000, $950,000 and $882,000 respectively. (o) Net Loss per Common Share The Company follows FASB ASC 260-10, A summary of the Company’s calculation of net loss per share is as follows (in thousands, except per share amounts): 2016 2015 2014 Net loss available to common shareholders $ (10,099 ) $ (32,447 ) $ (1,009 ) Basic shares used in the calculation of earnings per share 15,932 15,686 14,096 Effect of dilutive securities: Stock options — — — Restricted stock — — — Diluted shares used in the calculation of earnings per share 15,932 15,686 14,096 Net loss per share : Basic $ (0.63 ) $ (2.07 ) $ (0.07 ) Diluted $ (0.63 ) $ (2.07 ) $ (0.07 ) 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: 2016 2015 2014 Common stock options 1,425,348 1,571,998 1,417,887 Restricted Stock 511,398 516,396 309,317 1,936,746 2,088,394 1,727,204 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, 2016 and 2015, 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 740-10 740-10 de-recognition, (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. The fair value of restricted stock is determined based on the stock price of the underlying option on the date of the grant. The Company granted performance based restricted stock during 2016 based on achievement of certain revenue targets. Compensation cost for performance based restricted stock requires significant judgment regarding probability of the performance objectives and compensation cost is re-measured 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 money market funds are included in cash and cash equivalents in the accompanying balance sheet, and are considered a level 1 investment as they are valued at quoted market prices in active markets. The following table sets forth Company’s assets 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, 2016 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 6,622 $ — $ — $ 6,622 Total Assets $ 6,622 $ — $ — $ 6,622 Fair value measurements using: (000’s) as of December 31, 2015 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 13,577 $ — $ — $ 13,577 Total Assets $ 13,577 $ — $ — $ 13,577 Items Measured at Fair Value on a Nonrecurring Basis Certain assets, including long-lived assets and goodwill, are measured at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be impaired. In 2015 the Company recorded a $27.4 million impairment consisting of $14.0 million related to goodwill and $13.4 million related to long-lived assets as discussed in Note (h) and Note (i) and re-measured (s) Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, 2014-09, 2016-08, 2016-10, No. 2014-09. 2014-09 one-year 2014-09 2014-09, In February 2016, the FASB issued ASU No. 2016-02, right-of-use off-balance In March 2016, the FASB issued ASU 2016-09, 2016-09 In August 2016, the FASB issued ASU 2016-15, |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | (2) Acquisitions Acquisition of VuComp Cancer detection portfolio On January 13, 2016, the Company completed the acquisition of the VuCOMP cancer detection portfolio, including the M-Vu As noted below, the Company acquired VuComp’s M-Vu Amount (000’s) Cash $ 6 Acquisition litigation settlement 249 Purchase price $ 255 The amount allocated to the acquired assets was estimated primarily through the use of discounted cash flow valuation techniques. Appraisal assumptions utilized under this method include a forecast of estimated future net cash flows, as well as discounting the future net cash flows to their present value. The following is a summary of the allocation of the total purchase price based on the estimated fair values as of the date of the acquisition and the amortizable life: Amount (000’s) Estimated amortizable life Current assets $ 84 Property and equipment 65 3 Years Identifiable intangible assets 699 1-10 Years Goodwill 293 Current liabilities (280 ) Long-term liabilities (606 ) Purchase price $ 255 The assets obtained in the acquisition of VuComp’s M-Vu M-Vu Acquisition of VuComp M-Vu On April 29, 2015, pursuant to the terms of the Asset Purchase Agreement with VuComp, the Company purchased VuComp’s M-Vu Business Combinations The amount allocated to the acquired assets was estimated primarily through the use of discounted cash flow valuation techniques. Appraisal assumptions utilized under this method include a forecast of estimated future net cash flows, as well as discounting the future net cash flows to their present value. The acquired technology is being amortized over the estimated useful life of approximately eight years and nine months from the closing of the transaction. The following is a summary of the allocation of the total purchase price based on the estimated fair values as of the date of the acquisition and the amortizable life (in thousands): Amount Estimated Amortizable Life Developed Technology $ 900 8 years 9 months Goodwill 800 Purchase price $ 1,700 The assets obtained in the acquisition of VuComp’s M-Vu |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | (3) Assets and Liabilities Held for Sale In December, 2016, the Company entered into an Asset Purchase Agreement with Invivo Corporation. In accordance with the agreement, the Company sold to Invivo all right, title and interest to certain intellectual property relating to the Company’s VersaVue Software and DynaCAD product and related assets for $3.2 million. The Company closed the transaction in January 2017 less a holdback reserve of $350,000 for a net of approximately $2.9 million. In accordance with ASC 360-10-35-43, In addition the Company determined the sale constituted the sale of a business in accordance with ASC 805. In connection with the transaction, the Company allocated $394,000 of goodwill to assets held for sale. The allocation was based on the fair value of the assets sold relative to the fair value of the Detection reporting unit as of the date of the agreement, based on the guidance from ASC 350-20-40-3. Assets and liabilities held for sale at December 31, 2016 are as follows (in thousands): Assets Held for Sale Accounts Receivable $ 98 Inventory 2 Intangible assets 810 Allocated Goodwill 394 Total 1,304 Liabilities Held for Sale Deferred Revenue $ 832 Total $ 832 The Company expects to record an approximate gain of $2.5 million as of the closing date. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | (4) 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 consisted 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”). 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. On March 31, 2015, the Company repaid in full the aggregate amount outstanding under the Deerfield Facility Agreement. 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. 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 at the termination date in the quarter ended March 31, 2015. The following amounts are included in interest expense in our consolidated statement of operations for the years ended December 31, 2016 and 2015 (in thousands): December 31, 2016 December 31, 2015 Cash interest expense $ — $ 163 Non-cash — 254 Amortization of debt costs — 13 Amortization of settlement obligations 82 146 Interest expense capital lease 70 220 Capital lease - fair value amortization (89 ) (146 ) Total interest expense $ 63 $ 650 Cash interest expense represents the amount of interest paid in cash under the agreements, which represents the interest of 5.75% on the Facility Agreement that was terminated in March 2015. Non-cash |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (5) Accrued Expenses Accrued expenses consist of the following at December 31 (in thousands): 2016 2015 Accrued salary and related expenses $ 1,878 $ 1,765 Accrued accounts payable 2,269 1,518 Accrued professional fees 316 425 Accrued short term settlement costs 474 418 Other accrued expenses 48 52 Deferred rent 3 42 $ 4,988 $ 4,220 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | (6) Stockholders’ Equity (a) Stock Options The Company has five stock option or stock incentive plans, which are described as follows: 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 Non-qualifying 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 Non-qualifying 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 Non-qualifying 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, 2016, there were 57,260 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, 2016, there were 155,964 shares available for issuance under the 2012 Plan. The 2016 Stock Incentive Plan (the “2016 Plan”). The 2016 Plan was adopted by the Company’s stockholders in May 2016. The 2016 Plan provides for the grant of any or all of the following types of awards: (a) non-qualified Subject to anti-dilution adjustments as provided in the 2016 Plan, (i) the 2016 Plan provides for a total of 1,700,000 shares of the Company’s common stock to be available for distribution pursuant to the 2016 Plan, and (ii) the maximum number of shares of the Company’s common stock with respect to which stock options or stock appreciation rights may be granted to any one individual under the 2016 Plan during any one calendar year period may not exceed 1,000,000 shares. No more than 1,000,000 shares of common stock may be issued in the form of incentive stock options and no more than 50,000 shares of stock may be issued pursuant to awards to non-employee The 2016 Plan provides that it will be administered by the Company’s Compensation Committee. The Compensation Committee has the authority to administer the 2016 Plan, determine participants, from among the individuals eligible for awards, who will be granted awards under the 2016 Plan, make any combination of awards to participants and determine the specific terms and conditions of awards subject to the 2016 Plan. Awards under the 2016 Plan may be granted to full or part-time officers, employees, non-employee With respect to stock options granted under the 2016 Plan, the exercise price will be determined by the Compensation Committee but may not be less than 100% of the fair market value of the common stock subject to the award, determined as of the date of grant. Regarding incentive stock options, including that the aggregate grant date fair market value of the shares of stock with respect to which incentive stock options granted under the 2016 Plan and any other plan of the Company or its parent and subsidiary corporations become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent that any incentive stock option exceeds this limit, it shall constitute a non-qualified A summary of stock option activity for all stock option plans is as follows: Number of Weighted Average Weighted Average Outstanding, January 1, 2014 1,334,955 $ 4.75 Granted 281,043 $ 8.08 Exercised (162,528 ) $ 4.36 Forfeited (35,583 ) $ 13.62 Outstanding, December 31, 2014 1,417,887 $ 4.34 Granted 363,239 $ 6.58 Exercised (79,472 ) $ 4.60 Forfeited (129,656 ) $ 7.38 Outstanding, December 31, 2015 1,571,998 $ 5.05 Granted 127,500 $ 5.46 Exercised (75,583 ) $ 2.62 Forfeited (198,567 ) $ 6.19 Outstanding, December 31, 2016 1,425,348 $ 5.05 6.1 years Exercisable at December 31, 2014 955,210 $ 4.43 Exercisable at December 31, 2015 1,087,725 $ 4.33 Exercisable at December 31, 2016 1,054,211 $ 4.71 5.2 years Available for future grants at December 31, 2016 from all plans: 1,482,947 The Company’s stock-based compensation expense, including options and restricted stock by category is as follows (amounts in thousands): Years Ended December 31, 2016 2015 2014 Cost of revenue $ 6 $ 14 $ 13 Engineering and product development 329 223 165 Marketing and sales 677 659 353 General and administrative expense 1,295 1,239 787 $ 2,307 $ 2,135 $ 1,318 As of December 31, 2016, there was $3.8 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 1.1 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, 2016 2015 2014 Average risk-free interest rate 0.98% 0.97% 0.85% Expected dividend yield None None None Expected life 3.5 years 3.5 years 3.5 years Expected volatility 68.5% to 75.3% 60.5% to 75.2% 64.2% to 69.4% Weighted average exercise price $5.46 $6.58 $8.09 Weighted average fair value $2.66 $3.17 $3.84 The Company’s 2016, 2015 and 2014, 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 Intrinsic values of options (in thousands) and the closing market price used to determine the intrinsic values are as follows: Years Ended December 31, 2016 2015 2014 Outstanding $ 409 $ 1,910 $ 6,343 Exercisable 409 1,610 4,624 Exercised 201 317 1,081 stock price at 12/31 $ 3.24 $ 5.17 $ 9.17 (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. The Company granted a total of 162,500 shares of performance based restricted stock during 2016 with performance measured on meeting a revenue target based on growth for fiscal year 2017 and vesting in three equal installments with the first installment vesting upon measurement of the goal. In addition, a maximum of 108,333 additional shares are available to be earned based on exceeding the revenue goal. Assumptions used to determine the value of performance based grants of restricted stock include the probability of achievement of the specified revenue targets. Compensation cost for performance based restricted stock requires significant judgment regarding probability of achieving the performance objectives and compensation cost is re-measured A summary of restricted stock activity for all equity incentive plans is as follows: Years Ended December 31, 2016 2015 2014 Beginning outstanding balance 516,396 309,317 216,250 Granted 345,778 352,666 180,500 Vested (289,030 ) (124,758 ) (85,434 ) Forfeited (61,746 ) (20,829 ) (1,999 ) Ending outstanding balance 511,398 516,396 309,317 Intrinsic values of restricted stock (in thousands) and the closing market price used to determine the intrinsic values are as follows: Years Ended December 31, 2016 2015 2014 Outstanding $ 1,657 $ 2,670 $ 2,836 Vested 936 645 783 stock price at 12/31 $ 3.24 $ 5.17 $ 9.17 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes The components of income tax expense for the years ended December 31, 2016, 2015 and 2014 are as follows (in thousands): 2016 2015 2014 Current provision (benefit): Federal $ — $ — $ (44 ) State 69 95 118 $ 69 $ 95 $ 74 Deferred provision: Federal $ 6 $ (65 ) $ 65 State 1 (14 ) 14 $ 7 $ (79 ) $ 79 Total $ 76 $ 16 $ 153 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, 2016, 2015 and 2014 is as follows: 2016 2015 2014 Federal statutory rate 34.0 % 34.0 % 34.0 % State income taxes, net of federal benefit 2.8 % 2.5 % 5.5 % Net state impact of deferred rate change 0.2 % (0.1 %) 13.0 % Stock compensation expense (3.2 %) (10.7 %) (9.6 %) Tax amortization on goodwill (0.1 %) 0.2 % (9.0 %) Loss on warrant 0.0 % 0.0 % 71.6 % Other permanent differences (0.4 %) (0.1 %) (1.1 %) Change in valuation allowance (37.3 %) (26.6 %) (222.6 %) Tax credits 3.2 % 0.9 % 100.8 % Effective income tax (0.8 %) 0.1 % (17.4 %) 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 composed of the following at December 31 (in thousands): 2016 2015 Inventory (Section 263A) $ 418 $ 588 Inventory reserves 105 106 Receivable reserves 65 159 Other accruals 434 591 Deferred revenue 215 367 Accumulated depreciation/amortization 477 417 Stock options 2,558 2,529 Developed technology 3,594 3,554 Tax credits 3,090 2,765 NOL carryforward 40,865 36,706 Net deferred tax assets 51,821 47,782 Valuation allowance (51,821 ) (47,782 ) Goodwill tax amortization (7 ) Deferred tax liability $ (7 ) $ — The increase in net deferred tax assets and corresponding valuation allowance is primarily attributable to additional net operating losses, additional research and development credits, and differences in amortization periods on the Company’s intangible assets. The Company completed an asset acquisition in January 2016 which resulted in $293,307 of goodwill. For book purposes, the goodwill was classified as an indefinite lived asset and tested for impairment each year. For tax, the Company is allowed amortization expense over a 15 year life. Due to the indefinite life of the asset for book purposes, the Company could not assume there would be a deferred tax asset available to offset the liability in future years. This created a tax expense in 2016 equal to the tax effected amount of tax amortization, or $6,844 in 2016. As of December 31, 2016, the Company has net operating loss carryforwards totaling approximately $111.7 million expiring between 2019 and 2036. A portion of the total net operating loss carryforwards amounting to approximately $35.3 million relate to the acquisition of Xoft, Inc. As of December 31, 2016, 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, 2016 or 2015. The Company currently has approximately $13.8 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 relates to Xoft, Inc.) can be used annually through 2035. 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 $3.1 million. 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 2036. ASC 740-10 de-recognition, As of December 31, 2016 and 2015, the Company had no unrecognized tax benefits and no adjustments to liabilities or operations were required under ASC 740-10. The Company does not anticipate that it is reasonably possible that unrecognized tax benefits as of December 31, 2016 will significantly change within the next 12 months. |
Segment Reporting, Geographical
Segment Reporting, Geographical Information and Major Customers | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting, Geographical Information and Major Customers | (8) Segment Reporting, Geographical Information and Major Customers (a) Segment Reporting In accordance with FASB Topic ASC 280, “ Segments 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 and Cancer 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 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, 2016 2015 2014 Segment revenues: Detection $ 17,133 $ 19,243 $ 18,604 Therapy 9,205 22,311 25,320 Total Revenue $ 26,338 $ 41,554 $ 43,924 Segment gross profit: Detection $ 15,113 $ 16,019 $ 15,276 Therapy 3,405 13,331 15,951 Segment gross profit $ 18,518 $ 29,350 $ 31,227 Segment operating income (loss): Detection $ 5,694 $ 7,233 $ 7,231 Therapy (7,752 ) (28,405 ) 1,868 Segment operating income (loss) $ (2,058 ) $ (21,172 ) $ 9,099 General, administrative, depreciation and amortization expense $ (7,912 ) $ (8,907 ) $ (8,284 ) Interest expense (63 ) (650 ) (2,640 ) Gain (loss) on fair value of warrant — — 1,835 Other income 10 21 37 Loss on debt extinguishment — (1,723 ) (903 ) Loss before income tax $ (10,023 ) $ (32,431 ) $ (856 ) Segment depreciation and amortization included in segment operating income (loss) is as follows (in thousands): Detection depreciation and amortization Depreciation $ 223 $ 220 $ 188 Amortization 696 532 515 Therapy depreciation and amortization Depreciation $ 970 $ 1,142 $ 844 Amortization 252 1,213 1,739 (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 $2.3 million or 9% of total revenue in 2016, $2.3 million or 6% of total revenue in 2015 and $1.8 million or 4% of total revenue in 2014. As of December 31, 2016 and 2015, the Company had outstanding receivables of $0.3 million and $0.5 million, respectively, 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 revenues of approximately $3.9 million in 2016, $4.1 million in 2015, and $4.1 million in 2014 or 15%, 10%, and 9% of total revenue, respectively. Cancer detection products are also sold through OEM partners, including GE Healthcare, Fuji Medical Systems, Siemens Medical, Vital Images and Invivo. For the year ended December 31, 2016, these five OEM partners composed approximately 47% of Detection revenues and 30% of revenue overall. OEM partners composed 53% of Detection revenues and 25% of revenue overall for the year ended December 31, 2015 and 53% of Detection revenues and 22% of revenue overall for the year ended December 31, 2014. OEM partners represented $1.5 million or 28% of outstanding receivables as of December 31, 2016, with GE Healthcare accounting for $1.3 million or 23% of this amount. The two largest Cancer Therapy customers composed $0.6 million or 12% of outstanding receivables as of December 31, 2016. These six customers in total represented $2.1 million or 40% of outstanding receivables as of December 31, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (9) Commitments and Contingencies (a) Lease Obligations As of December 31, 2016, the Company had three lease obligations related to its facilities. The Company’s executive offices are leased pursuant to a five-year lease (the “Lease”) that commenced on December 15, 2006, with renewals in January, 2012 and August 2016 consisting of approximately 11,000 square feet of office space located at 98 Spit Brook Road, Suite 100 in Nashua, New Hampshire (the “Premises”). The August 2016 Lease renewal provides for an annual base rent of $184,518 for the period from March 2017 to February 2020. 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 leases a facility in San Jose California under a non-cancelable 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, 2016, 2015 and 2014 was $745,000, $663,000 and $643,000, respectively. Future minimum rental payments due under these agreements as of December 31, 2016 are as follows (in thousands): Fiscal Year Operating 2017 $ 579 2018 738 2019 746 2020 174 Total $ 2,237 (b) Capital lease obligations In connection with the acquisition of the assets of DermEbx and Radion in 2014, 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, 2016, the outstanding liability for the acquired equipment leases was approximately $0.1 million. Future minimum lease payments under all outstanding capital leases are as follows (in thousands): Fiscal Year Capital Leases 2017 $ 89 subtotal minimum lease obligation 89 less interest (3 ) Total, net 86 less current portion (86 ) Long term portion $ — Related Party Lease: Kamal Gogineni is an employee of one of the Company’s subsidiaries and a shareholder of the Company’s common stock. Additionally, Mr. Gogineni is a 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 $0.1 million and the liability is included in the minimum lease payments above, with remaining annual payments of $76,000 in 2017. (c) Other Commitments The Company has non-cancelable (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. Christopher and Ms. Stevens, a period of eighteen months 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 re-assessment re-assessment (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 non-compete During December, 2011, the Company settled litigation with Zeiss and as of December 31, 2016, has a remaining obligation to pay $0.5 million in June 2017. The present value of the liability is estimated at approximately $0.4 million as of December 31, 2016. (g) Litigation The Company may be 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, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | (10) Quarterly Financial Data Net sales Gross Net loss Income (loss) Weighted average number of 2016 First quarter $ 6,038 $ 4,186 $ (2,533 ) ($ 0.16 ) 15,826 Second quarter 7,369 5,702 $ (1,575 ) ($ 0.10 ) 15,904 Third quarter 6,003 4,101 $ (2,675 ) ($ 0.17 ) 15,957 Fourth quarter 6,928 4,529 $ (3,316 ) ($ 0.20 ) 16,214 2015 First quarter $ 13,220 $ 9,362 $ (1,857 ) ($ 0.12 ) 15,605 Second quarter 11,143 7,878 $ (27,786 )* ($ 1.77 ) 15,679 Third quarter 9,582 6,821 $ (402 ) ($ 0.03 ) 15,725 Fourth quarter 7,609 5,289 $ (2,402 ) ($ 0.15 ) 15,733 (*) - includes goodwill and long-lived asset impairment of $27.4 million |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [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 a 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 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 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 management believes 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 operations, 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 advanced image analysis and workflow products, and the Therapy segment consists of 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 8 for segment, major customer and geographical information. 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 |
Financial instruments | (d) Financial instruments Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and notes payable. 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, 2016 and 2015. |
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, 2016 and 2015 is adequate. The following table summarizes the allowance for doubtful accounts for the three years ended December 31, 2016 (in thousands): 2016 2015 2014 Balance at beginning of period $ 236 $ 203 $ 73 Additions charged to costs and expenses 177 383 167 Reductions (241 ) (350 ) (37 ) Balance at end of period $ 172 $ 236 $ 203 |
Inventory | (f) Inventory Inventory is valued at the lower of cost or market value, with cost determined by the first-in, first-out As of December 31, 2016 2015 Raw materials $ 2,503 $ 2,900 Work in process 75 154 Finished Goods 1,149 1,261 Inventory $ 3,727 $ 4,315 |
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, if shorter, for leasehold improvements (see below). Estimated life Equipment 3-5 years Leasehold improvements 3-5 Furniture and fixtures 3-5 Marketing assets 3-5 |
Long Lived Assets | (h) Long Lived Assets In accordance with FASB ASC Topic 360, “Property, Plant and Equipment”, (“ASC 360”), the Company assesses long-lived assets for impairment if events and circumstances indicate it is more likely than not that the fair value of the asset group is less than the carrying value of the asset group. ASC 360-10-35 360-10-35-21, • A significant decrease in the market price of a long-lived asset (asset group); • A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; • A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; • An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); • A current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group). As a result of external factors and general uncertainty related to reimbursement for the treatment of non-melanoma In accordance with ASC 360-10-35-17, In connection with the preparation of the financial statements for the second quarter ended June 30, 2015, the Company completed its analysis pursuant to ASC 360-10-35-17 A considerable amount of judgment and assumptions are required in performing the impairment tests, principally in determining the fair value of the Asset Group. While the Company believes the judgments and assumptions are reasonable, different assumptions could change the estimated fair values, and, therefore additional impairment charges could be required. Significant negative industry or economic trends, disruptions to the Company’s business, loss of significant customers, inability to effectively integrate acquired businesses, unexpected significant changes or planned changes in use of the assets may adversely impact the assumptions used in the fair value estimates and ultimately result in future impairment charges. 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 VuComp, 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 2016 and 2015 are as follows (in thousands): 2016 2015 Weighted Gross Carrying Amount Patents and licenses $ 583 $ 579 5 years Technology 9,567 14,075 10 years Customer relationships 292 268 7 years Tradename 259 248 10 years Total amortizable intangible assets 10,701 15,170 Accumulated Amortization Patents and licenses $ 477 $ 451 Technology 6,754 9,996 Customer relationships 28 201 Tradename 259 248 Total accumulated amortization 7,518 10,896 Total amortizable intangible assets, net $ 3,183 $ 4,274 Amortization expense related to intangible assets was approximately $983,000, $1,768,000 and $2,270,000 for the years ended December 31, 2016, 2015, and 2014, respectively. Estimated remaining amortization of the Company’s intangible assets is as follows (in thousands): For the years ended December 31: Estimated 2017 $ 574 2018 511 2019 499 2020 370 2021 311 Thereafter 918 $ 3,183 |
Goodwill | (i) Goodwill In accordance with FASB Accounting Standards Codification (“ASC”) Topic 350-20, “Intangibles - Goodwill and Other” 350-20”), 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 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 reporting units. 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. As a result of external factors and general uncertainty related to reimbursement for non-melanoma The implied fair value of the Therapy reporting unit was determined in the same manner as the manner in which the amount of goodwill recognized in a business combination is determined. The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied amount of goodwill. The Company identified the intangible assets that were valued during this process, including technology, customer relationships and trade-names. The allocation process was performed only for purposes of testing goodwill for impairment. The Company determined the fair value of the Therapy reporting unit based on the present value of estimated future cash flows, discounted at an appropriate risk adjusted rate. This approach was selected as it measures the income producing assets, primarily technology and customer relationships. This method estimates the fair value based upon the ability to generate future cash flows, which is particularly applicable when future profit margins and growth are expected to vary significantly from historical operating results. The Company uses 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 the reporting unit. 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 unit 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. Other significant assumptions include terminal value margin rates, future capital expenditures, and changes in future working capital requirements. While there are inherent uncertainties related to the assumptions used and to the application of these assumptions to this analysis, the income approach provides a reasonable estimate of the fair value of the Therapy reporting unit. The Step 2 test resulted in an approximate fair value of goodwill of $5.7 million which resulted in a goodwill impairment loss of $14.0 million for the quarter ended June 30, 2015. The Company performed an annual impairment assessment at October 1, 2016 and compared the fair value of each reporting unit to its carrying value as of this date. Fair value was approximately 816% of carrying value for the Detection reporting unit and 126% of carrying value 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 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 15% 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 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. In April 2015, the Company acquired VuComp’s M-Vu ® In January 2016, the Company completed the acquisition of VuComp’s M-Vu In December, 2016, the Company entered into an Asset Purchase Agreement with Invivo Corporation. The Company will sell and convey to Buyer all right, title and interest to certain intellectual property relating to the VersaVue Software and the DynaCAD product and related assets. As a result of the agreement, the Company determined that it had assets held for sale as of December 31, 2016 and the sale constituted the sale of a business. As of December 31, 2016, the Company allocated $394,000 of goodwill to assets held for sale. The allocation was based on the fair value of the assets sold relative to the fair value of the Detection reporting unit as of the date of the agreement. A rollforward of goodwill activity by reportable segment is as follows (in thousands): 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 Acquisition of VuComp 800 — 800 Impairment — (13,981 ) (13,981 ) Balance at December 31, 2015 8,463 5,735 14,198 Acquisition of VuComp 293 — 293 Sale of MRI assets (394 ) — (394 ) Balance at December 31, 2016 $ 8,362 $ 5,735 $ 14,097 Accumulated Goodwill 699 6,270 54,906 Fair value allocation 7,663 13,446 — Accumulated impairment — (13,981 ) (40,809 ) Balance at December 31, 2016 $ 8,362 $ 5,735 $ 14,097 |
Revenue Recognition | (j) Revenue Recognition The Company recognizes revenue primarily from the sale of products, 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 Arrangement 2009-13”) No. 2009-14, Certain Arrangements That Contain Software Elements 2009-14”) 985-605, “Software” 985-605”). Leases” 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 2009-14. 2009-13. Revenue from certain CAD products is recognized in accordance with ASC 985-605. 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. 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 |
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 |
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 the cost of product returns during the warranty period. Warranty provisions and claims for the years ended December 31, 2016, 2015 and 2014, were as follows (in thousands): 2016 2015 2014 Beginning accrual balance $ 19 $ 14 $ 25 Warranty provision 47 54 58 Usage (55 ) (49 ) (69 ) Ending accrual balance $ 11 $ 19 $ 14 The warranty accrual above includes long-term warranty obligations of $0, $2,000 and $5,000 for the years ended December 31, 2016, 2015 and 2014 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, 2016, 2015 and 2014 was approximately $955,000, $950,000 and $882,000 respectively. |
Net Loss per Common Share | (o) Net Loss per Common Share The Company follows FASB ASC 260-10, A summary of the Company’s calculation of net loss per share is as follows (in thousands, except per share amounts): 2016 2015 2014 Net loss available to common shareholders $ (10,099 ) $ (32,447 ) $ (1,009 ) Basic shares used in the calculation of earnings per share 15,932 15,686 14,096 Effect of dilutive securities: Stock options — — — Restricted stock — — — Diluted shares used in the calculation of earnings per share 15,932 15,686 14,096 Net loss per share : Basic $ (0.63 ) $ (2.07 ) $ (0.07 ) Diluted $ (0.63 ) $ (2.07 ) $ (0.07 ) 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: 2016 2015 2014 Common stock options 1,425,348 1,571,998 1,417,887 Restricted Stock 511,398 516,396 309,317 1,936,746 2,088,394 1,727,204 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, 2016 and 2015, 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 740-10 740-10 de-recognition, |
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. The fair value of restricted stock is determined based on the stock price of the underlying option on the date of the grant. The Company granted performance based restricted stock during 2016 based on achievement of certain revenue targets. Compensation cost for performance based restricted stock requires significant judgment regarding probability of the performance objectives and compensation cost is re-measured 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 money market funds are included in cash and cash equivalents in the accompanying balance sheet, and are considered a level 1 investment as they are valued at quoted market prices in active markets. The following table sets forth Company’s assets 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, 2016 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 6,622 $ — $ — $ 6,622 Total Assets $ 6,622 $ — $ — $ 6,622 Fair value measurements using: (000’s) as of December 31, 2015 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 13,577 $ — $ — $ 13,577 Total Assets $ 13,577 $ — $ — $ 13,577 Items Measured at Fair Value on a Nonrecurring Basis Certain assets, including long-lived assets and goodwill, are measured at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be impaired. In 2015 the Company recorded a $27.4 million impairment consisting of $14.0 million related to goodwill and $13.4 million related to long-lived assets as discussed in Note (h) and Note (i) and re-measured |
Recently Issued Accounting Standards | (s) Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, 2014-09, 2016-08, 2016-10, No. 2014-09. 2014-09 one-year 2014-09 2014-09, In February 2016, the FASB issued ASU No. 2016-02, right-of-use off-balance In March 2016, the FASB issued ASU 2016-09, 2016-09 In August 2016, the FASB issued ASU 2016-15, |
Segment Reporting | In accordance with FASB Topic ASC 280, “ Segments |
Litigation | (g) Litigation The Company may be 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 Accoun19
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 (in thousands): 2016 2015 2014 Balance at beginning of period $ 236 $ 203 $ 73 Additions charged to costs and expenses 177 383 167 Reductions (241 ) (350 ) (37 ) Balance at end of period $ 172 $ 236 $ 203 |
Schedule of Current Inventory | At December 31, 2016 and 2015, inventories consisted of the following (in thousands): As of December 31, 2016 2015 Raw materials $ 2,503 $ 2,900 Work in process 75 154 Finished Goods 1,149 1,261 Inventory $ 3,727 $ 4,315 |
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, if shorter, for leasehold improvements (see below). Estimated life Equipment 3-5 years Leasehold improvements 3-5 Furniture and fixtures 3-5 Marketing assets 3-5 |
Schedule of Intangible Assets | A summary of intangible assets for 2016 and 2015 are as follows (in thousands): 2016 2015 Weighted Gross Carrying Amount Patents and licenses $ 583 $ 579 5 years Technology 9,567 14,075 10 years Customer relationships 292 268 7 years Tradename 259 248 10 years Total amortizable intangible assets 10,701 15,170 Accumulated Amortization Patents and licenses $ 477 $ 451 Technology 6,754 9,996 Customer relationships 28 201 Tradename 259 248 Total accumulated amortization 7,518 10,896 Total amortizable intangible assets, net $ 3,183 $ 4,274 |
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 2017 $ 574 2018 511 2019 499 2020 370 2021 311 Thereafter 918 $ 3,183 |
Roll Forward of Goodwill Activity by Reportable Segment | A rollforward of goodwill activity by reportable segment is as follows (in thousands): 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 Acquisition of VuComp 800 — 800 Impairment — (13,981 ) (13,981 ) Balance at December 31, 2015 8,463 5,735 14,198 Acquisition of VuComp 293 — 293 Sale of MRI assets (394 ) — (394 ) Balance at December 31, 2016 $ 8,362 $ 5,735 $ 14,097 Accumulated Goodwill 699 6,270 54,906 Fair value allocation 7,663 13,446 — Accumulated impairment — (13,981 ) (40,809 ) Balance at December 31, 2016 $ 8,362 $ 5,735 $ 14,097 |
Roll forward of Warranty Cost | Warranty provisions and claims for the years ended December 31, 2016, 2015 and 2014, were as follows (in thousands): 2016 2015 2014 Beginning accrual balance $ 19 $ 14 $ 25 Warranty provision 47 54 58 Usage (55 ) (49 ) (69 ) Ending accrual balance $ 11 $ 19 $ 14 |
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): 2016 2015 2014 Net loss available to common shareholders $ (10,099 ) $ (32,447 ) $ (1,009 ) Basic shares used in the calculation of earnings per share 15,932 15,686 14,096 Effect of dilutive securities: Stock options — — — Restricted stock — — — Diluted shares used in the calculation of earnings per share 15,932 15,686 14,096 Net loss per share : Basic $ (0.63 ) $ (2.07 ) $ (0.07 ) Diluted $ (0.63 ) $ (2.07 ) $ (0.07 ) |
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: 2016 2015 2014 Common stock options 1,425,348 1,571,998 1,417,887 Restricted Stock 511,398 516,396 309,317 1,936,746 2,088,394 1,727,204 |
Assets which are Measured at Fair Value on a Recurring Basis | The following table sets forth Company’s assets 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, 2016 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 6,622 $ — $ — $ 6,622 Total Assets $ 6,622 $ — $ — $ 6,622 Fair value measurements using: (000’s) as of December 31, 2015 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 13,577 $ — $ — $ 13,577 Total Assets $ 13,577 $ — $ — $ 13,577 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
VuComp Cancer Detection Portfolio [Member] | |
Allocation of Purchase Price Based on Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following is a summary of the allocation of the total purchase price based on the estimated fair values as of the date of the acquisition and the amortizable life: Amount (000’s) Estimated amortizable life Current assets $ 84 Property and equipment 65 3 Years Identifiable intangible assets 699 1-10 Years Goodwill 293 Current liabilities (280 ) Long-term liabilities (606 ) Purchase price $ 255 |
VuComp M-Vu Breast Density Product [Member] | |
Allocation of Purchase Price Based on Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following is a summary of the allocation of the total purchase price based on the estimated fair values as of the date of the acquisition and the amortizable life (in thousands): Amount Estimated Amortizable Life Developed Technology $ 900 8 years 9 months Goodwill 800 Purchase price $ 1,700 |
MVu Breast Density [Member] | |
Allocation of Purchase Price Based on Estimated Fair Values of Assets Acquired and Liabilities Assumed | As a result the Company recorded a gain on litigation settlement of $249,000 in the first quarter of 2016, which is a component of the purchase price as noted below: Amount (000’s) Cash $ 6 Acquisition litigation settlement 249 Purchase price $ 255 |
Assets and Liabilities Held f21
Assets and Liabilities Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets and Liabilities Held for Sale | Assets and liabilities held for sale at December 31, 2016 are as follows (in thousands): Assets Held for Sale Accounts Receivable $ 98 Inventory 2 Intangible assets 810 Allocated Goodwill 394 Total 1,304 Liabilities Held for Sale Deferred Revenue $ 832 Total $ 832 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
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, 2016 and 2015 (in thousands): December 31, 2016 December 31, 2015 Cash interest expense $ — $ 163 Non-cash — 254 Amortization of debt costs — 13 Amortization of settlement obligations 82 146 Interest expense capital lease 70 220 Capital lease - fair value amortization (89 ) (146 ) Total interest expense $ 63 $ 650 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following at December 31 (in thousands): 2016 2015 Accrued salary and related expenses $ 1,878 $ 1,765 Accrued accounts payable 2,269 1,518 Accrued professional fees 316 425 Accrued short term settlement costs 474 418 Other accrued expenses 48 52 Deferred rent 3 42 $ 4,988 $ 4,220 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 Outstanding, January 1, 2014 1,334,955 $ 4.75 Granted 281,043 $ 8.08 Exercised (162,528 ) $ 4.36 Forfeited (35,583 ) $ 13.62 Outstanding, December 31, 2014 1,417,887 $ 4.34 Granted 363,239 $ 6.58 Exercised (79,472 ) $ 4.60 Forfeited (129,656 ) $ 7.38 Outstanding, December 31, 2015 1,571,998 $ 5.05 Granted 127,500 $ 5.46 Exercised (75,583 ) $ 2.62 Forfeited (198,567 ) $ 6.19 Outstanding, December 31, 2016 1,425,348 $ 5.05 6.1 years Exercisable at December 31, 2014 955,210 $ 4.43 Exercisable at December 31, 2015 1,087,725 $ 4.33 Exercisable at December 31, 2016 1,054,211 $ 4.71 5.2 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, 2016 2015 2014 Cost of revenue $ 6 $ 14 $ 13 Engineering and product development 329 223 165 Marketing and sales 677 659 353 General and administrative expense 1,295 1,239 787 $ 2,307 $ 2,135 $ 1,318 |
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, 2016 2015 2014 Average risk-free interest rate 0.98% 0.97% 0.85% Expected dividend yield None None None Expected life 3.5 years 3.5 years 3.5 years Expected volatility 68.5% to 75.3% 60.5% to 75.2% 64.2% to 69.4% Weighted average exercise price $5.46 $6.58 $8.09 Weighted average fair value $2.66 $3.17 $3.84 |
Summary of Intrinsic Values of Options and Closing Market Price | Intrinsic values of options (in thousands) and the closing market price used to determine the intrinsic values are as follows: Years Ended December 31, 2016 2015 2014 Outstanding $ 409 $ 1,910 $ 6,343 Exercisable 409 1,610 4,624 Exercised 201 317 1,081 stock price at 12/31 $ 3.24 $ 5.17 $ 9.17 |
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, 2016 2015 2014 Beginning outstanding balance 516,396 309,317 216,250 Granted 345,778 352,666 180,500 Vested (289,030 ) (124,758 ) (85,434 ) Forfeited (61,746 ) (20,829 ) (1,999 ) Ending outstanding balance 511,398 516,396 309,317 |
Summary of Intrinsic Values of Restricted Stock and Closing Market Price | Intrinsic values of restricted stock (in thousands) and the closing market price used to determine the intrinsic values are as follows: Years Ended December 31, 2016 2015 2014 Outstanding $ 1,657 $ 2,670 $ 2,836 Vested 936 645 783 stock price at 12/31 $ 3.24 $ 5.17 $ 9.17 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense for the years ended December 31, 2016, 2015 and 2014 are as follows (in thousands): 2016 2015 2014 Current provision (benefit): Federal $ — $ — $ (44 ) State 69 95 118 $ 69 $ 95 $ 74 Deferred provision: Federal $ 6 $ (65 ) $ 65 State 1 (14 ) 14 $ 7 $ (79 ) $ 79 Total $ 76 $ 16 $ 153 |
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, 2016, 2015 and 2014 is as follows: 2016 2015 2014 Federal statutory rate 34.0 % 34.0 % 34.0 % State income taxes, net of federal benefit 2.8 % 2.5 % 5.5 % Net state impact of deferred rate change 0.2 % (0.1 %) 13.0 % Stock compensation expense (3.2 %) (10.7 %) (9.6 %) Tax amortization on goodwill (0.1 %) 0.2 % (9.0 %) Loss on warrant 0.0 % 0.0 % 71.6 % Other permanent differences (0.4 %) (0.1 %) (1.1 %) Change in valuation allowance (37.3 %) (26.6 %) (222.6 %) Tax credits 3.2 % 0.9 % 100.8 % Effective income tax (0.8 %) 0.1 % (17.4 %) |
Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) are composed of the following at December 31 (in thousands): 2016 2015 Inventory (Section 263A) $ 418 $ 588 Inventory reserves 105 106 Receivable reserves 65 159 Other accruals 434 591 Deferred revenue 215 367 Accumulated depreciation/amortization 477 417 Stock options 2,558 2,529 Developed technology 3,594 3,554 Tax credits 3,090 2,765 NOL carryforward 40,865 36,706 Net deferred tax assets 51,821 47,782 Valuation allowance (51,821 ) (47,782 ) Goodwill tax amortization (7 ) Deferred tax liability $ (7 ) $ — |
Segment Reporting, Geographic26
Segment Reporting, Geographical Information and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 Segment revenues: Detection $ 17,133 $ 19,243 $ 18,604 Therapy 9,205 22,311 25,320 Total Revenue $ 26,338 $ 41,554 $ 43,924 Segment gross profit: Detection $ 15,113 $ 16,019 $ 15,276 Therapy 3,405 13,331 15,951 Segment gross profit $ 18,518 $ 29,350 $ 31,227 Segment operating income (loss): Detection $ 5,694 $ 7,233 $ 7,231 Therapy (7,752 ) (28,405 ) 1,868 Segment operating income (loss) $ (2,058 ) $ (21,172 ) $ 9,099 General, administrative, depreciation and amortization expense $ (7,912 ) $ (8,907 ) $ (8,284 ) Interest expense (63 ) (650 ) (2,640 ) Gain (loss) on fair value of warrant — — 1,835 Other income 10 21 37 Loss on debt extinguishment — (1,723 ) (903 ) Loss before income tax $ (10,023 ) $ (32,431 ) $ (856 ) |
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 $ 223 $ 220 $ 188 Amortization 696 532 515 Therapy depreciation and amortization Depreciation $ 970 $ 1,142 $ 844 Amortization 252 1,213 1,739 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments | Future minimum rental payments due under these agreements as of December 31, 2016 are as follows (in thousands): Fiscal Year Operating 2017 $ 579 2018 738 2019 746 2020 174 Total $ 2,237 |
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 2017 $ 89 subtotal minimum lease obligation 89 less interest (3 ) Total, net 86 less current portion (86 ) Long term portion $ — |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Net sales Gross Net loss Income (loss) Weighted average number of 2016 First quarter $ 6,038 $ 4,186 $ (2,533 ) ($ 0.16 ) 15,826 Second quarter 7,369 5,702 $ (1,575 ) ($ 0.10 ) 15,904 Third quarter 6,003 4,101 $ (2,675 ) ($ 0.17 ) 15,957 Fourth quarter 6,928 4,529 $ (3,316 ) ($ 0.20 ) 16,214 2015 First quarter $ 13,220 $ 9,362 $ (1,857 ) ($ 0.12 ) 15,605 Second quarter 11,143 7,878 $ (27,786 )* ($ 1.77 ) 15,679 Third quarter 9,582 6,821 $ (402 ) ($ 0.03 ) 15,725 Fourth quarter 7,609 5,289 $ (2,402 ) ($ 0.15 ) 15,733 (*) - includes goodwill and long-lived asset impairment of $27.4 million |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Additional Information (Detail) | Apr. 30, 2015USD ($) | Apr. 29, 2015USD ($) | Jan. 31, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Business segment | Segment | 2 | ||||||
Maturity for cash and cash equivalents | 90 days | ||||||
Insurance coverage | $ 250,000 | ||||||
Interest-bearing amounts on deposit in excess of federally | 7,800,000 | ||||||
Carrying value of asset group | 1,385,000 | $ 2,307,000 | |||||
Impairment charges on long lived assets | 13,400,000 | ||||||
Asset impairment charges | 0 | ||||||
Amortization expense related to intangible assets | $ 983,000 | 1,768,000 | $ 2,270,000 | ||||
Impairment loss | 13,981,000 | ||||||
Percentage of discount derived from capital asset pricing model | 17.00% | ||||||
Fair value of goodwill | $ 5,700,000 | ||||||
Goodwill | 14,097,000 | 14,198,000 | 27,263,000 | ||||
Allocation of goodwill to asset held for sale | 394,000 | ||||||
Medical Device Excise tax included in the cost of revenue | 491,000 | ||||||
Long term warranty obligations | 0 | 2,000 | 5,000 | ||||
Advertising expense | 955,000 | 950,000 | 882,000 | ||||
Goodwill and long-lived asset impairment | $ 27,400,000 | 27,443,000 | |||||
Therapy [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Carrying value of asset group | 36,800,000 | ||||||
Undiscounted cash flows over carrying value of assets | 2,800,000 | ||||||
Impairment charges on long lived assets | 13,400,000 | ||||||
Amortization expense related to intangible assets | $ 252,000 | 1,213,000 | 1,739,000 | ||||
Impairment loss | $ 14,000,000 | 13,981,000 | |||||
Percentage of fair value of each reporting unit | 126.00% | ||||||
Goodwill | $ 5,735,000 | 5,735,000 | 19,600,000 | ||||
Detection [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Amortization expense related to intangible assets | $ 696,000 | 532,000 | 515,000 | ||||
Percentage of fair value of each reporting unit | 816.00% | ||||||
Goodwill | $ 8,362,000 | 8,463,000 | $ 7,663,000 | ||||
VuComp M-Vu Breast Density Product [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of Long-lived assets | 8 years 9 months | ||||||
Business acquisition paid in cash | $ 1,700,000 | $ 1,700,000 | $ 1,700,000 | ||||
Goodwill | $ 800,000 | 800,000 | |||||
VuComp M-Vu CAD [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Business acquisition paid in cash | $ 6,000 | $ 6,000 | |||||
VuComp M-Vu CAD [Member] | Detection [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Goodwill | $ 293,000 | ||||||
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 Accoun30
Summary of Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
Balance at beginning of period | $ 236 | $ 203 | $ 73 |
Additions charged to costs and expenses | 177 | 383 | 167 |
Reductions | (241) | (350) | (37) |
Balance at end of period | $ 172 | $ 236 | $ 203 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Schedule of Current Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Raw materials | $ 2,503 | $ 2,900 |
Work in process | 75 | 154 |
Finished Goods | 1,149 | 1,261 |
Inventory | $ 3,727 | $ 4,315 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
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 Accoun33
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Gross Carrying Amount | ||
Gross Carrying Amount | $ 10,701 | $ 15,170 |
Accumulated Amortization | ||
Accumulated Amortization | 7,518 | 10,896 |
Total amortizable intangible assets, net | 3,183 | 4,274 |
Patent and Licenses [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | $ 583 | 579 |
Weighted average useful life | 5 years | |
Accumulated Amortization | ||
Accumulated Amortization | $ 477 | 451 |
Technology [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | $ 9,567 | 14,075 |
Weighted average useful life | 10 years | |
Accumulated Amortization | ||
Accumulated Amortization | $ 6,754 | 9,996 |
Customer Relationships [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | $ 292 | 268 |
Weighted average useful life | 7 years | |
Accumulated Amortization | ||
Accumulated Amortization | $ 28 | 201 |
Tradename [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | $ 259 | 248 |
Weighted average useful life | 10 years | |
Accumulated Amortization | ||
Accumulated Amortization | $ 259 | $ 248 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Schedule of Expected Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
2,017 | $ 574 | |
2,018 | 511 | |
2,019 | 499 | |
2,020 | 370 | |
2,021 | 311 | |
Thereafter | 918 | |
Total amortizable intangible assets, net | $ 3,183 | $ 4,274 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Roll Forward of Goodwill Activity by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||||
Sale of MRI assets | $ (394) | |||
Accumulated Goodwill | 54,906 | $ 47,937 | ||
Accumulated impairment | (40,809) | (26,828) | ||
Goodwill Balance | 14,097 | $ 14,198 | 27,263 | |
Acquisition measurement period adjustments | 116 | |||
Impairment | (13,981) | |||
DermEbx and Radion [Member] | ||||
Goodwill [Line Items] | ||||
Acquisition cost | 6,154 | |||
VuComp M-Vu Breast Density Product [Member] | ||||
Goodwill [Line Items] | ||||
Acquisition cost | 293 | 800 | ||
Goodwill Balance | 800 | |||
Detection [Member] | ||||
Goodwill [Line Items] | ||||
Sale of MRI assets | (394) | |||
Accumulated Goodwill | 699 | |||
Fair value allocation | 7,663 | 7,663 | ||
Goodwill Balance | 8,362 | 8,463 | 7,663 | |
Detection [Member] | VuComp M-Vu Breast Density Product [Member] | ||||
Goodwill [Line Items] | ||||
Acquisition cost | 293 | 800 | ||
Therapy [Member] | ||||
Goodwill [Line Items] | ||||
Accumulated Goodwill | 6,270 | |||
Fair value allocation | 13,446 | 13,446 | ||
Accumulated impairment | (13,981) | |||
Goodwill Balance | $ 5,735 | 5,735 | 19,600 | |
Acquisition measurement period adjustments | 116 | |||
Impairment | $ (14,000) | $ (13,981) | ||
Therapy [Member] | DermEbx and Radion [Member] | ||||
Goodwill [Line Items] | ||||
Acquisition cost | $ 6,154 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Roll Forward of Warranty Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Beginning accrual balance | $ 19 | $ 14 | $ 25 |
Warranty provision | 47 | 54 | 58 |
Usage | (55) | (49) | (69) |
Ending accrual balance | $ 11 | $ 19 | $ 14 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Calculation of Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net loss available to common shareholders | $ (3,316) | $ (2,675) | $ (1,575) | $ (2,533) | $ (2,402) | $ (402) | $ (27,786) | $ (1,857) | $ (10,099) | $ (32,447) | $ (1,009) |
Basic shares used in the calculation of earnings per share | 15,932 | 15,686 | 14,096 | ||||||||
Effect of dilutive securities: | |||||||||||
Diluted shares used in the calculation of earnings per share | 15,932 | 15,686 | 14,096 | ||||||||
Basic | $ (0.63) | $ (2.07) | $ (0.07) | ||||||||
Diluted | $ (0.63) | $ (2.07) | $ (0.07) | ||||||||
Stock Options [Member] | |||||||||||
Effect of dilutive securities: | |||||||||||
Incremental common shares attributable to share-based payment arrangements | 0 | 0 | 0 | ||||||||
Restricted Stock [Member] | |||||||||||
Effect of dilutive securities: | |||||||||||
Incremental common shares attributable to share-based payment arrangements | 0 | 0 | 0 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock options, warrants and restricted stock | 1,936,746 | 2,088,394 | 1,727,204 |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock options, warrants and restricted stock | 1,425,348 | 1,571,998 | 1,417,887 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock options, warrants and restricted stock | 511,398 | 516,396 | 309,317 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Assets which are Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Money market accounts | $ 6,622 | $ 13,577 |
Total Assets | 6,622 | 13,577 |
Money Market Accounts [Member] | ||
Assets | ||
Money market accounts | 6,622 | 13,577 |
Total Assets | 6,622 | 13,577 |
Level 1 [Member] | ||
Assets | ||
Money market accounts | 6,622 | 13,577 |
Total Assets | 6,622 | 13,577 |
Level 1 [Member] | Money Market Accounts [Member] | ||
Assets | ||
Money market accounts | 6,622 | 13,577 |
Total Assets | $ 6,622 | $ 13,577 |
Acquisitions - Acquisition of V
Acquisitions - Acquisition of VuComp Cancer Detection Portfolio - Additional Information (Detail) - USD ($) | Jan. 13, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 14,097,000 | $ 14,198,000 | $ 27,263,000 | |
Detection [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 8,362,000 | $ 8,463,000 | $ 7,663,000 | |
MVu Breast Density [Member] | ||||
Business Acquisition [Line Items] | ||||
Gain on litigation settlement | $ 249,000 | |||
MVu Breast Density [Member] | Detection [Member] | ||||
Business Acquisition [Line Items] | ||||
Revenue from acquisition | 200,000 | |||
VuComp Cancer Detection Portfolio [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 293,000 | $ 293,000 | ||
Goodwill amortization expense useful life | 15 years |
Acquisitions - Allocation of Pu
Acquisitions - Allocation of Purchase Price Based on Estimated Fair Values of Assets Acquired and liabilities Assumed (Detail) - USD ($) $ in Thousands | Jan. 13, 2016 | Apr. 29, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 14,097 | $ 14,198 | $ 27,263 | ||
Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated amortizable life | 5 years | ||||
Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated amortizable life | 15 years | ||||
MVu Breast Density [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 6 | ||||
Acquisition litigation settlement | 249 | ||||
Purchase price | 255 | ||||
VuComp Cancer Detection Portfolio [Member] | |||||
Business Acquisition [Line Items] | |||||
Current assets | 84 | ||||
Property and equipment | 65 | ||||
Identifiable intangible assets | 699 | ||||
Goodwill | 293 | $ 293 | |||
Current liabilities | (280) | ||||
Long-term liabilities | (606) | ||||
Purchase price | $ 255 | ||||
Property and equipment, Estimated amortizable life | 3 years | ||||
VuComp Cancer Detection Portfolio [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated amortizable life | 1 year | ||||
VuComp Cancer Detection Portfolio [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated amortizable life | 10 years | ||||
VuComp M-Vu Breast Density Product [Member] | |||||
Business Acquisition [Line Items] | |||||
Developed Technology | $ 900 | ||||
Goodwill | 800 | $ 800 | |||
Purchase price | $ 1,700 | ||||
Estimated amortizable life | 8 years 9 months |
Acquisitions - Acquisition of42
Acquisitions - Acquisition of VuComp M-Vu Breast Density Product - Additional Information (Detail) - VuComp M-Vu Breast Density Product [Member] - USD ($) | Apr. 30, 2015 | Apr. 29, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Business acquisition paid in cash | $ 1,700,000 | $ 1,700,000 | $ 1,700,000 |
Estimated amortizable life | 8 years 9 months |
Asset and Liabilities Held for
Asset and Liabilities Held for Sale - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Jan. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Allocation of goodwill to asset held for sale | $ 394,000 | |
VersaVue Software and DynaCAD Product and Related Assets [Member] | Asset Purchase Agreement [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale and transfer of intangible assets | 3,200,000 | |
Allocation of goodwill to asset held for sale | 394,000 | |
Gain on sale and transfer of intangible assets | $ 2,500,000 | |
Subsequent Event [Member] | VersaVue Software and DynaCAD Product and Related Assets [Member] | Asset Purchase Agreement [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Holdback reserve related to sale and transfer of intangible assets | $ 350,000 | |
Proceeds from sale and transfer of intangible assets | $ 2,900,000 |
Assets and Liabilities Held f44
Assets and Liabilities Held for Sale - Schedule of Assets and Liabilities Held for sale (Detail) | Dec. 31, 2016USD ($) |
Assets Held for Sale | |
Allocated Goodwill | $ 394,000 |
Total | 1,304,000 |
Liabilities Held for Sale | |
Total | 832,000 |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | VersaVue Software and DynaCAD Product and Related Assets [Member] | |
Assets Held for Sale | |
Accounts Receivable | 98,000 |
Inventory | 2,000 |
Intangible assets | 810,000 |
Allocated Goodwill | 394,000 |
Total | 1,304,000 |
Liabilities Held for Sale | |
Deferred Revenue | 832,000 |
Total | $ 832,000 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Detail) - USD ($) | Apr. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2011 |
Financing Arrangements [Line Items] | ||||||
Aggregate purchase price of warrants | $ 1,575,000 | |||||
Common stock, shares issued | 450,000 | 16,260,663 | 15,923,349 | |||
Cancellation of warrants to purchase number of additional shares of common stock | 100,000 | |||||
Repayment of debt | $ 11,250,000 | $ 7,850,000 | ||||
Payment of accrued and unpaid interest | $ 70,000 | 558,000 | 1,637,000 | |||
Loss on extinguishment of debt | $ (1,723,000) | (903,000) | ||||
Facility Agreement [Member] | ||||||
Financing Arrangements [Line Items] | ||||||
Debt instrument, maturity date | Dec. 29, 2016 | |||||
Repayment of debt | $ 11,250,000 | |||||
Payment of accrued and unpaid interest | 162,000 | |||||
Loss on extinguishment of debt | $ (1,700,000) | |||||
Warrant [Member] | ||||||
Financing Arrangements [Line Items] | ||||||
Number of common stock shares issued | 550,000 | |||||
Exercise price of warrants | $ 3.50 | |||||
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 | |||||
Deerfield Agreement [Member] | ||||||
Financing Arrangements [Line Items] | ||||||
Amount provided in funding to company | $ 15,000,000 |
Financing Arrangements - Intere
Financing Arrangements - Interest Expense in Consolidated Income Statement (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Expense, Debt [Abstract] | |||
Cash interest expense | $ 163 | ||
Non-cash amortization of debt discount | 254 | ||
Amortization of debt costs | 13 | ||
Amortization of settlement obligations | $ 82 | 146 | $ 206 |
Interest expense capital lease | 70 | 220 | |
Capital lease - fair value amortization | (89) | (146) | |
Total interest expense | $ 63 | $ 650 | $ 2,640 |
Accrued Expenses - Accrued Expe
Accrued Expenses - Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued salary and related expenses | $ 1,878 | $ 1,765 |
Accrued accounts payable | 2,269 | 1,518 |
Accrued professional fees | 316 | 425 |
Accrued short term settlement costs | 474 | 418 |
Other accrued expenses | 48 | 52 |
Deferred rent | 3 | 42 |
Accrued Expenses Total | $ 4,988 | $ 4,220 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Incentive_Planshares | Dec. 31, 2015shares | Dec. 31, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock option | Incentive_Plan | 5 | ||
Available for future grants | 1,482,947 | ||
Total unrecognized compensation costs | $ | $ 3,800,000 | ||
Period of expected recognized over a weighted average | 1 year 1 month 6 days | ||
Dividends paid on common stock | $ | $ 0 | ||
Number of option Granted | 127,500 | 363,239 | 281,043 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of options granted | 1 year | ||
Performance Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of option Granted | 162,500 | ||
Maximum [Member] | Performance Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of additional shares available for granted | 108,333 | ||
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 | ||
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 months | ||
Period of expiration | 10 years | ||
Number of percentage of stockholders | 10.00% | ||
Period of expiration for specific stockholders | 5 months | ||
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 | 0 | ||
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% | ||
Number of share options available for grant | 57,260 | ||
Aggregate purchase of Company's common stock, maximum | 160,000 | ||
Percentage of options granted | 100.00% | ||
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% | ||
Number of share options available for grant | 155,964 | ||
Aggregate purchase of Company's common stock, maximum | 250,000 | ||
Percentage of options granted | 100.00% | ||
2016 Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate purchase of Company's common stock | 1,700,000 | ||
Number of share options available for grant | 1,269,722 | ||
Aggregate purchase of Company's common stock, maximum | 1,000,000 | ||
Percentage of options granted | 100.00% | ||
Number of share options available for grant | $ | $ 100,000 | ||
2016 Stock Option Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of share options available for grant | 1,000,000 | ||
2016 Stock Option Plan [Member] | Maximum [Member] | Non Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of share options available for grant | 50,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity for all Stock Option Plans (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Beginning balance | 1,571,998 | 1,417,887 | 1,334,955 |
Granted | 127,500 | 363,239 | 281,043 |
Exercised | (75,583) | (79,472) | (162,528) |
Forfeited | (198,567) | (129,656) | (35,583) |
Ending balance | 1,425,348 | 1,571,998 | 1,417,887 |
Weighted Average, Beginning Balance | $ 5.05 | $ 4.34 | $ 4.75 |
Granted | 5.46 | 6.58 | 8.08 |
Exercised | 2.62 | 4.60 | 4.36 |
Forfeited | 6.19 | 7.38 | 13.62 |
Weighted Average, Ending Balance | $ 5.05 | $ 5.05 | $ 4.34 |
Weighted Average Remaining Contractual Term, Outstanding | 6 years 1 month 6 days | ||
Exercisable, Number of Shares | 1,054,211 | 1,087,725 | 955,210 |
Exercisable, Weighted Average Exercise Price | $ 4.71 | $ 4.33 | $ 4.43 |
Weighted Average Remaining Contractual Term, Exercisable | 5 years 2 months 12 days |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Including Options and Restricted Stock by Category (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | $ 2,307 | $ 2,135 | $ 1,318 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 6 | 14 | 13 |
Engineering and Product Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 329 | 223 | 165 |
Marketing and Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 677 | 659 | 353 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | $ 1,295 | $ 1,239 | $ 787 |
Stockholders' Equity - Options
Stockholders' Equity - Options Granted under Company's Stock Incentive Plans, Valuation Assumptions and Fair Values (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average exercise price | $ 5.46 | $ 6.58 | $ 8.08 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 0.98% | 0.97% | 0.85% |
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 | $ 5.46 | $ 6.58 | $ 8.09 |
Weighted average fair value | $ 2.66 | $ 3.17 | $ 3.84 |
Minimum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 68.50% | 60.50% | 64.20% |
Maximum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 75.30% | 75.20% | 69.40% |
Stockholders' Equity - Summar52
Stockholders' Equity - Summary of Intrinsic Values of Options and Closing Market Price (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Stock options outstanding | $ 409 | $ 1,910 | $ 6,343 |
Stock options exercisable | 409 | 1,610 | 4,624 |
Stock options exercised | $ 201 | $ 317 | $ 1,081 |
Stock price | $ 3.24 | $ 5.17 | $ 9.17 |
Stockholders' Equity - Summar53
Stockholders' Equity - Summary of Restricted Stock Activity for All Equity Incentive Plans (Detail) - Restricted Stock [Member] - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning outstanding balance | 516,396 | 309,317 | 216,250 |
Granted | 345,778 | 352,666 | 180,500 |
Vested | (289,030) | (124,758) | (85,434) |
Forfeited | (61,746) | (20,829) | (1,999) |
Ending outstanding balance | 511,398 | 516,396 | 309,317 |
Stockholders' Equity - Summar54
Stockholders' Equity - Summary of Intrinsic Values of Restricted Stock and Closing Market Price (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options outstanding, Stock price | $ 3.24 | $ 5.17 | $ 9.17 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options outstanding, Beginning of period | $ 1,657 | $ 2,670 | $ 2,836 |
Number of stock options outstanding, Vested | $ 936 | $ 645 | $ 783 |
Number of stock options outstanding, Stock price | $ 3.24 | $ 5.17 | $ 9.17 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current provision (benefit): | |||
Federal | $ (44) | ||
State | $ 69 | $ 95 | 118 |
Current provision (benefit), Total | 69 | 95 | 74 |
Deferred provision: | |||
Federal | 6 | (65) | 65 |
State | 1 | (14) | 14 |
Deferred provision, Total | 7 | (79) | 79 |
Total | $ 76 | $ 16 | $ 153 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective and the Federal Statutory Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 34.00% | 34.00% | 34.00% |
State income taxes, net of federal benefit | 2.80% | 2.50% | 5.50% |
Net state impact of deferred rate change | 0.20% | (0.10%) | 13.00% |
Stock compensation expense | (3.20%) | (10.70%) | (9.60%) |
Tax amortization on goodwill | (0.10%) | 0.20% | (9.00%) |
Loss on warrant | 0.00% | 0.00% | 71.60% |
Other permanent differences | (0.40%) | (0.10%) | (1.10%) |
Change in valuation allowance | (37.30%) | (26.60%) | (222.60%) |
Tax credits | 3.20% | 0.90% | 100.80% |
Effective income tax | (0.80%) | 0.10% | (17.40%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets ( Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Inventory (Section 263A) | $ 418 | $ 588 |
Inventory reserves | 105 | 106 |
Receivable reserves | 65 | 159 |
Other accruals | 434 | 591 |
Deferred revenue | 215 | 367 |
Accumulated depreciation/amortization | 477 | 417 |
Stock options | 2,558 | 2,529 |
Developed technology | 3,594 | 3,554 |
Tax credits | 3,090 | 2,765 |
NOL carryforward | 40,865 | 36,706 |
Net deferred tax assets | 51,821 | 47,782 |
Valuation allowance | (51,821) | $ (47,782) |
Goodwill tax amortization | (7) | |
Deferred tax liability | $ (7) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Income Tax Expense [Line Items] | |||
Goodwill | $ 14,097,000 | $ 14,198,000 | $ 27,263,000 |
Net operating loss carryforwards | 111,700,000 | ||
Net operating losses | (9,970,000) | (30,079,000) | 815,000 |
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 carryforward expiration year | 2,036 | ||
Unrecognized tax benefits | $ 0 | 0 | |
Interest or penalties related to uncertain tax positions | $ 0 | 0 | $ 0 |
Company preceding tax years | 3 years | ||
Xoft Inc [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Net operating loss carryforwards | $ 35,300,000 | ||
Net operating losses | 0 | $ 0 | |
Operating losses carryforwards | 9,500,000 | ||
Net operating losses | 473,000 | ||
Deferred tax assets | 0 | ||
Asset Acquisition January 2016 [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Goodwill | $ 293,307 | ||
Goodwill amortization expense useful life | 15 years | ||
Effective income tax rate amortization on goodwill amount | $ 6,844 | ||
Minimum [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Expiring date of net operating loss carryforward | 2,019 | ||
Maximum [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Expiring date of net operating loss carryforward | 2,036 |
Segment Reporting, Geographic59
Segment Reporting, Geographical Information and Major Customers - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)SegmentCustomer | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Schedule Of Geographical Information [Line Items] | |||||||||||
Number of reporting segments | Segment | 2 | ||||||||||
Total Export Sales | $ 6,928,000 | $ 6,003,000 | $ 7,369,000 | $ 6,038,000 | $ 7,609,000 | $ 9,582,000 | $ 11,143,000 | $ 13,220,000 | $ 26,338,000 | $ 41,554,000 | $ 43,924,000 |
Percentage of export sales to any single country | 10.00% | ||||||||||
Number of major customers | Customer | 1 | ||||||||||
GE Healthcare [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Outstanding receivables | 1,300,000 | $ 1,300,000 | |||||||||
Oem [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Outstanding receivables | 1,500,000 | 1,500,000 | |||||||||
Two Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Outstanding receivables | 600,000 | 600,000 | |||||||||
Six Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Outstanding receivables | 2,100,000 | 2,100,000 | |||||||||
Detection [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Total Export Sales | 17,133,000 | 19,243,000 | 18,604,000 | ||||||||
Sales [Member] | GE Healthcare [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Total revenue | $ 3,900,000 | $ 4,100,000 | $ 4,100,000 | ||||||||
Sales [Member] | Customer Concentration Risk [Member] | GE Healthcare [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 15.00% | 10.00% | 9.00% | ||||||||
Sales [Member] | Customer Concentration Risk [Member] | Five Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 30.00% | 25.00% | 22.00% | ||||||||
Sales [Member] | Detection [Member] | Customer Concentration Risk [Member] | Five Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 47.00% | 53.00% | 53.00% | ||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | GE Healthcare [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 23.00% | ||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Oem [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 28.00% | ||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 12.00% | ||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Six Customers [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Percentage of receivables | 40.00% | ||||||||||
Foreign [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Total Export Sales | $ 2,300,000 | $ 2,300,000 | $ 1,800,000 | ||||||||
Percentage of export sales of total sale | 9.00% | 6.00% | 4.00% | ||||||||
Outstanding receivables | $ 300,000 | $ 500,000 | $ 300,000 | $ 500,000 | |||||||
Intersegment Eliminations [Member] | |||||||||||
Schedule Of Geographical Information [Line Items] | |||||||||||
Total Export Sales | $ 0 |
Segment Reporting, Geographic60
Segment Reporting, Geographical Information and Major Customers - Summary of Segment Revenues, Gross Profit, Segment Operating Income or Loss and Reconciliation of Segment Operating Income or Loss to GAAP Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment revenues: | |||||||||||
Total revenue | $ 6,928 | $ 6,003 | $ 7,369 | $ 6,038 | $ 7,609 | $ 9,582 | $ 11,143 | $ 13,220 | $ 26,338 | $ 41,554 | $ 43,924 |
Segment gross profit: | |||||||||||
Segment gross profit | $ 4,529 | $ 4,101 | $ 5,702 | $ 4,186 | $ 5,289 | $ 6,821 | $ 7,878 | $ 9,362 | 18,518 | 29,350 | 31,227 |
Segment operating income (loss): | |||||||||||
Segment operating income (loss) | (2,058) | (21,172) | 9,099 | ||||||||
General, administrative, depreciation and amortization expense | (7,912) | (8,907) | (8,284) | ||||||||
Interest expense | (63) | (650) | (2,640) | ||||||||
Gain (loss) on fair value of warrant | 1,835 | ||||||||||
Other income | 10 | 21 | 37 | ||||||||
Loss on debt extinguishment | (1,723) | (903) | |||||||||
Loss before income tax expense | (10,023) | (32,431) | (856) | ||||||||
Detection [Member] | |||||||||||
Segment revenues: | |||||||||||
Total revenue | 17,133 | 19,243 | 18,604 | ||||||||
Segment gross profit: | |||||||||||
Segment gross profit | 15,113 | 16,019 | 15,276 | ||||||||
Segment operating income (loss): | |||||||||||
Segment operating income (loss) | 5,694 | 7,233 | 7,231 | ||||||||
Therapy [Member] | |||||||||||
Segment revenues: | |||||||||||
Total revenue | 9,205 | 22,311 | 25,320 | ||||||||
Segment gross profit: | |||||||||||
Segment gross profit | 3,405 | 13,331 | 15,951 | ||||||||
Segment operating income (loss): | |||||||||||
Segment operating income (loss) | $ (7,752) | $ (28,405) | $ 1,868 |
Segment Reporting, Geographic61
Segment Reporting, Geographical Information and Major Customers - Summary of Segment Depreciation and Amortization Included in Segment Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Depreciation | $ 1,322 | $ 1,580 | $ 1,256 |
Amortization | 983 | 1,768 | 2,270 |
Detection [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Depreciation | 223 | 220 | 188 |
Amortization | 696 | 532 | 515 |
Therapy [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Depreciation | 970 | 1,142 | 844 |
Amortization | $ 252 | $ 1,213 | $ 1,739 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2010USD ($) | Jul. 31, 2007USD ($) | Dec. 31, 2016USD ($)ft²Lease | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)LeaseContracts | |
Loss Contingencies [Line Items] | |||||
Lease obligations | Lease | 3 | ||||
Annual base rent | $ 89,000 | ||||
Operating lease, annual rent, current | 579,000 | ||||
Operating lease, annual rent | 2,237,000 | ||||
Operating lease, annual rent, second year | 738,000 | ||||
Operating lease, annual rent, third year | 746,000 | ||||
Rent expense | 745,000 | $ 663,000 | $ 643,000 | ||
Outstanding liability on equipment leases | 0 | $ 86,000 | |||
Total lease payments | 86,000 | ||||
Annual lease payments in 2017 | 89,000 | ||||
Purchase obligations to suppliers for future product deliverables | 300,000 | ||||
Employer matching Contribution | 400,000 | ||||
Employer matching Contribution to be paid in next fiscal year | 500,000 | ||||
Minimum annual royalty payment | 250,000 | ||||
Fair value of patent license | $ 100,000 | ||||
Patent license, Estimated Amortizable Life | 4 years | ||||
Minimum royalty obligations | $ 400,000 | ||||
Litigation and settlement obligation, Total | 500,000 | ||||
Estimated value of liability | 400,000 | ||||
DermEbx and Radion [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of equipment lease obligation | LeaseContracts | 2 | ||||
Assumed capital leases | $ 2,600,000 | ||||
Liability recorded on capital leases | $ 2,500,000 | ||||
Outstanding liability on equipment leases | 100,000 | ||||
Total lease payments | 100,000 | ||||
Annual lease payments in 2017 | $ 76,000 | ||||
Nashua [Member] | |||||
Loss Contingencies [Line Items] | |||||
Term of lease | 5 years | ||||
Area of office space | ft² | 11,000 | ||||
Annual base rent | $ 184,518 | ||||
San Jose California [Member] | |||||
Loss Contingencies [Line Items] | |||||
Operating lease, annual rent, current | 295,140 | ||||
Operating lease, annual rent | $ 540,588 | ||||
Area of office, manufacturing and warehousing space | ft² | 24,250 | ||||
Operating lease, annual rent, second year | $ 558,120 | ||||
Operating lease, annual rent, third year | $ 286,368 | ||||
CADx Medical Systems Inc [Member] | |||||
Loss Contingencies [Line Items] | |||||
Tax re-assessment received | $ 6,800,000 | ||||
Reduced tax re-assessment received | $ 703,000 |
Commitments and Contingencies63
Commitments and Contingencies - Future Minimum Rental Payments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 579 |
2,018 | 738 |
2,019 | 746 |
2,020 | 174 |
Total | $ 2,237 |
Commitments and Contingencies64
Commitments and Contingencies - Future Minimum Lease Payments under Non-cancelable Capital Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Leases [Abstract] | ||
2,017 | $ 89 | |
Subtotal minimum lease obligation | 89 | |
Less interest | (3) | |
Total, net | 86 | |
Less current portion | (86) | |
Long term portion | $ 0 | $ 86 |
Quarterly Financial Data - Quar
Quarterly Financial Data - Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 6,928 | $ 6,003 | $ 7,369 | $ 6,038 | $ 7,609 | $ 9,582 | $ 11,143 | $ 13,220 | $ 26,338 | $ 41,554 | $ 43,924 |
Gross profit | 4,529 | 4,101 | 5,702 | 4,186 | 5,289 | 6,821 | 7,878 | 9,362 | 18,518 | 29,350 | 31,227 |
Net loss | $ (3,316) | $ (2,675) | $ (1,575) | $ (2,533) | $ (2,402) | $ (402) | $ (27,786) | $ (1,857) | $ (10,099) | $ (32,447) | $ (1,009) |
Income (loss) per share | $ (0.20) | $ (0.17) | $ (0.10) | $ (0.16) | $ (0.15) | $ (0.03) | $ (1.77) | $ (0.12) | |||
Weighted average number of shares outstanding | 16,214 | 15,957 | 15,904 | 15,826 | 15,733 | 15,725 | 15,679 | 15,605 |
Quarterly Financial Data - Qu66
Quarterly Financial Data - Quarterly Financial Data (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Goodwill and long-lived asset impairment | $ 27,400 | $ 27,443 |