Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 13, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ICAD | |
Entity Registrant Name | ICAD INC | |
Entity Central Index Key | 749,660 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 16,511,655 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 11,261 | $ 8,585 |
Trade accounts receivable, net of allowance for doubtful accounts of $209 in 2017 and $172 in 2016 | 7,189 | 5,189 |
Inventory, net | 3,340 | 3,727 |
Prepaid expenses and other current assets | 949 | 1,128 |
Assets held for sale | 1,304 | |
Total current assets | 22,739 | 19,933 |
Property and equipment, net of accumulated depreciation of $7,245 in 2017 and $6,538 in 2016 | 972 | 1,385 |
Other assets | 53 | 53 |
Intangible assets, net of accumulated amortization of $7,333 in 2017 and $7,518 in 2016 | 2,055 | 3,183 |
Goodwill | 10,128 | 14,097 |
Total assets | 35,947 | 38,651 |
Current liabilities: | ||
Accounts payable | 1,346 | 1,577 |
Accrued and other expenses | 4,935 | 4,988 |
Lease payable - current portion | 12 | 86 |
Notes payable - current portion | 317 | |
Liabilities held for sale | 832 | |
Deferred revenue | 5,021 | 5,372 |
Total current liabilities | 11,631 | 12,855 |
Other long-term liabilities | 140 | 83 |
Lease payable, long-term portion | 30 | |
Notes payable, long-term portion | 5,612 | |
Deferred revenue, long-term portion | 525 | 668 |
Deferred tax | 12 | 7 |
Total liabilities | 17,950 | 13,613 |
Commitments and Contingencies (Note 6, 7 and 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 16,627,705 in 2017 and 16,260,663 in 2016; outstanding 16,441,874 in 2017 and 16,074,832 in 2016 | 167 | 163 |
Additional paid-in capital | 216,875 | 213,899 |
Accumulated deficit | (197,630) | (187,609) |
Treasury stock at cost, 185,831 shares in 2017 and 2016 | (1,415) | (1,415) |
Total stockholders' equity | 17,997 | 25,038 |
Total liabilities and stockholders' equity | $ 35,947 | $ 38,651 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts on trade accounts receivable | $ 209 | $ 172 |
Property and equipment, accumulated depreciation and amortization | 7,245 | 6,538 |
Intangible assets, accumulated amortization | $ 7,333 | $ 7,518 |
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 | 16,627,705 | 16,260,663 |
Common stock, shares outstanding | 16,441,874 | 16,074,832 |
Treasury stock, shares | 185,831 | 185,831 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue: | ||||
Products | $ 3,426 | $ 2,014 | $ 9,225 | $ 7,460 |
Service and supplies | 3,574 | 3,989 | 10,975 | 11,950 |
Total revenue | 7,000 | 6,003 | 20,200 | 19,410 |
Cost of revenue: | ||||
Products | 636 | 236 | 1,349 | 611 |
Service and supplies | 1,458 | 1,370 | 4,169 | 3,911 |
Amortization and depreciation | 263 | 296 | 847 | 899 |
Total cost of revenue | 2,357 | 1,902 | 6,365 | 5,421 |
Gross profit | 4,643 | 4,101 | 13,835 | 13,989 |
Operating expenses: | ||||
Engineering and product development | 2,254 | 2,360 | 7,060 | 6,835 |
Marketing and sales | 2,580 | 2,322 | 8,172 | 7,379 |
General and administrative | 1,944 | 1,783 | 6,067 | 5,586 |
Amortization and depreciation | 107 | 288 | 345 | 867 |
Gain on sale of MRI assets | (2,508) | |||
Goodwill and long-lived asset impairment | 4,700 | 4,700 | ||
Total operating expenses | 11,585 | 6,753 | 23,836 | 20,667 |
Loss from operations | (6,942) | (2,652) | (10,001) | (6,678) |
Interest expense | (36) | (15) | (51) | (59) |
Other income | 3 | 2 | 3 | 9 |
Other expense, net | (33) | (13) | (48) | (50) |
Loss before income tax expense | (6,975) | (2,665) | (10,049) | (6,728) |
Tax benefit (expense) | 42 | (10) | 28 | (55) |
Net loss and comprehensive loss | $ (6,933) | $ (2,675) | $ (10,021) | $ (6,783) |
Net loss per share: | ||||
Basic | $ (0.42) | $ (0.17) | $ (0.62) | $ (0.43) |
Diluted | $ (0.42) | $ (0.17) | $ (0.62) | $ (0.43) |
Weighted average number of shares used in computing loss per share: | ||||
Basic | 16,424 | 15,957 | 16,291 | 15,896 |
Diluted | 16,424 | 15,957 | 16,291 | 15,896 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flow from operating activities: | ||
Net loss | $ (10,021) | $ (6,783) |
Adjustments to reconcile net loss to net cash used for by operating activities: | ||
Amortization | 394 | 753 |
Depreciation | 798 | 1,013 |
Bad debt provision | 44 | 133 |
Stock-based compensation expense | 3,073 | 1,648 |
Amortization of debt discount and debt costs | (6) | (13) |
Interest on settlement obligations | 26 | 69 |
Deferred tax expense | 6 | |
Gain from acquisition litigation settlement | (249) | |
Goodwill and long-lived asset impairment | 4,700 | |
Loss on disposal of assets | 26 | 9 |
Gain on sale of MRI assets | (2,158) | |
Changes in operating assets and liabilities (net of the effect of acquisitions): | ||
Accounts receivable | (2,062) | 2,706 |
Inventory | 389 | (82) |
Prepaid and other current assets | 179 | (483) |
Accounts payable | (231) | (281) |
Accrued expenses | (23) | 78 |
Deferred revenue | (699) | (2,380) |
Total adjustments | 4,456 | 2,921 |
Net cash used for operating activities | (5,565) | (3,862) |
Cash flow from investing activities: | ||
Additions to patents, technology and other | (2) | (8) |
Additions to property and equipment | (362) | (248) |
Acquisition of VuComp M-Vu CAD | (6) | |
Sale of MRI assets | 2,850 | |
Net cash provided by (used for) investing activities | 2,486 | (262) |
Cash flow from financing activities: | ||
Stock option exercises | 57 | 188 |
Taxes paid related to restricted stock issuance | (151) | (65) |
Debt issuance costs | (74) | |
Principal payments of capital lease obligations | (77) | (796) |
Proceeds from debt financing, net | 6,000 | |
Net cash provided by (used for) financing activities | 5,755 | (673) |
Increase (decrease) in cash and equivalents | 2,676 | (4,797) |
Cash and equivalents, beginning of period | 8,585 | |
Cash and equivalents, end of period | 11,261 | 10,483 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 14 | 63 |
Taxes paid | 52 | $ 65 |
Escrow due from MRI asset sale | 350 | |
Equipment purchased under capital lease | $ 42 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Note 1 - Basis of Presentation and Significant Accounting Policies The accompanying condensed consolidated financial statements of iCAD, Inc. and subsidiaries (“iCAD” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). In the opinion of management, these unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial position of the Company at September 30, 2017, the results of operations of the Company for the three and nine month periods ended September 30, 2017 and 2016, and cash flows of the Company for the nine month periods ended September 30, 2017 and 2016. Although the Company believes that the disclosures in these financial statements are adequate to make the information presented not misleading, certain information normally included in the footnotes prepared in accordance with US GAAP has been omitted as permitted by the rules and regulations of the Securities and Exchange Commission (“SEC”). The accompanying financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K Segments The Company reports the results of two segments: Cancer Detection (“Detection”) and Cancer Therapy (“Therapy”). The Detection segment consists of our advanced image analysis and workflow products. The Therapy segment consists of our radiation therapy (“Axxent”) products, physics and management services, development fees, supplies, and fees for the AxxentHub software platform. Revenue Recognition The Company recognizes revenue primarily from the sale of products and from the sale of services and supplies. Revenue is recognized when delivery has occurred, persuasive evidence of an arrangement exists, fees are fixed or determinable and collectability of the related receivable is probable. For product revenue, delivery has occurred upon shipment provided title and risk of loss have passed to the customer. Services and supplies revenue are considered to be delivered as the services are performed or over the estimated life of the supply agreement. The Company recognizes revenue from the sale of its digital, film-based CAD and cancer therapy products and services in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Update No. 2009-13, 2009-13”) No. 2009-14, 2009-14”) 985-605, 985-605”). recognized in accordance with ASC 840 “Leases” (“ASC 840”). For multiple element arrangements, revenue is allocated to all deliverables based on their relative selling prices. In such circumstances, a hierarchy is used to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“BESP”). VSOE generally exists only when the deliverable is sold separately and is the price actually charged for that deliverable. The process for determining BESP for deliverables without VSOE or TPE considers multiple factors including relative selling prices; competitive prices in the marketplace, and management judgment; however, these may vary depending upon the unique facts and circumstances related to each deliverable. The Company uses customer purchase orders that are subject to the Company’s terms and conditions or, in the case of an Original Equipment Manufacturer (“OEM”) are governed by distribution agreements. In accordance with the Company’s distribution agreements, the OEM does not have a right of return, and title and risk of loss passes to the OEM upon shipment. The Company generally ships Free On Board shipping point and uses shipping documents and third-party proof of delivery to verify delivery and transfer of title. In addition, the Company assesses whether collection is probable by considering a number of factors, including past transaction history with the customer and the creditworthiness of the customer, as obtained from third party credit references. If the terms of the sale include customer acceptance provisions and compliance with those provisions cannot be demonstrated, all revenue is deferred and not recognized until such acceptance occurs. The Company considers all relevant facts and circumstances in determining when to recognize revenue, including contractual obligations to the customer, the customer’s post-delivery acceptance provisions, if any, and the installation process. The Company has determined that iCAD’s digital and film based sales generally follow the guidance of FASB ASC Topic 605 “Revenue Recognition” (“ASC 605”) as the software has been considered essential to the functionality of the product per the guidance of ASU 2009-14. 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 ASC 985-605-25-71. Sales of the Company’s Therapy segment products typically include a controller, accessories, source agreements and services. The Company allocates revenue to the deliverables in the arrangement based on the BESP in accordance with ASU 2009-13. 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, Cost of Revenue Cost of revenue consists of the costs of products purchased for resale, costs relating to service including personnel costs for physicists, management services and radiation therapists, costs of service contracts to maintain equipment after the warranty period, product installation, training, customer support, certain warranty repair costs, inbound freight and duty, cost of supplies, manufacturing, warehousing, material movement, inspection, scrap, rework, amortization, depreciation and in-house |
Loss per Common Share
Loss per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Loss per Common Share | Note 2 - Loss per Common Share The Company’s basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. A summary of the Company’s calculation of net loss per share is as follows (in thousands except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net loss $ (6,933 ) $ (2,675 ) $ (10,021 ) $ (6,783 ) Shares used in the calculation of basic and diluted net loss per share 16,424 15,957 16,291 15,896 Effect of dilutive securities: Stock options — — — — Restricted stock — — — — Diluted shares used in the calculation of net loss per share 16,424 15,957 16,291 15,896 Net loss per share - basic and diluted $ (0.42 ) $ (0.17 ) $ (0.62 ) $ (0.43 ) The shares of the Company’s common stock issuable upon the exercise of stock options and vesting of restricted stock that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive are as follows: Period Ended September 30, 2017 2016 Stock options 1,426,513 1,569,166 Restricted stock 507,147 392,148 Stock options and restricted stock 1,933,660 1,961,314 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | Note 3 - Business Combinations 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 Business Combinations 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 preliminary 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 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 |
Sale of MRI Assets
Sale of MRI Assets | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of MRI Assets | Note 4 - Sale of MRI Assets 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 on January 30, 2017 less a holdback reserve of $350,000 for a net of approximately $2.9 million. The holdback reserve of $350,000 has been recorded as an asset in other assets and will be paid to the Company within eighteen months from the closing date, less any amounts, if any, due and payable or reserved under the indemnification provisions in the Asset Purchase agreement. The Company determined the sale constituted the sale of a business in accordance with ASC 805. The Company performed an evaluation to determine if the sale constituted discontinued operations and concluded that the sale did not represent a major strategic shift, and accordingly it was not considered to be discontinued operations. In connection with the transaction, the Company allocated $394,000 of goodwill which was a component of the gain on the 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. The value of the net assets sold is as follows (in thousands): Assets Accounts Receivable $ 116 Intangible assets 810 Allocated Goodwill 394 Total Assets $ 1,320 Liabilities Deferred Revenue $ 746 Total Liabilities $ 746 Net Assets Sold $ 574 In connection with the sale the Company agreed to provide certain transition services to Invivo. The fair value of the transition services were determined based on the cost to provide plus a reasonable profit margin and have been recognized as revenue over the term of approximately ninety days from the closing date. The Company recorded a gain of $2.5 million as of January 30, 2017. The components of the gain on the sale are as follows (in thousands): Gain on Sale Cash received $ 2,850 Holdback reserve 350 Fair value of transition services (118 ) Net Assets sold (574 ) Total $ 2,508 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 5 - Inventory The components of inventory, net of allowance for obsolete, unmarketable or slow-moving inventories, are summarized as follows (in thousands): as of September 30, as of December 31, Raw materials $ 2,033 $ 2,503 Work in process 139 75 Finished Goods 1,168 1,149 Inventory $ 3,340 $ 3,727 |
Debt Financing
Debt Financing | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Financing | Note 6 - Debt financing On August 7, 2017 the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (the “Bank”) that provides an initial term loan facility (the “Term Loan”) of $6.0 million and a $4.0 million revolving line of credit (the “Revolving Loan”). The Company also has the option to secure an additional $3.0 million under the Loan Agreement for a total of $9.0 million in 2018, subject to meeting a net revenue minimum of at least $35.0 million for a trailing twelve month period ending prior to July 30, 2018 (the “Revenue Milestone”). The Term Loan accrues interest at prime rate. The Company will begin repayment on Sept 1, 2018 in 36 equal monthly installments of principal. Subject to meeting the Revenue Milestone, the Company could elect to defer repayment of the Term Loan to March 1, 2019 in 30 equal monthly payments. The outstanding Revolving Advances will accrue interest at a floating per annum rate equal to 1.50% above the prime rate for periods when the ratio of the Company’s unrestricted cash to the Company’s outstanding liabilities to the Bank plus the amount of the Company’s total liabilities that mature within one year is at least 1.25 to 1.0. At all other times, the interest rate shall be 0.50% above the prime rate. The outstanding Term Loan Advances will accrue interest at a floating per annum rate equal to the prime rate. The maturity date of the Revolving Advances and the Term Loan Advances is August 7, 2021. However, the maturity date will become April 30, 2019, April 30, 2020 or April 30, 2021 if, on or before October 30, 2018, or 2019 or 2020, as applicable, the Company does not agree in writing to the net revenue covenant levels proposed by the Bank with respect to the upcoming applicable calendar year. If the Revolving Advances are paid in full and the Loan Agreement is terminated prior to the maturity date, then the Company will pay to the Bank a termination fee in an amount equal to two percent (2.0%) of the maximum revolving line of credit. If the Company prepays the Term Loan Advances prior to the maturity date, then the Company will pay to the Bank an amount equal to 1.0%-3.0% In connection with the credit line, the Company incurred approximately $74,000 of closing costs. In accordance with ASU 2015-03 The current repayment schedule for the term loan is based on repayment beginning on September 1, 2018. If the Revenue Milestone is met, the Company could elect to defer repayment until March 2019. The carrying value of the Term Loan (net of debt issuance costs) as of September 30, 2017 is as follows (in thousands): September 30, Short-term $ 317 Long-term 5,612 Total $ 5,929 Interest expense related to the loan for the three and nine month periods ended September 30, 2017 is as follows (in thousands): September 30, Three months ended $ 33 Nine month ended 33 |
Lease Commitments
Lease Commitments | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments | Note 7 - Lease Commitments Operating leases Facilities are leased under operating leases expiring at various dates through March 2020. Certain of these leases contain renewal options. Rent expense under operating leases was $229,000 and $665,000 for the three and nine months ended September 30, 2017, respectively and $178,000 and $516,000 for the three and nine months ended September 30, 2016, respectively. Future minimum lease payments as of September 30, 2017 under operating leases are as follows: (in thousands) Fiscal Year Operating 2017 $ 318 2018 738 2019 746 2020 174 Total $ 1,976 Capital leases In August, 2017, the Company assumed an equipment lease obligation with payments totaling $50,000. The leases were determined to be capital leases and accordingly the equipment was capitalized and a liability of $42,000 was recorded. The equipment will be depreciated over the expected life of 3 years. Minimum lease payments are as follows (in thousands): Fiscal Year Capital 2017 4 2018 16 2019 17 2020 13 subtotal minimum lease obligation 50 less interest (8 ) Total, net 42 less current portion (12 ) long term portion $ 30 In connection with the Radion/DermEbx Acquisition which closed in July 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. In connection with the acquisition, the Company recorded a fair value adjustment to interest expense and amortized the adjustment over the life of the related lease. As of September 30, 2017, there was no further liability for the acquired equipment leases. Related Party Lease: Kamal Gogineni is an employee of one of the Company’s subsidiaries and a stockholder 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, Inc. 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 paid approximately $76,000 to RCP in 2017. As of September 30, 2017, there is no further obligation. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 8 - Stock-Based Compensation The Company follows the guidance in ASC Topic 718, “ Compensation – Stock Compensation , The Company granted options to purchase 57,352 shares of the Company’s stock in the three months ended September 30, 2017. Options granted under the Company’s stock incentive plans were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Average risk-free interest rate 1.56% 0.84% 1.52% 0.87% Expected dividend yield None None None None Expected life 3.5 years 3.5 years 3.5 years 3.5 years Expected volatility 64.2% to 67.0% 68.6% to 75.3% 64.2% to 72.0% 68.6% to 75.3% Weighted average exercise price $4.28 $5.49 $4.39 $5.57 Weighted average fair value $2.02 $2.67 $2.12 $2.71 The Company’s stock-based compensation expense, including options and restricted stock by category is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cost of revenue $ 1 $ 1 5 $ 5 Engineering and product development 76 82 633 289 Marketing and sales 132 162 854 476 General and administrative 294 201 1,581 878 $ 503 $ 446 $ 3,073 $ 1,648 As of September 30, 2017, unrecognized compensation cost (in thousands) related to unexercisable options and unvested restricted stock and the weighted average remaining period is as follows: Remaining expense $ 2,504 Weighted average term 1.1 years 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 The Company’s aggregate intrinsic value for stock options and restricted stock outstanding is as follows (in thousands): Period Ended Aggregate intrinsic value 2017 2016 Stock options $ 1,050 $ 1,748 Restricted stock 2,242 2,039 The intrinsic value of stock options exercised during the three and nine months ended September 30, 2017 was $12,000 and $50,000, respectively. The intrinsic value of stock options exercised during the three and nine months September 30, 2016 was $189,000 and $195,000, respectively. The intrinsic value of restricted shares that vested in the three and nine months ended September 30, 2017 was $0.2 million and $1.7 million, respectively. The intrinsic value of restricted shares that vested in the three and nine months ended September 30, 2016 was $0.0 million and $1.0 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 - Commitments and Contingencies Foreign Tax Claim In July 2007, a dissolved former Canadian subsidiary of the Company, CADx Medical Systems Inc. (“CADx Medical”), received a tax re-assessment re-assessment re-assessment Settlement Obligations In connection with the acquisition of Xoft in 2010, the Company recorded a royalty obligation pursuant to a settlement agreement entered into between Xoft and Hologic in August 2007. Xoft received a nonexclusive, irrevocable, perpetual, worldwide license, including the right to sublicense certain Hologic patents, and a non-compete In December, 2011, the Company agreed to a settlement related to litigation with Carl Zeiss Meditec AG. In July 2017, the Company paid the remaining $500,000 due and there is no further obligation to Zeiss. The Company recorded interest expense of approximately $0 and $26,000 in the three and nine months ended September 30, 2017, respectively and $13,000 and $39,000 in the three and nine months ended September 30, 2016, respectively related to this obligation. Other Commitments The Company is obligated to pay approximately $0.8 million for firm purchase obligations to suppliers for future product and service deliverables. Litigation The Company is a party to various legal proceedings and claims arising out of the ordinary course of its business. Although the final results of all such matters and claims cannot be predicted with certainty, the Company currently believes that there are no current proceedings or claims pending against it the ultimate resolution of which would have a material adverse effect on its financial condition or results of operations. However, should the Company fail to prevail in any legal matter or should several legal matters be resolved against the Company in the same reporting period, such matters could have a material adverse effect on our operating results and cash flows for that particular period. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies. Legal costs are expensed as incurred. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10 - Fair Value Measurements The Company follows the provisions of ASC Topic 820, “ Fair Value Measurement and Disclosures • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable certain accrued liabilities and debt. The carrying amounts of our cash and cash equivalents (which are composed primarily of deposit and overnight sweep accounts), accounts receivable, accounts payable and certain accrued liabilities approximate fair value due to the short maturity of these instruments. The carrying value of our term loan approximates fair value due to the market rate of the stated interest rate. The Company’s assets that are measured at fair value on a recurring basis relate to the Company’s money market accounts. The Company’s money market funds are included in cash and cash equivalents in the accompanying balance sheets and are considered a Level 1 investment as they are valued at quoted market prices in active markets. The following table sets forth the Company’s assets and liabilities which are measured at fair value on a recurring basis by level within the fair value hierarchy. Fair value measurements using: (000’s) as of December 31, 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 September 30, 2017 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 10,054 $ — $ — $ 10,054 Total Assets $ 10,054 $ — $ — $ 10,054 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. The Company recorded a $4.7 million impairment in the quarter ended September 30, 2017 which consisted of $4.0 million related to goodwill and $0.7 million related to long-lived assets as discussed in Note 12 and Note 13 and remeasured long-lived assets and goodwill of the Therapy reporting unit at fair value as of the impairment date as noted in the following table. The fair values of long-lived assets and goodwill were measured using Level 3 inputs. Fair value measurements using: (000’s) as of September 30, 2017 Level 1 Level 2 Level 3 Total Non-recurring Long-lived and intangible assets $ — $ — $ 780 $ 780 Goodwill — — 1,766 1,766 Total Assets $ — $ — $ 2,546 $ 2,546 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 - Income Taxes The Company recorded an income tax benefit of $42,000 and $28,000 for the three and nine months ended September 30, 2017, respectively, as compared to a provision of $10,000 and $55,000 for the three and nine months ended September 30, 2016, respectively. The tax benefit for the three and nine months ended September 30, 2017 is the result of applying for research and development credits in New Hampshire. In the second quarter of 2017, the Company applied for $50,000 of research and development credits from New Hampshire. The Company anticipates the credits to be allocated for the 2016 tax year as well as the 2017 tax year. The research and development credits have been utilized to decrease the New Hampshire non-income On January 1, 2017, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09”). 2016-09, |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 12 - Goodwill In accordance with FASB ASC Topic 350-20, 350-20”), st 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 the underperformance of the Therapy reporting unit as compared to expected future results, the Company determined there was a triggering event in the third quarter of 2017. As a result, the Company completed an interim impairment assessment. The interim test resulted in the fair value of the Therapy reporting unit being less than the carrying value of the reporting unit. The Company did not identify a triggering event within the Detection reporting unit and accordingly did not perform an interim test. The Company elected to early adopt ASU 2017-04, 2017-04”). 2017-04 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 18% 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. As discussed in Note 3, in April 2015, the Company acquired VuComp’s M-Vu ® M-Vu In December 2016, the Company entered into an Asset Purchase Agreement with Invivo Corporation. The Company sold and conveyed 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 Asset Purchase Agreement, the Company determined that the sale constituted the sale of a business and the Company allocated $394,000 of goodwill to assets held for sale as of December 31, 2016. 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 Asset Purchase Agreement. The Company closed the transaction on January 30, 2017, and goodwill was a component of the net assets sold as of the closing date. A roll forward of goodwill activity by reportable segment is as follows (in thousands): Detection Therapy Total Balance at December 31, 2016 8,362 5,735 14,097 Impairment — (3,969 ) (3,969 ) Balance at September 30, 2017 $ 8,362 $ 1,766 $ 10,128 Accumulated Goodwill 699 6,270 54,906 Fair value allocation 7,663 13,446 — Accumulated impairment — (17,950 ) (44,778 ) Balance at September 30, 2017 $ 8,362 $ 1,766 $ 10,128 |
Long-lived Assets
Long-lived Assets | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Long-lived Assets | Note 13 - 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). In accordance with ASC 360-10-35-17, The Company completed an interim goodwill impairment assessment for the Therapy reporting unit and noted that there was a goodwill impairment (see Note 13). As a result, the Company determined this was a triggering event for long-lived assets. Accordingly, the Company completed an 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 and the reporting unit. 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. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 14 - Segment Reporting In accordance with FASB Topic ASC 280, “ Segments The Company’s CODM is the CEO. Each segment generates revenue from the sale of medical equipment and related services and/or sale of supplies. The Company has determined there are two segments, Cancer Detection 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, and earnings or loss before interest, taxes, depreciation, amortization, and other specific and non-recurring Our CODM does not use asset information by segment to allocate resources or make operating decisions. Segment revenues, gross profit, segment operating income or loss, and a reconciliation of segment operating income or loss to GAAP loss before income tax is as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Segment revenues: Detection $ 4,346 $ 4,134 $ 13,066 $ 12,961 Therapy 2,654 1,869 7,134 6,449 Total Revenue $ 7,000 $ 6,003 $ 20,200 $ 19,410 Segment gross profit: Detection $ 3,822 $ 3,586 $ 11,553 $ 11,429 Therapy 821 515 2,282 2,560 Segment gross profit $ 4,643 $ 4,101 $ 13,835 $ 13,989 Segment operating income (loss): Detection 1,475 1,250 4,261 4,494 Therapy (6,451 ) (2,055 ) (10,627 ) (5,398 ) Segment operating income (loss) $ (4,976 ) $ (805 ) $ (6,366 ) $ (904 ) General, administrative, depreciation and amortization expense $ (1,966 ) $ (1,847 ) $ (6,143 ) $ (5,774 ) Interest expense (36 ) (15 ) (51 ) (59 ) Gain on sale of MRI assets — — 2,508 — Other income 3 2 3 9 Loss before income tax $ (6,975 ) $ (2,665 ) $ (10,049 ) $ (6,728 ) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Recent Accounting Pronouncements | Note 15 - Recent Accounting Pronouncements 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 The Company has performed an assessment of its revenue streams and customer classes. The Company has used this information to develop an implementation plan which it expects to complete during the fourth quarter of 2017. The Company does not expect that its revenue recognition will be materially impacted by the new guidance. The Company is also assessing the impact of the guidance on its contract costs in order to determine the magnitude of impact. The Company currently expects to adopt the guidance using the modified retrospective approach, and will finalize this selection along with completion of the implementation plan. There are also certain considerations related to internal control over financial reporting that are associated with implementing Topic 606. The Company is evaluating its internal control framework over revenue recognition to identify any changes that may need to be made in relation to the implementation process, as well as upon adoption of the new guidance. In addition, disclosure requirements under the new guidance in Topic 606 have been significantly expanded in comparison to the disclosure requirements under the current guidance. The Company’s implementation phase includes designing and implementing the appropriate internal controls to obtain and disclose the information required under Topic 606. The Company expects to adopt certain practical expedients and make certain policy elections related to the accounting for significant finance components, sales taxes, shipping and handling, costs to obtain a contract and immaterial promised goods or services, which will mitigate certain impacts of adopting Topic 606. The Company also expects to review the tax impact, if any, that Topic 606 will have on the financial statements. In February 2016, the FASB issued ASU No. 2016-02, right-of-use off-balance On January 1, 2017, we adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09, 2016-09”), 2016-09, In August 2016, the FASB issued ASU 2016-15, |
Basis of Presentation and Sig21
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue primarily from the sale of products and from the sale of services and supplies. Revenue is recognized when delivery has occurred, persuasive evidence of an arrangement exists, fees are fixed or determinable and collectability of the related receivable is probable. For product revenue, delivery has occurred upon shipment provided title and risk of loss have passed to the customer. Services and supplies revenue are considered to be delivered as the services are performed or over the estimated life of the supply agreement. The Company recognizes revenue from the sale of its digital, film-based CAD and cancer therapy products and services in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Update No. 2009-13, 2009-13”) No. 2009-14, 2009-14”) 985-605, 985-605”). recognized in accordance with ASC 840 “Leases” (“ASC 840”). For multiple element arrangements, revenue is allocated to all deliverables based on their relative selling prices. In such circumstances, a hierarchy is used to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“BESP”). VSOE generally exists only when the deliverable is sold separately and is the price actually charged for that deliverable. The process for determining BESP for deliverables without VSOE or TPE considers multiple factors including relative selling prices; competitive prices in the marketplace, and management judgment; however, these may vary depending upon the unique facts and circumstances related to each deliverable. The Company uses customer purchase orders that are subject to the Company’s terms and conditions or, in the case of an Original Equipment Manufacturer (“OEM”) are governed by distribution agreements. In accordance with the Company’s distribution agreements, the OEM does not have a right of return, and title and risk of loss passes to the OEM upon shipment. The Company generally ships Free On Board shipping point and uses shipping documents and third-party proof of delivery to verify delivery and transfer of title. In addition, the Company assesses whether collection is probable by considering a number of factors, including past transaction history with the customer and the creditworthiness of the customer, as obtained from third party credit references. If the terms of the sale include customer acceptance provisions and compliance with those provisions cannot be demonstrated, all revenue is deferred and not recognized until such acceptance occurs. The Company considers all relevant facts and circumstances in determining when to recognize revenue, including contractual obligations to the customer, the customer’s post-delivery acceptance provisions, if any, and the installation process. The Company has determined that iCAD’s digital and film based sales generally follow the guidance of FASB ASC Topic 605 “Revenue Recognition” (“ASC 605”) as the software has been considered essential to the functionality of the product per the guidance of ASU 2009-14. 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 ASC 985-605-25-71. Sales of the Company’s Therapy segment products typically include a controller, accessories, source agreements and services. The Company allocates revenue to the deliverables in the arrangement based on the BESP in accordance with ASU 2009-13. 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, |
Cost of Revenue | Cost of Revenue Cost of revenue consists of the costs of products purchased for resale, costs relating to service including personnel costs for physicists, management services and radiation therapists, costs of service contracts to maintain equipment after the warranty period, product installation, training, customer support, certain warranty repair costs, inbound freight and duty, cost of supplies, manufacturing, warehousing, material movement, inspection, scrap, rework, amortization, depreciation and in-house |
Compensation - Stock Compensation | The Company follows the guidance in ASC Topic 718, “ Compensation – Stock Compensation , |
Litigation | Litigation The Company is a party to various legal proceedings and claims arising out of the ordinary course of its business. Although the final results of all such matters and claims cannot be predicted with certainty, the Company currently believes that there are no current proceedings or claims pending against it the ultimate resolution of which would have a material adverse effect on its financial condition or results of operations. However, should the Company fail to prevail in any legal matter or should several legal matters be resolved against the Company in the same reporting period, such matters could have a material adverse effect on our operating results and cash flows for that particular period. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies. Legal costs are expensed as incurred. |
Fair Value Measurement and Disclosures | Fair Value Measurements The Company follows the provisions of ASC Topic 820, “ Fair Value Measurement and Disclosures • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable certain accrued liabilities and debt. The carrying amounts of our cash and cash equivalents (which are composed primarily of deposit and overnight sweep accounts), accounts receivable, accounts payable and certain accrued liabilities approximate fair value due to the short maturity of these instruments. The carrying value of our term loan approximates fair value due to the market rate of the stated interest rate. The Company’s assets that are measured at fair value on a recurring basis relate to the Company’s money market accounts. The Company’s money market funds are included in cash and cash equivalents in the accompanying balance sheets and are considered a Level 1 investment as they are valued at quoted market prices in active markets. The following table sets forth the Company’s assets and liabilities which are measured at fair value on a recurring basis by level within the fair value hierarchy. |
Income Taxes | Income Taxes The Company recorded an income tax benefit of $42,000 and $28,000 for the three and nine months ended September 30, 2017, respectively, as compared to a provision of $10,000 and $55,000 for the three and nine months ended September 30, 2016, respectively. The tax benefit for the three and nine months ended September 30, 2017 is the result of applying for research and development credits in New Hampshire. In the second quarter of 2017, the Company applied for $50,000 of research and development credits from New Hampshire. The Company anticipates the credits to be allocated for the 2016 tax year as well as the 2017 tax year. The research and development credits have been utilized to decrease the New Hampshire non-income On January 1, 2017, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09”). 2016-09, |
Intangibles - Goodwill and Other | In accordance with FASB ASC Topic 350-20, 350-20”), |
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). |
Segment Reporting | In accordance with FASB Topic ASC 280, “ Segments |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 The Company has performed an assessment of its revenue streams and customer classes. The Company has used this information to develop an implementation plan which it expects to complete during the fourth quarter of 2017. The Company does not expect that its revenue recognition will be materially impacted by the new guidance. The Company is also assessing the impact of the guidance on its contract costs in order to determine the magnitude of impact. The Company currently expects to adopt the guidance using the modified retrospective approach, and will finalize this selection along with completion of the implementation plan. There are also certain considerations related to internal control over financial reporting that are associated with implementing Topic 606. The Company is evaluating its internal control framework over revenue recognition to identify any changes that may need to be made in relation to the implementation process, as well as upon adoption of the new guidance. In addition, disclosure requirements under the new guidance in Topic 606 have been significantly expanded in comparison to the disclosure requirements under the current guidance. The Company’s implementation phase includes designing and implementing the appropriate internal controls to obtain and disclose the information required under Topic 606. The Company expects to adopt certain practical expedients and make certain policy elections related to the accounting for significant finance components, sales taxes, shipping and handling, costs to obtain a contract and immaterial promised goods or services, which will mitigate certain impacts of adopting Topic 606. The Company also expects to review the tax impact, if any, that Topic 606 will have on the financial statements. In February 2016, the FASB issued ASU No. 2016-02, right-of-use off-balance On January 1, 2017, we adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09, 2016-09”), 2016-09, In August 2016, the FASB issued ASU 2016-15, |
Loss per Common Share (Tables)
Loss per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of Net Loss Per Share | A summary of the Company’s calculation of net loss per share is as follows (in thousands except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net loss $ (6,933 ) $ (2,675 ) $ (10,021 ) $ (6,783 ) Shares used in the calculation of basic and diluted net loss per share 16,424 15,957 16,291 15,896 Effect of dilutive securities: Stock options — — — — Restricted stock — — — — Diluted shares used in the calculation of net loss per share 16,424 15,957 16,291 15,896 Net loss per share - basic and diluted $ (0.42 ) $ (0.17 ) $ (0.62 ) $ (0.43 ) |
Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share | The shares of the Company’s common stock issuable upon the exercise of stock options and vesting of restricted stock that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive are as follows: Period Ended September 30, 2017 2016 Stock options 1,426,513 1,569,166 Restricted stock 507,147 392,148 Stock options and restricted stock 1,933,660 1,961,314 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 general and administrative expenses during 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 |
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 preliminary 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 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 |
Sale of MRI Assets (Tables)
Sale of MRI Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Net Assets Sold | The value of the net assets sold is as follows (in thousands): Assets Accounts Receivable $ 116 Intangible assets 810 Allocated Goodwill 394 Total Assets $ 1,320 Liabilities Deferred Revenue $ 746 Total Liabilities $ 746 Net Assets Sold $ 574 |
Schedule of Components of Gain on Sale | 2017. The components of the gain on the sale are as follows (in thousands): Gain on Sale Cash received $ 2,850 Holdback reserve 350 Fair value of transition services (118 ) Net Assets sold (574 ) Total $ 2,508 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventory, net of allowance for obsolete, unmarketable or slow-moving inventories, are summarized as follows (in thousands): as of September 30, as of December 31, Raw materials $ 2,033 $ 2,503 Work in process 139 75 Finished Goods 1,168 1,149 Inventory $ 3,340 $ 3,727 |
Debt Financing (Tables)
Debt Financing (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value of Term Loan Net of Debt Issuance Costs | The carrying value of the Term Loan (net of debt issuance costs) as of September 30, 2017 is as follows (in thousands): September 30, Short-term $ 317 Long-term 5,612 Total $ 5,929 |
Schedule of Interest Expense Related to Loan | Interest expense related to the loan for the three and nine month periods ended September 30, 2017 is as follows (in thousands): September 30, Three months ended $ 33 Nine month ended 33 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Operating Leases | Future minimum lease payments as of September 30, 2017 under operating leases are as follows: (in thousands) Fiscal Year Operating 2017 $ 318 2018 738 2019 746 2020 174 Total $ 1,976 |
Future Minimum Lease Payments under Non-cancelable Capital Leases | Minimum lease payments are as follows (in thousands): Fiscal Year Capital 2017 4 2018 16 2019 17 2020 13 subtotal minimum lease obligation 50 less interest (8 ) Total, net 42 less current portion (12 ) long term portion $ 30 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Granted under Company's Stock Incentive Plans, Valuation Assumptions and Fair Values | Options granted under the Company’s stock incentive plans were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Average risk-free interest rate 1.56% 0.84% 1.52% 0.87% Expected dividend yield None None None None Expected life 3.5 years 3.5 years 3.5 years 3.5 years Expected volatility 64.2% to 67.0% 68.6% to 75.3% 64.2% to 72.0% 68.6% to 75.3% Weighted average exercise price $4.28 $5.49 $4.39 $5.57 Weighted average fair value $2.02 $2.67 $2.12 $2.71 |
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 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cost of revenue $ 1 $ 1 5 $ 5 Engineering and product development 76 82 633 289 Marketing and sales 132 162 854 476 General and administrative 294 201 1,581 878 $ 503 $ 446 $ 3,073 $ 1,648 |
Unrecognized Compensation Cost Related to Unexercisable Options and Unvested Restricted Stock and Weighted Average Remaining Period | As of September 30, 2017, unrecognized compensation cost (in thousands) related to unexercisable options and unvested restricted stock and the weighted average remaining period is as follows: Remaining expense $ 2,504 Weighted average term 1.1 years |
Aggregate Intrinsic Value | The Company’s aggregate intrinsic value for stock options and restricted stock outstanding is as follows (in thousands): Period Ended Aggregate intrinsic value 2017 2016 Stock options $ 1,050 $ 1,748 Restricted stock 2,242 2,039 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities which are Measured at Fair Value on a Recurring Basis | The following table sets forth the Company’s assets and liabilities which are measured at fair value on a recurring basis by level within the fair value hierarchy. Fair value measurements using: (000’s) as of December 31, 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 September 30, 2017 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 10,054 $ — $ — $ 10,054 Total Assets $ 10,054 $ — $ — $ 10,054 |
Assets Measured at Fair Value on a Non-recurring Basis | The fair values of long-lived assets and goodwill were measured using Level 3 inputs. Fair value measurements using: (000’s) as of September 30, 2017 Level 1 Level 2 Level 3 Total Non-recurring Long-lived and intangible assets $ — $ — $ 780 $ 780 Goodwill — — 1,766 1,766 Total Assets $ — $ — $ 2,546 $ 2,546 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Roll Forward of Goodwill Activity by Reportable Segment | A roll forward of goodwill activity by reportable segment is as follows (in thousands): Detection Therapy Total Balance at December 31, 2016 8,362 5,735 14,097 Impairment — (3,969 ) (3,969 ) Balance at September 30, 2017 $ 8,362 $ 1,766 $ 10,128 Accumulated Goodwill 699 6,270 54,906 Fair value allocation 7,663 13,446 — Accumulated impairment — (17,950 ) (44,778 ) Balance at September 30, 2017 $ 8,362 $ 1,766 $ 10,128 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of Segment Revenues, Gross Profit, Segment Operating Income or Loss and Reconciliation of Segment Operating Income or Loss to GAAP Loss | Segment revenues, gross profit, segment operating income or loss, and a reconciliation of segment operating income or loss to GAAP loss before income tax is as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Segment revenues: Detection $ 4,346 $ 4,134 $ 13,066 $ 12,961 Therapy 2,654 1,869 7,134 6,449 Total Revenue $ 7,000 $ 6,003 $ 20,200 $ 19,410 Segment gross profit: Detection $ 3,822 $ 3,586 $ 11,553 $ 11,429 Therapy 821 515 2,282 2,560 Segment gross profit $ 4,643 $ 4,101 $ 13,835 $ 13,989 Segment operating income (loss): Detection 1,475 1,250 4,261 4,494 Therapy (6,451 ) (2,055 ) (10,627 ) (5,398 ) Segment operating income (loss) $ (4,976 ) $ (805 ) $ (6,366 ) $ (904 ) General, administrative, depreciation and amortization expense $ (1,966 ) $ (1,847 ) $ (6,143 ) $ (5,774 ) Interest expense (36 ) (15 ) (51 ) (59 ) Gain on sale of MRI assets — — 2,508 — Other income 3 2 3 9 Loss before income tax $ (6,975 ) $ (2,665 ) $ (10,049 ) $ (6,728 ) |
Basis of Presentation and Sig32
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2017Segment | Sep. 30, 2016USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Abstract] | ||
Business segment | Segment | 2 | |
Medical Device Excise tax included in the cost of revenue | $ | $ 467,000 |
Loss per Common Share - Calcula
Loss per Common Share - Calculation of Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net loss | $ (6,933) | $ (2,675) | $ (10,021) | $ (6,783) |
Shares used in the calculation of basic and diluted net loss per share | 16,424 | 15,957 | 16,291 | 15,896 |
Effect of dilutive securities: | ||||
Diluted shares used in the calculation of net loss per share | 16,424 | 15,957 | 16,291 | 15,896 |
Net loss per share - basic and diluted | $ (0.42) | $ (0.17) | $ (0.62) | $ (0.43) |
Stock Options [Member] | ||||
Effect of dilutive securities: | ||||
Incremental common shares attributable to share-based payment arrangements | 0 | 0 | 0 | 0 |
Restricted Stock [Member] | ||||
Effect of dilutive securities: | ||||
Incremental common shares attributable to share-based payment arrangements | 0 | 0 | 0 | 0 |
Loss per Common Share - Schedul
Loss per Common Share - Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock options, warrants and restricted stock | 1,933,660 | 1,961,314 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock options, warrants and restricted stock | 1,426,513 | 1,569,166 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock options, warrants and restricted stock | 507,147 | 392,148 |
Business Combinations - Acquisi
Business Combinations - Acquisition of VuComp Cancer Detection Portfolio - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
MVu Breast Density [Member] | General and Administrative Expense [Member] | |
Business Acquisition [Line Items] | |
Gain on litigation settlement | $ 249,000 |
Business Combinations - Allocat
Business Combinations - Allocation of Purchase Price Based on Estimated Fair Values of Assets Acquired and liabilities Assumed (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 13, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Cash | $ 6 | ||||
Goodwill | $ 10,128 | $ 14,097 | |||
Property and equipment, Estimated amortizable life | 3 years | ||||
MVu Breast Density [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 6 | $ 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 | ||||
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 |
Sale of MRI Assets - Additional
Sale of MRI Assets - Additional Information (Detail) - USD ($) | Jan. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
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 | ||
Holdback reserve related to sale and transfer of intangible assets | $ 350,000 | $ 350,000 | |
Proceeds from sale and transfer of intangible assets | 2,900,000 | ||
Allocation of goodwill to asset held for sale | 394,000 | ||
Gain on sale and transfer of intangible assets | $ 2,500,000 | $ 2,508,000 |
Sale of MRI Assets - Schedule o
Sale of MRI Assets - Schedule of Net Assets Sold (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Assets | ||
Allocated Goodwill | $ 394,000 | |
Total Assets | 1,304,000 | |
Liabilities | ||
Total Liabilities | $ 832,000 | |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | VersaVue Software and DynaCAD Product and Related Assets [Member] | ||
Assets | ||
Accounts Receivable | $ 116,000 | |
Intangible assets | 810,000 | |
Allocated Goodwill | 394,000 | |
Total Assets | 1,320,000 | |
Liabilities | ||
Deferred Revenue | 746,000 | |
Total Liabilities | 746,000 | |
Net Assets Sold | $ 574,000 |
Sale of MRI Assets - Schedule39
Sale of MRI Assets - Schedule of Components of Gain on Sale (Detail) - USD ($) | Jan. 30, 2017 | Sep. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash received | $ 2,850,000 | |
Asset Purchase Agreement [Member] | VersaVue Software and DynaCAD Product and Related Assets [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash received | 2,850,000 | |
Holdback reserve | $ 350,000 | 350,000 |
Fair value of transition services | (118,000) | |
Net Assets sold | (574,000) | |
Total | $ 2,500,000 | $ 2,508,000 |
Inventory - Components of Inven
Inventory - Components of Inventory (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,033 | $ 2,503 |
Work in process | 139 | 75 |
Finished Goods | 1,168 | 1,149 |
Inventory | $ 3,340 | $ 3,727 |
Debt Financing - Additional Inf
Debt Financing - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Jul. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 07, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||||
Term loan, description | The Term Loan accrues interest at prime rate. The Company will begin repayment on Sept 1, 2018 in 36 equal monthly installments of principal. Subject to meeting the Revenue Milestone, the Company could elect to defer repayment of the Term Loan to March 1, 2019 in 30 equal monthly payments | ||||||||
Term loan monthly installments | 0 | ||||||||
Termination fee percentage | 2.00% | ||||||||
Line of credit, closing costs | $ 74,000 | ||||||||
Debt instrument repayment term | 36 months | ||||||||
Prime Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate | 0.50% | ||||||||
Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan advances prior to maturity | 1.00% | ||||||||
Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan advances prior to maturity | 3.00% | ||||||||
Term Loan A [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, contingent borrowing capacity | $ 3,000,000 | ||||||||
Term Loan A [Member] | Silicon Valley Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 6,000,000 | ||||||||
Net revenues | $ 10,250,000 | $ 11,500,000 | |||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate | 1.50% | ||||||||
Percentage of outstanding liabilities to bank | 1.25% | ||||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 4,000,000 | ||||||||
Scenario Forecast [Member] | Term Loan A [Member] | Silicon Valley Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 9,000,000 | ||||||||
Net revenues | $ 15,000,000 | $ 15,250,000 | $ 15,500,000 | $ 15,500,000 | $ 14,000,000 | ||||
Scenario Forecast [Member] | Term Loan A [Member] | Minimum [Member] | Silicon Valley Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Net revenues | $ 35,000,000 |
Debt Financing - Schedule of Ca
Debt Financing - Schedule of Carrying Value of Term Loan Net of Debt Issuance Costs (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
Short-term | $ 317 |
Long-term | 5,612 |
Total | $ 5,929 |
Debt Financing - Schedule of In
Debt Financing - Schedule of Interest Expense Related to Loan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Interest and Debt Expense [Abstract] | ||
Interest expense related to loan | $ 33 | $ 33 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)LeaseContracts | Sep. 30, 2016USD ($) | Aug. 31, 2017USD ($) | |
Schedule Of Leases [Line Items] | |||||
Operating leases expiring description | Facilities are leased under operating leases expiring at various dates through March 2020. | ||||
Rent expense | $ 229,000 | $ 178,000 | $ 665,000 | $ 516,000 | |
Equipment lease obligation payments | 50,000 | 50,000 | $ 50,000 | ||
Capital lease obligation | 42,000 | $ 42,000 | |||
Equipment expected life | 3 years | ||||
Outstanding liability on equipment leases | 30,000 | $ 30,000 | |||
Payments of capital lease | 77,000 | $ 796,000 | |||
DermEbx and Radion [Member] | |||||
Schedule Of Leases [Line Items] | |||||
Capital lease obligation | 0 | $ 0 | |||
Number of equipment lease obligation | LeaseContracts | 2 | ||||
Assumed capital leases | 2,600,000 | $ 2,600,000 | |||
Liability recorded on capital leases | 2,500,000 | ||||
Outstanding liability on equipment leases | $ 0 | 0 | |||
Payments of capital lease | $ 76,000 |
Lease Commitments - Future Mini
Lease Commitments - Future Minimum Lease Payments under Operating Leases (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Leases [Abstract] | |
2,017 | $ 318 |
2,018 | 738 |
2,019 | 746 |
2,020 | 174 |
Total | $ 1,976 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Future Minimum Lease Payments under Capital Leases (Detail) - USD ($) | Sep. 30, 2017 | Aug. 31, 2017 |
Leases [Abstract] | ||
2,017 | $ 4,000 | |
2,018 | 16,000 | |
2,019 | 17,000 | |
2,020 | 13,000 | |
subtotal minimum lease obligation | 50,000 | $ 50,000 |
less interest | (8,000) | |
Total, net | 42,000 | |
Total, net | 42,000 | |
less current portion | (12,000) | |
long term portion | $ 30,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Intrinsic value of stock options exercised | $ 12,000 | $ 189,000 | $ 50,000 | $ 195,000 | |
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share based compensation vesting period | 1 year | ||||
Aggregate intrinsic value of the options vested in period | $ 200,000 | $ 0 | $ 1,700,000 | $ 1,000,000 | |
Performance Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of option Granted | 162,500 | ||||
Performance Based Restricted Stock [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of additional shares available for granted | 108,333 | ||||
Time Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted | 153,480 | 392,055 | |||
Time Based Restricted Stock [Member] | In Lieu of Cash Bonus [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted | 172,668 | ||||
Black Scholes Model [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of option Granted | 57,352 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options Granted under Company's Stock Incentive Plans, Valuation Assumptions and Fair Values (Detail) - Stock Options [Member] - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Average risk-free interest rate | 1.56% | 0.84% | 1.52% | 0.87% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected life | 3 years 6 months | 3 years 6 months | 3 years 6 months | 3 years 6 months |
Weighted average exercise price | $ 4.28 | $ 5.49 | $ 4.39 | $ 5.57 |
Weighted average fair value | $ 2.02 | $ 2.67 | $ 2.12 | $ 2.71 |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 64.20% | 68.60% | 64.20% | 68.60% |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 67.00% | 75.30% | 72.00% | 75.30% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense Including Options and Restricted Stock by Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | $ 503 | $ 446 | $ 3,073 | $ 1,648 |
Cost of Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | 1 | 1 | 5 | 5 |
Engineering and Product Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | 76 | 82 | 633 | 289 |
Marketing and Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | 132 | 162 | 854 | 476 |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | $ 294 | $ 201 | $ 1,581 | $ 878 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost Related to Unexercisable Options and Unvested Restricted Stock and Weighted Average Remaining Period (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | |
Remaining expense | $ 2,504 |
Weighted average term | 1 year 1 month 6 days |
Stock-Based Compensation - Aggr
Stock-Based Compensation - Aggregate Intrinsic Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value, Stock option | $ 1,050 | $ 1,748 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value, Restricted stock | $ 2,242 | $ 2,039 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Feb. 28, 2010 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Loss Contingencies [Line Items] | ||||||
Minimum annual royalty payment | $ 250,000 | |||||
Minimum royalty obligations | $ 448,000 | 448,000 | ||||
Accrued expenses, settlement obligation | $ 500,000 | |||||
Purchase obligations to suppliers for future product deliverables | 800,000 | 800,000 | ||||
Hologic [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Interest expense royalty obligation | $ 10,000 | $ 30,000 | ||||
Zeiss [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Interest expense, settlement obligation | $ 0 | $ 13,000 | $ 26,000 | $ 39,000 | ||
CADx Medical Systems Inc [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Tax re-assessment received | $ 6,800,000 | |||||
Reduced tax re-assessment received | $ 703,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities which are Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Total Assets | $ 10,054 | $ 6,622 |
Money Market Accounts [Member] | ||
Assets | ||
Total Assets | 10,054 | 6,622 |
Level 1 [Member] | ||
Assets | ||
Total Assets | 10,054 | 6,622 |
Level 1 [Member] | Money Market Accounts [Member] | ||
Assets | ||
Total Assets | $ 10,054 | $ 6,622 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Goodwill and long-lived asset impairment | $ 4,700 | |
Goodwill impairment loss | 3,969 | $ 3,969 |
Impairment charges on long lived assets | $ 700 |
Fair Value Measurements - Ass55
Fair Value Measurements - Assets Measured at Fair Value on a Non-recurring Basis (Detail) - Fair Value, Measurements, Nonrecurring [Member] $ in Thousands | Sep. 30, 2017USD ($) |
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Total Assets | $ 2,546 |
Long-lived and Intangible Assets [Member] | |
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Total Assets | 780 |
Goodwill [Member] | |
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Total Assets | 1,766 |
Level 3 [Member] | |
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Total Assets | 2,546 |
Level 3 [Member] | Long-lived and Intangible Assets [Member] | |
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Total Assets | 780 |
Level 3 [Member] | Goodwill [Member] | |
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Total Assets | $ 1,766 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule Of Income Tax Expense [Line Items] | ||||
Unrecognized tax benefits | $ 0 | $ 0 | ||
Interest or penalties related to uncertain tax positions | 0 | $ 0 | ||
Company preceding tax years | 3 years | |||
Deferred tax liability related to amortized goodwill | 12,400 | $ 12,400 | ||
Deferred tax liability | 1,900 | 1,900 | ||
Income tax provision (benefit) | (42,000) | $ 10,000 | (28,000) | $ 55,000 |
New Hampshire [Member] | ||||
Schedule Of Income Tax Expense [Line Items] | ||||
Income tax expense research and development | 50,000 | |||
ASU 2016-09 [Member] | ||||
Schedule Of Income Tax Expense [Line Items] | ||||
Increase in net operating loss deferred tax assets | $ 2,100,000 | $ 2,100,000 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | Jan. 31, 2016 | Jan. 13, 2016 | Apr. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Goodwill [Line Items] | |||||||
Goodwill | $ 10,128,000 | $ 10,128,000 | $ 14,097,000 | ||||
Impairment loss | 3,969,000 | $ 3,969,000 | |||||
Percentage of discount derived from capital asset pricing model | 18.00% | ||||||
Business acquisition paid in cash | $ 6,000 | ||||||
Allocation of goodwill to asset held for sale | 394,000 | ||||||
VuComp M-Vu Breast Density Product [Member] | |||||||
Goodwill [Line Items] | |||||||
Business acquisition paid in cash | $ 1,700,000 | ||||||
MVu Breast Density [Member] | |||||||
Goodwill [Line Items] | |||||||
Business acquisition paid in cash | $ 6,000 | $ 6,000 | |||||
Therapy [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | 1,766,000 | $ 1,766,000 | 5,735,000 | ||||
Impairment loss | 3,969,000 | ||||||
Therapy [Member] | ASU 2017-04 [Member] | |||||||
Goodwill [Line Items] | |||||||
Fair value of goodwill | 3,500,000 | 3,500,000 | |||||
Goodwill | 7,500,000 | 7,500,000 | |||||
Impairment loss | 4,000,000 | ||||||
Detection [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | 8,362,000 | 8,362,000 | $ 8,362,000 | ||||
Detection [Member] | VuComp M-Vu Breast Density Product [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 800,000 | $ 800,000 | |||||
Detection [Member] | VuComp M-Vu CAD [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 293,000 |
Goodwill - Roll Forward of Good
Goodwill - Roll Forward of Goodwill Activity by Reportable Segment (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 14,097 | |
Impairment | $ (3,969) | (3,969) |
Accumulated Goodwill | 54,906 | 54,906 |
Accumulated impairment | (44,778) | (44,778) |
Goodwill, Ending Balance | 10,128 | 10,128 |
Detection [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 8,362 | |
Accumulated Goodwill | 699 | 699 |
Fair value allocation | 7,663 | |
Goodwill, Ending Balance | 8,362 | 8,362 |
Therapy [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 5,735 | |
Impairment | (3,969) | |
Accumulated Goodwill | 6,270 | 6,270 |
Fair value allocation | 13,446 | |
Accumulated impairment | (17,950) | (17,950) |
Goodwill, Ending Balance | $ 1,766 | $ 1,766 |
Long-lived Assets - Additional
Long-lived Assets - Additional Information (Detail) $ in Millions | 3 Months Ended |
Sep. 30, 2017USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
Impairment charges on long lived assets | $ 0.7 |
Therapy [Member] | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
Impairment charges on long lived assets | $ 0.7 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Segment | Sep. 30, 2016USD ($) | |
Schedule Of Geographical Information [Line Items] | ||||
Number of reporting segments | Segment | 2 | |||
Total Export Sales | $ 7,000,000 | $ 6,003,000 | $ 20,200,000 | $ 19,410,000 |
Intersegment Eliminations [Member] | ||||
Schedule Of Geographical Information [Line Items] | ||||
Total Export Sales | $ 0 |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Revenues, Gross Profit, Segment Operating Income or Loss and Reconciliation of Segment Operating Income or Loss to GAAP Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment revenues: | ||||
Total revenue | $ 7,000 | $ 6,003 | $ 20,200 | $ 19,410 |
Segment gross profit: | ||||
Segment gross profit | 4,643 | 4,101 | 13,835 | 13,989 |
Segment operating income (loss): | ||||
Segment operating income (loss) | (4,976) | (805) | (6,366) | (904) |
General, administrative, depreciation and amortization expense | (1,966) | (1,847) | (6,143) | (5,774) |
Interest expense | (36) | (15) | (51) | (59) |
Gain on sale of MRI assets | 2,508 | |||
Other income | 3 | 2 | 3 | 9 |
Loss before income tax expense | (6,975) | (2,665) | (10,049) | (6,728) |
Detection [Member] | ||||
Segment revenues: | ||||
Total revenue | 4,346 | 4,134 | 13,066 | 12,961 |
Segment gross profit: | ||||
Segment gross profit | 3,822 | 3,586 | 11,553 | 11,429 |
Segment operating income (loss): | ||||
Segment operating income (loss) | 1,475 | 1,250 | 4,261 | 4,494 |
Therapy [Member] | ||||
Segment revenues: | ||||
Total revenue | 2,654 | 1,869 | 7,134 | 6,449 |
Segment gross profit: | ||||
Segment gross profit | 821 | 515 | 2,282 | 2,560 |
Segment operating income (loss): | ||||
Segment operating income (loss) | $ (6,451) | $ (2,055) | $ (10,627) | $ (5,398) |
Recent Accounting Pronounceme62
Recent Accounting Pronouncements - Additional Information (Detail) $ in Millions | Sep. 30, 2017USD ($) |
ASU 2016-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Increase in net operating loss deferred tax assets | $ 2.1 |