Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Registrant Name | ICAD INC | |
Entity Central Index Key | 0000749660 | |
Entity Filer Category | Accelerated Filer | |
Entity Tax Identification Number | 02-0377419 | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 22,993,102 | |
Entity Address, State or Province | NH | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-09341 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, City or Town | Nashua | |
Entity Address, Address Line One | 98 Spit Brook Road, Suite 100 | |
Entity Address, Postal Zip Code | 03062 | |
City Area Code | 603 | |
Trading Symbol | ICAD | |
Local Phone Number | 882-5200 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 22,633 | $ 15,313 |
Trade accounts receivable, net of allowance for doubtful accounts of $216 in 2020 and $136 in 2019 | 8,376 | 9,819 |
Inventory, net | 3,146 | 2,611 |
Prepaid expenses and other current assets | 1,662 | 1,453 |
Total current assets | 35,817 | 29,196 |
Property and equipment, net of accumulated depreciation of $6,716 in 2020 and $6,510 in 2019 | 620 | 551 |
Operating lease assets | 1,945 | 2,406 |
Other assets | 101 | 50 |
Intangible assets, net of accumulated amortization of $8,418 in 2020 and $8,186 in 2019 | 962 | 1,183 |
Goodwill | 8,362 | 8,362 |
Total assets | 47,807 | 41,748 |
Current liabilities: | ||
Accounts payable | 2,084 | 1,990 |
Accrued and other expenses | 4,679 | 6,590 |
Notes payable - current portion | 994 | 4,250 |
Lease payable - current portion | 822 | 758 |
Deferred revenue | 5,644 | 5,248 |
Total current liabilities | 14,223 | 18,836 |
Lease payable, long-term portion | 1,287 | 1,837 |
Notes payable, long-term portion | 6,729 | 2,003 |
Convertible debentures payable to non-related parties, at fair value | 12,409 | |
Convertible debentures payable to related parties, at fair value | 1,233 | |
Deferred revenue, long-term portion | 219 | 356 |
Deferred tax | 4 | 3 |
Total liabilities | 22,462 | 36,677 |
Commitments and Contingencies (Note 7) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value: authorized 1,000,000 shares; none issued. | ||
Common stock, $0.01 par value: authorized 30,000,000 shares; issued 23,155,482 as of September 30, 2020 and 19,546,151 as of December 31, 2019. Outstanding 22,969,651 as of September 30, 2020 and 19,360,320 as of December 31, 2019. | 231 | 195 |
Additional paid-in capital | 266,861 | 230,615 |
Accumulated deficit | (240,332) | (224,324) |
Treasury stock at cost, 185,831 shares in 2020 and 2019 | (1,415) | (1,415) |
Total stockholders' equity | 25,345 | 5,071 |
Total liabilities and stockholders' equity | $ 47,807 | $ 41,748 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts on trade accounts receivable | $ 216 | $ 136 |
Property and equipment, accumulated depreciation and amortization | 6,716 | 6,510 |
Intangible assets, accumulated amortization | $ 8,418 | $ 8,186 |
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 | 23,155,482 | 19,546,151 |
Common stock, shares outstanding | 22,969,651 | 19,360,320 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||
Total revenue | $ 7,129 | $ 7,857 | $ 19,247 | $ 21,959 |
Cost of revenue: | ||||
Amortization and depreciation | 92 | 103 | 287 | 297 |
Total cost of revenue | 2,104 | 1,803 | 5,355 | 4,897 |
Gross profit | 5,025 | 6,054 | 13,892 | 17,062 |
Operating expenses: | ||||
Engineering and product development | 1,849 | 2,485 | 5,938 | 6,751 |
Marketing and sales | 2,979 | 3,588 | 9,218 | 9,281 |
General and administrative | 1,834 | 1,872 | 6,476 | 5,276 |
Amortization and depreciation | 52 | 69 | 153 | 206 |
Total operating expenses | 6,714 | 8,014 | 21,785 | 21,514 |
Loss from operations | (1,689) | (1,960) | (7,893) | (4,452) |
Interest expense | (115) | (193) | (360) | (604) |
Other income | 10 | 103 | 85 | 226 |
Loss on extinguishment of debt | (341) | |||
Loss on fair value of convertible debentures | (900) | (7,464) | (5,340) | |
Other expense, net | (105) | (990) | (8,080) | (5,718) |
Loss before income tax expense | (1,794) | (2,950) | (15,973) | (10,170) |
Tax expense | (3) | (6) | (34) | (33) |
Net loss and comprehensive loss | $ (1,797) | $ (2,956) | $ (16,007) | $ (10,203) |
Net loss per share: | ||||
Basic | $ (0.08) | $ (0.15) | $ (0.73) | $ (0.57) |
Diluted | $ (0.08) | $ (0.15) | $ (0.73) | $ (0.57) |
Weighted average number of shares used in computing loss per share: | ||||
Basic | 23,173 | 19,284 | 21,827 | 18,049 |
Diluted | 23,173 | 19,284 | 21,827 | 18,049 |
Product [Member] | ||||
Revenue: | ||||
Total revenue | $ 4,538 | $ 5,156 | $ 11,220 | $ 13,331 |
Cost of revenue: | ||||
Total cost of revenue | 1,345 | 809 | 2,899 | 2,134 |
Service [Member] | ||||
Revenue: | ||||
Total revenue | 2,591 | 2,701 | 8,027 | 8,628 |
Cost of revenue: | ||||
Total cost of revenue | $ 667 | $ 891 | $ 2,169 | $ 2,466 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flow from operating activities: | ||
Net loss | $ (16,007) | $ (10,203) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Amortization of Intangible Assets | 234 | 283 |
Depreciation | 206 | 220 |
Bad debt provision | 80 | 62 |
Stock-based compensation | 2,542 | 856 |
Amortization of debt discount and debt costs | 65 | 109 |
Loss on extinguishment of debt | 341 | |
Deferred tax expense | 1 | |
Change in fair value of convertible debentures | 7,464 | 5,340 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,151 | (1,672) |
Inventory | (535) | (800) |
Prepaid and other current assets | 69 | 165 |
Accounts payable | 96 | 101 |
Accrued expenses | (2,322) | 837 |
Deferred revenue | 532 | (70) |
Total adjustments | 9,924 | 5,431 |
Net cash used for operating activities | (6,083) | (4,772) |
Cash flow from investing activities: | ||
Additions to patents, technology and other | (11) | (8) |
Additions to property and equipment | (275) | (211) |
Net cash used for investing activities | (286) | (219) |
Cash flow from financing activities: | ||
Issuance of common stock pursuant to stock option plans | 415 | 1,396 |
Issuance of common stock pursuant to Employee Stock Purchase Plan | 209 | |
Taxes paid related to restricted stock issuance | (225) | (106) |
Principal payments of capital lease obligations | (10) | |
Principal repayment of debt financing | (4,638) | (1,400) |
Proceeds from Line of Credit | 775 | 1,000 |
Repayment to Line of Credit | (2,000) | |
Proceeds from debt financing | 6,957 | |
Debt issuance costs | 22 | |
Proceeds from issuance of common stock, net | 12,174 | 9,353 |
Net cash provided by financing activities | 13,689 | 10,233 |
Increase in cash and equivalents | 7,320 | 5,242 |
Cash and cash equivalents, beginning of period | 15,313 | 12,185 |
Cash and cash equivalents, end of period | 22,633 | 17,427 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 127 | 404 |
Taxes paid | 34 | 33 |
Issuance of stock upon conversion of debentures | 21,164 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 69 | $ 2,641 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2018 | $ 6,896 | $ 171 | $ 218,914 | $ (210,774) | $ (1,415) |
Beginning Balance, shares at Dec. 31, 2018 | 17,066,510 | ||||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations | (106) | $ 1 | (106) | ||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations, shares | 122,993 | ||||
Issuance of common stock pursuant to stock option plans | 1,396 | $ 4 | 1,392 | ||
Issuance of common stock pursuant to stock option plans, shares | 428,980 | ||||
Stock Issuance Net | 9,353 | $ 19 | 9,334 | ||
Stock Issuance Net, Shares | 1,881,818 | ||||
Stock-based compensation | 856 | 856 | |||
Net loss | (10,203) | (10,203) | |||
Ending Balance at Sep. 30, 2019 | 8,192 | $ 195 | 230,390 | (220,977) | (1,415) |
Ending Balance, shares at Sep. 30, 2019 | 19,500,301 | ||||
Beginning Balance at Jun. 30, 2019 | 10,899 | $ 194 | 230,141 | (218,021) | (1,415) |
Beginning Balance, shares at Jun. 30, 2019 | 19,447,763 | ||||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations | (91) | $ 1 | (91) | ||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations, shares | 51,871 | ||||
Issuance of common stock pursuant to stock option plans, shares | 667 | ||||
Stock-based compensation | 340 | 340 | |||
Net loss | (2,956) | (2,956) | |||
Ending Balance at Sep. 30, 2019 | 8,192 | $ 195 | 230,390 | (220,977) | (1,415) |
Ending Balance, shares at Sep. 30, 2019 | 19,500,301 | ||||
Beginning Balance at Dec. 31, 2019 | 5,071 | $ 196 | 230,615 | (224,325) | (1,415) |
Beginning Balance, shares at Dec. 31, 2019 | 19,546,151 | ||||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations | (225) | (225) | |||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations, shares | 97,830 | ||||
Issuance of common stock pursuant to stock option plans | 417 | $ 1 | 416 | ||
Issuance of common stock pursuant to stock option plans, shares | 94,678 | ||||
Stock Issuance Net | 12,174 | $ 16 | 12,158 | ||
Stock Issuance Net, Shares | 1,562,500 | ||||
Issuance of common stock pursuant Employee Stock Purchase Plan, Shares | 34,857 | ||||
Issuance of common stock pursuant Employee Stock Purchase Plan | 209 | 209 | |||
Issuance of stock for Convertible Debentures | 21,164 | $ 18 | 21,146 | ||
Issuance of stock for Convertible Debentures,Shares | 1,819,466 | ||||
Stock-based compensation | 2,542 | 2,542 | |||
Net loss | (16,007) | (16,007) | |||
Ending Balance at Sep. 30, 2020 | 25,345 | $ 231 | 266,861 | (240,332) | (1,415) |
Ending Balance, shares at Sep. 30, 2020 | 23,155,482 | ||||
Beginning Balance at Jun. 30, 2020 | 26,492 | $ 231 | 266,211 | (238,535) | (1,415) |
Beginning Balance, shares at Jun. 30, 2020 | 23,060,272 | ||||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations | (94) | (94) | |||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations, shares | 29,106 | ||||
Issuance of common stock pursuant to stock option plans | 185 | 185 | |||
Issuance of common stock pursuant to stock option plans, shares | 49,712 | ||||
Issuance of common stock pursuant Employee Stock Purchase Plan, Shares | 16,392 | ||||
Issuance of common stock pursuant Employee Stock Purchase Plan | 94 | 94 | |||
Stock-based compensation | 465 | 465 | |||
Net loss | (1,797) | (1,797) | |||
Ending Balance at Sep. 30, 2020 | $ 25,345 | $ 231 | $ 266,861 | $ (240,332) | $ (1,415) |
Ending Balance, shares at Sep. 30, 2020 | 23,155,482 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Note 1 – Basis of Presentation and Significant Accounting Policies Basis of Presentation 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, 2020, the results of operations of the Company for the three and nine-month periods ended September 30, 2020 and 2019, cash flows of the Company for the nine-month periods ended September 30, 2020 and 2019 and stockholders’ equity for the Company for the three and nine-month periods ended September 30, 2020 and 2019. 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 - Segments The Company reports the results of two segments: Cancer Detection (“Detection”) and Cancer Therapy (“Therapy”). The Detection segment consists of advanced image analysis and workflow products. The Therapy segment consists of radiation therapy (“Axxent”) products. Risk and Uncertainty On March 12, 2020, the World Health Organization declared COVID-19 COVID-19 COVID-19. stay-at-home COVID-19 It is currently not possible to predict how long the pandemic will last or the time that it will take for economic activity to return to prior levels. The COVID-19 The impact of the COVID-19 , as amended (the “Loan Agreement”), a). The Loan Agreement a to . If at any point the Company is not in compliance with at least one of these and certain other covenants and is unable to obtain an amendment or waiver from the Bank $ million and anticipated revenue and cash collections. However, the resurgence of the COVID-19 pandemic could affect our liquidity. The Company’s results for the quarter ending September 30, 2020 reflect a negative impact from the COVID-19 COVID-19. COVID-19 Although the Company did not see any material impact to trade accounts receivable losses in the quarter ended September 30, 2020, the Company’s exposure may increase if its customers are adversely affected by changes in healthcare laws, coverage, and reimbursement, economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the current COVID-19 COVID-19 Recently Adopted Accounting Pronouncements There are no significant recently adopted accounting pronouncements. For a full list of the Company’s response to all relevant recent accounting pronouncements, please refer to Note 13 below. Revenue Recognition Revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these goods or services and excludes any sales incentives or taxes collected from customers which are subsequently remitted to government authorities. Disaggregation of Revenue The following tables presents the Company’s its Three months ended September 30, 2020 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 3,889 $ 1,038 $ 4,927 Service contracts 1,400 347 1,747 Supply and source usage agreements — 444 444 Professional services — 9 9 Other 2 — 2 $ 5,291 $ 1,838 $ 7,129 Timing of Revenue Recognition Goods transferred at a point in time $ 3,889 $ 1,051 $ 4,940 Services transferred over time 1,402 787 2,189 $ 5,291 $ 1,838 $ 7,129 Sales Channels Direct sales force $ 2,904 $ 857 $ 3,761 OEM partners 2,387 — 2,387 Channel partners — 981 981 $ 5,291 $ 1,838 $ 7,129 Nine months ended September 30, 2020 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 9,690 $ 2,959 $ 12,649 Service contracts 4,151 1,079 5,230 Supply and source usage agreements — 1,305 1,305 Professional services — 20 20 Other 43 — 43 $ 13,884 $ 5,363 $ 19,247 Timing of Revenue Recognition Goods transferred at a point in time $ 9,731 $ 3,039 $ 12,770 Services transferred over time 4,153 2,324 6,477 $ 13,884 $ 5,363 $ 19,247 Sales Channels Direct sales force $ 7,785 $ 3,131 $ 10,916 OEM partners 6,099 — 6,099 Channel partners — 2,232 2,232 $ 13,884 $ 5,363 $ 19,247 Three months ended September 30, 2019 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 4,749 $ 841 $ 5,590 Service contracts 1,336 446 1,782 Supply and source usage agreements — 465 465 Professional services — 18 18 Other 2 — 2 $ 6,087 $ 1,770 $ 7,857 Timing of Revenue Recognition Goods transferred at a point in time $ 4,749 $ 892 $ 5,641 Services transferred over time 1,338 878 2,216 $ 6,087 $ 1,770 $ 7,857 Sales Channels Direct sales force $ 3,467 $ 1,280 $ 4,747 OEM partners 2,620 — 2,620 Channel partners — 490 490 $ 6,087 $ 1,770 $ 7,857 Nine months ended September 30, 2019 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 11,347 $ 3,410 $ 14,757 Service contracts 4,012 1,437 5,449 Supply and source usage agreements — 1,528 1,528 Professional services — 59 59 Other 105 61 166 $ 15,464 $ 6,495 $ 21,959 Timing of Revenue Recognition Goods transferred at a point in time $ 11,347 $ 3,668 $ 15,015 Services transferred over time 4,117 2,827 6,944 $ 15,464 $ 6,495 $ 21,959 Sales Channels Direct sales force $ 8,441 $ 4,793 $ 13,234 OEM partners 7,023 — 7,023 Channel partners — 1,702 1,702 $ 15,464 $ 6,495 $ 21,959 Products. Service Contracts. , contracts non-lease “Revenue from Contracts with Customers” (“ASC 606”), Supply and Source Usage Agreements. These agreements represent a separate performance obligation to the Company. The Company allocates revenue to each performance obligation based on the SSP. Professional Services. Other. Other revenue consists primarily of miscellaneous products and services. The Company transfers control and recognizes a sale when the product is shipped from the manufacturing or warehousing facility to the customer or the installation services are performed Contract Balances Contract liabilities are a component of deferred revenue, and contract assets are a component of prepaid and other current assets. The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers (in thousands). Contract balances Balance at September 30, 2020 Receivables, which are included in “Trade accounts receivable” $ 8,376 Contract assets, which are included in “Prepaid and other current assets” 7 Contract liabilities, which are included in “Deferred revenue” 5,863 Timing of revenue recognition may differ from timing of invoicing of customers. The Company records a receivable when revenue is recognized prior to receipt of cash payment and the Company has the unconditional right to such consideration, or unearned revenue when cash payments are received or due in advance of performance. For multi-year agreements, the Company generally invoices customers annually at the beginning of each annual service period. The Company’s accounts receivable from contracts with customers, net of allowance for doubtful accounts, was $8.4 million and $9.8 million as of September 30, 2020 and December 31, 2019, respectively. The Company will record a contract asset for unbilled revenue when the Company’s performance is in excess of amounts billed or billable. The Company has classified the contract asset balance as a component of prepaid expenses and other current assets as of September 30, 2020 and December 31, 2019. The contract asset balance was $7,000 as of September 30, 2020 and $14,000 as of December 31, 2019. Deferred revenue from contracts with customers, which is included in deferred revenue in the consolidated balance sheet, is primarily composed of fees related to service arrangements, which are generally billed in advance. Deferred revenue also includes payments for installation and training that has not yet been completed and other offerings for which we have been paid in advance and earn the revenue when we transfer control of the product or service. The balance of deferred revenue at September 30, 2020 and December 31, 2019 is as follows (in thousands): Contract liabilities September 30, 2020 December 31, 2019 Short term $ 5,644 $ 5,248 Long term 219 356 Total $ 5,863 $ 5,604 Changes in deferred revenue from contracts with customers were as follows (in thousands): Nine Months Ended Balance at beginning of period $ 5,604 Deferral of revenue 8,092 Recognition of deferred revenue (7,833 ) Balance at end of period $ 5,863 We expect to recognize approximately $3.2 million of the deferred amount |
Net Loss per Common Share
Net Loss per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | Note 2 – Net Loss per Common Share The Company’s basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. 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, 2020 2019 2020 2019 Net loss $ (1,797 ) $ (2,956 ) $ (16,007 ) $ (10,203 ) Shares used in the calculation of basic and diluted net loss per share 23,173 19,284 21,827 18,049 Diluted shares used in the calculation of net loss per share 23,173 19,284 21,827 18,049 Net loss per share - basic and dilute d $ (0.08 ) $ (0.15 ) $ (0.73 ) $ (0.57 ) The shares of the Company’s common stock issuable upo n d As of September 30, 2020 2019 Stock options 1,971,704 1,509,292 Restricted stock 29,166 191,909 Convertible Debentures — 1,742,500 Total 2,000,870 3,443,701 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3 – Inventory Inventory is valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out Inventory includes As of September 30, As of December 31, Raw materials $ 1,422 $ 1,572 Work in process 324 39 Finished Goods 1,629 1,469 Inventory Gross 3,375 3,080 Inventory Reserve (229 ) (469 ) Inventory Net $ 3,146 $ 2,611 |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 4 – Financing Arrangements (a) Loan and Security Agreement – Western Alliance Bank On March 30, 2020, the Company entered into the Loan Agreement with the Bank that provided an initial term loan (“Term Loan”) facility of $7.0 million and a $5.0 million revolving line of credit. The Loan Agreement was amended effective June 16, 2020. The Loan Agreement requires the Company to either (i) meet a minimum revenue covenant, or (ii) maintain a ratio of unrestricted cash at the Bank to aggregate indebtedness owed to the Bank of at least 1.25 to 1.00. The Company was compliant with these covenants as of September 30, 2020 but cannot provide any assurance as to its future compliance due to, in part, the uncertainty of the effect of the COVID-19 If at any point the Company is not in compliance with certain covenants under the Loan Agreement and is unable to obtain an amendment or waiver, such noncompliance may result in an event of default under the Loan Agreement, which could permit acceleration of the outstanding indebtedness and require the Company to repay such indebtedness before the scheduled due date. The Company was required, periodically in the past, to seek modifications from its prior lender to avoid non-compliance Interest in arrears on the Term Loan began to be repaid on April 1, 2020 and will continue to be paid on the first of each successive month thereafter until the principal repayment starts. Commencing on the principal repayment date of September 1, 2021 (or March 1, 2022 if the Company achieves a specified revenue target for any trailing six-month will , which The Company has the option to prepay all, but not less than all, of the Term Loan advanced by the Bank under the Loan Agreement. The Company prepayment is subject to payment of (1) all outstanding principal of the Term Loan plus accrued and unpaid interest thereon through the prepayment date, (2) the final payment ($122,500 or 1.75% of the original loan amount), (3) a prepayment fee (3% of the principal balance if prepaid of if the The Company drew $ against its revolving line of credit as of September 30, 2020. The interest rate on such borrowings is three quarters-percent as defined above or %. The Company paid back this borrowing on October 5, 2020. Obligations to the Bank under the Loan Agreement are secured by a first priority security interest in the Company’s assets, except for certain permitted liens that have priority to the Bank’s security interest by operation of law. In connection with the Loan Agreement, the Company incurred approximately $141,000 of closing costs. The closing costs have been deduced from the carrying value of the debt and will be amortized through March 30, 2022, the maturity date of the Term Loan. The maturity date of the revolving loan is March 30, 2022. (b) Loan and Security Agreement – Silicon Valley Bank On August 7, 2017, the Company entered into a Loan and Security Agreement, which has since been modified several times through November 1, 2019 (as amended, the “SVB Loan Agreement ”), Valley Bank that provided an initial term loan facility of $6.0 million and a $4.0 million revolving line of credit. On March 30, 2020, the Company elected to repay all outstanding obligations (including accrued interest) and retire the SVB Loan Agreement. The Company accounted for this repayment and retirement as an extinguishment of the SVB Loan Agreement. In addition to the outstanding principal and accrued interest, the Company was required to pay the $510,000 final payment, a termination fee of $114,000 and other costs totaling $10,000. The Company also wrote off unamortized original closing costs as of the extinguishment date. The Company recorded a loss on extinguishment of approximately $341,000 related to the repayment and retirement of the SVB Loan Agreement. The loss on extinguishment was composed of approximately $185,000 for the unaccrued final payment, $114,000 termination fee, and $42,000 of (c) Convertible Debentures On December 20, 2018, the Company entered into a Securities Purchase Agreement (the “SPA”) with certain institutional and accredited investors (the “Investors”), including , but not limited to, all directors and executive officers of the Company at the time , approximately $7.0 million in a private placement. On February 21, 2020 (the “Conversion Date”), the conditions permitting a forced conversion were met, and the Company elected to exercise its forced conversion right under the terms of the Convertible Debentures. As a result of this election, all of the outstanding Convertible Debentures were converted, at a conversion price of $4.00 per share, into 1,742,500 shares of the Company’s common stock. In accordance with the make-whole provisions in the Convertible Debentures, the Company also issued an additional shares of its . The conversion prices related to the make-whole amount were dependent on whether the Investors were related parties or unrelated third parties. Accounting Considerations and Fair Value Measurements Related to the Convertible Debentures The Company had previously elected to make a one-time, irrevocable As of the December 31, 2019 valuation and the prior measurement dates, the Company utilized a Monte Carlo simulation model to estimate the fair value of the Convertible Debentures. The simulation model was designed to capture the potential settlement features of the Convertible Debentures, in conjunction with simulated changes in the Company’s stock price and the probability of certain events occurring. The simulation utilized 100,000 trials or simulations to determine the estimated fair value. The simulation utilized the assumptions that if the Company was able to exercise its forced conversion right (if the requirements to do so were met), that it would do so in 100% of such scenarios. Additionally, if an event of default occurred during the simulated trial (based on the Company’s probability of default), the Investors would opt to redeem the Convertible Debentures in 100% of such scenarios. If neither event occurred during a simulated trial, the simulation assumed that the Investor would hold the Convertible Debentures until the maturity date. The value of the cash flows associated with each potential settlement were discounted to present value in each trial based on either the risk-free rate (for an equity settlement) or the effective discount rate (for a redemption or cash settlement). The Company also recorded a final adjustment to the Convertible Debentures based on their fair value on the Conversion Date, just prior to the forced conversion being completed. Given that the Company’s prior simulation model included the assumption that the Company would elect to force conversion in 100% of scenarios when the requirements were met, the final valuation was based on the actual results of the forced conversion. As such, the Company based the final fair value adjustment to the Convertible Debentures just prior to conversion on the number of shares of common stoc k The Company notes that the key inputs to the valuation models that were utilized to estimate the fair value of the Convertible Debentures included: Input December 31, 2019 February 21, 2020 Company’s stock price $ 7.77 $ 11.64 Conversion price 4.00 4.00 Remaining term (years) 1.97 0.00 Equity volatility 49.00 % N/A Risk free rate 1.57 % N/A 1 0.45 % N/A 1 100.00 % 100.00 % 1 100.00 % N/A 1 18.52 % N/A 1 The Company’s stock price was based on the closing stock price on the valuation date. The conversion price was based on the contractual conversion price included in the SPA. The remaining term was determined based on the remaining time period to maturity of the Convertible Debentures, or remaining term under the expectation of the Company’s election of its forced conversion right. The Company’s equity volatility estimate was based on the Company’s historical equity volatility, the Company’s implied and observed volatility of option pricing, and the historical equity and observed volatility of option pricing for a selection of public companies. The risk-free rate was determined based on U.S. Treasury securities with similar terms. The probability of the occurrence of a default event was based on Bloomberg’s 1-year The utilization of the forced conversion right and the default redemption right was based on management’s best estimate of both features being exercised upon the occurrence of the related contingent events. The effective discount rate utilized at the December 31, 2019 valuation date was based on yields on CCC-rated The fair value and principal value of the Convertible Debentures as of December 31, 2019 and the Conversion Date was as follows (in thousands): Convertible Debentures December 31, 2019 February 21, 2020 Fair value, in accordance with fair value option $ 13,642 $ 21,164 Principal value outstanding $ 6,970 $ 6,970 The Company recorded a loss from the change in fair value of the Convertible Debentures of approximately $7.5 million for period through the C D is Upon the consummation of the forced conversion , the Company issued 1,816,466 shares of common stock with a fair value of approximately $21.2 million, which was reclassified to stockholders’ equity. (d) Principal and Interest Payments Related to Financing Arrangements Future principal, interest payments, and final payment related to the Loan Agreement are as follows (in thousands): Amount Due 2020 $ 94 2021 1,238 2022 2,875 2023 2,735 2024 1,003 Total $ 7,945 The following amounts are included in interest expense in the Company’ s consolidated statement of operations for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cash interest expense $ 94 $ 65 $ 232 $ 222 Interest on convertible debentures — 87 49 261 Accrual of notes payable final payment 8 34 47 98 Amortization of debt costs 13 7 32 21 Interest expense capital lease — — — 2 Total interest expense $ 115 $ 193 $ 360 $ 604 |
Lease Commitments
Lease Commitments | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments | Note 5 – Le ase Commitments Under ASC 842, “Leases” (“ASC 842”), the Company determines if an arrangement contains a lease at inception. A lease is a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment (i.e., an identified asset) for a period of time in exchange for consideration. Leases are classified as either operating leases or financing leases. At lease inception, the Company recognizes a lease liability equal to the present value of the remaining lease payments, and a right of use asset equal to the lease liability, subject to certain adjustments, such as for lease incentives. The Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company determines the incremental borrowing rates for its leases by applying its applicable, fully collateralized borrowing rate, with adjustment as appropriate for the lease term. The lease term at the lease commencement date is determined based on the non-cancellable Right-of-use non-lease non-lease ASC 842 includes a number of reassessment and re-measurement re-measurement right-of-use Certain of the Company’s leases include variable lease costs to reimburse the lessor for real estate tax and insurance expenses, and certain non-lease non-lease Components of Le a The Company has leases for office space and office equipment. The leases have remaining lease terms ranging from less than one year to three years and t hree The components of lease expense for the period are as follows (in thousands): Lease Cost Classification Three Months Ended Year Ended Operating lease cost Operating expenses $ 217 $ 804 Finance lease costs Amortization of leased assets Amortization and depreciation 4 15 Interest on lease liabilities Interest expense — 2 Total $ 221 $ 821 Other information related to le a follows Three Months Ended Cash paid from operating cash flows for operating leases $ 229 Cash paid from operating cash flows for finance leases — Cash paid from financing cash flows for finance leases 4 As of September Weighted-average remaining lease term of operating leases (in years) 2.45 Weighted-average remaining lease term of finance leases (in years) — Weighted-average discount rate for operating leases 5.6 % Weighted-average discount rate for finance leases — Maturity of the Company’s lease liabilities as of September 30, 2020 was as follows (in thousands): As of September 30, 2020: Operating Finance Total 2020 $ 228 — 228 2021 920 — 920 2022 899 — 899 2023 211 — 211 2024 5 — 5 Total lease payments 2,263 — 2,263 Less: imputed interest (154 ) — (154 ) Total lease liabilities 2,109 — 2,109 Less: current portion of lease liabilities (822 ) — (822 ) Long-term lease liabilities $ 1,287 $ — $ 1,287 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 6 – Stock-Based Compensation The Company granted options to purchase 17,029 and 540,886 shares of the Company’s stock during the three and nine months ended September 30, 2020, respectively. 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 Nine Months Ended September 30, September 30, 19 19 Average risk-free interest 0.15% 1.60% 0.79% 1.99% Expected dividend yield None None None None Expected life 3.5 years 3.5 years 3.5 years 3.5 years Expected volatility 66.0% to 66.0% 51.04% to 51.37% 50.2 to 65.7% 51.04% to 54.23% Weighted average exercise price $8.84 $6.78 $10.08 $5.69 Weighted average fair value $4.11 $2.63 $4.34 $2.26 The Company’s stock-based compensation expense, including options and restricted stock by category is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 19 Cost of revenue $ 3 $ 1 $ 28 $ 2 Engineering and product development 64 62 406 182 Marketing and sales 61 62 608 178 General and administrative 337 215 1,500 494 $ 465 $ 340 $ 2,542 $ 856 As of September 30, 2020, unrecognized compensation cost (in thousands) related to unvested options and unvested restricted stock and the weighted average term of such equity instruments is as follows: Remaining expense $ 1,060 Weighted average term 1.0 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 the grant The Company granted 0 and 14,000 shares of restricted stock during the nine-month periods ended September 30, 2020 and 2019, respectively. The Company’s aggregate intrinsic value for stock options and restricted stock outstanding is as follows (in thousands): As of September 30, Aggregate intrinsic value 2020 2019 Stock options $ 6,679 $ 4,154 Restricted stock 257 1,315 The Company issued 49,712 and 94,678 shares of common stock upon the exercise of outstanding Employee Stock Purchase Plan In December 2019, the 2019 Empl o e The ESPP provides for the issuance of up to 950,000 shares of common stock, subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. The ESPP may be terminated or amended by the Board at any time. Certain amendments to the ESPP require stockholder approval. Substantially all of the Company’s employees whose customary employment is for more than 20 hours a week are eligible to participate in the ESPP. Any employee who owns 5% or more of the voting power or value of the Company’s shares of common stock is not eligible to participate in the ESPP. Any eligible employee can enroll in the ESPP as of the beginning of a respective quarterly accumulation period. Employees who participate in the ESPP may purchase shares by authorizing payroll deductions of up to 15% of their base compensation during an accumulation period. Unless the participating employee withdraws from participation, accumulated payroll deductions are used to purchase shares of common stock on the last business day of the accumulation period (the “Purchase Date”) at a price equal to 85% of the lower of the fair market value on (i) the Purchase Date or (ii) the first day of such accumulation period. Under applicable tax rules, no employee may purchase more than $25,000 worth of common stock, valued at the start of the purchase period, under the ESPP in any calendar year. The Company issued 16,392 and 34,857 shares under the ESPP in the three and nine-month periods ended September 30, 2020, respectively. The Company recorded approximately $19,000 and $84,000 of stock-based compensation expense pursuant to ESPP for the three and nine-month periods ended September 30, 2020, respectively. The third accumulation period under the ESPP commenced on July 1, 2020 and ended 2020, and the related shares purcha s ed by the participants were issued in October 2020. As of September 30, 2020, the Company recorded a liability of $ related to employee withholdings in connection with the ESPP accumulation period ended September 30, 2020, which was included as a component of accrued expenses and other current liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7 – 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 The CRA had the right to pursue the matter until July 2020 and did not do so, and accordingly no accrual has been recorded for this matter as of September 30, 2020. Other Commitments The Company is obligated to pay approximately $4.2 million for firm purchase obligations to suppliers for future product and service deliverables. Litigation In December 2016, the Company entered into an Asset Purchase Agreement with Invivo Corporation (the “Asset Purchase Agreement”). In accordance with the Asset Purchase 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 $ million. The Company closed the transaction on January less a holdback reserve of $ for net pr o million. On September 5, 2018, third-party Yeda Research and Development Company Ltd. (“Yeda”), filed a complaint (the “Complaint”) against the Company and Invivo in the United States District Court for the Southern District of New York, captioned Yeda Research and Development Company Ltd. v. iCAD, Inc. and Invivo Corporation, Case No. 1:18-cv-08083-GBD, The Company may be a party to various legal proceedings and claims arising out of the ordinary course of its business. Although the final results of all such matters and claims cannot be predicted with certainty, the Company currently believes that there are no current proceedings or claims pending against it the ultimate resolution of which would have a material adverse effect on its financial condition or results of operations, other than as set forth above. 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 the Company’s operating results and cash flows for that particular period. The Company may be a party to certain actions that have been filed against the Company which are being vigorously defended. The Company has determined that potential losses in these matters are neither probable or reasonably possible at this time. 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. The Company files United States federal income tax returns and income tax returns in various states and local jurisdictions. The Company’s three preceding tax years remain subject to examination by federal and state tax authorities. In addition, because the Company has net operating loss carry-forwards, the Internal Revenue Service and state jurisdictions are permitted to audit earlier years and propose adjustments up to the amount of net operating loss generated in those years. The Company is not currently under examination by any federal or state jurisdiction for any tax years. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8 - Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset ◾ Level 1 - Quoted prices in active markets for identical assets or liabilities. ◾ Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ◾ Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and notes payable and convertible debentures. Due to their short-term nature and market rates of interest, the carrying amounts of the financial instruments (except the Convertible Debentures, which were measured at fair value in accordance with the fair value option election) approximated fair value as of February 21, 2020 and December 31, 2019. The Company’s assets and liabilities that are measured at fair value on a recurring basis include the Company’s money market accounts and Convertible Debentures. The money market accounts are included in cash and cash equivalents in the accompanying consolidated balance sheet and are considered a Level 1 measurement as they are valued at quoted market prices in active markets. The Convertible Debentures were recorded as a separate component of the Company’s consolidated balance sheet and are considered a Level 3 measurement due to the utilization of significant unobservable inputs in their valuation. See Note 4(b) for a discussion of these fair value measurements. 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 (in thousands). Fair Value Measurements (in thousands) as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 15,313 $ $ — $ 15,313 Total Assets $ 15,313 $ — $ — $ 15,313 Liabilities Convertible debentures $ — $ — $ 13,642 $ 13,642 Total Liabilities $ — $ — $ 13,642 $ 13,642 Fair Value Measurements as of September 30, 2020 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 22,633 $ $ $ 22,633 Total Assets $ 22,633 $ — $ — $ 22,633 The following sets forth a reconciliation of the changes in the fair value of the Convertible Debentures that were converted to equity during the nine months ended September 30, 2020 (in thousands): Convertible Debentures Balance, December 31, 2019 $ 13,642 Fair value adjustments 7,522 Conversion (21,164 ) Balance as of September 30, 2020 $ — |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 - Income Taxes The Coronavirus Aid, Relief, and Economic Security The Company recorded an income tax provision of $3,000 and $34,000 for the three and nine months ended September 30, 2020, respectively, and $6,000 and $33,000 for the three and nine months ended September 30, 2019, respectively. The Company had no material unrecognized tax benefits and a deferred tax liability of approximately $4,000 related to tax amortizable goodwill. No other adjustments were required under ASC 740, “Income Taxes.” The Company does not expect that its unrecognized tax benefits will materially increase within the next 12 months. The Company did not recognize any interest or penalties related to uncertain tax positions at September 30, 2020. The Company files United States federal income tax returns and income tax returns in various states and local jurisdictions. The Company’s three preceding tax years remain subject to examination by federal and state tax authorities. In addition, because the Company has net operating loss carry-forwards, the Internal Revenue Service and state jurisdictions are permitted to audit earlier years and propose adjustments up to the amount of net operating loss generated in those years. The Company is not currently under examination by any federal or state jurisdiction for any tax years. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 10 - Goodwill The Company tests goodwill for impairment on an annual basis and between annual tests if events and circumstances indicate it is more likely than not that the fair value of the reporting unit is less than its carrying value. 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 considered the goodwill impairment factors due to the uncertainty around the continuing impact of the COVID-19 The Company would record an impairment charge when such assessment indicates that the fair value of a reporting unit is 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. The Company determines 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 uses internal forecasts to estimate future cash flows and includes estimates of long-term future growth rates based on its most recent views of the long-term forecast for each segment. Accordingly, actual results can differ from those assumed in the Company’s forecasts. Discount rates are derived from a capital asset pricing model and by analyzing published rates for industries relevant to the Company’s 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 of its reporting units and in the Company’s 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 in similar 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 the Company, as well as the fact that market data may not be available for divisions within larger conglomerates or non-public The Company corroborates 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. 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 weights the methodologies appropriately. The Company has two operating segments, Detection and Therapy, as further discussed in Note 12 below. A rollforward of goodwill activity by reportable segment is as follows (in thousands): Consolidated Detection Therapy Total Accumulated Goodwill $ 47,937 $ — $ — $ 47,937 Accumulated impairment (26,828 ) — — (26,828 ) Fair value allocation (21,109 ) 7,663 13,446 — Acquisition of DermEbx and Radion — — 6,154 6,154 Acquisition measurement period adjustments — — 116 116 Acquisition of VuComp — 1,093 — 1,093 Sale of MRI assets — (394 ) (394 ) Impairment — — (19,716 ) (19,716 ) Prior to December 31, 2019 — 8,362 — 8,362 Balance at September 30, 2020 $ — $ 8,362 $ — $ 8,362 |
Long-lived assets
Long-lived assets | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Long-lived assets | Note 11 – Long-lived assets 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 its carrying value. There is no set interval or frequency for recoverability evaluation. Rather, the determination of when, if at all, an asset (or asset group) is evaluated for recoverability is based on “events and circumstances.” The following factors are examples of events or changes in circumstances that indicate the carrying amount of an asset (or asset group) may not be recoverable and thus is to be evaluated for recoverability. • A significant decrease in the market price of a long-lived asset (or asset group); • A significant adverse change in the extent or manner in which a long-lived asset (or 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 (or 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 (or asset group); and • A current operating period, 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 (or asset group). The Company determined there were no such triggering events in the quarter ended September 30, 2020. If the carrying amount of an asset or asset group (in use or under development) is evaluated and found not to be fully recoverable (e.g., the carrying amount exceeds the estimated gross, undiscounted cash flows from use and disposition), then an impairment loss must be recognized. The impairment loss is measured as the excess of the carrying amount over the fair value of the asset (or asset group). The Company determined the “Asset Group” of the Company to be the assets of the Therapy segment and the Detection segment, which the Company considers to be the lowest level for which the identifiable cash flows were largely independent of the cash flows of other assets and liabilities. 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 that its 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, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 12 – Segment Reporting Operating segments are defined The Company’s CODM is the Chief Executive Officer. Each reportable segment generates revenue from the sale of medical equipment and related services and/or sale of supplies. The Company has determined there are two segments, Detection and Therapy. The Detection segment consists of the Company’s advanced image analysis and workflow products, and the Therapy segment consists of the Company’s radiation therapy products, “Axxent,” and related services. The primary factors used by the Company’s 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 The Company does not track assets by operating segment and the Company’s 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 US GAAP loss before income tax is as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Segment revenues: Detection $ 5,291 $ 6,087 $ 13,885 $ 15,464 Therapy 1,838 1,770 5,362 6,495 Total Revenue $ 7,129 $ 7,857 $ 19,247 $ 21,959 Segment gross profit: Detection $ 4,227 $ 5,051 $ 11,227 $ 12,874 Therapy 798 1,003 2,665 $ 4,188 Segment gross profit $ 5,025 $ 6,054 $ 13,892 $ 17,062 Segment operating income (loss): Detection $ 866 $ 943 $ 721 $ 1,918 Therapy (711 ) (1,022 ) (2,149 ) $ (1,065 ) Segment operating income (loss) $ 155 $ (79 ) $ (1,428 ) $ 853 General, administrative, depreciation and amortization expense $ (1,844 ) $ (1,881 ) $ (6,465 ) $ (5,305 ) Interest expense (115 ) (193 ) (360 ) (604 ) Other income 10 103 85 226 Loss on extinguishment of debt — — (341 ) — Fair value of convertible debentures — (900 ) (7,464 ) (5,340 ) Loss before income tax $ (1,794 ) $ (2,950 ) $ (15,973 ) $ (10,170 ) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Text Block [Abstract] | |
Recent Accounting Pronouncements | Note 13 - Recent Accounting Pronouncements Recently Adopted Accounting Standards On January 1, 2020, the Company adopted ASU 2018-13, 2018-13”). 2018-13 2018-13 2018-13 Recently Issued Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, “Financial (“ASU 2016-13”), which ASU 2016-13 replaces information to calculate 2016-13 2016-13 2016-13 In December 2019, the FASB issued ASU 2019-12, 2019-12”). 2019-12 2019-12 2019-12 2019-12 In March 2020, the FASB issued ASU 2020-04, 2020-04”). ASU 2020-04 2020-04 2020-04 |
Stock-Based Compensation (Polic
Stock-Based Compensation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Basis of Presentation | Basis of Presentation 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, 2020, the results of operations of the Company for the three and nine-month periods ended September 30, 2020 and 2019, cash flows of the Company for the nine-month periods ended September 30, 2020 and 2019 and stockholders’ equity for the Company for the three and nine-month periods ended September 30, 2020 and 2019. 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 - |
Segments | Segments The Company reports the results of two segments: Cancer Detection (“Detection”) and Cancer Therapy (“Therapy”). The Detection segment consists of advanced image analysis and workflow products. The Therapy segment consists of radiation therapy (“Axxent”) products. |
Risk and Uncertainty | Risk and Uncertainty On March 12, 2020, the World Health Organization declared COVID-19 COVID-19 COVID-19. stay-at-home COVID-19 It is currently not possible to predict how long the pandemic will last or the time that it will take for economic activity to return to prior levels. The COVID-19 The impact of the COVID-19 , as amended (the “Loan Agreement”), a). The Loan Agreement a to . If at any point the Company is not in compliance with at least one of these and certain other covenants and is unable to obtain an amendment or waiver from the Bank $ million and anticipated revenue and cash collections. However, the resurgence of the COVID-19 pandemic could affect our liquidity. The Company’s results for the quarter ending September 30, 2020 reflect a negative impact from the COVID-19 COVID-19. COVID-19 Although the Company did not see any material impact to trade accounts receivable losses in the quarter ended September 30, 2020, the Company’s exposure may increase if its customers are adversely affected by changes in healthcare laws, coverage, and reimbursement, economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the current COVID-19 COVID-19 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements There are no significant recently adopted accounting pronouncements. For a full list of the Company’s response to all relevant recent accounting pronouncements, please refer to Note 13 below. |
Revenue Recognition | Revenue Recognition Revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these goods or services and excludes any sales incentives or taxes collected from customers which are subsequently remitted to government authorities. Disaggregation of Revenue The following tables presents the Company’s its Three months ended September 30, 2020 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 3,889 $ 1,038 $ 4,927 Service contracts 1,400 347 1,747 Supply and source usage agreements — 444 444 Professional services — 9 9 Other 2 — 2 $ 5,291 $ 1,838 $ 7,129 Timing of Revenue Recognition Goods transferred at a point in time $ 3,889 $ 1,051 $ 4,940 Services transferred over time 1,402 787 2,189 $ 5,291 $ 1,838 $ 7,129 Sales Channels Direct sales force $ 2,904 $ 857 $ 3,761 OEM partners 2,387 — 2,387 Channel partners — 981 981 $ 5,291 $ 1,838 $ 7,129 Nine months ended September 30, 2020 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 9,690 $ 2,959 $ 12,649 Service contracts 4,151 1,079 5,230 Supply and source usage agreements — 1,305 1,305 Professional services — 20 20 Other 43 — 43 $ 13,884 $ 5,363 $ 19,247 Timing of Revenue Recognition Goods transferred at a point in time $ 9,731 $ 3,039 $ 12,770 Services transferred over time 4,153 2,324 6,477 $ 13,884 $ 5,363 $ 19,247 Sales Channels Direct sales force $ 7,785 $ 3,131 $ 10,916 OEM partners 6,099 — 6,099 Channel partners — 2,232 2,232 $ 13,884 $ 5,363 $ 19,247 Three months ended September 30, 2019 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 4,749 $ 841 $ 5,590 Service contracts 1,336 446 1,782 Supply and source usage agreements — 465 465 Professional services — 18 18 Other 2 — 2 $ 6,087 $ 1,770 $ 7,857 Timing of Revenue Recognition Goods transferred at a point in time $ 4,749 $ 892 $ 5,641 Services transferred over time 1,338 878 2,216 $ 6,087 $ 1,770 $ 7,857 Sales Channels Direct sales force $ 3,467 $ 1,280 $ 4,747 OEM partners 2,620 — 2,620 Channel partners — 490 490 $ 6,087 $ 1,770 $ 7,857 Nine months ended September 30, 2019 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 11,347 $ 3,410 $ 14,757 Service contracts 4,012 1,437 5,449 Supply and source usage agreements — 1,528 1,528 Professional services — 59 59 Other 105 61 166 $ 15,464 $ 6,495 $ 21,959 Timing of Revenue Recognition Goods transferred at a point in time $ 11,347 $ 3,668 $ 15,015 Services transferred over time 4,117 2,827 6,944 $ 15,464 $ 6,495 $ 21,959 Sales Channels Direct sales force $ 8,441 $ 4,793 $ 13,234 OEM partners 7,023 — 7,023 Channel partners — 1,702 1,702 $ 15,464 $ 6,495 $ 21,959 Products. Service Contracts. , contracts non-lease “Revenue from Contracts with Customers” (“ASC 606”), Supply and Source Usage Agreements. These agreements represent a separate performance obligation to the Company. The Company allocates revenue to each performance obligation based on the SSP. Professional Services. Other. Other revenue consists primarily of miscellaneous products and services. The Company transfers control and recognizes a sale when the product is shipped from the manufacturing or warehousing facility to the customer or the installation services are performed Contract Balances Contract liabilities are a component of deferred revenue, and contract assets are a component of prepaid and other current assets. The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers (in thousands). Contract balances Balance at September 30, 2020 Receivables, which are included in “Trade accounts receivable” $ 8,376 Contract assets, which are included in “Prepaid and other current assets” 7 Contract liabilities, which are included in “Deferred revenue” 5,863 Timing of revenue recognition may differ from timing of invoicing of customers. The Company records a receivable when revenue is recognized prior to receipt of cash payment and the Company has the unconditional right to such consideration, or unearned revenue when cash payments are received or due in advance of performance. For multi-year agreements, the Company generally invoices customers annually at the beginning of each annual service period. The Company’s accounts receivable from contracts with customers, net of allowance for doubtful accounts, was $8.4 million and $9.8 million as of September 30, 2020 and December 31, 2019, respectively. The Company will record a contract asset for unbilled revenue when the Company’s performance is in excess of amounts billed or billable. The Company has classified the contract asset balance as a component of prepaid expenses and other current assets as of September 30, 2020 and December 31, 2019. The contract asset balance was $7,000 as of September 30, 2020 and $14,000 as of December 31, 2019. Deferred revenue from contracts with customers, which is included in deferred revenue in the consolidated balance sheet, is primarily composed of fees related to service arrangements, which are generally billed in advance. Deferred revenue also includes payments for installation and training that has not yet been completed and other offerings for which we have been paid in advance and earn the revenue when we transfer control of the product or service. The balance of deferred revenue at September 30, 2020 and December 31, 2019 is as follows (in thousands): Contract liabilities September 30, 2020 December 31, 2019 Short term $ 5,644 $ 5,248 Long term 219 356 Total $ 5,863 $ 5,604 Changes in deferred revenue from contracts with customers were as follows (in thousands): Nine Months Ended Balance at beginning of period $ 5,604 Deferral of revenue 8,092 Recognition of deferred revenue (7,833 ) Balance at end of period $ 5,863 We expect to recognize approximately $3.2 million of the deferred amount |
Litigation | In December 2016, the Company entered into an Asset Purchase Agreement with Invivo Corporation (the “Asset Purchase Agreement”). In accordance with the Asset Purchase 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 $ million. The Company closed the transaction on January less a holdback reserve of $ for net pr o million. On September 5, 2018, third-party Yeda Research and Development Company Ltd. (“Yeda”), filed a complaint (the “Complaint”) against the Company and Invivo in the United States District Court for the Southern District of New York, captioned Yeda Research and Development Company Ltd. v. iCAD, Inc. and Invivo Corporation, Case No. 1:18-cv-08083-GBD, The Company may be a party to various legal proceedings and claims arising out of the ordinary course of its business. Although the final results of all such matters and claims cannot be predicted with certainty, the Company currently believes that there are no current proceedings or claims pending against it the ultimate resolution of which would have a material adverse effect on its financial condition or results of operations, other than as set forth above. 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 the Company’s operating results and cash flows for that particular period. The Company may be a party to certain actions that have been filed against the Company which are being vigorously defended. The Company has determined that potential losses in these matters are neither probable or reasonably possible at this time. 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 is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset ◾ Level 1 - Quoted prices in active markets for identical assets or liabilities. ◾ Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ◾ Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and notes payable and convertible debentures. Due to their short-term nature and market rates of interest, the carrying amounts of the financial instruments (except the Convertible Debentures, which were measured at fair value in accordance with the fair value option election) approximated fair value as of February 21, 2020 and December 31, 2019. The Company’s assets and liabilities that are measured at fair value on a recurring basis include the Company’s money market accounts and Convertible Debentures. The money market accounts are included in cash and cash equivalents in the accompanying consolidated balance sheet and are considered a Level 1 measurement as they are valued at quoted market prices in active markets. The Convertible Debentures were recorded as a separate component of the Company’s consolidated balance sheet and are considered a Level 3 measurement due to the utilization of significant unobservable inputs in their valuation. See Note 4(b) for a discussion of these fair value measurements. 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 (in thousands). Fair Value Measurements (in thousands) as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 15,313 $ $ — $ 15,313 Total Assets $ 15,313 $ — $ — $ 15,313 Liabilities Convertible debentures $ — $ — $ 13,642 $ 13,642 Total Liabilities $ — $ — $ 13,642 $ 13,642 Fair Value Measurements as of September 30, 2020 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 22,633 $ $ $ 22,633 Total Assets $ 22,633 $ — $ — $ 22,633 The following sets forth a reconciliation of the changes in the fair value of the Convertible Debentures that were converted to equity during the nine months ended September 30, 2020 (in thousands): Convertible Debentures Balance, December 31, 2019 $ 13,642 Fair value adjustments 7,522 Conversion (21,164 ) Balance as of September 30, 2020 $ — |
Income Taxes | The Company recorded an income tax provision of $3,000 and $34,000 for the three and nine months ended September 30, 2020, respectively, and $6,000 and $33,000 for the three and nine months ended September 30, 2019, respectively. The Company had no material unrecognized tax benefits and a deferred tax liability of approximately $4,000 related to tax amortizable goodwill. No other adjustments were required under ASC 740, “Income Taxes.” The Company does not expect that its unrecognized tax benefits will materially increase within the next 12 months. The Company did not recognize any interest or penalties related to uncertain tax positions at September 30, 2020. The Company files United States federal income tax returns and income tax returns in various states and local jurisdictions. The Company’s three preceding tax years remain subject to examination by federal and state tax authorities. In addition, because the Company has net operating loss carry-forwards, the Internal Revenue Service and state jurisdictions are permitted to audit earlier years and propose adjustments up to the amount of net operating loss generated in those years. The Company is not currently under examination by any federal or state jurisdiction for any tax years. |
Intangibles - Goodwill and Other | The Company tests goodwill for impairment on an annual basis and between annual tests if events and circumstances indicate it is more likely than not that the fair value of the reporting unit is less than its carrying value. 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 considered the goodwill impairment factors due to the uncertainty around the continuing impact of the COVID-19 The Company would record an impairment charge when such assessment indicates that the fair value of a reporting unit is 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. The Company determines 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 uses internal forecasts to estimate future cash flows and includes estimates of long-term future growth rates based on its most recent views of the long-term forecast for each segment. Accordingly, actual results can differ from those assumed in the Company’s forecasts. Discount rates are derived from a capital asset pricing model and by analyzing published rates for industries relevant to the Company’s 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 of its reporting units and in the Company’s 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 in similar 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 the Company, as well as the fact that market data may not be available for divisions within larger conglomerates or non-public The Company corroborates 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. 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 weights the methodologies appropriately. The Company has two operating segments, Detection and Therapy, as further discussed in Note 12 below. A rollforward of goodwill activity by reportable segment is as follows (in thousands): Consolidated Detection Therapy Total Accumulated Goodwill $ 47,937 $ — $ — $ 47,937 Accumulated impairment (26,828 ) — — (26,828 ) Fair value allocation (21,109 ) 7,663 13,446 — Acquisition of DermEbx and Radion — — 6,154 6,154 Acquisition measurement period adjustments — — 116 116 Acquisition of VuComp — 1,093 — 1,093 Sale of MRI assets — (394 ) (394 ) Impairment — — (19,716 ) (19,716 ) Prior to December 31, 2019 — 8,362 — 8,362 Balance at September 30, 2020 $ — $ 8,362 $ — $ 8,362 |
Long-lived assets | 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 its carrying value. There is no set interval or frequency for recoverability evaluation. Rather, the determination of when, if at all, an asset (or asset group) is evaluated for recoverability is based on “events and circumstances.” The following factors are examples of events or changes in circumstances that indicate the carrying amount of an asset (or asset group) may not be recoverable and thus is to be evaluated for recoverability. • A significant decrease in the market price of a long-lived asset (or asset group); • A significant adverse change in the extent or manner in which a long-lived asset (or 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 (or 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 (or asset group); and • A current operating period, 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 (or asset group). The Company determined there were no such triggering events in the quarter ended September 30, 2020. If the carrying amount of an asset or asset group (in use or under development) is evaluated and found not to be fully recoverable (e.g., the carrying amount exceeds the estimated gross, undiscounted cash flows from use and disposition), then an impairment loss must be recognized. The impairment loss is measured as the excess of the carrying amount over the fair value of the asset (or asset group). The Company determined the “Asset Group” of the Company to be the assets of the Therapy segment and the Detection segment, which the Company considers to be the lowest level for which the identifiable cash flows were largely independent of the cash flows of other assets and liabilities. 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 that its 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 | Operating segments are defined |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenues Disaggregated by Major Good or Service Line, Timing of Revenue Recognition, and Sales Channel, Reconciled to Our Reportable Segments | The following tables presents the Company’s its Three months ended September 30, 2020 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 3,889 $ 1,038 $ 4,927 Service contracts 1,400 347 1,747 Supply and source usage agreements — 444 444 Professional services — 9 9 Other 2 — 2 $ 5,291 $ 1,838 $ 7,129 Timing of Revenue Recognition Goods transferred at a point in time $ 3,889 $ 1,051 $ 4,940 Services transferred over time 1,402 787 2,189 $ 5,291 $ 1,838 $ 7,129 Sales Channels Direct sales force $ 2,904 $ 857 $ 3,761 OEM partners 2,387 — 2,387 Channel partners — 981 981 $ 5,291 $ 1,838 $ 7,129 Nine months ended September 30, 2020 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 9,690 $ 2,959 $ 12,649 Service contracts 4,151 1,079 5,230 Supply and source usage agreements — 1,305 1,305 Professional services — 20 20 Other 43 — 43 $ 13,884 $ 5,363 $ 19,247 Timing of Revenue Recognition Goods transferred at a point in time $ 9,731 $ 3,039 $ 12,770 Services transferred over time 4,153 2,324 6,477 $ 13,884 $ 5,363 $ 19,247 Sales Channels Direct sales force $ 7,785 $ 3,131 $ 10,916 OEM partners 6,099 — 6,099 Channel partners — 2,232 2,232 $ 13,884 $ 5,363 $ 19,247 Three months ended September 30, 2019 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 4,749 $ 841 $ 5,590 Service contracts 1,336 446 1,782 Supply and source usage agreements — 465 465 Professional services — 18 18 Other 2 — 2 $ 6,087 $ 1,770 $ 7,857 Timing of Revenue Recognition Goods transferred at a point in time $ 4,749 $ 892 $ 5,641 Services transferred over time 1,338 878 2,216 $ 6,087 $ 1,770 $ 7,857 Sales Channels Direct sales force $ 3,467 $ 1,280 $ 4,747 OEM partners 2,620 — 2,620 Channel partners — 490 490 $ 6,087 $ 1,770 $ 7,857 Nine months ended September 30, 2019 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 11,347 $ 3,410 $ 14,757 Service contracts 4,012 1,437 5,449 Supply and source usage agreements — 1,528 1,528 Professional services — 59 59 Other 105 61 166 $ 15,464 $ 6,495 $ 21,959 Timing of Revenue Recognition Goods transferred at a point in time $ 11,347 $ 3,668 $ 15,015 Services transferred over time 4,117 2,827 6,944 $ 15,464 $ 6,495 $ 21,959 Sales Channels Direct sales force $ 8,441 $ 4,793 $ 13,234 OEM partners 7,023 — 7,023 Channel partners — 1,702 1,702 $ 15,464 $ 6,495 $ 21,959 |
Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers | The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers (in thousands). Contract balances Balance at September 30, 2020 Receivables, which are included in “Trade accounts receivable” $ 8,376 Contract assets, which are included in “Prepaid and other current assets” 7 Contract liabilities, which are included in “Deferred revenue” 5,863 |
Summary of Changes in Deferred Revenue | Changes in deferred revenue from contracts with customers were as follows (in thousands): Nine Months Ended Balance at beginning of period $ 5,604 Deferral of revenue 8,092 Recognition of deferred revenue (7,833 ) Balance at end of period $ 5,863 |
Accounting Standards Update 2016-02 [Member] | |
Summary of Changes in Deferred Revenue | The balance of deferred revenue at September 30, 2020 and December 31, 2019 is as follows (in thousands): Contract liabilities September 30, 2020 December 31, 2019 Short term $ 5,644 $ 5,248 Long term 219 356 Total $ 5,863 $ 5,604 |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2020 2019 Net loss $ (1,797 ) $ (2,956 ) $ (16,007 ) $ (10,203 ) Shares used in the calculation of basic and diluted net loss per share 23,173 19,284 21,827 18,049 Diluted shares used in the calculation of net loss per share 23,173 19,284 21,827 18,049 Net loss per share - basic and dilute d $ (0.08 ) $ (0.15 ) $ (0.73 ) $ (0.57 ) |
Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share | The shares of the Company’s common stock issuable upo n d As of September 30, 2020 2019 Stock options 1,971,704 1,509,292 Restricted stock 29,166 191,909 Convertible Debentures — 1,742,500 Total 2,000,870 3,443,701 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Current Inventory | As of September 30, As of December 31, Raw materials $ 1,422 $ 1,572 Work in process 324 39 Finished Goods 1,629 1,469 Inventory Gross 3,375 3,080 Inventory Reserve (229 ) (469 ) Inventory Net $ 3,146 $ 2,611 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Key Inputs to Simulation Model Utilized to Estimate Fair Value of Convertible Debentures | The Company notes that the key inputs to the valuation models that were utilized to estimate the fair value of the Convertible Debentures included: Input December 31, 2019 February 21, 2020 Company’s stock price $ 7.77 $ 11.64 Conversion price 4.00 4.00 Remaining term (years) 1.97 0.00 Equity volatility 49.00 % N/A Risk free rate 1.57 % N/A 1 0.45 % N/A 1 100.00 % 100.00 % 1 100.00 % N/A 1 18.52 % N/A 1 |
Schedule of Fair Value and Principal Value of Convertible Debentures | The fair value and principal value of the Convertible Debentures as of December 31, 2019 and the Conversion Date was as follows (in thousands): Convertible Debentures December 31, 2019 February 21, 2020 Fair value, in accordance with fair value option $ 13,642 $ 21,164 Principal value outstanding $ 6,970 $ 6,970 |
Summary of Future Principal and Interest Payments Related to Loan Agreement and Convertible Debentures | Future principal, interest payments, and final payment related to the Loan Agreement are as follows (in thousands): Amount Due 2020 $ 94 2021 1,238 2022 2,875 2023 2,735 2024 1,003 Total $ 7,945 |
Interest Expense in Consolidated Income Statement | The following amounts are included in interest expense in the Company’ s consolidated statement of operations for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cash interest expense $ 94 $ 65 $ 232 $ 222 Interest on convertible debentures — 87 49 261 Accrual of notes payable final payment 8 34 47 98 Amortization of debt costs 13 7 32 21 Interest expense capital lease — — — 2 Total interest expense $ 115 $ 193 $ 360 $ 604 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense for the period are as follows (in thousands): Lease Cost Classification Three Months Ended Year Ended Operating lease cost Operating expenses $ 217 $ 804 Finance lease costs Amortization of leased assets Amortization and depreciation 4 15 Interest on lease liabilities Interest expense — 2 Total $ 221 $ 821 Other information related to le a follows Three Months Ended Cash paid from operating cash flows for operating leases $ 229 Cash paid from operating cash flows for finance leases — Cash paid from financing cash flows for finance leases 4 As of September Weighted-average remaining lease term of operating leases (in years) 2.45 Weighted-average remaining lease term of finance leases (in years) — Weighted-average discount rate for operating leases 5.6 % Weighted-average discount rate for finance leases — |
Summary of Detained Information of Lease Liabilities | As of September 30, 2020: Operating Finance Total 2020 $ 228 — 228 2021 920 — 920 2022 899 — 899 2023 211 — 211 2024 5 — 5 Total lease payments 2,263 — 2,263 Less: imputed interest (154 ) — (154 ) Total lease liabilities 2,109 — 2,109 Less: current portion of lease liabilities (822 ) — (822 ) Long-term lease liabilities $ 1,287 $ — $ 1,287 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Granted under Company's Stock Incentive Plans, Valuation Assumptions and Fair Values | Three Months Ended Nine Months Ended September 30, September 30, 19 19 Average risk-free interest 0.15% 1.60% 0.79% 1.99% Expected dividend yield None None None None Expected life 3.5 years 3.5 years 3.5 years 3.5 years Expected volatility 66.0% to 66.0% 51.04% to 51.37% 50.2 to 65.7% 51.04% to 54.23% Weighted average exercise price $8.84 $6.78 $10.08 $5.69 Weighted average fair value $4.11 $2.63 $4.34 $2.26 |
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 Nine Months Ended September 30, September 30, 19 Cost of revenue $ 3 $ 1 $ 28 $ 2 Engineering and product development 64 62 406 182 Marketing and sales 61 62 608 178 General and administrative 337 215 1,500 494 $ 465 $ 340 $ 2,542 $ 856 |
Unrecognized Compensation Cost Related to Unexercisable Options and Unvested Restricted Stock and Weighted Average Remaining Period | As of September 30, 2020, unrecognized compensation cost (in thousands) related to unvested options and unvested restricted stock and the weighted average term of such equity instruments is as follows: Remaining expense $ 1,060 Weighted average term 1.0 |
Aggregate Intrinsic Value | The Company’s aggregate intrinsic value for stock options and restricted stock outstanding is as follows (in thousands): As of September 30, Aggregate intrinsic value 2020 2019 Stock options $ 6,679 $ 4,154 Restricted stock 257 1,315 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 (in thousands). Fair Value Measurements (in thousands) as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 15,313 $ $ — $ 15,313 Total Assets $ 15,313 $ — $ — $ 15,313 Liabilities Convertible debentures $ — $ — $ 13,642 $ 13,642 Total Liabilities $ — $ — $ 13,642 $ 13,642 Fair Value Measurements as of September 30, 2020 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 22,633 $ $ $ 22,633 Total Assets $ 22,633 $ — $ — $ 22,633 |
Schedule of Reconciliation of Changes In Fair Value of Convertible Debentures | The following sets forth a reconciliation of the changes in the fair value of the Convertible Debentures that were converted to equity during the nine months ended September 30, 2020 (in thousands): Convertible Debentures Balance, December 31, 2019 $ 13,642 Fair value adjustments 7,522 Conversion (21,164 ) Balance as of September 30, 2020 $ — |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Roll Forward of Goodwill Activity by Reportable Segment | A rollforward of goodwill activity by reportable segment is as follows (in thousands): Consolidated Detection Therapy Total Accumulated Goodwill $ 47,937 $ — $ — $ 47,937 Accumulated impairment (26,828 ) — — (26,828 ) Fair value allocation (21,109 ) 7,663 13,446 — Acquisition of DermEbx and Radion — — 6,154 6,154 Acquisition measurement period adjustments — — 116 116 Acquisition of VuComp — 1,093 — 1,093 Sale of MRI assets — (394 ) (394 ) Impairment — — (19,716 ) (19,716 ) Prior to December 31, 2019 — 8,362 — 8,362 Balance at September 30, 2020 $ — $ 8,362 $ — $ 8,362 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 US GAAP loss before income tax is as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Segment revenues: Detection $ 5,291 $ 6,087 $ 13,885 $ 15,464 Therapy 1,838 1,770 5,362 6,495 Total Revenue $ 7,129 $ 7,857 $ 19,247 $ 21,959 Segment gross profit: Detection $ 4,227 $ 5,051 $ 11,227 $ 12,874 Therapy 798 1,003 2,665 $ 4,188 Segment gross profit $ 5,025 $ 6,054 $ 13,892 $ 17,062 Segment operating income (loss): Detection $ 866 $ 943 $ 721 $ 1,918 Therapy (711 ) (1,022 ) (2,149 ) $ (1,065 ) Segment operating income (loss) $ 155 $ (79 ) $ (1,428 ) $ 853 General, administrative, depreciation and amortization expense $ (1,844 ) $ (1,881 ) $ (6,465 ) $ (5,305 ) Interest expense (115 ) (193 ) (360 ) (604 ) Other income 10 103 85 226 Loss on extinguishment of debt — — (341 ) — Fair value of convertible debentures — (900 ) (7,464 ) (5,340 ) Loss before income tax $ (1,794 ) $ (2,950 ) $ (15,973 ) $ (10,170 ) |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($)Segment | Dec. 31, 2019USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Business segment | Segment | 2 | |
Contract assets | $ 7 | $ 14 |
Unearned amount to recognize in 2020 | 3,200 | |
Unearned amount to recognize in 2021 | 2,500 | |
Unearned amount to recognize, thereafter | 200 | |
Cash in hand | $ 22,633 | 15,313 |
Maximum [Member] | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Minimum obligated ratio of unrestricted cash at the bank to aggregate indebtedness owed to the bank | 1.25 | |
Minimum [Member] | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Minimum obligated ratio of unrestricted cash at the bank to aggregate indebtedness owed to the bank | 1 | |
Revenue from Contract with Customer [Member] | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Allowance for doubtful accounts, receivable | $ 8,400 | $ 9,800 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Revenues Disaggregated by Major Good or Service Line, Timing of Revenue Recognition, and Sales Channel, Reconciled to Our Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 7,129 | $ 7,857 | $ 19,247 | $ 21,959 |
Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 4,927 | 5,590 | 12,649 | 14,757 |
Service Contracts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,747 | 1,782 | 5,230 | 5,449 |
Supply and Source Usage Agreements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 444 | 465 | 1,305 | 1,528 |
Professional Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 9 | 18 | 20 | 59 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2 | 2 | 43 | 166 |
Goods Transferred at a Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 4,940 | 5,641 | 12,770 | 15,015 |
Services Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,189 | 2,216 | 6,477 | 6,944 |
Direct Sales Force [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,761 | 4,747 | 10,916 | 13,234 |
OEM Partners [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,387 | 2,620 | 6,099 | 7,023 |
Channel Partners [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 981 | 490 | 2,232 | 1,702 |
Detection [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 5,291 | 6,087 | 13,884 | 15,464 |
Detection [Member] | Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,889 | 4,749 | 9,690 | 11,347 |
Detection [Member] | Service Contracts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,400 | 1,336 | 4,151 | 4,012 |
Detection [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2 | 2 | 43 | 105 |
Detection [Member] | Goods Transferred at a Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,889 | 4,749 | 9,731 | 11,347 |
Detection [Member] | Services Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,402 | 1,338 | 4,153 | 4,117 |
Detection [Member] | Direct Sales Force [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,904 | 3,467 | 7,785 | 8,441 |
Detection [Member] | OEM Partners [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,387 | 2,620 | 6,099 | 7,023 |
Therapy [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,838 | 1,770 | 5,363 | 6,495 |
Therapy [Member] | Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,038 | 841 | 2,959 | 3,410 |
Therapy [Member] | Service Contracts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 347 | 446 | 1,079 | 1,437 |
Therapy [Member] | Supply and Source Usage Agreements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 444 | 465 | 1,305 | 1,528 |
Therapy [Member] | Professional Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 9 | 18 | 20 | 59 |
Therapy [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 61 | |||
Therapy [Member] | Goods Transferred at a Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,051 | 892 | 3,039 | 3,668 |
Therapy [Member] | Services Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 787 | 878 | 2,324 | 2,827 |
Therapy [Member] | Direct Sales Force [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 857 | 1,280 | 3,131 | 4,793 |
Therapy [Member] | Channel Partners [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 981 | $ 490 | $ 2,232 | $ 1,702 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Contract with Customer, Asset and Liability [Abstract] | ||
Receivables, which are included in "Trade accounts receivable" | $ 8,376 | |
Contract assets, which are included in "Prepaid and other current assets" | 7 | $ 14 |
Contract liabilities, which are included in "Deferred revenue" | $ 5,863 | $ 5,604 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Summary of Deferred Revenue (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Deferred Revenue Arrangement [Line Items] | ||
Contract liabilities | $ 5,863 | $ 5,604 |
Short-term Contract with Customer [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Contract liabilities | 5,644 | 5,248 |
Long-term Contract with Customer [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Contract liabilities | $ 219 | $ 356 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Summary of Changes in Deferred Revenue from Contracts with Customers (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Deferred Revenue Disclosure [Abstract] | |
Balance at beginning of period | $ 5,604 |
Deferral of revenue | 8,092 |
Recognition of deferred revenue | (7,833) |
Balance at end of period | $ 5,863 |
Net Loss per Common Share - Cal
Net 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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net loss | $ (1,797) | $ (2,956) | $ (16,007) | $ (10,203) |
Shares used in the calculation of basic and diluted net loss per share | 23,173 | 19,284 | 21,827 | 18,049 |
Effect of dilutive securities: | ||||
Diluted shares used in the calculation of net loss per share | 23,173 | 19,284 | 21,827 | 18,049 |
Net loss per share - basic and diluted | $ (0.08) | $ (0.15) | $ (0.73) | $ (0.57) |
Net Loss per Common Share - Sch
Net 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, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock options, warrants and restricted stock | 2,000,870 | 3,443,701 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock options, warrants and restricted stock | 1,971,704 | 1,509,292 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock options, warrants and restricted stock | 29,166 | 191,909 |
Convertible Debentures [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock options, warrants and restricted stock | 1,742,500 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Inventory reserve | $ 229 | $ 469 |
Inventory - Schedule of Current
Inventory - Schedule of Current Inventory (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,422 | $ 1,572 |
Work in process | 324 | 39 |
Finished Goods | 1,629 | 1,469 |
Inventory Gross | 3,375 | 3,080 |
Inventory Reserve | (229) | (469) |
Inventory Net | $ 3,146 | $ 2,611 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Detail) | Sep. 30, 2020USD ($)$ / shares | Mar. 30, 2020USD ($) | Sep. 30, 2020USD ($)Trialcustomer$ / sharesshares | Sep. 30, 2019USD ($) | Feb. 21, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 21, 2019USD ($) | Aug. 07, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||
Debt insrument redemption description | The simulation utilized the assumptions that if the Company was able to exercise its forced conversion right (if the requirements to do so were met), that it would do so in 100% of such scenarios. Additionally, if an event of default occurred during the simulated trial (based on the Company’s probability of default), the Investors would opt to redeem the Convertible Debentures in 100% of such scenarios. | |||||||
Loss from fair value of the convertible debentures | $ 7,500,000 | |||||||
Proceeds from Line of Credit | 775,000 | $ 1,000,000 | ||||||
Loss on extinguishment of debt | (341,000) | |||||||
Final payment of loan | 510,000 | |||||||
Rreclassified the fair value of convertible debentures | $ 21,164,000 | $ 13,642,000 | $ 21,200,000 | |||||
Silicon Valley Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Termination fee | $ 114,000 | $ 114,000 | ||||||
Silicon Valley Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Termination fee | $ 114,000 | |||||||
Other costs | 10,000 | |||||||
Loss on extinguishment of debt | 341,000 | |||||||
Final payment of loan | 185,000 | |||||||
Unamortized closing costs | $ 42,000 | |||||||
Western Alliance Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of final payment | 1.75% | |||||||
Final Payment | $ 122,500 | |||||||
Description of prepayment fee | a prepayment fee (3% of the principal balance if prepaid | |||||||
Interest Rate During Period | 3.25% | |||||||
Debt instrument, interest rate | 1.75% | |||||||
Western Alliance Bank [Member] | Prime Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate During Period | 4.25% | |||||||
Western Alliance Bank [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate During Period | 1.00% | |||||||
Western Alliance Bank [Member] | Fifth Loan Modification Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate Description | $6.0 million and a | |||||||
Convertible Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 7,000,000 | |||||||
Debt conversion, conversion price per share | $ / shares | $ 4 | $ 4 | ||||||
Convertible debenture Number of instrumnts converted | customer | 1,742,500 | |||||||
Shares issued up on conversion | shares | 1,816,466 | |||||||
Convertible Debt [Member] | Make Whole Provision [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 697,000 | $ 697,000 | ||||||
Convertible debenture Number of instrumnts converted | customer | 76,966 | |||||||
Convertible Debt [Member] | Monte Carlo Simulation [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of trials to detremine fair value | Trial | 100,000 | |||||||
Term Loan A [Member] | Silicon Valley Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 7,000,000 | $ 6,000,000 | ||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of final payment | 4.00% | 4.00% | ||||||
Proceeds from Line of Credit | $ 775,000 | |||||||
Interest Rate Description | (0.75%) above the Prime Rate | |||||||
Debt instrument, interest rate | 4.00% | 4.00% | ||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 5,000,000 | |||||||
Revolving Credit Facility [Member] | Silicon Valley Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 4,000,000 |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Key Inputs to Simulation Model Utilized to Estimate Fair Value of Convertible Debentures (Detail) - Convertible Debt [Member] | Feb. 21, 2020yr | Dec. 31, 2019yr | ||
Company's Stock Price [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Measurement Input | 11.64 | 7.77 | ||
Conversion Price [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Measurement Input | 4 | 4 | ||
Remaining Term (Years) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Measurement Input | 0 | 1.97 | ||
Equity Volatility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Measurement Input | 49 | |||
Risk Free Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Measurement Input | 1.57 | |||
Probability of Default Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Measurement Input | [1] | 0.45 | ||
Utilization of Forced Conversion [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Measurement Input | 100 | 100 | [1] | |
Exercise of Default Redemption [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Measurement Input | [1] | 100 | ||
Effective Discount Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Measurement Input | [1] | 18.52 | ||
[1] | Represents a Level 3 unobservable input, as defined in Note 8 - Fair Value Measurements, below. |
Financing Arrangements - Sche_2
Financing Arrangements - Schedule of Fair Value and Principal Value of Convertible Debentures (Detail) - USD ($) $ in Thousands | Feb. 21, 2020 | Dec. 31, 2019 | Feb. 21, 2019 |
Debt Disclosure [Abstract] | |||
Fair value, in accordance with fair value option | $ 21,164 | $ 13,642 | $ 21,200 |
Principal value outstanding | $ 6,970 | $ 6,970 |
Finance Arrangements - Summary
Finance Arrangements - Summary of Future Principal and Interest Payments Related to Loan Agreement and Convertible Debentures (Detail) - Term Loan A [Member] $ in Thousands | Sep. 30, 2020USD ($) |
Shares Issued And Outstanding [Line Items] | |
2020 | $ 94 |
2021 | 1,238 |
2022 | 2,875 |
2023 | 2,735 |
2024 | 1,003 |
Total | $ 7,945 |
Finance Arrangements - Interest
Finance Arrangements - Interest Expense in Consolidated Income Statement (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest Expense [Line Items] | ||||
Cash interest expense | $ 94 | $ 65 | $ 232 | $ 222 |
Interest on convertible debentures | 0 | 87 | 49 | 261 |
Accrual of notes payable final payment | 8 | 34 | 47 | 98 |
Amortization of debt costs | 13 | 7 | 32 | 21 |
Interest expense capital lease | 0 | 0 | 0 | 2 |
Total interest expense | $ 115 | $ 193 | $ 360 | $ 604 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 3 years |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Components of Lease Expense (Detail) - Accounting Standards Update 2016-02 [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost - Right of Use | $ 217 | $ 804 |
Finance lease costs | ||
Amortization of leased assets | 4 | 15 |
Interest on lease liabilities Interest expense | 0 | 2 |
Total | 221 | $ 821 |
Cash paid from operating cash flows for operating leases | 229 | |
Cash paid from operating cash flows for finance leases | 0 | |
Cash paid from financing cash flows for finance leases | $ 4 | |
Weighted-average remaining lease term of operating leases (in years) | 2 years 5 months 12 days | |
Weighted-average discount rate for operating leases | 5.60% | |
Weighted-average discount rate for capital leases | 0.00% |
Lease Commitments - Summary of
Lease Commitments - Summary of Detained Information of Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 228 | |
2021 | 920 | |
2022 | 899 | |
2023 | 211 | |
2024 | 5 | |
Total | 2,263 | |
Less: imputed interest | (154) | |
Total lease liabilities | 2,109 | |
Less: current portion of lease liabilities | (822) | |
Total lease liabilities | 1,287 | |
2020 | 228 | |
2021 | 920 | |
2022 | 899 | |
2023 | 211 | |
2024 | 5 | |
Total lease payments | 2,263 | |
Less: imputed interest | (154) | |
Total lease liabilities | 2,109 | |
Less: current portion of lease liabilities | (822) | $ (758) |
Long-term lease liabilities | $ 1,287 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Including Options and Restricted Stock by Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | $ 465 | $ 340 | $ 2,542 | $ 856 |
Cost of Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | 3 | 1 | 28 | 2 |
Engineering and Product Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | 64 | 62 | 406 | 182 |
Marketing and Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | 61 | 62 | 608 | 178 |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | $ 337 | $ 215 | $ 1,500 | $ 494 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net proceeds from Issue of common stock | $ 12,174,000 | $ 9,353,000 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of option Granted | 0 | 14,000 | ||
Number of shares vested | 38,160 | |||
Intrinsic value of restricted shares that vested | $ 600,000 | |||
Number of restricted stock vested cancelled | 3,666 | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, Issued | 49,712 | 94,678 | ||
Net proceeds from Issue of common stock | $ 185,000,000 | $ 417,000,000 | ||
2019 Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued, Employee Stock Purchase Plans | 950,000 | 16,392 | 34,857 | |
Percentage of voting power | 5.00% | |||
Description of employee stock purchase plan | Employees who participate in the ESPP may purchase shares by authorizing payroll deductions of up to 15% of their base compensation during an accumulation period. Unless the participating employee withdraws from participation, accumulated payroll deductions are used to purchase shares of common stock on the last business day of the accumulation period (the “Purchase Date”) at a price equal to 85% of the lower of the fair market value on (i) the Purchase Date or (ii) the first day of such accumulation period. Under applicable tax rules, no employee may purchase more than $25,000 worth of common stock, valued at the start of the purchase period, under the ESPP in any calendar year. | |||
Stock-based compensation expense | $ 19,000 | $ 84,000 | ||
Accrued salary and related expenses | $ 58,000 | $ 58,000 | ||
Black Scholes Model [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of option Granted | 17,029 | 540,886 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Average risk-free interest rate | 0.15% | 1.60% | 0.79% | 1.99% |
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 | $ 8.84 | $ 6.78 | $ 10.08 | $ 5.69 |
Weighted average fair value | $ 4.11 | $ 2.63 | $ 4.34 | $ 2.26 |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 66.00% | 51.04% | 50.20% | 51.04% |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 66.00% | 51.37% | 65.70% | 54.23% |
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, 2020USD ($) | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | |
Remaining expense | $ 1,060 |
Weighted average term | 1 year |
Stock-Based Compensation - Aggr
Stock-Based Compensation - Aggregate Intrinsic Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options | $ 6,679 | $ 4,154 |
Restricted stock | $ 257 | $ 1,315 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | ||||
Feb. 28, 2010 | Jul. 31, 2007 | Sep. 30, 2020 | Jan. 30, 2017 | Dec. 31, 2016 | |
Schedule Of Leases [Line Items] | |||||
Purchase obligations to suppliers for future product deliverables | $ 4,200,000 | ||||
VersaVue Software and DynaCAD Product and Related Assets [Member] | Asset Purchase Agreement [Member] | |||||
Schedule Of Leases [Line Items] | |||||
Sale and transfer of intangible assets | $ 3,200,000 | ||||
Holdback reserve related to sale and transfer of intangible assets | $ 350,000 | ||||
Proceeds from sale and transfer of intangible assets | $ 2,900,000 | ||||
CADx Medical Systems Inc [Member] | |||||
Schedule Of Leases [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) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Total Assets | $ 22,633 | $ 15,313 |
Liabilities | ||
Total Liabilities | 13,642 | |
Convertible Debentures [Member] | ||
Liabilities | ||
Total Liabilities | 13,642 | |
Money Market Accounts [Member] | ||
Assets | ||
Total Assets | 22,633 | 15,313 |
Level 1 [Member] | ||
Assets | ||
Total Assets | 22,633 | 15,313 |
Level 1 [Member] | Money Market Accounts [Member] | ||
Assets | ||
Total Assets | $ 22,633 | 15,313 |
Level 3 [Member] | ||
Liabilities | ||
Total Liabilities | 13,642 | |
Level 3 [Member] | Convertible Debentures [Member] | ||
Liabilities | ||
Total Liabilities | $ 13,642 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Reconciliation of Changes In Fair Value of Convertible Debentures (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020 | Feb. 21, 2020 | Dec. 31, 2019 | Feb. 21, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning Balance | $ 13,642 | |||
Conversion | $ (21,164) | $ (13,642) | $ (21,200) | |
Convertible Debentures [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning Balance | 13,642 | |||
Fair value adjustments | 7,522 | |||
Conversion | $ (21,164) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule Of Income Tax Expense [Line Items] | ||||
Unrecognized tax benefits | $ 0 | $ 0 | ||
Income tax provision | 3,000 | $ 6,000 | 34,000 | $ 33,000 |
Deferred tax liability related to amortized goodwill | $ 4,000 | $ 4,000 |
Goodwill - Roll Forward of Good
Goodwill - Roll Forward of Goodwill Activity by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Sep. 30, 2020 | Dec. 31, 2019 | |
Accumulated Goodwill | $ 47,937 | ||
Accumulated impairment | (26,828) | ||
Acquisition measurement period adjustments | 116 | ||
Sale of MRI assets | (394) | ||
Impairment | (19,716) | ||
Goodwill, Ending Balance | $ 8,362 | $ 8,362 | |
DermEbx And Radion [Member] | |||
Acquisition cost | 6,154 | ||
VuComp M-Vu Breast Density Product [Member] | |||
Acquisition cost | 1,093 | ||
Consolidated Reporting Unit [Member] | |||
Accumulated Goodwill | 47,937 | ||
Accumulated impairment | (26,828) | ||
Fair value allocation | (21,109) | ||
Detection [Member] | |||
Fair value allocation | 7,663 | ||
Sale of MRI assets | (394) | ||
Goodwill, Ending Balance | $ 8,362 | $ 8,362 | |
Detection [Member] | VuComp M-Vu Breast Density Product [Member] | |||
Acquisition cost | 1,093 | ||
Therapy [Member] | |||
Fair value allocation | 13,446 | ||
Acquisition measurement period adjustments | 116 | ||
Impairment | (19,716) | ||
Therapy [Member] | DermEbx And Radion [Member] | |||
Acquisition cost | $ 6,154 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment revenues: | ||||
Total Revenue | $ 7,129 | $ 7,857 | $ 19,247 | $ 21,959 |
Segment gross profit: | ||||
Segment gross profit | 5,025 | 6,054 | 13,892 | 17,062 |
Segment operating income (loss): | ||||
Segment operating income (loss) | 155 | (79) | 1,428 | 853 |
General, administrative, depreciation and amortization expense | (1,844) | (1,881) | (6,465) | (5,305) |
Interest expense | (115) | (193) | (360) | (604) |
Other income | 10 | 103 | 85 | 226 |
Fair value of convertible debentures | (900) | (7,464) | (5,340) | |
Loss on extinguishment of debt | (341) | |||
Loss before income tax expense | (1,794) | (2,950) | (15,973) | (10,170) |
Product [Member] | ||||
Segment revenues: | ||||
Total Revenue | 4,538 | 5,156 | 11,220 | 13,331 |
Service [Member] | ||||
Segment revenues: | ||||
Total Revenue | 2,591 | 2,701 | 8,027 | 8,628 |
Detection [Member] | ||||
Segment gross profit: | ||||
Segment gross profit | 4,227 | 5,051 | 11,227 | 12,874 |
Segment operating income (loss): | ||||
Segment operating income (loss) | 866 | 943 | 721 | 1,918 |
Detection [Member] | Product [Member] | ||||
Segment revenues: | ||||
Total Revenue | 5,291 | 6,087 | 13,885 | 15,464 |
Therapy [Member] | ||||
Segment gross profit: | ||||
Segment gross profit | 798 | 1,003 | 2,665 | 4,188 |
Segment operating income (loss): | ||||
Segment operating income (loss) | (711) | (1,022) | (2,149) | (1,065) |
Therapy [Member] | Service [Member] | ||||
Segment revenues: | ||||
Total Revenue | $ 1,838 | $ 1,770 | $ 5,362 | $ 6,495 |