Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 08, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ICAD INC | ||
Entity Central Index Key | 0000749660 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Trading Symbol | ICAD | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Address, State or Province | NH | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 24,918,458 | ||
Entity Public Float | $ 208,752,980 | ||
Entity Tax Identification Number | 02-0377419 | ||
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 | ||
Local Phone Number | 882-5200 | ||
ICFR Auditor Attestation Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 27,186 | $ 15,313 |
Trade accounts receivable, net of allowance for doubtful accounts of $111 in 2020 and $136 in 2019 | 10,027 | 9,819 |
Inventory, net | 3,144 | 2,611 |
Prepaid expenses and other current assets | 1,945 | 1,453 |
Total current assets | 42,302 | 29,196 |
Property and equipment: | ||
Equipment | 6,765 | 6,304 |
Leasehold improvements | 62 | 62 |
Furniture and fixtures | 319 | 319 |
Marketing assets | 376 | 376 |
Total property and equipment | 7,522 | 7,061 |
Less accumulated depreciation and amortization | 6,778 | 6,510 |
Property and equipment, net | 744 | 551 |
Operating lease assets | 1,758 | 2,406 |
Other assets | 1,527 | 50 |
Intangible assets, net of accumulated amortization of $8,494 in 2020 and $8,186 in 2019 | 889 | 1,183 |
Goodwill | 8,362 | 8,362 |
Total other assets | 12,536 | 12,001 |
Total assets | 55,582 | 41,748 |
Current liabilities: | ||
Accounts payable | 2,869 | 1,990 |
Accrued and other expenses | 7,039 | 6,590 |
Notes payable, current | 4,250 | |
Lease payable, current | 726 | 758 |
Deferred revenue, current | 6,117 | 5,248 |
Total current liabilities | 16,751 | 18,836 |
Lease payable, long-term | 1,075 | 1,837 |
Deferred revenue, long-term | 267 | 356 |
Notes payable, long-term | 6,960 | 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 tax | 4 | 3 |
Total liabilities | 25,057 | 36,677 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock, $ .01 par value: authorized 1,000,000 shares; none issued. | ||
Common stock, $ .01 par value: authorized 30,000,000 shares; issued 23,693,735 in 2020 and 19,546,151 in 2019. Outstanding 23,508,575 in 2020 and 19,360,320 in 2019. | 236 | 196 |
Additional paid-in capital | 273,639 | 230,615 |
Accumulated deficit | (241,935) | (224,325) |
Treasury stock at cost, 185,831 shares in 2019 and 2018 | (1,415) | (1,415) |
Total stockholders' equity | 30,525 | 5,071 |
Total liabilities and stockholders' equity | $ 55,582 | $ 41,748 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts on trade accounts receivable | $ 111 | $ 136 | |
Intangible assets, accumulated amortization | $ 8,494 | $ 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 | 23,693,735 | 19,546,151 | |
Common stock, shares outstanding | 23,508,575 | 19,360,320 | |
Treasury stock, shares | 185,831 | 185,831 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | |||
Total revenue | $ 29,698 | $ 31,340 | $ 25,621 |
Cost of Revenue: | |||
Amortization and depreciation | 379 | 397 | 403 |
Total cost of revenue | 8,344 | 7,113 | 6,191 |
Gross profit | 21,354 | 24,227 | 19,430 |
Operating expenses: | |||
Engineering and product development | 8,114 | 9,271 | 9,445 |
Marketing and sales | 13,312 | 13,634 | 8,693 |
General and administrative | 9,117 | 7,443 | 9,117 |
Amortization and depreciation | 199 | 276 | 305 |
Total operating expenses | 30,742 | 30,624 | 27,560 |
Loss from operations | (9,388) | (6,397) | (8,130) |
Interest expense | (476) | (784) | (504) |
Interest income | 97 | 344 | 110 |
Financing costs | (451) | ||
Loss on extinguishment of debt | (341) | ||
Loss on fair value of convertible debentures | (7,464) | (6,671) | |
Other expense, net | (8,184) | (7,111) | (845) |
Loss before income tax expense | (17,572) | (13,508) | (8,975) |
Income tax expense | 38 | 43 | 42 |
Net loss and comprehensive loss | $ (17,610) | $ (13,551) | $ (9,017) |
Net loss per share: | |||
Basic | $ (0.80) | $ (0.74) | $ (0.54) |
Diluted | $ (0.80) | $ (0.74) | $ (0.54) |
Weighted average number of shares used in computing net loss per share: | |||
Basic | 22,140 | 18,378 | 16,685 |
Diluted | 22,140 | 18,378 | 16,685 |
Product [Member] | |||
Revenue: | |||
Total revenue | $ 18,903 | $ 19,767 | $ 13,111 |
Cost of Revenue: | |||
Total cost of revenue | 5,000 | 3,278 | 2,161 |
Service [Member] | |||
Revenue: | |||
Total revenue | 10,795 | 11,573 | 12,510 |
Cost of Revenue: | |||
Total cost of revenue | $ 2,965 | $ 3,438 | $ 3,627 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2017 | $ 14,276 | $ 108 | $ 167 | $ 217,389 | $ (201,865) | $ 108 | $ (1,415) |
Beginning Balance, shares at Dec. 31, 2017 | 16,711,512 | ||||||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations | (180) | $ 3 | (183) | ||||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations, shares | 265,442 | ||||||
Issuance of common stock pursuant to stock option plans | 204 | 203 | |||||
Issuance of common stock pursuant to stock option plans, shares | 89,556 | ||||||
Stock-based compensation | 1,505 | 1,505 | |||||
Net loss | (9,017) | (9,017) | |||||
Ending Balance at Dec. 31, 2018 | 6,896 | $ 171 | 218,914 | (210,774) | (1,415) | ||
Ending Balance, shares at Dec. 31, 2018 | 17,066,510 | ||||||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations | (196) | $ 2 | (198) | ||||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations, shares | 167,843 | ||||||
Issuance of common stock pursuant to stock option plans | $ 1,400 | $ 4 | 1,396 | ||||
Issuance of common stock pursuant to stock option plans, shares | 379,980 | 429,980 | |||||
Issuance of common stock, net | $ 9,353 | $ 19 | 9,334 | ||||
Issuance of common stock, net, shares | 1,881,818 | ||||||
Stock-based compensation | 1,169 | 1,169 | |||||
Net loss | (13,551) | (13,551) | |||||
Ending Balance at Dec. 31, 2019 | 5,071 | $ 196 | 230,615 | (224,325) | (1,415) | ||
Ending 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 | $ 729 | $ 1 | 728 | ||||
Issuance of common stock pursuant to stock option plans, shares | 155,149 | 155,149 | |||||
Issuance of common stock, net | $ 18,284 | $ 20 | 18,264 | ||||
Issuance of common stock, net, shares | 2,033,204 | ||||||
Issuance of common stock pursuant employee stock purchase plan | 268 | $ 1 | 267 | ||||
Issuance of common stock pursuant employee stock purchase plan, shares | 42,606 | ||||||
Issuance of common stock upon conversion of debentures | 21,164 | $ 18 | 21,146 | ||||
Issuance of common stock upon conversion of debentures, shares | 1,819,466 | ||||||
Stock-based compensation | 2,844 | 2,844 | |||||
Net loss | (17,610) | (17,610) | |||||
Ending Balance at Dec. 31, 2020 | $ 30,525 | $ 236 | $ 273,639 | $ (241,935) | $ (1,415) | ||
Ending Balance, shares at Dec. 31, 2020 | 23,694,406 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common Stock [Member] | |||
Shares forfeited for tax obligations | 20,247 | 29,887 | 56,946 |
Additional Paid-in Capital [Member] | |||
Shares forfeited for tax obligations | 20,247 | 29,887 | 56,946 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flow from operating activities: | |||
Net loss | $ (17,610) | $ (13,551) | $ (9,017) |
Adjustments to reconcile net loss to net cash used for operating activities: | |||
Amortization | 309 | 377 | 383 |
Depreciation | 268 | 297 | 325 |
Bad debt provision | 94 | 62 | 225 |
Stock-based compensation expense | 2,844 | 1,169 | 1,505 |
Amortization of debt discount and debt costs | 78 | 149 | 170 |
Loss on extinguishment of debt | 341 | ||
Deferred tax | 1 | 1 | (12) |
Loss on disposal of assets | 12 | ||
Change in fair value of convertible debentures | 7,464 | 6,671 | |
Changes in operating assets and liabilities, net of acquisition: | |||
Accounts receivable | (302) | (3,478) | 2,003 |
Inventory | (533) | (1,024) | 536 |
Prepaid and other assets | (1,390) | 294 | 172 |
Accounts payable | 878 | 836 | (209) |
Accrued and other expenses | (207) | 982 | 494 |
Deferred revenue | 780 | 108 | (454) |
Total adjustments | 10,625 | 6,444 | 5,150 |
Net cash used for operating activities | (6,985) | (7,107) | (3,867) |
Cash flow used for investing activities: | |||
Additions to patents, technology and other | (13) | (10) | (15) |
Additions to property and equipment | (461) | (296) | (301) |
Net cash provided by (used for) investing activities | (474) | (306) | (316) |
Cash flow from financing activities: | |||
Issuance of common stock for cash, net | 18,285 | 9,353 | |
Issuance of common stock pursuant to Employee Stock Purchase Plan | 266 | ||
Issuance of common stock pursuant to stock option plans | 729 | 1,400 | 204 |
Taxes paid related to restricted stock issuance | (225) | (196) | (180) |
Proceeds from convertible debentures | 6,970 | ||
Principal payments of capital lease obligations | (16) | (13) | |
Proceeds from notes payable | 6,957 | ||
Issuance of stock upon conversion of debentures | 21,164 | ||
Principal repayment of notes payable | (4,638) | (2,000) | |
Debt issuance costs | (42) | ||
Proceeds from line of credit | 775 | 3,000 | |
Repayment line of credit | (2,775) | (1,000) | |
Net cash provided by financing activities | 19,332 | 10,541 | 6,981 |
Increase in cash and equivalents | 11,873 | 3,128 | 2,798 |
Cash and equivalents, beginning of period | 15,313 | 12,185 | 9,387 |
Cash and equivalents, end of period | 27,186 | 15,313 | 12,185 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 272 | 643 | 294 |
Taxes paid | 38 | 43 | $ 51 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 69 | $ 3,105 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | (1) Summary of Significant Accounting Policies (a) Nature of Operations and Use of Estimates iCAD, Inc. and subsidiaries (the “Company” or “iCAD”) is a global medical technology company providing innovative cancer detection and therapy solutions The Company has grown primarily through acquisitions to become a broad player in the cancer detection and therapy market. Its solutions include advanced artificial intelligence and image analysis workflow solutions that enable healthcare professionals to better serve patients by identifying pathologies and pinpointing the most prevalent cancers earlier, a comprehensive range of high-performance, upgradeable Computer-Aided Detection (“CAD”) systems and workflow solutions for digital breast tomosynthesis (“DBT”), full-field digital mammography (“FFDM”), MRI and CT, and the Xoft System which is an isotope-free cancer treatment platform technology. CAD is reimbursable in the U.S. under federal and most third-party insurance programs. The Company intends to continue the extension of its image analysis and clinical decision support solutions for DBT, FFDM, MRI and CT imaging. iCAD believes that advances in digital imaging techniques should bolster its efforts to develop additional commercially viable CAD/advanced image analysis and workflow products. The Company’s management believes that early detection in combination with earlier targeted intervention will provide patients and care providers with the best tools available to achieve better clinical outcomes resulting in a market demand that will drive top line growth. The Company’s headquarters are located in Nashua, New Hampshire, with a manufacturing facility in New Hampshire and an operations, research, development, manufacturing and warehousing facility in San Jose, California. The Company operates in two segments: Cancer Detection (“Detection”) and Cancer Therapy (“Therapy”). The Detection segment consists of advanced image analysis and workflow products, and the Therapy segment consists of radiation therapy products. The Company sells its products throughout the world through its direct sales organization as well as through various OEM partners, distributors and resellers. See Note 8 for segment, major customer and geographical information. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that changes may occur in the near term that would affect management’s estimates with respect to assets and liabilities. (b) Risk and Uncertainty On March 12, 2020, the Wor l 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 pandemic has resulted in significant financial market volatility and uncertainty. A continuation or worsening of the levels of market disruption and volatility seen in the recent past will have an adverse effect on the Company’s ability to access capital, on its business, results of operations and financial condition, and on the market price of its common stock. The Company’s results for the year ending December 31, 2020 reflect a negative impact from the COVID-19 pandemic, as the typical sales cycle and ordering patterns were still disrupted due to some healthcare facilities’ additional focus on COVID-19. Depending upon the duration and severity of the pandemic, the continuing effect on the Company’s results over the long term is uncertain. Although the Company did not see any material impact to trade accounts receivable losses in the year ended December 31, 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 pandemic, or other customer-specific factors. The Company has historically not experienced significant trade account receivable losses, but it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade account receivables as hospitals’ cash flows are impacted by their response to the COVID-19 pandemic. ( c The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries: Xoft, Inc. and Xoft Solutions, LLC. All material inter-company transactions and balances have been eliminated in consolidation. ( d The Company defines cash and cash equivalents as all bank accounts, money market funds, deposits and other money market instruments with original maturities of 90 days or less, which are unrestricted as to withdrawal. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. Insurance coverage is $250,000 per depositor at each financial institution, and the Company’s non-interest ( e Financial instruments consist of cash and cash equivalents, accounts receivable, contract assets, accounts payable, 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, approximated fair value as of December 31, 2020 and 2019. The Company has elected to record the convertible debentures at fair value at each reporting date in accordance with the fair value option election. See Note 3( c ) for further details. ( f Accounts receivable are customer obligations due under normal trade terms. Credit limits are established through a process of reviewing the financial history and stability of each customer. The Company performs continuing credit evaluations of its customers’ financial condition and generally does not require collateral. The Company’s policy is to maintain allowances for estimated losses from the inability of its customers to make required payments. The Company’s senior management reviews accounts receivable on a periodic basis to determine if any receivables may potentially be uncollectible. The Company includes any accounts receivable balances that it determines may likely be uncollectible, along with a general reserve for estimated probable losses based on historical experience, in its overall allowance for doubtful accounts. An amount would be written off against the allowance after all attempts to collect the receivable had failed. Based on the information available, the Company believes the allowance for doubtful accounts as of December 31, 2020 and 2019 is adequate. The following table summarizes the allowance for doubtful accounts for the three years ended December 31, 2020 (in thousands): 2020 2019 2018 Balance at beginning of period $ 136 $ 177 $ 107 Additions charged to costs and expenses 94 62 225 Reductions (119 ) (103 ) (155 ) Balance at end of period $ 111 $ 136 $ 177 ( g Inventory is valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out Inventory balances, net of reserves, were as follows: Inventory balances, net of reserves, were as follows: December 31, December 31, 2020 2019 Raw materials $ 1,356 $ 1,265 Work in process 76 39 Finished Goods 1,712 1,307 Inventory Net $ 3,144 $ 2,611 ( h Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets or the remaining lease term, if shorter, for leasehold improvements (see below). Estimated life Equipment 3 5 Leasehold improvements 3-5 Furniture and fixtures 3-5 Marketing assets 3-5 ( i In accordance with FASB Accounting Standards Codification (“ASC”) Topic 350-20, “Intangibles—Goodwill and Other” 350-20”), Factors the Company considers important, which could trigger an impairment of such asset, include the following: • significant underperformance relative to historical or projected future operating results; • significant changes in the manner or use of the assets or the strategy for the Company’s overall business; • significant negative industry or economic trends; • significant decline in the Company’s stock price for a sustained period; and • a decline in the Company’s market capitalization below net book value. The Company records an impairment charge when such assessment indicates that the fair value of a reporting unit was less than the carrying value. In evaluating potential impairments outside of the annual measurement date, judgment is required in determining whether an event has occurred that may impair the value of goodwill or intangible assets. The Company utilizes either discounted cash flow models or other valuation models, such as comparative transactions and market multiples, to determine the fair value of reporting units. The Company makes assumptions about future cash flows, future operating plans, discount rates, comparable companies, market multiples, purchase price premiums and other factors in those models. Different assumptions and judgment determinations could yield different conclusions that would result in an impairment charge to income in the period that such change or determination was made. The Company determines the fair value of reporting units based on the present value of estimated future cash flows, discounted at an appropriate risk adjusted rate. This approach was selected as it measures the income producing assets, primarily technology and customer relationships. This method estimates the fair value based upon the ability to generate future cash flows, which is particularly applicable when future profit margins and growth are expected to vary significantly from historical operating results. The Company uses internal forecasts to estimate future cash flows and includes an estimate of long-term future growth rates based on the most recent views of the long-term forecast for the reporting unit. Accordingly, actual results can differ from those assumed in the forecasts. Discount rates are derived from a capital asset pricing model and analyzing published rates for industries relevant to the reporting unit to estimate the cost of equity financing. The Company uses discount rates that are commensurate with the risks and uncertainty inherent in the respective businesses and in the internally developed forecasts. Other significant assumptions include terminal value margin rates, future capital expenditures, and changes in future working capital requirements. While there are inherent uncertainties related to the assumptions used and to the application of these assumptions to this analysis, the income approach provides a reasonable estimate of the fair value of the Therapy reporting unit. The Company performed the annual impairment assessments at October 1, 2020 and 2019, respectively, and compared the fair value of each reporting unit to its carrying value as of each date. The fair value exceeded the carrying value for the Detection reporting unit as of each date of these impairment assessments. Goodwill for the Therapy reporting unit was fully impaired as of December 31, 2017. As such, the Company did not record any impairment charges for the years ended December 31, 2020 or 2019. The carrying values of the reporting units were determined based on an allocation of the Company’s assets and liabilities through specific allocation of certain assets and liabilities, to the reporting units and an apportionment of the remaining net assets based on the relative size of the reporting units’ revenues and operating expenses compared to the Company as a whole. The determination of reporting units also requires management judgment. The Company 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 the Company’s 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 and in its internally developed forecasts. In the market approach, the Company uses a valuation technique in which values are derived based on market prices of publicly traded companies with similar operating characteristics and industries. A market approach allows for comparison to actual market transactions and multiples. It can be somewhat limited in its application because the population of potential comparable publicly-traded companies can be limited due to differing characteristics of the comparative business and the Company, as well as 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 value. The blend of the income approach and market approach is more closely aligned to the business profile of the Company, including markets served and products available. In addition, required rates of return, along with uncertainties inherent in the forecast of future cash flows, are reflected in the selection of the discount rate. In addition, under the blended approach, reasonably likely scenarios and associated sensitivities can be developed for alternative future states that may not be reflected in an observable market price. The Company will assess each valuation methodology based upon the relevance and availability of the data at the time the valuation is performed and weights the methodologies appropriately. A rollforward of goodwill activity by reportable segment is as follows (in thousands): Consolidated reporting unit 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 December 31, 2020 $ — $ 8,362 $ — $ 8,362 ( j In accordance with FASB ASC Topic 360, “ Property, Plant and Equipment ASC 360-10-35 360-10-35-21, • A significant decrease in the market price of a long-lived asset (asset group); • A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; • A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; • An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); • A current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group). In accordance with ASC 360-10-35-17, Undiscounted cash flows exceeded the carrying value of the asset group and that long-lived assets were not impaired. The Company did not record any impairment charges related to long lived assets for the years ended December 31, 2020 or 2019. A considerable amount of judgment and assumptions are required in performing the impairment tests, principally in determining the fair value of the asset group. While the Company believes the judgments and assumptions are reasonable, different assumptions could change the estimated fair values, and, therefore additional impairment charges could be required. Significant negative industry or economic trends, disruptions to the Company’s business, loss of significant customers, inability to effectively integrate acquired businesses, unexpected significant changes or planned changes in use of the assets may adversely impact the assumptions used in the fair value estimates and ultimately result in future impairment charges. Intangible assets subject to amortization consist primarily of patents, technology, customer relationships and trade names purchased in the Company’s previous acquisitions. These assets, which include assets from the acquisition of the assets of VuComp, DermEbx and Radion and the acquisition of Xoft, Inc., are amortized on a straight-line basis consistent with the pattern of economic benefit over their estimated useful lives of 5 to 10 years. A summary of intangible assets for 2020 and 2019 is as follows (in thousands): Weighted average 2020 2019 useful life Gross Carrying Amount Patents and licenses $ 595 $ 581 5 years Technology 8,257 8,257 10 years Customer relationships 272 272 7 years Tradename 259 259 10 years Total amortizable intangible assets 9,383 9,369 Accumulated Amortization Patents and licenses $ 529 $ 520 Technology 7,571 7,299 Customer relationships 135 108 Tradename 259 259 Total accumulated amortization 8,494 8,186 Total amortizable intangible assets, net $ 889 $ 1,183 Amortization expense related to intangible assets was approximately $309,000, $377,000 and $383,000 for the years ended December 31, 2020, 2019, and 2018, respectively. Estimated remaining amortization of the Company’s intangible assets is as follows (in thousands): Estimated For the years ended amortization December 31: expense 2021 291 2022 207 2023 186 2024 103 2025 102 $ 889 ( k On January 1, 2018, the Company adopted FASB ASC Topic 606, “Revenue from Contracts with Customers” and all the related amendments (“Topic 606”), using the modified retrospective method for all contracts not completed as of the date of adoption. For contracts that were modified before the effective date, the Company reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price in accordance with practical expedient ASC 606-10-65-1-(f)-4, The Company recorded a net increase to opening retained earnings of $0.1 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to the deferral of commissions on the Company’s long-term service arrangements and warranty periods greater than one year, which previously were expensed as incurred but, under the amendments to ASC 340-40, In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to 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. To achieve this core principle, the Company applies the following five steps: 1) Identify the contract(s) with a customer 2) Identify the performance obligations in the contract both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, the Company must apply judgment to determine whether promised goods or services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised goods or services are accounted for as a combined performance obligation. The Company’s contracts typically do not include options that would result in a material right. If options to purchase additional goods or services are included in customer contracts, the Company evaluates the option in order to determine if the Company’s arrangement include promises that may represent a material right and needs to be accounted for as a performance obligation in the contract with the customer. The Company did not note any significant provisions within its typical contracts that would create a material right. 3) Determine the transaction price 4) Allocate the transaction price to the performance obligations in the contract 5) Recognize revenue when (or as) the Company satisfies a performance obligation The Company recognizes revenue from its contracts with customers primarily from the sale of products and from the sale of services and supplies. Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to a customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For product revenue, control has transferred upon shipment provided title and risk of loss have passed to the customer. Services and supplies are considered to be transferred as the services are performed or over the term of the service or supply agreement. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company’s hardware is generally highly dependent on, and interrelated with, the underlying software and the software is considered essential to the functionality of the product. In these cases, the hardware and software license are accounted for as a single performance obligation and revenue is recognized at the point in time when ownership is transferred to the customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of revenue. The Company continues to provide for estimated warranty costs on original product warranties at the time of sale. Disaggregation of Revenue The following tables presents the Company’s revenues disaggregated by major good or service line, timing of revenue recognition and sales channel, reconciled to its reportable segments (in thousands). Year ended December 31, 2020 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 16,291 $ 4,535 $ 20,826 Service contracts 5,661 1,333 6,994 Supply and source usage agreements — 1,804 1,804 Professional services — 29 29 Other 45 — 45 $ 21,997 $ 7,701 $ 29,698 Timing of Revenue Recognition Goods transferred at a point in time $ 16,332 $ 4,624 $ 20,956 Services transferred over time 5,665 3,077 8,742 $ 21,997 $ 7,701 $ 29,698 Sales Channels Direct sales force $ 13,809 $ 3,773 $ 17,582 OEM partners 8,188 — 8,188 Channel partners — 3,928 3,928 $ 21,997 $ 7,701 $ 29,698 Year ended December 31, 2019 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 16,788 $ 4,957 $ 21,745 Service contracts 5,370 1,814 7,184 Supply and source usage agreements — 2,036 2,036 Professional services — 153 153 Other 161 61 222 $ 22,319 $ 9,021 $ 31,340 Timing of Revenue Recognition Goods transferred at a point in time $ 16,949 $ 5,391 $ 22,340 Services transferred over time 5,370 3,630 9,000 $ 22,319 $ 9,021 $ 31,340 Sales Channels Direct sales $ 11,968 $ 5,804 $ 17,772 OEM partners 10,351 — 10,351 Channel partners — 3,217 3,217 $ 22,319 $ 9,021 $ 31,340 Year ended December 31, 2018 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 10,783 $ 4,393 $ 15,176 Service contracts 5,311 1,450 6,761 Supply and source usage agreements — 2,261 2,261 Professional services — 264 264 Other 229 389 618 $ 16,323 $ 8,757 $ 25,080 Timing of Revenue Recognition Goods transferred at a point in time $ 10,835 $ 4,676 $ 15,511 Services transferred over time 5,488 4,081 9,569 $ 16,323 $ 8,757 $ 25,080 Sales Channels Direct sales force $ 8,335 $ 7,554 $ 15,889 OEM partners 7,988 — 7,988 Channel partners — 1,203 1,203 $ 16,323 $ 8,757 $ 25,080 Total Revenue Revenue from contracts with customers $ 16,323 $ 8,757 $ 25,080 Revenue from lease components 541 — 541 $ 16,864 $ 8,757 $ 25,621 Products Service Contracts Upon the adoption of ASC 842, effective January 1, 2019, the lease components of certain fixed fee service contracts are no longer being separately accounted for under the lease guidance, and the entire contract is being accounted for under ASC 606. Upon the adoption of ASC 606, effective January 1, 2018, and until the adoption of ASC 842 referred to above, these lease components were accounted for as a lease in accordance with ASC 840, “ Leases non-lease Supply and Source Usage Agreements Professional Services Other Significant Judgments The Company’s contracts with customers may include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. For arrangements with multiple performance obligations, the Company allocates revenue to each performance obligation based on its relative standalone selling price. Judgment is required to determine the standalone selling price for each distinct performance obligation. The Company generally determines standalone selling prices based on the prices charged to customers and uses a range of amounts to estimate standalone selling prices when the Company sells each of the products and services separately and need to determine whether there is a discount that needs to be allocated based on the relative standalone selling prices of the various products and services. The Company typically has more than one range of standalone selling prices for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, the Company may use information such as the type of customer and geographic region in determining the range of standalone selling prices. The Company may provide credits or incentives to customers, which are accounted for as variable consideration when estimating the transaction price of the contract and amounts of revenue to recognize. The amount of variable consideration to include in the transaction price is estimated at contract inception using either the estimated value method or the most likely amount method based on the nature of the variable consideration. These estimates are updated at the end of each reporting period as additional information becomes available and revenue is recognized only to the extent that it is probable that a significant reversal of any amounts of variable consideration included in the transaction price will not occur. The Company provides for estimated warranty costs on original product warranties at the time of sale. Contract Balances Contract liabilities are a component of deferred revenue, current contract assets are a component of prepaid and other assets and non-current non-current Contract balances Balance at Balance at Receivables, which are included in “Trade accounts receivable” $ 10,027 $ 9,819 Current contract assets, which are included in “Prepaid and other assets” 481 14 Non-current 1,434 — Contract liabilities, which are included in “Deferred revenue” 6,384 5,604 Timing of revenue recognition may differ from timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to receipt of cash payments 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 records net contract assets or contract liabilities on a contract-by-contract non-current non-current Contract liabilities, or deferred revenue from contracts with customers, is primarily composed of fees related to long-term 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 the Company has been paid in advance and earn the revenue when it transfers control of the product or service. The balance of deferred revenue at December 31, 2020 and December 31, 2019 is as follows (in thousands): Contract liabilities December 31, 2020 December 31, 2019 Short term $ 6,117 $ 5,248 Long term 267 356 Total $ 6,384 $ 5,604 Changes in deferred revenue from contracts with customers were as follows (in thousands): Year Ended Year Ended December 31, 2019 Balance at beginning of period $ 5,604 $ 5,209 Deferral of revenue 11,212 11,005 Recognition of deferred revenue (10,432 ) (10,610 ) Balance at end of period $ 6,384 $ 5,604 The Company expects to recognize estimated revenues related to performance obligation that are unsatisfied (or partially satisfied) in the amounts of approximately $7.1 million in 2021, $1.2 million in 2022 and $1.0 million in each year from 2023-2025. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain commissions programs meet the requirements to be capitalized. As of December 31, 2020, the balance of capitalized costs to obtain a contract was $406,000 compared to $379,000 as of December 31, 2019. The Company has classified the capitalized costs to obtain a contract as a component of prepaid expenses and other current assets as of December 31, 2020 and 2019, respectively. Changes in the balance of capitalized costs to obtain a contract were as follows (in thousands): Years Ended December 31, 2020 2019 Balance at beginning of period $ 379 $ 282 Deferral of costs to obtain a contract 157 294 Recognition of costs to obtain a contract (130 ) (197 ) Balance at end of period $ 406 $ 379 Practical Expedients and Exemptions The Company has elected to make the following accounting policy elections through the adoption of the following practical expedients: Right to Invoice Where applicable, the Company will recognize revenue from a contract with a customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date and the amount to which the entity has a right to invoice. Sales and Other Similar Taxes The Company will exclude sales taxes and similar taxes from the measurement of transaction price and will ensure that it complies with the disclosure requirements of ASC 235-10-50-1 50-6. Significant Financing Component The Company will not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Cost to Obtain a Contract The Company will recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less and there are no renewal periods on which the Company does not pay commissions that are not commensurate with those originally paid. Promised Goods or Services that are Immaterial in the Context of a Contract The Company has elected to assess promised goods or services as p |
Sale of MRI Assets
Sale of MRI Assets | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of MRI Assets | (2) Sale of MRI Assets In December 2016, the Company entered into an Asset Purchase Agreement with Invivo Corporation (“Invivo”). In accordance with the agreement, the Company sold to Invivo all right, title and interest to certain intellectual property relating to the Company’s VersaVue Software and DynaCAD product and related assets for $3.2 million. The Company closed the transaction on January 30, 2017 less a holdback reserve of $350,000 for a net of approximately $2.9 million. The holdback reserve of $350,000 has been recorded as an asset in other assets and will be paid to the Company upon resolution of the litigation matter described in Note 9(f), less amounts, if any, due and payable or reserved under the indemnification provisions in the Asset Purchase agreement. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | (3) 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 December 31, 2020. 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 March 1, 2022, and continuing on the first day of each month thereafter, the Company will make equal monthly payments of principal, together with applicable interest in arrears, to the Bank. The interest rate is set at 1% above the Prime Rate, which is defined in the Loan Agreement as the greater of 4.25% or the Prime Rate published in the Money Rates section of the Western Edition of the Wall Street Journal. The Prime Rate as of December 31, 2020 was 3.25%. 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 prior to first March 30, 2021, 2% of principal if prepaid after March 30, 2021 but before June 30, 2022, or 1% of principal if prepaid after March 30, 2022) plus (4) all other obligations that are due and payable, including the Bank’s expenses and interest at the default rate with respect to any past due amounts. 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 deducted 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 and there was no outstanding amount as of December 31, 2020. December 31, Principal Amount of Term Loan $ 7,000 Unamortized closing costs (63 ) Accrued Final Payment 23 Amount Drawn on Line of Credit — Carrying amount of Term Loan 6,960 Less current portion of Term Loan — Notes payable long-term portion $ 6,960 * No December 31, 2019 balance. Debt opened in 2020 (b) Loan and Security Agreement – Silicon Valley Bank On August 7, 2017, the Company entered into a Loan and Security Agreement, which was modified several times through November 1, 2019 (as amended, the “SVB Loan Agreement”), with Silicon 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, the $114,000 termination fee, and $42,000 of unamortized and other closing costs. December 31, Principal Amount of Term Loan $ 4,000 Unamortized closing costs (40 ) Accrued Final Payment 293 Amount Drawn on Line of Credit 2,000 Carrying amount of Term Loan 6,253 Less current portion of Term Loan (4,250 ) Notes payable long-term portion $ 2,003 * No December 31, 2020 balance. Debt closed in 2020 (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, pursuant to which the Investors purchased unsecured subordinated convertible debentures (the “Convertible Debentures”) with an aggregate principal amount of 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 76,966 shares of its common stock. The make-whole amount represented the total interest which would have accrued through the maturity date of the Convertible Debentures, less the amounts previously paid, totaling $697,000. 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 stock that were issued to the Investors upon conversion and the fair value of the Company’s common stock as of the Conversion Date. The Company notes that the key inputs to the simulation model that were utilized to estimate the fair value of the Convertible Debentures at each valuation date 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 is based on the closing stock price on the valuation date. The conversion price is 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. 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 comparable guideline 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 one year estimate of default risk for the Company (extrapolated over the remaining term). The utilization of the Forced Conversion right and the default redemption right is 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 and February 21, 2020 valuation dates was solved for utilizing the simulation model based on the principal value of the Convertible Debentures, as the transaction was determined to represent an ‘arm’s length’ transaction. The effective discount was corroborated against market yield data which implied the Company’s credit rating, and this implied credit rating will be utilized to determine the changes in the effective discount rate at future valuation dates. 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 the period ending December 31, 2019 through the conversion date of February 21, 2020, compared to $6.7 million in the period ending December 31, 2019, which is described in the additional fair value disclosures related to the Convertible Debentures in Note 8. 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 Expense Payments Related to Financing Arrangements Future principal and interest payments related to the Loan Agreement are as follows (in thousands): Fiscal Year Amount Due 2021 1,238 2022 2,875 2023 2,735 2024 1,003 Total $ 7,851 The following amounts are included in interest expense in the Company’s consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Cash interest expense, notes payable $ 327 $ 274 $ 299 Cash interest expense, convertible debentures 49 349 9 Amortization of debt costs 45 28 29 Accrual of notes payable final payment 55 131 163 Interest expense capital lease — 2 4 Total interest expense $ 476 $ 784 $ 504 Cash interest expense, notes payable, represents the cash interest paid monthly related to the Loan Agreement. Cash interest expense, convertible debentures represents cash interest paid or accrued in connection with the Convertible Debentures issued in December 2018. The amortization of debt costs represents the closing costs incurred with the Term Loan and the SVB Loan Agreement, which have been capitalized and expensed using the effective interest method. |
Accrued and Other Expenses
Accrued and Other Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued and Other Expenses | (4) Accrued and Other Expenses Accrued and other expenses consist of the following at December 31 (in thousands): 2020 2019 Accrued salary and related expenses $ 3,654 $ 3,200 Accrued accounts payable 2,405 2,718 Accrued professional fees 598 510 Other accrued expenses 382 162 $ 7,039 $ 6,590 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases | (5) Leases Under 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 or financing. 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 used its incremental borrowing rate to determine the present value of the lease payments. The Company determined the incremental borrowing rates for its leases by applying its applicable, fully collateralized borrowing rate, with adjustment as appropriate for lease term. The lease term at the lease commencement date is determined based on the non-cancellable period for which the Company has the right to use the underlying asset, together with any periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option. The Company considered a number of factors when evaluating whether the options in its lease contracts were reasonably certain of exercise, such as length of time before option exercise, expected value of the leased asset at the end of the initial lease term, importance of the lease to overall operations, costs to negotiate a new lease, and any contractual or economic penalties. Right-of-use assets and obligations for short-term leases (leases with an initial term of 12 months or less) are not recognized in the consolidated balance sheet. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. The Company does not sublease any of its leased assets to third parties. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. The Company has lessor agreements that contain lease and non-lease components. As the Company has determined that the non-lease component of these agreements is the predominant component, the Company is accounting for the complete agreement under ASC 606 upon adoption of ASC 842 (see discussion in Note 1(j)). ASC 842 includes a number of reassessment and re-measurement requirements for lessees based on certain triggering events or conditions, including whether a contract is or contains a lease, assessment of lease term and purchase options, measurement of lease payments, assessment of lease classification and assessment of the discount rate. The Company reviewed the reassessment and re-measurement requirements and identified three lease modifications which are reflected in the table below showing the maturity of the Company’s lease liabilities as of December 31, 2020. This includes an extension of operating leases for the two facilities leased by the Company in New Hampshire and the facility lease in California. In addition, there were no impairment indicators identified during the year ended December 31, 2020 that required an impairment test for the Company’s right-of-use assets or other long-lived assets in accordance with ASC 360-10. 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 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 three months as of December 31, 2020. The components of lease expense for the period are as follows (in thousands): Year Ended December 31, Lease Cost Classification 2020 2019 Operating lease cost - Right of Use Operating expenses $ 884 $ 804 Operating lease cost - Variable Costs Operating expenses 165 $ 173 Finance lease costs Amortization of leased assets Amortization and depreciation 12 15 Interest on lease liabilities Interest expense 1 2 Total $ 1,062 $ 994 Other information related to leases was as follows (in thousands): 2020 2019 Cash paid for operating cash flows from operating leases $ 909 $ 840 Cash paid for operating cash flows from finance leases 1 2 Cash paid for financing cash flows from finance leases 13 17 2020 2019 Weighted-average remaining lease term of operating leases (in years) 2.21 3.12 Weighted-average remaining lease term of finance leases (in years) — 1 Weighted-average discount rate for operating leases 5.6 % 5.6 % Weighted-average discount rate for finance leases — 5.4 % Maturities of the Company’s lease liabilities as of December 31, 2020 was as follows (in thousands): Year Ended December 31, 2020: Operating 2021 $ 920 2022 899 2023 211 2024 5 Total lease payments 2,035 Less: imputed interest (234 ) Total lease liabilities 1,801 Less: current portion of lease liabilities (726 ) Long-term lease liabilities $ 1,075 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Equity | (6) Stockholders’ Equity (a) Financing Activity On April 27, 2020, the Company issued 1,562,500 shares of common stock to several institutional investors at a price of $8.00 per share in a registered direct offering. The gross proceeds of the offering were approximately $12.5 million, and the Company received net proceeds of approximately $12.3 million. The Company also entered into an at-the-market (b) Stock Options The Company has two The 2012 Stock Incentive Plan (the “2012 Plan”). The 2012 Plan was adopted by the Company’s stockholders in May 2012 and amended in May 2014. The 2012 Plan, as amended, provides for the grant of any or all of the following types of awards: (a) stock options, (b) restricted stock, (c) deferred stock and (d) other stock-based awards. Awards may be granted singly, in combination, or in tandem. Subject to anti-dilution adjustments as provided in the amended 2012 Plan, (i) the amended 2012 Plan provides for a total of 1,600,000 shares of the Company’s common stock to be available for distribution pursuant to the amended 2012 Plan, and (ii) the maximum number of shares of the Company’s common stock with respect to which stock options, restricted stock, deferred stock, or other stock-based awards may be granted to any participant under the amended 2012 Plan during any calendar year or part of a year may not exceed 250,000 shares. The 2012 Plan provides that it will be administered by the Company’s Board of Directors or a committee of two or more directors appointed by the Board of Directors. The administrator will generally have the authority to administer the 2012 Plan, determine participants who will be granted awards under the 2012 Plan, the size and types of awards, the terms and conditions of awards and the form and content of the award agreements representing awards. With respect to options granted under the 2012 Plan, the exercise price must be at least 100% (110% in the case of an incentive stock option granted to a 10% stockholder) of the fair market value of the common stock subject to the award, determined as of the date of grant. Restricted stock awards are shares of common stock that are awarded subject to the satisfaction of the terms and conditions established by the administrator. In general, awards that do not require exercise may be made in exchange for such lawful consideration, including services, as determined by the administrator. At December 31, 2020, there were 129,126 shares available for issuance under the 2012 Plan. The 2016 Stock Incentive Plan (the “2016 Plan”). The 2016 Plan was adopted by the Company’s stockholders in May 2016 and amended in November 2018. The 2016 Plan provides for the grant of any or all of the following types of awards: (a) non-qualified Subject to anti-dilution adjustments as provided in the 2016 Plan, (i) the amended 2016 Plan provides for a total of 2,600,000 shares of the Company’s common stock to be available for distribution pursuant to the 2016 Plan, and (ii) the maximum number of shares of the Company’s common stock with respect to which stock options or stock appreciation rights may be granted to any one individual under the 2016 Plan during any one calendar year period may not exceed 1,000,000 shares. No more than 1,000,000 shares of common stock may be issued in the form of incentive stock options and no more than 120,000 shares of stock may be issued pursuant to awards to non-employee The 2016 Plan provides that it will be administered by the Company’s Compensation Committee. The Compensation Committee has the authority to administer the 2016 Plan, determine participants, from among the individuals eligible for awards, who will be granted awards under the 2016 Plan, make any combination of awards to participants and determine the specific terms and conditions of awards subject to the 2016 Plan. Awards under the 2016 Plan may be granted to full or part-time officers, employees, non-employee With respect to stock options granted under the 2016 Plan, the exercise price will be determined by the Compensation Committee but may not be less than 100% of the fair market value of the common stock subject to the award, determined as of the date of grant. Regarding incentive stock options, including that the aggregate grant date fair market value of the shares of stock with respect to which incentive stock options granted under the 2016 Plan and any other plan of the Company or its parent and subsidiary corporations become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent that any incentive stock option exceeds this limit, it shall constitute a non-qualified A summary of stock option activity for all stock option plans is as follows: Number of Weighted Average Weighted Average Outstanding, December 31, 2018 1,983,477 $ 4.25 Granted 392,270 $ 5.81 Exercised (379,980 ) $ 3.39 Forfeited (445,105 ) $ 6.06 Outstanding, December 31, 2019 1,550,662 $ 4.33 5.0 Granted 563,502 $ 10.09 Exercised (155,149 ) $ 4.70 Forfeited (89,508 ) $ 2.51 Outstanding, December 31, 2020 1,869,507 $ 5.91 6.0 Exercisable at December 31, 2018 1,296,439 $ 4.90 Exercisable at December 31, 2019 881,461 $ 4.43 Exercisable at December 31, 2020 1,540,287 $ 5.55 There were 462,218 shares available for future grants from all plans at December 31, 2020. The Company’s stock-based compensation expense, including options and restricted stock by category is as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Cost of revenue $ 30 $ 3 $ 4 Engineering and product development 376 226 399 Marketing and sales 657 226 190 General and administrative expense 1,781 713 912 $ 2,844 $ 1,168 $ 1,505 As of December 31, 2020, there was $0.7 million of total unrecognized compensation costs related to unvested options and restricted stock. That cost is expected to be recognized over a weighted average period of 1.0 years. Options granted under the stock incentive plans were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values: Year Ended December 31, 2020 2019 2018 Average risk-free interest rate 0.65% 1.88% 2.65% Expected dividend yield None None None Expected life 3.5 3.5 3.5 Expected volatility 50.17-66.04% 50.01% to 54.23% 50.4% to 61.6% Weighted average exercise price $10.14 $5.92 $2.96 Weighted average fair value $4.37 $2.34 $1.23 The Company’s 2020, 2019 and 2018 average expected volatility and average expected life is based on the average of the Company’s historical information. The risk-free rate is based on the rate of U.S. Treasury zero-coupon Intrinsic values of options (in thousands) and the closing market price used to determine the intrinsic values are as follows: Intrinsic value of stock options Years Ended December 31, 2020 2019 2018 Outstanding $ 13,626 $ 5,465 $ 1,021 Exercisable 11,786 3,067 499 Exercised 1,037 509 224 Company’s stock price at December 31 $ 13.20 $ 7.77 $ 3.70 (c) Restricted Stock The Company’s restricted stock awards typically vest in either one year or three equal annual installments with the first installment vesting one year from grant date. The Company did not grant any restricted stock units in 2020. The Company granted 15,990 shares with time-based vesting during the year ended December 31, 2019. The Company granted 334,083 shares with time-based vesting and 45,356 shares with immediate vesting during the year ended December 31, 2018. A summary of restricted stock activity for all equity incentive plans is as follows: Years Ended December 31, 2020 2019 2018 Beginning outstanding balance 150,909 423,202 415,147 Granted — 15,990 379,439 Vested (118,077 ) (197,730 ) (322,388 ) Forfeited (3,666 ) (90,553 ) (48,996 ) Ending outstanding balance 29,166 150,909 423,202 Intrinsic values of restricted stock (in thousands) and the closing market price used to determine the intrinsic values are as follows: Years Ended December 31, 2020 2019 2018 Outstanding $ 385 $ 1,173 $ 1,566 Vested 1,559 1,536 1,193 Company’s stock price at December 31 $ 13.20 $ 7.77 $ 3.70 (d) Employee Stock Purchase Program: In December 2019, the Company’s Board of Directors adopted, and the stockholders approved the 2019 Employee Stock Purchase Plan (“ESPP”), effective January 1, 2020. The ESPP provides for the issuance of up 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 of Directors 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 purchase shares under the ESPP. Any eligible employee can enroll in the Plan 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 42,606 shares under the ESPP as of December 31, 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes The components of income tax expense for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands): 2020 2019 2018 Current provision (benefit): Federal $ — $ — $ — State 37 42 54 $ 37 $ 42 $ 54 Deferred provision: Federal $ 1 $ 1 $ (10 ) State — — (2 ) $ 1 $ 1 $ (12 ) Total $ 38 $ 43 $ 42 A summary of the differences between the Company’s effective income tax rate and the Federal statutory income tax rate for the years ended December 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.4 % 1.7 % 3.6 % Net state impact of deferred rate change (0.7 %) (2.0 %) 0.6 % Stock compensation expense 0.9 % (10.7 %) (1.1 %) Tax amortization on goodwill 0.0 % 0.0 % 0.1 % Goodwill impairment 0.0 % 0.0 % 0.0 % Other permanent differences (0.1 %) 0.0 % (0.5 %) Change in valuation allowance (13.4 %) (6.0 %) (27.6 %) Tax credits 1.4 % 2.8 % 3.1 % Federal Rate Change 0.0 % 0.0 % 0.0 % Accrual to tax return 0.0 % 1.3 % 0.3 % Increase Xoft NOLs under 382 Study 0.0 % 0.0 % 0.0 % Change in FV of convertible debt (9.0 %) (10.4 %) 0.0 % Foreign Rate Differential 0.0 % 0.2 % 0.0 % True Ups - NOL Expiration/162(m) limits (2.8 %) 0.0 % 0.0 % Effective income tax (0.3 %) (0.3 % ) (0.5 % ) Deferred tax assets and liabilities are recognized for the expected future tax consequences of net operating loss carryforwards, tax credit carryforwards and temporary differences between the financial statement carrying amounts and the income tax basis of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on the available evidence, it is more likely than not that the deferred tax assets will not be realized. Deferred income taxes reflect the impact of “temporary differences” between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. The Company has fully reserved the net deferred tax assets, as it is more likely than not that the deferred tax assets will not be utilized. Deferred tax assets (liabilities) are composed of the following at December 31, 2020 and 2019 (in thousands): 2020 2019 Inventory (Section 263A) $ 248 $ 242 Inventory reserves 60 118 Receivable reserves 28 35 Other accruals 1,081 1,151 Deferred revenue 75 123 Accumulated depreciation/amortization 37 66 Stock options 459 267 Developed technology 1,449 1,702 Tax credits 3,859 3,663 NOL carryforward 36,078 33,640 Lease liability 415 625 Net deferred tax assets 43,789 41,632 Valuation allowance (43,356 ) (41,025 ) Right of Use Asset (433 ) (607 ) Goodwill tax amortization (4 ) (3 ) Deferred tax liability $ (4 ) $ (3 ) The increase in the net deferred tax assets and corresponding valuation allowance during the year ended December 31, 2020 and December 31, 2019 is primarily attributable to additional accruals, net operating losses, and research and development credits. As of December 31, 2020, the Company has federal net operating loss carryforwards totaling approximately $149.1 million. Federal net operating loss carryforwards totaling $122.1 million will expire at various dates from 2021 and 2037. The remaining $27.0 million of the federal net operating losses generated since December 31, 2017 can be carried forward indefinitely. As of December 31, 2020, the Company has provided a valuation allowance for its net operating loss carryforwards due to the uncertainty of the Company’s ability to generate sufficient taxable income in future years to obtain the benefit from the utilization of the net operating loss carryforwards. In the event of a deemed change in control, an annual limitation imposed on the utilization of the net operating losses may result in the expiration of all or a portion of the net operating loss carryforwards. There were no n The Company currently has approximately $6.6 million in net operating losses that are subject to limitations related to Xoft. Approximately $656,000 can be used annually through 2029. The Company has available tax credit carryforwards (adjusted to reflect provisions of the Tax Reform Act of 1986) to offset future income tax liabilities totaling approximately $3.9 million. The credits expire in various years through 2039. The Company has additional tax credits of $1.8 million related to Xoft which have been fully reserved for and as a result no deferred tax asset has been recorded. These credits expire in various years through 2030. ASC 740-10 de-recognition, As of December 31, 2020 and 2019, the Company had no unrecognized tax benefits and no adjustments to liabilities or operations were required under ASC 740-10. three The Company does not anticipate that it is reasonably possible that unrecognized tax benefits as of December 31, 2020 will significantly change within the next 12 months. |
Segment Reporting, Geographical
Segment Reporting, Geographical Information and Major Customers | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting, Geographical Information and Major Customers | (8) Segment Reporting, Geographical Information and Major Customers (a) Segment Reporting In accordance with FASB Topic ASC 280, Segments, operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s CODM is the Chief Executive Officer. 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 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, and related services. The primary factors used by the Company’s CODM to allocate resources are based on revenues, gross profit, operating income or loss, and earnings or loss before interest, taxes, depreciation, amortization, and other specific and non-recurring The Company does not track its assets by operating segment and its CODM does not use asset information by segment to allocate resources or make operating decisions. Segment revenues, gross profit, segment operating income or loss, and a reconciliation of segment operating income or loss to GAAP loss before income tax is as follows (in thousands): Year Ended December 31, 2020 2019 2018 Segment revenues: Detection $ 21,997 $ 22,319 $ 16,864 Therapy 7,701 9,021 8,757 Total Revenue $ 29,698 $ 31,340 $ 25,621 Segment gross profit: Detection $ 17,856 $ 18,627 $ 14,709 Therapy 3,498 5,600 4,721 Segment gross profit $ 21,354 $ 24,227 $ 19,430 Segment operating income (loss): Detection $ 2,719 $ 2,564 $ 3,412 Therapy (3,028 ) (1,476 ) (2,373 ) Segment operating income (loss) $ (309 ) $ 1,088 $ 1,039 General administrative $ (9,079 ) $ (7,486 ) $ (9,169 ) Interest expense (476 ) (784 ) (504 ) Financing costs — — (451 ) Loss on extinguishment of debt (341 ) Other income 97 345 110 Fair value of convertible debentures (7,464 ) (6,671 ) Loss before income tax $ (17,572 ) $ (13,508 ) $ (8,975 ) Segment depreciation and amortization included in segment operating income (loss) is as follows (in thousands): Year Ended December 31, 2020 2019 2018 Detection depreciation and amortization Depreciation $ 115 $ 103 $ 106 Amortization 164 240 248 Therapy depreciation and amortization Depreciation $ 124 $ 166 $ 177 Amortization 128 128 129 (b) Geographic Information The Company’s sales are made to customers, distributors and dealers of mammography, electronic brachytherapy equipment and other medical equipment, and to foreign distributors of mammography and electronic brachytherapy equipment. Export sales to a single country did not exceed 10% of total revenue in any year. Total export sales were approximately $6.1 million or 20% of total revenue in 2020, $3.8 million or 12% of total revenue in 2019 and $3.2 million or 12% of total revenue in 2018. As of December 31, 2020 and 2019, the Company had outstanding receivables of $3.4 million and $2.1 million, respectively, from distributors and customers of its products who are located outside of the U.S. Percent of Export sales Region 2020 2019 2018 Europe 45 % 57 % 51 % Taiwan 13 % 15 % 22 % Canada 5 % 7 % 7 % China 22 % 8 % 0 % Other 15 % 13 % 20 % Total 100 % 100 % 100 % Total Export sales $ 6,081 $ 3,788 $ 3,255 Significant export sales in Europe are as follows: Percent of Export sales Region 2020 2019 2018 France 41 % 34 % 36 % Spain 17 % 12 % 8 % Germany 12 % 4 % 3 % Italy 8 % 2 % 1 % United Kingdon 6 % 2 % 0 % (c) Major Customers The Company had one OEM partners represented $4.4 million or 44% of outstanding receivables as of December 31, 2020, with GE Healthcare accounting for $1.5 million or 34% of this amount. The four largest Therapy customers composed $1.7 million or 17% of outstanding receivables as of December 31, 2020. The largest Detection direct customer represents $1.1 million or 11% of outstanding receivables as of December 31, 2020. These twenty-one |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (9) Commitments and Contingencies (a) Other Commitments The Company has non-cancelable (b) Employment Agreements The Company has entered into employment agreements with certain key current and former executives. The employment agreements provide for minimum annual salaries and performance-based annual bonus compensation as defined in their respective agreements. In addition, the employment agreements provide that if employment is terminated without cause, the executive will receive an amount equal to their respective base salary then in effect for (i) fifteen months from the date of termination, for Mr. Klein, (ii) eighteen months from the date of termination, for Ms. Stevens, and (iii) twenty-four months from the date of termination, for Mr. Ferry, and in each case, plus the pro rata portion of any annual bonus earned in any employment year through the date of termination. On November 8, 2018, Mr. Ferry retired as Chief Executive Officer of the Company and from his position as Chairman of the Board of Directors. Mr. Ferry and the Company entered into a Separation Agreement on that date, pursuant to which Mr. Ferry will generally receive the payments that would have been payable had he been terminated by the Company without cause. The Company accrued $1,009,000 representing 24 months of severance and 18 months of health benefits as of November 2018 upon Mr. Ferry’s agreeing to the Separation Agreement, which the Company began paying monthly in May 2019 and has completed all payments as of December 31, 2020. (c) Royalty Obligations In connection with prior litigation, the Company received a nonexclusive, irrevocable, perpetual, worldwide license, including the right to sublicense certain Hologic patents, and a non-compete non-compete (d) Litigation The Company may be a party to various legal proceedings and claims arising out of the ordinary course of its business. Although the final results of all such matters and claims cannot be predicted with certainty, the Company currently believes that there are no current proceedings or claims pending against it of which the ultimate resolution would have a material adverse effect on its financial condition or results of operations. However, should the Company fail to prevail in any legal matter or should several legal matters be resolved against us in the same reporting period, such matters could have a material adverse effect on the Company’s operating results and cash flows for that particular period. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, “Contingencies.” Legal costs are expensed as incurred. In December 2016, the Company entered into an Asset Purchase Agreement with Invivo Corporation. In accordance with the agreement, the Company sold to Invivo all right, title and interest to certain intellectual property relating to the Company’s VersaVue Software and DynaCAD product and related assets for $3.2 million. The Company closed the transaction on January 30, 2017 less a holdback reserve of $350,000 for a net of approximately $2.9 million. 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, |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Nature Of Operations And Use Of Estimates | (a) Nature of Operations and Use of Estimates iCAD, Inc. and subsidiaries (the “Company” or “iCAD”) is a global medical technology company providing innovative cancer detection and therapy solutions The Company has grown primarily through acquisitions to become a broad player in the cancer detection and therapy market. Its solutions include advanced artificial intelligence and image analysis workflow solutions that enable healthcare professionals to better serve patients by identifying pathologies and pinpointing the most prevalent cancers earlier, a comprehensive range of high-performance, upgradeable Computer-Aided Detection (“CAD”) systems and workflow solutions for digital breast tomosynthesis (“DBT”), full-field digital mammography (“FFDM”), MRI and CT, and the Xoft System which is an isotope-free cancer treatment platform technology. CAD is reimbursable in the U.S. under federal and most third-party insurance programs. The Company intends to continue the extension of its image analysis and clinical decision support solutions for DBT, FFDM, MRI and CT imaging. iCAD believes that advances in digital imaging techniques should bolster its efforts to develop additional commercially viable CAD/advanced image analysis and workflow products. The Company’s management believes that early detection in combination with earlier targeted intervention will provide patients and care providers with the best tools available to achieve better clinical outcomes resulting in a market demand that will drive top line growth. The Company’s headquarters are located in Nashua, New Hampshire, with a manufacturing facility in New Hampshire and an operations, research, development, manufacturing and warehousing facility in San Jose, California. The Company operates in two segments: Cancer Detection (“Detection”) and Cancer Therapy (“Therapy”). The Detection segment consists of advanced image analysis and workflow products, and the Therapy segment consists of radiation therapy products. The Company sells its products throughout the world through its direct sales organization as well as through various OEM partners, distributors and resellers. See Note 8 for segment, major customer and geographical information. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. It is reasonably possible that changes may occur in the near term that would affect management’s estimates with respect to assets and liabilities. |
Risk and Uncertainty | (b) Risk and Uncertainty On March 12, 2020, the Wor l 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 pandemic has resulted in significant financial market volatility and uncertainty. A continuation or worsening of the levels of market disruption and volatility seen in the recent past will have an adverse effect on the Company’s ability to access capital, on its business, results of operations and financial condition, and on the market price of its common stock. The Company’s results for the year ending December 31, 2020 reflect a negative impact from the COVID-19 pandemic, as the typical sales cycle and ordering patterns were still disrupted due to some healthcare facilities’ additional focus on COVID-19. Depending upon the duration and severity of the pandemic, the continuing effect on the Company’s results over the long term is uncertain. Although the Company did not see any material impact to trade accounts receivable losses in the year ended December 31, 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 pandemic, or other customer-specific factors. The Company has historically not experienced significant trade account receivable losses, but it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade account receivables as hospitals’ cash flows are impacted by their response to the COVID-19 pandemic. |
Principles of Consolidation | ( c The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries: Xoft, Inc. and Xoft Solutions, LLC. All material inter-company transactions and balances have been eliminated in consolidation. |
Cash and cash equivalents | ( d The Company defines cash and cash equivalents as all bank accounts, money market funds, deposits and other money market instruments with original maturities of 90 days or less, which are unrestricted as to withdrawal. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. Insurance coverage is $250,000 per depositor at each financial institution, and the Company’s non-interest |
Financial instruments | ( e Financial instruments consist of cash and cash equivalents, accounts receivable, contract assets, accounts payable, 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, approximated fair value as of December 31, 2020 and 2019. The Company has elected to record the convertible debentures at fair value at each reporting date in accordance with the fair value option election. See Note 3( c ) for further details. |
Accounts Receivable and Allowance for Doubtful Accounts | ( f Accounts receivable are customer obligations due under normal trade terms. Credit limits are established through a process of reviewing the financial history and stability of each customer. The Company performs continuing credit evaluations of its customers’ financial condition and generally does not require collateral. The Company’s policy is to maintain allowances for estimated losses from the inability of its customers to make required payments. The Company’s senior management reviews accounts receivable on a periodic basis to determine if any receivables may potentially be uncollectible. The Company includes any accounts receivable balances that it determines may likely be uncollectible, along with a general reserve for estimated probable losses based on historical experience, in its overall allowance for doubtful accounts. An amount would be written off against the allowance after all attempts to collect the receivable had failed. Based on the information available, the Company believes the allowance for doubtful accounts as of December 31, 2020 and 2019 is adequate. The following table summarizes the allowance for doubtful accounts for the three years ended December 31, 2020 (in thousands): 2020 2019 2018 Balance at beginning of period $ 136 $ 177 $ 107 Additions charged to costs and expenses 94 62 225 Reductions (119 ) (103 ) (155 ) Balance at end of period $ 111 $ 136 $ 177 |
Inventory | ( g Inventory is valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out Inventory balances, net of reserves, were as follows: Inventory balances, net of reserves, were as follows: December 31, December 31, 2020 2019 Raw materials $ 1,356 $ 1,265 Work in process 76 39 Finished Goods 1,712 1,307 Inventory Net $ 3,144 $ 2,611 |
Property and Equipment | ( h Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets or the remaining lease term, if shorter, for leasehold improvements (see below). Estimated life Equipment 3 5 Leasehold improvements 3-5 Furniture and fixtures 3-5 Marketing assets 3-5 |
Goodwill | ( i In accordance with FASB Accounting Standards Codification (“ASC”) Topic 350-20, “Intangibles—Goodwill and Other” 350-20”), Factors the Company considers important, which could trigger an impairment of such asset, include the following: • significant underperformance relative to historical or projected future operating results; • significant changes in the manner or use of the assets or the strategy for the Company’s overall business; • significant negative industry or economic trends; • significant decline in the Company’s stock price for a sustained period; and • a decline in the Company’s market capitalization below net book value. The Company records an impairment charge when such assessment indicates that the fair value of a reporting unit was less than the carrying value. In evaluating potential impairments outside of the annual measurement date, judgment is required in determining whether an event has occurred that may impair the value of goodwill or intangible assets. The Company utilizes either discounted cash flow models or other valuation models, such as comparative transactions and market multiples, to determine the fair value of reporting units. The Company makes assumptions about future cash flows, future operating plans, discount rates, comparable companies, market multiples, purchase price premiums and other factors in those models. Different assumptions and judgment determinations could yield different conclusions that would result in an impairment charge to income in the period that such change or determination was made. The Company determines the fair value of reporting units based on the present value of estimated future cash flows, discounted at an appropriate risk adjusted rate. This approach was selected as it measures the income producing assets, primarily technology and customer relationships. This method estimates the fair value based upon the ability to generate future cash flows, which is particularly applicable when future profit margins and growth are expected to vary significantly from historical operating results. The Company uses internal forecasts to estimate future cash flows and includes an estimate of long-term future growth rates based on the most recent views of the long-term forecast for the reporting unit. Accordingly, actual results can differ from those assumed in the forecasts. Discount rates are derived from a capital asset pricing model and analyzing published rates for industries relevant to the reporting unit to estimate the cost of equity financing. The Company uses discount rates that are commensurate with the risks and uncertainty inherent in the respective businesses and in the internally developed forecasts. Other significant assumptions include terminal value margin rates, future capital expenditures, and changes in future working capital requirements. While there are inherent uncertainties related to the assumptions used and to the application of these assumptions to this analysis, the income approach provides a reasonable estimate of the fair value of the Therapy reporting unit. The Company performed the annual impairment assessments at October 1, 2020 and 2019, respectively, and compared the fair value of each reporting unit to its carrying value as of each date. The fair value exceeded the carrying value for the Detection reporting unit as of each date of these impairment assessments. Goodwill for the Therapy reporting unit was fully impaired as of December 31, 2017. As such, the Company did not record any impairment charges for the years ended December 31, 2020 or 2019. The carrying values of the reporting units were determined based on an allocation of the Company’s assets and liabilities through specific allocation of certain assets and liabilities, to the reporting units and an apportionment of the remaining net assets based on the relative size of the reporting units’ revenues and operating expenses compared to the Company as a whole. The determination of reporting units also requires management judgment. The Company 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 the Company’s 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 and in its internally developed forecasts. In the market approach, the Company uses a valuation technique in which values are derived based on market prices of publicly traded companies with similar operating characteristics and industries. A market approach allows for comparison to actual market transactions and multiples. It can be somewhat limited in its application because the population of potential comparable publicly-traded companies can be limited due to differing characteristics of the comparative business and the Company, as well as 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 value. The blend of the income approach and market approach is more closely aligned to the business profile of the Company, including markets served and products available. In addition, required rates of return, along with uncertainties inherent in the forecast of future cash flows, are reflected in the selection of the discount rate. In addition, under the blended approach, reasonably likely scenarios and associated sensitivities can be developed for alternative future states that may not be reflected in an observable market price. The Company will assess each valuation methodology based upon the relevance and availability of the data at the time the valuation is performed and weights the methodologies appropriately. A rollforward of goodwill activity by reportable segment is as follows (in thousands): Consolidated reporting unit 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 December 31, 2020 $ — $ 8,362 $ — $ 8,362 |
Long Lived Assets | ( j In accordance with FASB ASC Topic 360, “ Property, Plant and Equipment ASC 360-10-35 360-10-35-21, • A significant decrease in the market price of a long-lived asset (asset group); • A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; • A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator; • An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group); • A current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group). In accordance with ASC 360-10-35-17, Undiscounted cash flows exceeded the carrying value of the asset group and that long-lived assets were not impaired. The Company did not record any impairment charges related to long lived assets for the years ended December 31, 2020 or 2019. A considerable amount of judgment and assumptions are required in performing the impairment tests, principally in determining the fair value of the asset group. While the Company believes the judgments and assumptions are reasonable, different assumptions could change the estimated fair values, and, therefore additional impairment charges could be required. Significant negative industry or economic trends, disruptions to the Company’s business, loss of significant customers, inability to effectively integrate acquired businesses, unexpected significant changes or planned changes in use of the assets may adversely impact the assumptions used in the fair value estimates and ultimately result in future impairment charges. Intangible assets subject to amortization consist primarily of patents, technology, customer relationships and trade names purchased in the Company’s previous acquisitions. These assets, which include assets from the acquisition of the assets of VuComp, DermEbx and Radion and the acquisition of Xoft, Inc., are amortized on a straight-line basis consistent with the pattern of economic benefit over their estimated useful lives of 5 to 10 years. A summary of intangible assets for 2020 and 2019 is as follows (in thousands): Weighted average 2020 2019 useful life Gross Carrying Amount Patents and licenses $ 595 $ 581 5 years Technology 8,257 8,257 10 years Customer relationships 272 272 7 years Tradename 259 259 10 years Total amortizable intangible assets 9,383 9,369 Accumulated Amortization Patents and licenses $ 529 $ 520 Technology 7,571 7,299 Customer relationships 135 108 Tradename 259 259 Total accumulated amortization 8,494 8,186 Total amortizable intangible assets, net $ 889 $ 1,183 Amortization expense related to intangible assets was approximately $309,000, $377,000 and $383,000 for the years ended December 31, 2020, 2019, and 2018, respectively. Estimated remaining amortization of the Company’s intangible assets is as follows (in thousands): Estimated For the years ended amortization December 31: expense 2021 291 2022 207 2023 186 2024 103 2025 102 $ 889 |
Revenue Recognition | ( k On January 1, 2018, the Company adopted FASB ASC Topic 606, “Revenue from Contracts with Customers” and all the related amendments (“Topic 606”), using the modified retrospective method for all contracts not completed as of the date of adoption. For contracts that were modified before the effective date, the Company reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price in accordance with practical expedient ASC 606-10-65-1-(f)-4, The Company recorded a net increase to opening retained earnings of $0.1 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to the deferral of commissions on the Company’s long-term service arrangements and warranty periods greater than one year, which previously were expensed as incurred but, under the amendments to ASC 340-40, In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to 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. To achieve this core principle, the Company applies the following five steps: 1) Identify the contract(s) with a customer 2) Identify the performance obligations in the contract both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, the Company must apply judgment to determine whether promised goods or services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised goods or services are accounted for as a combined performance obligation. The Company’s contracts typically do not include options that would result in a material right. If options to purchase additional goods or services are included in customer contracts, the Company evaluates the option in order to determine if the Company’s arrangement include promises that may represent a material right and needs to be accounted for as a performance obligation in the contract with the customer. The Company did not note any significant provisions within its typical contracts that would create a material right. 3) Determine the transaction price 4) Allocate the transaction price to the performance obligations in the contract 5) Recognize revenue when (or as) the Company satisfies a performance obligation The Company recognizes revenue from its contracts with customers primarily from the sale of products and from the sale of services and supplies. Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to a customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For product revenue, control has transferred upon shipment provided title and risk of loss have passed to the customer. Services and supplies are considered to be transferred as the services are performed or over the term of the service or supply agreement. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company’s hardware is generally highly dependent on, and interrelated with, the underlying software and the software is considered essential to the functionality of the product. In these cases, the hardware and software license are accounted for as a single performance obligation and revenue is recognized at the point in time when ownership is transferred to the customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of revenue. The Company continues to provide for estimated warranty costs on original product warranties at the time of sale. Disaggregation of Revenue The following tables presents the Company’s revenues disaggregated by major good or service line, timing of revenue recognition and sales channel, reconciled to its reportable segments (in thousands). Year ended December 31, 2020 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 16,291 $ 4,535 $ 20,826 Service contracts 5,661 1,333 6,994 Supply and source usage agreements — 1,804 1,804 Professional services — 29 29 Other 45 — 45 $ 21,997 $ 7,701 $ 29,698 Timing of Revenue Recognition Goods transferred at a point in time $ 16,332 $ 4,624 $ 20,956 Services transferred over time 5,665 3,077 8,742 $ 21,997 $ 7,701 $ 29,698 Sales Channels Direct sales force $ 13,809 $ 3,773 $ 17,582 OEM partners 8,188 — 8,188 Channel partners — 3,928 3,928 $ 21,997 $ 7,701 $ 29,698 Year ended December 31, 2019 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 16,788 $ 4,957 $ 21,745 Service contracts 5,370 1,814 7,184 Supply and source usage agreements — 2,036 2,036 Professional services — 153 153 Other 161 61 222 $ 22,319 $ 9,021 $ 31,340 Timing of Revenue Recognition Goods transferred at a point in time $ 16,949 $ 5,391 $ 22,340 Services transferred over time 5,370 3,630 9,000 $ 22,319 $ 9,021 $ 31,340 Sales Channels Direct sales $ 11,968 $ 5,804 $ 17,772 OEM partners 10,351 — 10,351 Channel partners — 3,217 3,217 $ 22,319 $ 9,021 $ 31,340 Year ended December 31, 2018 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 10,783 $ 4,393 $ 15,176 Service contracts 5,311 1,450 6,761 Supply and source usage agreements — 2,261 2,261 Professional services — 264 264 Other 229 389 618 $ 16,323 $ 8,757 $ 25,080 Timing of Revenue Recognition Goods transferred at a point in time $ 10,835 $ 4,676 $ 15,511 Services transferred over time 5,488 4,081 9,569 $ 16,323 $ 8,757 $ 25,080 Sales Channels Direct sales force $ 8,335 $ 7,554 $ 15,889 OEM partners 7,988 — 7,988 Channel partners — 1,203 1,203 $ 16,323 $ 8,757 $ 25,080 Total Revenue Revenue from contracts with customers $ 16,323 $ 8,757 $ 25,080 Revenue from lease components 541 — 541 $ 16,864 $ 8,757 $ 25,621 Products Service Contracts Upon the adoption of ASC 842, effective January 1, 2019, the lease components of certain fixed fee service contracts are no longer being separately accounted for under the lease guidance, and the entire contract is being accounted for under ASC 606. Upon the adoption of ASC 606, effective January 1, 2018, and until the adoption of ASC 842 referred to above, these lease components were accounted for as a lease in accordance with ASC 840, “ Leases non-lease Supply and Source Usage Agreements Professional Services Other Significant Judgments The Company’s contracts with customers may include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. For arrangements with multiple performance obligations, the Company allocates revenue to each performance obligation based on its relative standalone selling price. Judgment is required to determine the standalone selling price for each distinct performance obligation. The Company generally determines standalone selling prices based on the prices charged to customers and uses a range of amounts to estimate standalone selling prices when the Company sells each of the products and services separately and need to determine whether there is a discount that needs to be allocated based on the relative standalone selling prices of the various products and services. The Company typically has more than one range of standalone selling prices for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, the Company may use information such as the type of customer and geographic region in determining the range of standalone selling prices. The Company may provide credits or incentives to customers, which are accounted for as variable consideration when estimating the transaction price of the contract and amounts of revenue to recognize. The amount of variable consideration to include in the transaction price is estimated at contract inception using either the estimated value method or the most likely amount method based on the nature of the variable consideration. These estimates are updated at the end of each reporting period as additional information becomes available and revenue is recognized only to the extent that it is probable that a significant reversal of any amounts of variable consideration included in the transaction price will not occur. The Company provides for estimated warranty costs on original product warranties at the time of sale. Contract Balances Contract liabilities are a component of deferred revenue, current contract assets are a component of prepaid and other assets and non-current non-current Contract balances Balance at Balance at Receivables, which are included in “Trade accounts receivable” $ 10,027 $ 9,819 Current contract assets, which are included in “Prepaid and other assets” 481 14 Non-current 1,434 — Contract liabilities, which are included in “Deferred revenue” 6,384 5,604 Timing of revenue recognition may differ from timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to receipt of cash payments 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 records net contract assets or contract liabilities on a contract-by-contract non-current non-current Contract liabilities, or deferred revenue from contracts with customers, is primarily composed of fees related to long-term 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 the Company has been paid in advance and earn the revenue when it transfers control of the product or service. The balance of deferred revenue at December 31, 2020 and December 31, 2019 is as follows (in thousands): Contract liabilities December 31, 2020 December 31, 2019 Short term $ 6,117 $ 5,248 Long term 267 356 Total $ 6,384 $ 5,604 Changes in deferred revenue from contracts with customers were as follows (in thousands): Year Ended Year Ended December 31, 2019 Balance at beginning of period $ 5,604 $ 5,209 Deferral of revenue 11,212 11,005 Recognition of deferred revenue (10,432 ) (10,610 ) Balance at end of period $ 6,384 $ 5,604 The Company expects to recognize estimated revenues related to performance obligation that are unsatisfied (or partially satisfied) in the amounts of approximately $7.1 million in 2021, $1.2 million in 2022 and $1.0 million in each year from 2023-2025. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain commissions programs meet the requirements to be capitalized. As of December 31, 2020, the balance of capitalized costs to obtain a contract was $406,000 compared to $379,000 as of December 31, 2019. The Company has classified the capitalized costs to obtain a contract as a component of prepaid expenses and other current assets as of December 31, 2020 and 2019, respectively. Changes in the balance of capitalized costs to obtain a contract were as follows (in thousands): Years Ended December 31, 2020 2019 Balance at beginning of period $ 379 $ 282 Deferral of costs to obtain a contract 157 294 Recognition of costs to obtain a contract (130 ) (197 ) Balance at end of period $ 406 $ 379 Practical Expedients and Exemptions The Company has elected to make the following accounting policy elections through the adoption of the following practical expedients: Right to Invoice Where applicable, the Company will recognize revenue from a contract with a customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date and the amount to which the entity has a right to invoice. Sales and Other Similar Taxes The Company will exclude sales taxes and similar taxes from the measurement of transaction price and will ensure that it complies with the disclosure requirements of ASC 235-10-50-1 50-6. Significant Financing Component The Company will not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Cost to Obtain a Contract The Company will recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less and there are no renewal periods on which the Company does not pay commissions that are not commensurate with those originally paid. Promised Goods or Services that are Immaterial in the Context of a Contract The Company has elected to assess promised goods or services as performance obligations that are deemed to be immaterial in the context of a contract. As such, the Company will not aggregate and assess immaterial items at the entity level. That is, when determining whether a good or service is immaterial in the context of a contract, the assessment will be made based on the application of ASC 606 at the contract level. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. |
Cost of Revenue | (k) Cost of Revenue Cost of revenue consists of the costs of products purchased for resale, cost relating to service including costs of service contracts to maintain equipment after the warranty period, inbound freight and duty, manufacturing, warehousing, material movement, inspection, scrap, rework, depreciation and in-house |
Warranty Costs | (l) Warranty Costs The Company provides for the estimated cost of standard product warranty against defects in material and workmanship based on historical warranty trends, including the cost of product returns during the warranty period. Warranty provisions and claims for the years ended December 31, 2020, 2019 and 2018, were as follows (in thousands): 2020 2019 2018 Beginning accrual balance $ 17 $ 12 $ 10 Warranty provision 58 41 19 Usage (58 ) (36 ) (17 ) Ending accrual balance $ 17 $ 17 $ 12 |
Engineering and Product Development Costs | (m) Engineering and Product Development Costs Engineering and product development costs relate to research and development efforts including Company sponsored clinical trials which are expensed as incurred. |
Advertising Costs | (n) Advertising Costs The Company expenses advertising costs as incurred. Advertising expense for the years ended December 31, 2020, 2019 and 2018 was approximately $211,000, $1,084,000 and $811,000 respectively. |
Net Loss per Common Share | (o) Net Loss per Common Share The Company follows FASB ASC 260-10, A summary of the Company’s calculation of net loss per share is as follows (in thousands, except per share amounts): 2020 2019 2018 Net loss available to common shareholders $ (17,610 ) $ (13,551 ) $ (9,017 ) Basic shares used in the calculation of earnings per share 22,140 18,378 16,685 Effect of dilutive securities: Stock options — — — Restricted stock — — — Diluted shares used in the calculation of earnings per share 22,140 18,378 16,685 Net loss per share : Basic $ (0.80 ) $ (0.74 ) $ (0.54 ) Diluted $ (0.80 ) $ (0.74 ) $ (0.54 ) The following table summarizes the number of shares of common stock for convertible securities, warrants and restricted stock that were not included in the calculation of diluted net loss per share because such shares are antidilutive: Year Ended December 31, 2020 2019 2018 Common stock options 1,869,507 1,550,662 1,983,477 Restricted Stock 29,166 150,909 423,202 Convertible Debentures — 1,742,500 1,742,500 1,898,673 3,444,071 4,149,179 Restricted common stock can be issued to directors, executives or employees of the Company and are subject to time-based vesting. These potential shares were excluded from the computation of basic loss per share as these shares are not considered outstanding until vested. |
Income Taxes | (p) Income Taxes The Company follows the liability method under ASC Topic 740 “ Income Taxes ASC 740-10 740-10 de-recognition, |
Stock-Based Compensation | (q) Stock-Based Compensation The Company maintains stock-based incentive plans, under which it provides stock incentives to employees, directors and contractors. The Company may grant to employees, directors and contractors, options to purchase common stock at an exercise price equal to the market value of the stock at the date of grant. The Company may grant restricted stock to employees and directors. The underlying shares of the restricted stock grant are not issued until the shares vest, and compensation expense is based on the stock price of the shares at the time of grant. The Company also has an Employee Stock Purchase Plan, adopted in 2019, which became effective as of January 1, 2020. The Company follows FASB ASC Topic 718, “ Compensation – Stock Compensation The Company uses the Black-Scholes option pricing model to value stock options which requires extensive use of accounting judgment and financial estimates, including estimates of the expected term participants will retain their vested stock options before exercising them, the estimated volatility of its common stock price over the expected term, the risk free rate, expected dividend yield, and the number of options that will be forfeited prior to the completion of their vesting requirements. The fair value of restricted stock is determined based on the stock price of the underlying option on the date of the grant. From time to time, the Company may grant performance based restricted stock awards, based on the achievement of certain performance targets. Compensation cost for performance based restricted stock awards requires significant judgment regarding probability of achieving the performance objectives and compensation cost is adjusted for the probability of achieving these objectives. As a result, compensation cost could vary significantly during the performance measurement period. Compensation cost for stock purchase rights under the employee stock purchase plan is measured and recognized on the date the Company becomes obligated to issue shares of the Company’s common stock and is based on the difference between the fair value of the Company’s common stock and the purchase price on such date. Application of alternative assumptions could produce significantly different estimates of the fair value of stock-based compensation and consequently, the related amounts recognized in the Consolidated Statements of Operations. |
Fair Value Measurements | (r) Fair Value Measurements The Company follows the provisions of FASB ASC Topic 820, “ Fair Value Measurement and Disclosures • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s assets 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 funds are included in cash and cash equivalents in the accompanying balance sheet are considered a Level 1 measurement as they are valued at quoted market prices in active markets. The convertible debentures are recorded as a separate component of the Company’s consolidated balance sheets are considered a Level 3 measurement due to the utilization of significant unobservable inputs in their valuation. See Note 3( c ) below 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 as of December 31, 2020 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 27,186 — — $ 27,186 Total Assets $ 27,186 — — $ 27,186 Liabilities Convertible debentures — — — — Total Liabilities — — — — Fair Value Measurements 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 The following is a roll forward of the Company’s Level 3 instruments for the years ended December 31, 2020 and 2019, see Note 3 ( c ) convertible debentures Convertible Debentures Balance, December 20, 2019 $ 13,642 Issuances — Fair value adjustments 7,522 Conversion (21,164 ) Balance, December 31, 2020 $ — Items Measured at Fair Value on a Nonrecurring Basis Certain assets, including long-lived assets and goodwill, are measured at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be impaired. There were no items measured at fair value on a nonrecurring basis as of or during the years ended December 31, 2020 and 2019. |
Recently Issued and Recently Adopted Accounting Standards | (t) Recently Issued and Recently Adopted Accounting Standards Recently Adopted Accounting Standards On January 1, 2020, the Company adopted ASU 2018-13, 2018-13”). 2018-13 2018-13 2018-13 On January 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842)” and all the related amendments, which are codified under ASC 842. The Company has applied its transition provisions at the beginning of the period of adoption (i.e., on the effective date), and so did not restate comparative periods. Under this transition provision, the Company has applied the legacy guidance under ASC 840, “ Leases 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”), ASU 2016-13 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 In August 2020, the FASB issued ASU 2020-06, 470-20) 815-40): 2020-06”). 2020-06 2020-06 2020-06 2020-06 2020-06 |
Subsequent Events | (u) Subsequent Events On March 2, 2021, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Guggenheim Securities, LLC, as representative of the several underwriters (the “Underwriters”), in connection with an underwritten public offering of 1,393,738 shares of the Company’s common stock, at a public offering price of $18.00 per share (the “Offering”). The Underwriting On March 2, 2021, the Company terminated its at-the-market |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Allowance for Doubtful Accounts | The following table summarizes the allowance for doubtful accounts for the three years ended December 31, 2020 (in thousands): 2020 2019 2018 Balance at beginning of period $ 136 $ 177 $ 107 Additions charged to costs and expenses 94 62 225 Reductions (119 ) (103 ) (155 ) Balance at end of period $ 111 $ 136 $ 177 |
Schedule of Current Inventory | At December 31, 2020 and 2019, inventories consisted of the following (in thousands), which includes an inventory reserve of approximately $0.2 million and $0.5 million as December 31, 2020 and 2019, respectively. Inventory balances, net of reserves, were as follows: December 31, December 31, 2020 2019 Raw materials $ 1,356 $ 1,265 Work in process 76 39 Finished Goods 1,712 1,307 Inventory Net $ 3,144 $ 2,611 |
Schedule of Property and Equipment Estimated Useful Lives | Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets or the remaining lease term, if shorter, for leasehold improvements (see below). Estimated life Equipment 3 5 Leasehold improvements 3-5 Furniture and fixtures 3-5 Marketing assets 3-5 |
Roll Forward of Goodwill Activity by Reportable Segment | A rollforward of goodwill activity by reportable segment is as follows (in thousands): Consolidated reporting unit 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 December 31, 2020 $ — $ 8,362 $ — $ 8,362 |
Schedule of Intangible Assets | A summary of intangible assets for 2020 and 2019 is as follows (in thousands): Weighted average 2020 2019 useful life Gross Carrying Amount Patents and licenses $ 595 $ 581 5 years Technology 8,257 8,257 10 years Customer relationships 272 272 7 years Tradename 259 259 10 years Total amortizable intangible assets 9,383 9,369 Accumulated Amortization Patents and licenses $ 529 $ 520 Technology 7,571 7,299 Customer relationships 135 108 Tradename 259 259 Total accumulated amortization 8,494 8,186 Total amortizable intangible assets, net $ 889 $ 1,183 |
Schedule of Expected Amortization Expense | Estimated remaining amortization of the Company’s intangible assets is as follows (in thousands): Estimated For the years ended amortization December 31: expense 2021 291 2022 207 2023 186 2024 103 2025 102 $ 889 |
Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers | The following table provides information about receivables, current and non-current Balance at Balance at Receivables, which are included in “Trade accounts receivable” $ 10,027 $ 9,819 Current contract assets, which are included in “Prepaid and other assets” 481 14 Non-current 1,434 — Contract liabilities, which are included in “Deferred revenue” 6,384 5,604 |
Summary of Changes in Deferred Revenue | Changes in deferred revenue from contracts with customers were as follows (in thousands): Year Ended Year Ended December 31, 2019 Balance at beginning of period $ 5,604 $ 5,209 Deferral of revenue 11,212 11,005 Recognition of deferred revenue (10,432 ) (10,610 ) Balance at end of period $ 6,384 $ 5,604 |
Schedule of Changes of Capitalized Costs to Obtain Contract | Changes in the balance of capitalized costs to obtain a contract were as follows (in thousands): Years Ended December 31, 2020 2019 Balance at beginning of period $ 379 $ 282 Deferral of costs to obtain a contract 157 294 Recognition of costs to obtain a contract (130 ) (197 ) Balance at end of period $ 406 $ 379 |
Roll forward of Warranty Cost | Warranty provisions and claims for the years ended December 31, 2020, 2019 and 2018, were as follows (in thousands): 2020 2019 2018 Beginning accrual balance $ 17 $ 12 $ 10 Warranty provision 58 41 19 Usage (58 ) (36 ) (17 ) Ending accrual balance $ 17 $ 17 $ 12 |
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): 2020 2019 2018 Net loss available to common shareholders $ (17,610 ) $ (13,551 ) $ (9,017 ) Basic shares used in the calculation of earnings per share 22,140 18,378 16,685 Effect of dilutive securities: Stock options — — — Restricted stock — — — Diluted shares used in the calculation of earnings per share 22,140 18,378 16,685 Net loss per share : Basic $ (0.80 ) $ (0.74 ) $ (0.54 ) Diluted $ (0.80 ) $ (0.74 ) $ (0.54 ) |
Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share | The following table summarizes the number of shares of common stock for convertible securities, warrants and restricted stock that were not included in the calculation of diluted net loss per share because such shares are antidilutive: Year Ended December 31, 2020 2019 2018 Common stock options 1,869,507 1,550,662 1,983,477 Restricted Stock 29,166 150,909 423,202 Convertible Debentures — 1,742,500 1,742,500 1,898,673 3,444,071 4,149,179 |
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 as of December 31, 2020 Level 1 Level 2 Level 3 Total Assets Money market accounts $ 27,186 — — $ 27,186 Total Assets $ 27,186 — — $ 27,186 Liabilities Convertible debentures — — — — Total Liabilities — — — — Fair Value Measurements 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 |
Schedule of Rollforward of the Company's Level 3 Instruments | The following is a roll forward of the Company’s Level 3 instruments for the years ended December 31, 2020 and 2019, see Note 3 ( c ) convertible debentures Convertible Debentures Balance, December 20, 2019 $ 13,642 Issuances — Fair value adjustments 7,522 Conversion (21,164 ) Balance, December 31, 2020 $ — |
Accounting Standards Update 2016-02 [Member] | |
Summary of Changes in Deferred Revenue | The balance of deferred revenue at December 31, 2020 and December 31, 2019 is as follows (in thousands): Contract liabilities December 31, 2020 December 31, 2019 Short term $ 6,117 $ 5,248 Long term 267 356 Total $ 6,384 $ 5,604 |
Accounting Standards Update 2014-09 [Member] | |
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 revenues disaggregated by major good or service line, timing of revenue recognition and sales channel, reconciled to its reportable segments (in thousands). Year ended December 31, 2020 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 16,291 $ 4,535 $ 20,826 Service contracts 5,661 1,333 6,994 Supply and source usage agreements — 1,804 1,804 Professional services — 29 29 Other 45 — 45 $ 21,997 $ 7,701 $ 29,698 Timing of Revenue Recognition Goods transferred at a point in time $ 16,332 $ 4,624 $ 20,956 Services transferred over time 5,665 3,077 8,742 $ 21,997 $ 7,701 $ 29,698 Sales Channels Direct sales force $ 13,809 $ 3,773 $ 17,582 OEM partners 8,188 — 8,188 Channel partners — 3,928 3,928 $ 21,997 $ 7,701 $ 29,698 Year ended December 31, 2019 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 16,788 $ 4,957 $ 21,745 Service contracts 5,370 1,814 7,184 Supply and source usage agreements — 2,036 2,036 Professional services — 153 153 Other 161 61 222 $ 22,319 $ 9,021 $ 31,340 Timing of Revenue Recognition Goods transferred at a point in time $ 16,949 $ 5,391 $ 22,340 Services transferred over time 5,370 3,630 9,000 $ 22,319 $ 9,021 $ 31,340 Sales Channels Direct sales $ 11,968 $ 5,804 $ 17,772 OEM partners 10,351 — 10,351 Channel partners — 3,217 3,217 $ 22,319 $ 9,021 $ 31,340 Year ended December 31, 2018 Reportable Segments Detection Therapy Total Major Goods/Service Lines Products $ 10,783 $ 4,393 $ 15,176 Service contracts 5,311 1,450 6,761 Supply and source usage agreements — 2,261 2,261 Professional services — 264 264 Other 229 389 618 $ 16,323 $ 8,757 $ 25,080 Timing of Revenue Recognition Goods transferred at a point in time $ 10,835 $ 4,676 $ 15,511 Services transferred over time 5,488 4,081 9,569 $ 16,323 $ 8,757 $ 25,080 Sales Channels Direct sales force $ 8,335 $ 7,554 $ 15,889 OEM partners 7,988 — 7,988 Channel partners — 1,203 1,203 $ 16,323 $ 8,757 $ 25,080 Total Revenue Revenue from contracts with customers $ 16,323 $ 8,757 $ 25,080 Revenue from lease components 541 — 541 $ 16,864 $ 8,757 $ 25,621 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value of Term Loan Net of Debt Issuance Costs | The maturity date of the revolving loan is March 30, 2022 and there was no outstanding amount as of December 31, 2020. December 31, Principal Amount of Term Loan $ 7,000 Unamortized closing costs (63 ) Accrued Final Payment 23 Amount Drawn on Line of Credit — Carrying amount of Term Loan 6,960 Less current portion of Term Loan — Notes payable long-term portion $ 6,960 * No December 31, 2019 balance. Debt opened in 2020 December 31, Principal Amount of Term Loan $ 4,000 Unamortized closing costs (40 ) Accrued Final Payment 293 Amount Drawn on Line of Credit 2,000 Carrying amount of Term Loan 6,253 Less current portion of Term Loan (4,250 ) Notes payable long-term portion $ 2,003 * No December 31, 2020 balance. Debt closed in 2020 |
Schedule of Key Inputs to Simulation Model Utilized to Estimate Fair Value of Convertible Debentures | The Company notes that the key inputs to the simulation model that were utilized to estimate the fair value of the Convertible Debentures at each valuation date 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 and interest payments related to the Loan Agreement are as follows (in thousands): Fiscal Year Amount Due 2021 1,238 2022 2,875 2023 2,735 2024 1,003 Total $ 7,851 |
Interest Expense in Consolidated Income Statement | The following amounts are included in interest expense in the Company’s consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Cash interest expense, notes payable $ 327 $ 274 $ 299 Cash interest expense, convertible debentures 49 349 9 Amortization of debt costs 45 28 29 Accrual of notes payable final payment 55 131 163 Interest expense capital lease — 2 4 Total interest expense $ 476 $ 784 $ 504 |
Accrued and Other Expenses (Tab
Accrued and Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued and Other Expenses | Accrued and other expenses consist of the following at December 31 (in thousands): 2020 2019 Accrued salary and related expenses $ 3,654 $ 3,200 Accrued accounts payable 2,405 2,718 Accrued professional fees 598 510 Other accrued expenses 382 162 $ 7,039 $ 6,590 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, Lease Cost Classification 2020 2019 Operating lease cost - Right of Use Operating expenses $ 884 $ 804 Operating lease cost - Variable Costs Operating expenses 165 $ 173 Finance lease costs Amortization of leased assets Amortization and depreciation 12 15 Interest on lease liabilities Interest expense 1 2 Total $ 1,062 $ 994 Other information related to leases was as follows (in thousands): 2020 2019 Cash paid for operating cash flows from operating leases $ 909 $ 840 Cash paid for operating cash flows from finance leases 1 2 Cash paid for financing cash flows from finance leases 13 17 2020 2019 Weighted-average remaining lease term of operating leases (in years) 2.21 3.12 Weighted-average remaining lease term of finance leases (in years) — 1 Weighted-average discount rate for operating leases 5.6 % 5.6 % Weighted-average discount rate for finance leases — 5.4 % |
Summary of Detained Information of Lease Liabilities | Maturities of the Company’s lease liabilities as of December 31, 2020 was as follows (in thousands): Year Ended December 31, 2020: Operating 2021 $ 920 2022 899 2023 211 2024 5 Total lease payments 2,035 Less: imputed interest (234 ) Total lease liabilities 1,801 Less: current portion of lease liabilities (726 ) Long-term lease liabilities $ 1,075 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Summary of Stock Option Activity for all Stock Option Plans | A summary of stock option activity for all stock option plans is as follows: Number of Weighted Average Weighted Average Outstanding, December 31, 2018 1,983,477 $ 4.25 Granted 392,270 $ 5.81 Exercised (379,980 ) $ 3.39 Forfeited (445,105 ) $ 6.06 Outstanding, December 31, 2019 1,550,662 $ 4.33 5.0 Granted 563,502 $ 10.09 Exercised (155,149 ) $ 4.70 Forfeited (89,508 ) $ 2.51 Outstanding, December 31, 2020 1,869,507 $ 5.91 6.0 Exercisable at December 31, 2018 1,296,439 $ 4.90 Exercisable at December 31, 2019 881,461 $ 4.43 Exercisable at December 31, 2020 1,540,287 $ 5.55 |
Stock-Based Compensation Expense Including Options and Restricted Stock by Category | The Company’s stock-based compensation expense, including options and restricted stock by category is as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Cost of revenue $ 30 $ 3 $ 4 Engineering and product development 376 226 399 Marketing and sales 657 226 190 General and administrative expense 1,781 713 912 $ 2,844 $ 1,168 $ 1,505 |
Options Granted under Company's Stock Incentive Plans, Valuation Assumptions and Fair Values | Options granted under the stock incentive plans were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values: Year Ended December 31, 2020 2019 2018 Average risk-free interest rate 0.65% 1.88% 2.65% Expected dividend yield None None None Expected life 3.5 3.5 3.5 Expected volatility 50.17-66.04% 50.01% to 54.23% 50.4% to 61.6% Weighted average exercise price $10.14 $5.92 $2.96 Weighted average fair value $4.37 $2.34 $1.23 |
Summary Of Intrinsic Values Of Option And Closing Market Price | Intrinsic values of options (in thousands) and the closing market price used to determine the intrinsic values are as follows: Intrinsic value of stock options Years Ended December 31, 2020 2019 2018 Outstanding $ 13,626 $ 5,465 $ 1,021 Exercisable 11,786 3,067 499 Exercised 1,037 509 224 Company’s stock price at December 31 $ 13.20 $ 7.77 $ 3.70 |
Summary of Restricted Stock Activity for All Equity Incentive Plans | A summary of restricted stock activity for all equity incentive plans is as follows: Years Ended December 31, 2020 2019 2018 Beginning outstanding balance 150,909 423,202 415,147 Granted — 15,990 379,439 Vested (118,077 ) (197,730 ) (322,388 ) Forfeited (3,666 ) (90,553 ) (48,996 ) Ending outstanding balance 29,166 150,909 423,202 |
Summary of Intrinsic Values of Restricted Stock and Closing Market Price | Intrinsic values of restricted stock (in thousands) and the closing market price used to determine the intrinsic values are as follows: Years Ended December 31, 2020 2019 2018 Outstanding $ 385 $ 1,173 $ 1,566 Vested 1,559 1,536 1,193 Company’s stock price at December 31 $ 13.20 $ 7.77 $ 3.70 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands): 2020 2019 2018 Current provision (benefit): Federal $ — $ — $ — State 37 42 54 $ 37 $ 42 $ 54 Deferred provision: Federal $ 1 $ 1 $ (10 ) State — — (2 ) $ 1 $ 1 $ (12 ) Total $ 38 $ 43 $ 42 |
Summary of Effective and the Federal Statutory Income Tax Rate | A summary of the differences between the Company’s effective income tax rate and the Federal statutory income tax rate for the years ended December 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.4 % 1.7 % 3.6 % Net state impact of deferred rate change (0.7 %) (2.0 %) 0.6 % Stock compensation expense 0.9 % (10.7 %) (1.1 %) Tax amortization on goodwill 0.0 % 0.0 % 0.1 % Goodwill impairment 0.0 % 0.0 % 0.0 % Other permanent differences (0.1 %) 0.0 % (0.5 %) Change in valuation allowance (13.4 %) (6.0 %) (27.6 %) Tax credits 1.4 % 2.8 % 3.1 % Federal Rate Change 0.0 % 0.0 % 0.0 % Accrual to tax return 0.0 % 1.3 % 0.3 % Increase Xoft NOLs under 382 Study 0.0 % 0.0 % 0.0 % Change in FV of convertible debt (9.0 %) (10.4 %) 0.0 % Foreign Rate Differential 0.0 % 0.2 % 0.0 % True Ups - NOL Expiration/162(m) limits (2.8 %) 0.0 % 0.0 % Effective income tax (0.3 %) (0.3 % ) (0.5 % ) |
Deferred Tax Assets (Liabilities) | The Company has fully reserved the net deferred tax assets, as it is more likely than not that the deferred tax assets will not be utilized. Deferred tax assets (liabilities) are composed of the following at December 31, 2020 and 2019 (in thousands): 2020 2019 Inventory (Section 263A) $ 248 $ 242 Inventory reserves 60 118 Receivable reserves 28 35 Other accruals 1,081 1,151 Deferred revenue 75 123 Accumulated depreciation/amortization 37 66 Stock options 459 267 Developed technology 1,449 1,702 Tax credits 3,859 3,663 NOL carryforward 36,078 33,640 Lease liability 415 625 Net deferred tax assets 43,789 41,632 Valuation allowance (43,356 ) (41,025 ) Right of Use Asset (433 ) (607 ) Goodwill tax amortization (4 ) (3 ) Deferred tax liability $ (4 ) $ (3 ) |
Segment Reporting, Geographic_2
Segment Reporting, Geographical Information and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 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 GAAP loss before income tax is as follows (in thousands): Year Ended December 31, 2020 2019 2018 Segment revenues: Detection $ 21,997 $ 22,319 $ 16,864 Therapy 7,701 9,021 8,757 Total Revenue $ 29,698 $ 31,340 $ 25,621 Segment gross profit: Detection $ 17,856 $ 18,627 $ 14,709 Therapy 3,498 5,600 4,721 Segment gross profit $ 21,354 $ 24,227 $ 19,430 Segment operating income (loss): Detection $ 2,719 $ 2,564 $ 3,412 Therapy (3,028 ) (1,476 ) (2,373 ) Segment operating income (loss) $ (309 ) $ 1,088 $ 1,039 General administrative $ (9,079 ) $ (7,486 ) $ (9,169 ) Interest expense (476 ) (784 ) (504 ) Financing costs — — (451 ) Loss on extinguishment of debt (341 ) Other income 97 345 110 Fair value of convertible debentures (7,464 ) (6,671 ) Loss before income tax $ (17,572 ) $ (13,508 ) $ (8,975 ) |
Summary of Segment Depreciation and Amortization Included in Segment Operating Income (Loss) | Segment depreciation and amortization included in segment operating income (loss) is as follows (in thousands): Year Ended December 31, 2020 2019 2018 Detection depreciation and amortization Depreciation $ 115 $ 103 $ 106 Amortization 164 240 248 Therapy depreciation and amortization Depreciation $ 124 $ 166 $ 177 Amortization 128 128 129 |
Summary of Concentration of Revenue by Geographic Area | Percent of Export sales Region 2020 2019 2018 Europe 45 % 57 % 51 % Taiwan 13 % 15 % 22 % Canada 5 % 7 % 7 % China 22 % 8 % 0 % Other 15 % 13 % 20 % Total 100 % 100 % 100 % Total Export sales $ 6,081 $ 3,788 $ 3,255 Significant export sales in Europe are as follows: Percent of Export sales Region 2020 2019 2018 France 41 % 34 % 36 % Spain 17 % 12 % 8 % Germany 12 % 4 % 3 % Italy 8 % 2 % 1 % United Kingdon 6 % 2 % 0 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Mar. 02, 2021USD ($)$ / sharesshares | Dec. 17, 2020USD ($) | Apr. 27, 2020USD ($)$ / shares | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Business segment | Segment | 2 | ||||||
Maturity for cash and cash equivalents | 90 days | ||||||
Insurance coverage | $ 250,000 | ||||||
Interest-bearing amounts on deposit in excess of federally | 26,700,000 | ||||||
Inventory reserve | 200,000 | $ 500,000 | |||||
Impairment charges on long lived assets | 0 | 0 | |||||
Amortization expense related to intangible assets | 309,000 | 377,000 | $ 383,000 | ||||
Increase to retained earnings | (241,935,000) | (224,325,000) | |||||
Unearned amount to recognize in 2021 | 7,100,000 | ||||||
Unearned amount to recognize in 2022 | 1,200,000 | ||||||
Unearned amount to recognize, thereafter | 1,000,000 | ||||||
Capitalized costs to obtain a contract | $ 406,000 | 379,000 | 282,000 | ||||
Product delivery period to customer | one year or less | ||||||
Advertising expense | $ 211,000 | 1,084,000 | $ 811,000 | ||||
Price per share, shares issued | $ / shares | $ 8 | ||||||
Net proceeds from Issue of common stock | $ 6,100,000 | $ 12,300,000 | 18,285,000 | 9,353,000 | |||
Subsequent Event [Member] | Underwritten Public Offering [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Issuance of common stock, net, shares | shares | 1,393,738 | ||||||
Price per share, shares issued | $ / shares | $ 18 | ||||||
Net proceeds from Issue of common stock | $ 23,200,000 | ||||||
Subsequent Event [Member] | Over-Allotment Option [Member] | Guggenheim Securities LLC [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Issuance of common stock, net, shares | shares | 125,000 | ||||||
Price per share, shares issued | $ / shares | $ 16.92 | ||||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect Before and After Topic 606 [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Increase to retained earnings | $ 100,000 | ||||||
Level 3 [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Fair value on nonrecurring basis | $ 0 | $ 0 | |||||
Maximum [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of Long-lived assets | 10 years | ||||||
Minimum [Member] | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of Long-lived assets | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Balance at beginning of period | $ 136 | $ 177 | $ 107 |
Additions charged to costs and expenses | 94 | 62 | 225 |
Reductions | (119) | (103) | (155) |
Balance at end of period | $ 111 | $ 136 | $ 177 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Current Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,356 | $ 1,265 |
Work in process | 76 | 39 |
Finished Goods | 1,712 | 1,307 |
Inventory Net | $ 3,144 | $ 2,611 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum [Member] | Marketing Assets [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 3 years |
Minimum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 3 years |
Minimum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 3 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 3 years |
Maximum [Member] | Marketing Assets [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 5 years |
Maximum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 5 years |
Maximum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 5 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, Estimated life | 5 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Roll Forward of Goodwill Activity by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill, Ending Balance | $ 8,362 | $ 8,362 |
Operating Segments [Member] | ||
Goodwill [Line Items] | ||
Impairment | (19,716) | |
Accumulated impairment | (26,828) | |
Accumulated Goodwill | 47,937 | |
Acquisition measurement period adjustments | 116 | |
Sale of MRI assets | (394) | |
Goodwill, Ending Balance | 8,362 | 8,362 |
Operating Segments [Member] | DermEbx And Radion [Member] | ||
Goodwill [Line Items] | ||
Acquisition cost | 6,154 | |
Operating Segments [Member] | VuComp M-Vu Breast Density Product [Member] | ||
Goodwill [Line Items] | ||
Acquisition cost | 1,093 | |
Consolidated Reporting Unit [Member] | Operating Segments [Member] | ||
Goodwill [Line Items] | ||
Fair value allocation | (21,109) | |
Accumulated impairment | (26,828) | |
Accumulated Goodwill | 47,937 | |
Detection [Member] | Operating Segments [Member] | ||
Goodwill [Line Items] | ||
Fair value allocation | 7,663 | |
Sale of MRI assets | (394) | |
Goodwill, Ending Balance | 8,362 | $ 8,362 |
Detection [Member] | Operating Segments [Member] | VuComp M-Vu Breast Density Product [Member] | ||
Goodwill [Line Items] | ||
Acquisition cost | 1,093 | |
Therapy [Member] | Operating Segments [Member] | ||
Goodwill [Line Items] | ||
Impairment | (19,716) | |
Fair value allocation | 13,446 | |
Acquisition measurement period adjustments | 116 | |
Therapy [Member] | Operating Segments [Member] | DermEbx And Radion [Member] | ||
Goodwill [Line Items] | ||
Acquisition cost | $ 6,154 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Gross Carrying Amount | ||
Gross Carrying Amount | $ 9,383 | $ 9,369 |
Accumulated Amortization | ||
Accumulated Amortization | 8,494 | 8,186 |
Total amortizable intangible assets, net | 889 | 1,183 |
Patent and Licenses [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | $ 595 | 581 |
Weighted average useful life | 5 years | |
Accumulated Amortization | ||
Accumulated Amortization | $ 529 | 520 |
Technology [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | $ 8,257 | 8,257 |
Weighted average useful life | 10 years | |
Accumulated Amortization | ||
Accumulated Amortization | $ 7,571 | 7,299 |
Customer Relationships [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | $ 272 | 272 |
Weighted average useful life | 7 years | |
Accumulated Amortization | ||
Accumulated Amortization | $ 135 | 108 |
Tradename [Member] | ||
Gross Carrying Amount | ||
Gross Carrying Amount | $ 259 | 259 |
Weighted average useful life | 10 years | |
Accumulated Amortization | ||
Accumulated Amortization | $ 259 | $ 259 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Expected Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
2021 | $ 291 | |
2022 | 207 | |
2023 | 186 | |
2024 | 103 | |
2025 | 102 | |
Total amortizable intangible assets, net | $ 889 | $ 1,183 |
Summary of Significant Accou_11
Summary of 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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 29,698 | $ 31,340 | $ 25,080 |
Revenue from lease components | 541 | ||
Total Revenue | 25,621 | ||
Products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 20,826 | 21,745 | 15,176 |
Service Contracts [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 6,994 | 7,184 | 6,761 |
Supply and Source Usage Agreements [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,804 | 2,036 | 2,261 |
Professional Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 29 | 153 | 264 |
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 45 | 222 | 618 |
Goods Transferred at a Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 20,956 | 22,340 | 15,511 |
Services Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 8,742 | 9,000 | 9,569 |
Direct Sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 17,582 | 17,772 | 15,889 |
OEM Partners [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 8,188 | 10,351 | 7,988 |
Channel Partners [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 3,928 | 3,217 | 1,203 |
Detection [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 21,997 | 22,319 | 16,323 |
Revenue from lease components | 541 | ||
Total Revenue | 16,864 | ||
Detection [Member] | Products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 16,291 | 16,788 | 10,783 |
Detection [Member] | Service Contracts [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 5,661 | 5,370 | 5,311 |
Detection [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 45 | 161 | 229 |
Detection [Member] | Goods Transferred at a Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 16,332 | 16,949 | 10,835 |
Detection [Member] | Services Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 5,665 | 5,370 | 5,488 |
Detection [Member] | Direct Sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 13,809 | 11,968 | 8,335 |
Detection [Member] | OEM Partners [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 8,188 | 10,351 | 7,988 |
Therapy [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 7,701 | 9,021 | 8,757 |
Total Revenue | 8,757 | ||
Therapy [Member] | Products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 4,535 | 4,957 | 4,393 |
Therapy [Member] | Service Contracts [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,333 | 1,814 | 1,450 |
Therapy [Member] | Supply and Source Usage Agreements [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,804 | 2,036 | 2,261 |
Therapy [Member] | Professional Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 29 | 153 | 264 |
Therapy [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 61 | 389 | |
Therapy [Member] | Goods Transferred at a Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 4,624 | 5,391 | 4,676 |
Therapy [Member] | Services Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 3,077 | 3,630 | 4,081 |
Therapy [Member] | Direct Sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 3,773 | 5,804 | 7,554 |
Therapy [Member] | Channel Partners [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 3,928 | $ 3,217 | $ 1,203 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Contract with Customer, Asset and Liability [Abstract] | |||
Receivables, which are included in "Trade accounts receivable" | $ 10,027 | $ 9,819 | |
Current contract assets, which are included in "Prepaid and other assets" | 481 | 14 | |
Non-current contract assets, which are included in "other assets" | 1,434 | 0 | |
Contract liabilities, which are included in "Deferred revenue" | $ 6,384 | $ 5,604 | $ 5,209 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Summary of Deferred Revenue (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Revenue Arrangement [Line Items] | |||
Contract liabilities | $ 6,384 | $ 5,604 | $ 5,209 |
Short-term Contract with Customer [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Contract liabilities | 6,117 | 5,248 | |
Long-term Contract with Customer [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Contract liabilities | $ 267 | $ 356 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Summary of Changes in Deferred Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Revenue Disclosure [Abstract] | ||
Balance at beginning of period | $ 5,604 | $ 5,209 |
Deferral of revenue | 11,212 | 11,005 |
Recognition of deferred revenue | (10,432) | (10,610) |
Balance at end of period | $ 6,384 | $ 5,604 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Schedule of Changes of Capitalized Costs to Obtain Contract (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Capitalized Contract Cost, Net [Abstract] | ||
Balance at beginning of period | $ 379,000 | $ 282,000 |
Deferral of costs to obtain a contract | 157,000 | 294,000 |
Recognition of costs to obtain a contract | (130,000) | (197,000) |
Balance at end of period | $ 406,000 | $ 379,000 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Roll Forward of Warranty Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Beginning accrual balance | $ 17 | $ 12 | $ 10 |
Warranty provision | 58 | 41 | 19 |
Usage | (58) | (36) | (17) |
Ending accrual balance | $ 17 | $ 17 | $ 12 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Calculation of Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net loss available to common shareholders | $ (17,610) | $ (13,551) | $ (9,017) |
Basic shares used in the calculation of earnings per share | 22,140 | 18,378 | 16,685 |
Effect of dilutive securities: | |||
Diluted shares used in the calculation of earnings per share | 22,140 | 18,378 | 16,685 |
Net loss per share : | |||
Basic | $ (0.80) | $ (0.74) | $ (0.54) |
Diluted | $ (0.80) | $ (0.74) | $ (0.54) |
Summary of Significant Accou_18
Summary of Significant Accounting Policies - Schedule of Anti-dilutive Shares Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock options, warrants and restricted stock | 1,898,673 | 3,444,071 | 4,149,179 |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock options, warrants and restricted stock | 1,869,507 | 1,550,662 | 1,983,477 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock options, warrants and restricted stock | 29,166 | 150,909 | 423,202 |
Convertible Debentures [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock options, warrants and restricted stock | 1,742,500 | 1,742,500 |
Summary of Significant Accou_19
Summary of Significant Accounting Policies - Assets and Liabilities which are Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Level 3 [Member] | Convertible Debentures [Member] | ||
Liabilities | ||
Total Liabilities | $ 0 | $ 13,642 |
Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Total Assets | 27,186 | 15,313 |
Liabilities | ||
Total Liabilities | 0 | 13,642 |
Fair Value, Measurements, Recurring [Member] | Convertible Debentures [Member] | ||
Liabilities | ||
Total Liabilities | 13,642 | |
Fair Value, Measurements, Recurring [Member] | Money Market Accounts [Member] | ||
Assets | ||
Total Assets | 27,186 | 15,313 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets | ||
Total Assets | 27,186 | 15,313 |
Liabilities | ||
Total Liabilities | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Convertible Debentures [Member] | ||
Liabilities | ||
Total Liabilities | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money Market Accounts [Member] | ||
Assets | ||
Total Assets | 27,186 | 15,313 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets | ||
Total Assets | ||
Liabilities | ||
Total Liabilities | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Convertible Debentures [Member] | ||
Liabilities | ||
Total Liabilities | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Money Market Accounts [Member] | ||
Assets | ||
Total Assets | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Assets | ||
Total Assets | ||
Liabilities | ||
Total Liabilities | 0 | 13,642 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Convertible Debentures [Member] | ||
Liabilities | ||
Total Liabilities | $ 13,642 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Money Market Accounts [Member] | ||
Assets | ||
Total Assets |
Summary of Significant Accou_20
Summary of Significant Accounting Policies - Level 3 Instruments (Detail) - Level 3 [Member] - Convertible Debentures [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning Balance | $ 13,642 |
Issuances | 0 |
Fair value adjustments | 7,522 |
Conversion | (21,164) |
Ending Balance | $ 0 |
Sale of MRI Assets - Additional
Sale of MRI Assets - Additional Information (Detail) - USD ($) | Dec. 31, 2020 | Jan. 30, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Holdback reserve related to sale and transfer of intangible assets | $ 350,000 | ||
VersaVue Software and DynaCAD Product and Related Assets [Member] | Asset Purchase Agreement [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale and transfer of intangible assets | $ 3,200,000 | ||
Holdback reserve related to sale and transfer of intangible assets | $ 350,000 | ||
Proceeds from sale and transfer of intangible assets | $ 2,900,000 |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Detail) | Mar. 30, 2020USD ($) | Dec. 31, 2020USD ($)customerTrial$ / sharesshares | Dec. 31, 2019USD ($) | Feb. 21, 2020USD ($) | Feb. 21, 2019USD ($) | Aug. 07, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Line of credit, closing costs | $ 141,000 | |||||
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. | |||||
Loss from fair value of the convertible debentures | $ 7,500,000 | $ 6,700,000 | ||||
Final payment of loan | 510,000 | |||||
Gain (Loss) on Extinguishment of Debt | (341,000) | |||||
Reclassified the fair value of convertible debentures | 13,642,000 | $ 21,164,000 | $ 21,200,000 | |||
Silicon Valley Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Termination Loans | $ 114,000 | |||||
Gain (Loss) on Extinguishment of Debt | $ 341,000 | |||||
Silicon Valley Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Final payment of loan | 185,000 | |||||
Termination Loans | 114,000 | |||||
Other Costs | 10,000 | |||||
Unamortized closing costs | $ 42,000 | |||||
Western Alliance Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of final payment | 1.75% | |||||
First interest payment | $ 122,500 | |||||
Interest Rate During Period | 3.25% | |||||
Description of prepayment fee | a prepayment fee (3% of the principal balance if prepaid | |||||
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 | |||||
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 | |||||
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] | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized closing costs | $ 40,000 | |||||
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] | ||||||
Ratio of unrestricted cash to outstanding liabilities to bank | 1.25 to 1.00 | |||||
Interest Rate Description | 1% above the Prime Rate | |||||
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 Carrying Value of Term Loan Net of Debt Issuance Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares Issued And Outstanding [Line Items] | |||
Accrued Final Payment | $ (55) | $ (131) | $ (163) |
Amount Drawn on Line of Credit | 775 | 3,000 | |
Less current portion of Term Loan | (4,250) | ||
Notes payable long-term portion | 6,960 | 2,003 | |
Term Loan A [Member] | |||
Shares Issued And Outstanding [Line Items] | |||
Principal Amount of Term Loan | 4,000 | ||
Unamortized closing costs | (40) | ||
Accrued Final Payment | 293 | ||
Amount Drawn on Line of Credit | 2,000 | ||
Carrying amount of Term Loan | 6,253 | ||
Less current portion of Term Loan | (4,250) | ||
Notes payable long-term portion | $ 2,003 | ||
Term Loan A [Member] | WesternAllianceBank [Member] | |||
Shares Issued And Outstanding [Line Items] | |||
Principal Amount of Term Loan | 7,000 | ||
Unamortized closing costs | (63) | ||
Accrued Final Payment | 23 | ||
Carrying amount of Term Loan | 6,960 | ||
Less current portion of Term Loan | 0 | ||
Notes payable long-term portion | $ 6,960 |
Financing Arrangements - Sche_2
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 | [1] | 100 | 100 |
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_3
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 | Dec. 31, 2020USD ($) |
Shares Issued And Outstanding [Line Items] | |
2021 | $ 1,238 |
2022 | 2,875 |
2023 | 2,735 |
2024 | 1,003 |
Total | $ 7,851 |
Finance Arrangements - Interest
Finance Arrangements - Interest Expense in Consolidated Income Statement (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Expense [Line Items] | |||
Amortization of debt costs | $ 45 | $ 28 | $ 29 |
Accrual of notes payable final payment | 55 | 131 | 163 |
Interest expense capital lease | 2 | 4 | |
Total interest expense | 476 | 784 | 504 |
Term Loan A [Member] | |||
Interest Expense [Line Items] | |||
Cash interest expense | 327 | 274 | 299 |
Accrual of notes payable final payment | (293) | ||
Convertible Debt [Member] | |||
Interest Expense [Line Items] | |||
Cash interest expense | $ 49 | $ 349 | $ 9 |
Accrued and Other Expenses - Ac
Accrued and Other Expenses - Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued salary and related expenses | $ 3,654 | $ 3,200 |
Accrued accounts payable | 2,405 | 2,718 |
Accrued professional fees | 598 | 510 |
Other accrued expenses | 382 | 162 |
Accrued Expenses Total | $ 7,039 | $ 6,590 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 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 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) - Accounting Standards Update 2016-02 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost - Right of Use | $ 884 | $ 804 |
Operating lease cost - Variable Costs | 165 | 173 |
Finance lease costs | ||
Amortization of leased assets | 12 | 15 |
Interest on lease liabilities Interest expense | 1 | 2 |
Total | 1,062 | 994 |
Cash paid for operating cash flows from operating leases | 909 | 840 |
Cash paid for operating cash flows from finance leases | 1 | 2 |
Cash paid for financing cash flows from finance leases | $ 13 | $ 17 |
Weighted-average remaining lease term of operating leases (in years) | 2 years 2 months 15 days | 3 years 1 month 13 days |
Weighted-average remaining lease term of finance leases (in years) | 0 years | 1 year |
Weighted-average discount rate for operating leases | 5.60% | 5.60% |
Weighted-average discount rate for finance leases | 0.00% | 5.40% |
Leases - Summary of Detained In
Leases - Summary of Detained Information of Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 920 |
2022 | 899 |
2023 | 211 |
2024 | 5 |
Total | 2,035 |
Less: imputed interest | (234) |
Total lease liabilities | 1,801 |
Less: current portion of lease liabilities | (726) |
Total lease liabilities | $ 1,075 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | usgaap:OperatingLeaseLiability |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Dec. 31, 2020USD ($)hshares | Dec. 17, 2020USD ($)shares | Apr. 27, 2020USD ($)$ / sharesshares | Dec. 31, 2020USD ($)hIncentive_Planshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of stock option | Incentive_Plan | 2 | |||||
Total unrecognized compensation costs | $ | $ 700,000 | $ 700,000 | ||||
Period of expected recognized over a weighted average | 1 year | |||||
Dividends paid on common stock | $ | $ 0 | |||||
ESPP offerings outstanding | 1,869,507 | 1,869,507 | 1,550,662 | 1,983,477 | ||
Common stock, shares issued | 470,704 | 1,562,500 | 155,149 | 379,980 | ||
Price per share, shares issued | $ / shares | $ 8 | |||||
Gross proceeds from issuance of common stock | $ | $ 6,600,000 | $ 12,500,000 | ||||
Net proceeds from issuance of common stock | $ | $ 6,100,000 | 12,300,000 | $ 18,285,000 | $ 9,353,000 | ||
Common stock, value of shares | $ | $ 25,000,000 | 18,284,000 | $ 9,353,000 | |||
Common stock value, outstanding | $ | $ 18,400,000 | $ 18,400,000 | ||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of share options available for grant | 462,218 | 462,218 | ||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period of options granted | 1 year | |||||
Number of restricted stock granted | 15,990 | 379,439 | ||||
Time Based Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted stock granted | 15,990 | 334,083 | ||||
Time Based Restricted Stock [Member] | Vesting Period One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares expected to vest | 45,356 | 45,356 | ||||
2012 Stock Option Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate purchase of Company's common stock | 1,600,000 | 1,600,000 | ||||
Percentage of stockholders exercise price | 10.00% | |||||
Percentage of market price for calculation of purchase price | (110.00%) | |||||
Number of share options available for grant | 129,126 | 129,126 | ||||
Aggregate purchase of Company's common stock, maximum | 250,000 | 250,000 | ||||
Percentage of options granted | 100.00% | |||||
2016 Stock Option Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate purchase of Company's common stock | 2,600,000 | 2,600,000 | ||||
Number of share options available for grant | 333,091 | 333,091 | ||||
Aggregate purchase of Company's common stock, maximum | 1,000,000 | 1,000,000 | ||||
Percentage of options granted | 100.00% | |||||
Number of share options available for grant | $ | $ 100,000 | |||||
2016 Stock Option Plan [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of share options available for grant | 1,000,000 | 1,000,000 | ||||
2016 Stock Option Plan [Member] | Maximum [Member] | Non Employee Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of share options available for grant | 120,000 | 120,000 | ||||
ESPP [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate purchase of Company's common stock | 950,000 | 950,000 | ||||
Percentage of voting right not eligible for ESPP | 5.00% | 5.00% | ||||
Share-based payment award, maximum employee subscription rate | 15.00% | 15.00% | ||||
Share-based payment award, discount from market price, offering date | 85.00% | |||||
Maximum amout of purchase allowed | $ | $ 25,000,000 | |||||
ESPP offerings outstanding | 42,606 | 42,606 | ||||
Hours Eligible To Participate In The Espp | h | 20 | 20 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity for all Stock Option plan (Detail) - $ / shares | Dec. 17, 2020 | Apr. 27, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Payment Arrangement [Abstract] | |||||
Beginning balance | 1,550,662 | 1,983,477 | |||
Granted | 563,502 | 392,270 | |||
Exercised | (470,704) | (1,562,500) | (155,149) | (379,980) | |
Forfeited | (89,508) | (445,105) | |||
Ending Balance | 1,869,507 | 1,550,662 | 1,983,477 | ||
weighted Average, Beginning Balance | $ 4.33 | $ 4.25 | |||
Granted | 10.09 | 5.81 | |||
Exercised | 4.70 | 3.39 | |||
Forfeited | 2.51 | 6.06 | |||
Weighted Average, Ending Balance | $ 5.91 | $ 4.33 | $ 4.25 | ||
Weighted Average Remaining Contractual Term, Outstanding | 6 years | 5 years | |||
Exercisable, Number of Shares | 1,540,287 | 881,461 | 1,296,439 | ||
Exerciable, Weighted Average Exercise Price | $ 5.55 | $ 4.43 | $ 4.90 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Including Options and Restricted Stock by Category (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | $ 2,844 | $ 1,168 | $ 1,505 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 30 | 3 | 4 |
Engineering and Product Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 376 | 226 | 399 |
Marketing and Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 657 | 226 | 190 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | $ 1,781 | $ 713 | $ 912 |
Stockholders' Equity - Options
Stockholders' Equity - Options Granted under Company's Stock Incentive Plans, Valuation Assumptions and Fair Values (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average exercise price | $ 10.09 | $ 5.81 | |
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average rish-free interest rate | 0.65% | 1.88% | 2.65% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected life | 3 years 6 months | 3 years 6 months | 3 years 6 months |
Weighted average exercise price | $ 10.14 | $ 5.92 | $ 2.96 |
Weighted average fair value | $ 4.37 | $ 2.34 | $ 1.23 |
Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 66.04% | 54.23% | 61.60% |
Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 50.17% | 50.01% | 50.40% |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Intrinsic Values of Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Stock Option outstanding | $ 13,626 | $ 5,465 | $ 1,021 |
Exercisable | 11,786 | 3,067 | 499 |
Exercised | $ 1,037 | $ 509 | $ 224 |
Stock Price | $ 13.20 | $ 7.77 | $ 3.70 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Restricted Stock Activity for All Equity Incentive Plans (Detail) - Restricted Stock [Member] - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning outstanding balance | 150,909 | 423,202 | 415,147 |
Granted | 15,990 | 379,439 | |
Vested | (118,077) | (197,730) | (322,388) |
Forfeited | (3,666) | (90,553) | (48,996) |
Ending outstanding balance | 29,166 | 150,909 | 423,202 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Intrinsic Values of Restricted Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options outstanding, Beginning of period | $ 385 | $ 1,173 | $ 1,566 |
Number of stock options outdtanding, vested | $ 1,559 | $ 1,536 | $ 1,193 |
Number of stock options outstanding, Stock price | $ 13.20 | $ 7.77 | $ 3.70 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current provision (benefit): | |||
Federal | |||
State | 37 | $ 42 | $ 54 |
Current provision (benefit), Total | 37 | 42 | 54 |
Deferred provision: | |||
Federal | 1 | 1 | (10) |
State | (2) | ||
Deferred provision, Total | 1 | 1 | (12) |
Total | $ 38 | $ 43 | $ 42 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective and the Federal Statutory Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Income Tax Expense [Line Items] | |||
Federal statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 2.40% | 1.70% | 3.60% |
Net state impact of deferred rate change | (0.70%) | (2.00%) | 0.60% |
Stock compensation expense | 0.90% | (10.70%) | (1.10%) |
Tax amortization on goodwill | 0.00% | 0.00% | 0.10% |
Goodwill impairment | 0.00% | 0.00% | 0.00% |
Other permanent differences | (0.10%) | 0.00% | (0.50%) |
Change in valuation allowance | (13.40%) | (6.00%) | (27.60%) |
Tax credits | 1.40% | 2.80% | 3.10% |
Federal Rate Change | 0.00% | 0.00% | 0.00% |
Accrual to tax return | 0.00% | 1.30% | 0.30% |
Change in FV of convertible debt | (9.00%) | (10.40%) | 0.00% |
Foreign Rate Differential | 0.00% | 0.20% | 0.00% |
True Ups—NOL Expiration/162(m) limits | (2.80%) | 0.00% | 0.00% |
Effective income tax | (0.30%) | (0.30%) | (0.50%) |
Xoft Inc [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Increase Xoft NOLs under 382 Study | 0.00% | 0.00% | 0.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Inventory (Section 263A) | $ 248 | $ 242 |
Inventory reserves | 60 | 118 |
Receivable reserves | 28 | 35 |
Other accruals | 1,081 | 1,151 |
Deferred revenue | 75 | 123 |
Accumulated depreciation/amortization | 37 | 66 |
Stock options | 459 | 267 |
Developed technology | 1,449 | 1,702 |
Tax credits | 3,859 | 3,663 |
NOL carryforward | 36,078 | 33,640 |
Lease liability | 415 | 625 |
Net deferred tax assets | 43,789 | 41,632 |
Valuation allowance | (43,356) | (41,025) |
Right of Use Asset | (433) | (607) |
Goodwill tax amortization | (4) | (3) |
Deferred tax liability | $ (4) | $ (3) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Income Tax Expense [Line Items] | |||
Federal net operating loss carryforwards | $ 149,100,000 | ||
Net operating losses utilized | 0 | $ 0 | |
Unrecognized tax benefits | 0 | 0 | |
Interest or penalties related to uncertain tax positions | $ 0 | 0 | $ 0 |
Company preceding tax years | 3 years | ||
Tax credits | $ 3,859,000 | $ 3,663,000 | |
Expire Between 2019 And 2037 [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Federal net operating loss carryforwards | 122,100,000 | ||
Indefinite Period [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Federal net operating loss carryforwards | $ 27,000,000 | ||
Minimum [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Expiring date of net operating loss carryforward | 2021 | ||
Maximum [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Expiring date of net operating loss carryforward | 2037 | ||
Xoft Inc [Member] | |||
Schedule Of Income Tax Expense [Line Items] | |||
Net operating losses that are subject to limitations | $ 6,600,000 | ||
Net operating losses that are subject to limitations that can be used through 2029 | 656,000 | ||
Future Income tax liabilities offset With operation loss carryforward | $ 3,900,000 | ||
Tax credit carryforward expiration year | 2039 | ||
Tax credits | $ 1,800,000 |
Segment Reporting, Geographic_3
Segment Reporting, Geographical Information and Major Customers - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)customerSegment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Schedule Of Geographical Information [Line Items] | |||
Number of reporting segments | Segment | 2 | ||
Percentage of export sales to any single country | 10.00% | ||
Total Export Sales | $ 25,621 | ||
Outstanding receivables | $ 10,027 | $ 9,819 | |
Number of major customers | customer | 1 | ||
Total Revenue | $ 29,698 | $ 31,340 | $ 25,621 |
Percentage of receivables | 100.00% | 100.00% | 100.00% |
Revenues | $ 25,621 | ||
GE Healthcare [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Outstanding receivables | $ 1,500 | ||
Percentage of receivables | 9.00% | ||
OEM Partners [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Outstanding receivables | $ 4,400 | ||
Three Customers [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Outstanding receivables | 1,700 | ||
Detection OEM [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Outstanding receivables | $ 1,100 | ||
Percentage of receivables | 11.00% | ||
Sales [Member] | GE Healthcare [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Total Export Sales | $ 2,800 | ||
Total Revenue | 5,000 | $ 7,600 | $ 6,100 |
Revenues | $ 2,800 | ||
Sales [Member] | Customer Concentration Risk [Member] | GE Healthcare [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Percentage of receivables | 17.00% | 24.00% | 24.00% |
Sales [Member] | Customer Concentration Risk [Member] | Five Customers [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Percentage of receivables | 33.00% | 33.00% | |
Sales [Member] | Customer Concentration Risk [Member] | OEM Partners [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Percentage of receivables | 28.00% | ||
Sales [Member] | Customer Concentration Risk [Member] | Four OEM Partners [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Percentage of receivables | 26.00% | ||
Sales [Member] | Detection [Member] | Customer Concentration Risk [Member] | Five Customers [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Percentage of receivables | 46.00% | 50.00% | |
Sales [Member] | Detection [Member] | Customer Concentration Risk [Member] | OEM Partners [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Percentage of receivables | 37.00% | ||
Sales [Member] | Detection [Member] | Customer Concentration Risk [Member] | Four OEM Partners [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Percentage of receivables | 35.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | GE Healthcare [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Percentage of receivables | 34.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | OEM Partners [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Percentage of receivables | 44.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Percentage of receivables | 17.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Detection OEM [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Outstanding receivables | $ 7,100 | ||
Percentage of receivables | 72.00% | ||
Non-US [Member] | |||
Schedule Of Geographical Information [Line Items] | |||
Percentage of export sales of total sale | 20.00% | 12.00% | 12.00% |
Total Export Sales | $ 6,100 | $ 3,800 | $ 3,200 |
Outstanding receivables | 3,400 | 2,100 | |
Revenues | $ 6,100 | $ 3,800 | $ 3,200 |
Segment Reporting, Geographic_4
Segment Reporting, Geographical Information and Major Customers - Summary of Segment Revenues, Gross Profit, Segment Operating Income or Loss and Reconciliation of Segment Operating Income or Loss to GAAP Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment revenues: | |||
Total Revenue | $ 29,698 | $ 31,340 | $ 25,621 |
Segment gross profit: | |||
Segment gross profit | 21,354 | 24,227 | 19,430 |
Segment operating income (loss): | |||
Segment operating income (loss) | (309) | 1,088 | 1,039 |
General administrative | (9,079) | (7,486) | (9,169) |
Interest expense | (476) | (784) | (504) |
Financing costs | (451) | ||
Loss on extinguishment of debt | (341) | ||
Other income | 97 | 345 | 110 |
Fair value of convertible debentures | (7,464) | (6,671) | |
Loss before income tax expense | (17,572) | (13,508) | (8,975) |
Product [Member] | |||
Segment revenues: | |||
Total Revenue | 18,903 | 19,767 | 13,111 |
Service [Member] | |||
Segment revenues: | |||
Total Revenue | 10,795 | 11,573 | 12,510 |
Detection [Member] | |||
Segment gross profit: | |||
Segment gross profit | 17,856 | 18,627 | 14,709 |
Segment operating income (loss): | |||
Segment operating income (loss) | 2,719 | 2,564 | 3,412 |
Detection [Member] | Product [Member] | |||
Segment revenues: | |||
Total Revenue | 21,997 | 22,319 | 16,864 |
Therapy [Member] | |||
Segment gross profit: | |||
Segment gross profit | 3,498 | 5,600 | 4,721 |
Segment operating income (loss): | |||
Segment operating income (loss) | (3,028) | (1,476) | (2,373) |
Therapy [Member] | Service [Member] | |||
Segment revenues: | |||
Total Revenue | $ 7,701 | $ 9,021 | $ 8,757 |
Segment Reporting, Geographic_5
Segment Reporting, Geographical Information and Major Customers - Summary of Segment Depreciation and Amortization Included in Segment Operating Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Depreciation | $ 268 | $ 297 | $ 325 |
Amortization | 309 | 377 | 383 |
Detection [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Depreciation | 115 | 103 | 106 |
Amortization | 164 | 240 | 248 |
Therapy [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Depreciation | 124 | 166 | 177 |
Amortization | $ 128 | $ 128 | $ 129 |
Segment Reporting, Geographic_6
Segment Reporting, Geographical Information and Major Customers - Summary of Concentration of Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Concentration Of Revenue By Geographic Area [Line Items] | |||
Percent of Export sales | 100.00% | 100.00% | 100.00% |
Total Export sales | $ 6,081 | $ 3,788 | $ 3,255 |
Europe | |||
Schedule Of Concentration Of Revenue By Geographic Area [Line Items] | |||
Percent of Export sales | 45.00% | 57.00% | 51.00% |
Taiwan | |||
Schedule Of Concentration Of Revenue By Geographic Area [Line Items] | |||
Percent of Export sales | 13.00% | 15.00% | 22.00% |
Canada | |||
Schedule Of Concentration Of Revenue By Geographic Area [Line Items] | |||
Percent of Export sales | 5.00% | 7.00% | 7.00% |
China | |||
Schedule Of Concentration Of Revenue By Geographic Area [Line Items] | |||
Percent of Export sales | 22.00% | 8.00% | 0.00% |
Other | |||
Schedule Of Concentration Of Revenue By Geographic Area [Line Items] | |||
Percent of Export sales | 15.00% | 13.00% | 20.00% |
France | |||
Schedule Of Concentration Of Revenue By Geographic Area [Line Items] | |||
Percent of Export sales | 41.00% | 34.00% | 36.00% |
Spain | |||
Schedule Of Concentration Of Revenue By Geographic Area [Line Items] | |||
Percent of Export sales | 17.00% | 12.00% | 8.00% |
Germany | |||
Schedule Of Concentration Of Revenue By Geographic Area [Line Items] | |||
Percent of Export sales | 12.00% | 4.00% | 3.00% |
Italy | |||
Schedule Of Concentration Of Revenue By Geographic Area [Line Items] | |||
Percent of Export sales | 8.00% | 2.00% | 1.00% |
United Kingdon | |||
Schedule Of Concentration Of Revenue By Geographic Area [Line Items] | |||
Percent of Export sales | 6.00% | 2.00% | 0.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Nov. 08, 2018 | Dec. 31, 2020 | Jan. 30, 2017 | Dec. 31, 2016 |
Schedule Of Leases [Line Items] | ||||
Purchase obligations to suppliers for future product deliverables | $ 3,400,000 | |||
Holdback reserve related to sale and transfer of intangible assets | 350,000 | |||
Employer matching Contribution | 500,000 | |||
Employer matching Contribution to be paid in next fiscal year | 500,000 | |||
Minimum annual royalty payment | 250,000 | |||
Fair value of patent license | $ 100,000 | |||
Patent license, Estimated Amortizable Life | 4 years | |||
Minimum royalty obligations | $ 400,000 | |||
Chief Executive Officer [Member] | ||||
Schedule Of Leases [Line Items] | ||||
Accrued separation benefis | $ 1,009,000 | |||
Separation benefits severance period | 24 months | |||
Separation Benefits Health Benefits Period | 18 months | |||
Separation benefits payable beginning date | 2019-05 | |||
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 |