Psychemedics (PMDI) 10-Q 12 Nov 24 2024 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Nov. 11, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	1-13738
Entity Registrant Name	PSYCHEMEDICS CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	58-1701987
Entity Address, Address Line One	5220 Spring Valley Road
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75254
City Area Code	800
Local Phone Number	527-7424
Title of 12(b) Security	Common stock. $0.005 par value
Trading Symbol	PMD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		5,894,461
Entity Central Index Key	0000806517
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 1,405	$ 1,964
Accounts receivable, net of allowance for credit losses of $52 at September 30, 2024, and $64 at December 31, 2023	3,325	3,687
Prepaid expenses and other current assets	1,302	1,136
Income tax receivable	15	18
Total Current Assets	6,047	6,805
Fixed assets, net of accumulated amortization and depreciation of $21,907 at September 30, 2024, and $23,633 at December 31, 2023	2,236	3,061
Other assets	505	632
Operating lease right-of-use assets	959	1,828
Finance lease right-of-use asset, net	88	0
Total Assets	9,835	12,326
Current Liabilities:
Accounts payable	994	752
Accrued expenses	1,816	2,604
Insurance note payable	418	0
Equipment financing debt	77	305
Current portion of finance lease liability	28	0
Current portion of operating lease liabilities	460	1,048
Total Current Liabilities	3,793	4,709
Long-term portion of operating lease liabilities	535	945
Long-term portion of finance lease liability	61	0
Total Liabilities	4,389	5,654
Commitments and Contingencies
Preferred stock, $0.005 par value, 873 shares authorized, no shares issued or outstanding	$ 0	$ 0
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.005	$ 0.005
Common stock, $0.005 par value; 50,000 shares authorized; 6,563 and 6,474 shares issued and 5,895 and 5,806 shares outstanding as of September 30, 2024 and December 31, 2023, respectively	$ 32	$ 32
Additional paid-in capital	35,953	35,129
Accumulated deficit	(18,823)	(16,773)
Less - Treasury stock, at cost, 668 shares	(10,082)	(10,082)
Accumulated other comprehensive loss	(1,634)	(1,634)
Total Shareholders' Equity	5,446	6,672
Total Liabilities and Shareholders' Equity	$ 9,835	$ 12,326

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss, Current	$ 52	$ 64
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 21,907	$ 23,633
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.005	$ 0.005
Preferred Stock, Shares Authorized (in shares)	873	873
Preferred Stock, Shares Issued (in shares)	0
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized (in shares)	50,000	50,000
Common stock, shares issued (in shares)	6,563	6,474
Common stock, shares outstanding (in shares)	5,895	5,806
Treasury stock, shares (in shares)	668	668

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues	$ 5,175	$ 5,704	$ 15,260	$ 17,100
Cost of revenues	3,136	3,613	9,547	10,745
Gross profit	2,039	2,091	5,713	6,355
Operating expenses:
General & administrative	1,882	2,200	5,261	5,291
Marketing & selling	580	723	1,943	2,258
Research & development	172	275	570	859
Total Operating expenses	2,634	3,198	7,774	8,408
Operating loss	(595)	(1,107)	(2,061)	(2,053)
Other (expense) income:
Settlements	0	0	(2)	(500)
Other expense	(11)	0	(13)	(9)
Total other expense	(11)	0	(15)	(509)
Loss before provision (benefit from) income taxes	(606)	(1,107)	(2,076)	(2,562)
Provision for (benefit from) income taxes	(71)	992	(26)	647
Net loss	$ (535)	$ (2,099)	$ (2,050)	$ (3,209)
Basic and Diluted net loss per share (in dollars per share)	$ (0.09)	$ (0.36)	$ (0.35)	$ (0.56)
Weighted average common shares outstanding, basic and diluted (in shares)	5,894	5,755	5,827	5,718

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
BALANCE (in shares) at Dec. 31, 2022	6,349		668
BALANCE at Dec. 31, 2022	$ 32	$ 34,275	$ (10,082)	$ (11,820)	$ (1,634)	$ 10,771
Shares issued – vested (in shares)	121		0
Shares issued – vested	$ 0	(1)	$ 0	0	0	(1)
Stock-based compensation	0	721	0	0	0	721
Net loss	0	0	0	(3,209)	0	(3,209)
Tax withholding related to vested shares from employee stock plans	0	(54)	0	0	0	(54)
Cash dividends ($0.07 per share)	$ 0	0	$ 0	(799)	0	(799)
BALANCE (in shares) at Sep. 30, 2023	6,470		668
BALANCE at Sep. 30, 2023	$ 32	34,941	$ (10,082)	(15,828)	(1,634)	7,429
BALANCE (in shares) at Jun. 30, 2023	6,411		668
BALANCE at Jun. 30, 2023	$ 32	34,540	$ (10,082)	(13,729)	(1,634)	9,127
Shares issued – vested (in shares)	59		0
Shares issued – vested	$ 0	0	$ 0	0	0	0
Stock-based compensation	0	401	0	0	0	401
Net loss	$ 0	0	$ 0	(2,099)	0	(2,099)
BALANCE (in shares) at Sep. 30, 2023	6,470		668
BALANCE at Sep. 30, 2023	$ 32	34,941	$ (10,082)	(15,828)	(1,634)	7,429
BALANCE (in shares) at Dec. 31, 2023	6,474		668
BALANCE at Dec. 31, 2023	$ 32	35,129	$ (10,082)	(16,773)	(1,634)	6,672
Shares issued – vested (in shares)	89		0
Shares issued – vested	$ 0	0	$ 0	0	0	0
Tax withholding related to vested shares from employee stock plans	0	25	0	0	0	25
Stock-based compensation	0	799	0	0	0	799
Net loss	$ 0	0	$ 0	(2,050)	0	(2,050)
BALANCE (in shares) at Sep. 30, 2024	6,563		668
BALANCE at Sep. 30, 2024	$ 32	35,953	$ (10,082)	(18,823)	(1,634)	5,446
BALANCE (in shares) at Jun. 30, 2024	6,492		668
BALANCE at Jun. 30, 2024	$ 32	35,713	$ (10,082)	(18,288)	(1,634)	5,741
Shares issued – vested (in shares)	71		0
Shares issued – vested	$ 0		$ 0	0	0	0
Tax withholding related to vested shares from employee stock plans		12				12
Stock-based compensation	0	228	0	0	0	228
Net loss	$ 0	0	$ 0	(535)	0	(535)
BALANCE (in shares) at Sep. 30, 2024	6,563		668
BALANCE at Sep. 30, 2024	$ 32	$ 35,953	$ (10,082)	$ (18,823)	$ (1,634)	$ 5,446

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parentheticals)	9 Months Ended
	Sep. 30, 2023 $ / shares
Common Stock, Dividends, Per Share, Declared (in dollars per share)	$ 0.07

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,050)	$ (3,209)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	918	1,394
ROU asset amortization	750	701
Deferred income taxes	0	698
Stock-based compensation	824	721
Changes in operating assets and liabilities:
Accounts receivable	362	(857)
Prepaid expenses and other current assets	519	(388)
Income tax receivable	3	(43)
Accounts payable	242	369
Operating lease liabilities	(870)	(797)
Accrued expenses	(788)	(731)
Net cash provided by (used in) operating activities	(90)	(2,142)
pmd_PaymentsForProceedsFromOtherAssets	(95)	24
Purchases of fixed assets	(30)	(108)
Cost of internally developed software	(31)	(32)
Net cash used in investing activities	34	(164)
us-gaap_RepaymentsOfNotesPayable	267	0
Proceeds from issuance of stock, net of tax withholding	0	(55)
Payments of equipment financing	(228)	(220)
Principal payment of financing lease liability	(8)	0
Cash dividends paid	0	(799)
Net cash used in financing activities	(503)	(1,074)
Net decrease in cash and cash equivalents	(559)	(3,380)
Cash and cash equivalents, beginning of period	1,964	4,750
Cash and cash equivalents, end of period	1,405	1,370
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	16	14
Cash paid for operating leases	651	874
Non-cash investing and financing activities:
Right-of-use assets acquired through operating leases	0	86
Right-of-use assets acquired through financing leases	91	0
Purchases of equipment through accounts payable and accrued liabilities	$ 8	$ 0

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Basis of Presentation The interim condensed consolidated financial statements of Psychemedics Corporation (the “Company”) presented herein, have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2023, included in the Company's 2023 Annual Report on Form 10-K (“10-K”), as filed with the SEC. The accompanying condensed consolidated financial statements are unaudited but, in the opinion of management, include all adjustments necessary for a fair presentation of results for these interim periods. Except as otherwise disclosed, all such adjustments are of a normal recurring nature. The condensed consolidated balance sheet as of December 31, 2023, has been derived from the Company’s annual financial statements that were audited by an independent registered public accounting firm, but does not include all the information and footnotes required for complete annual financial statements. The Company’s comprehensive (loss)/income is equal to its net (loss)/income for all periods presented. The preparation of financial statements in conformity with accounting principles generally accepted 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 revenues and expenses during the reporting period. The results of operations for the three and nine months ended September 30, 2024, may not be indicative of the results that may be expected for the year ending December 31, 2024, or any other period. Unless the context requires otherwise, the terms “we”, “us”, “our”, or “the Company” refer to Psychemedics Corporation and its wholly-owned consolidated subsidiaries. Pending Transaction As previously disclosed, the board of directors of the Company (other than Peter H. Kamin and Darius Nevin, each a director of the Company, who were not in attendance and had recused themselves from the meeting) (the “Board”), upon the recommendation of a transaction committee of the Board consisting of independent directors, unanimously approved a transaction whereby the Company would effect a reverse/forward stock split of the Company’s common stock, par value $0.005 per share (the “Common Stock”), in conjunction with terminating the Company’s public company reporting obligations and delisting the Common Stock from the Nasdaq Capital Market, subject to obtaining the requisite approval of the Company’s stockholders at the Company’s 2024 Annual Meeting of Stockholders to be held on November 25, 2024 (the “Annual Meeting”). Specifically, the participating members of the Board recommended and approved a transaction whereby the Company would effect a reverse stock split of the Common Stock at a ratio not less than 1-for-4,000 and not greater than 1-for-6,000 (the “Reverse Stock Split”), followed immediately by a forward stock split of the Common Stock at the same ratio but inverse (i.e., if the Reverse Stock Split were 1-for-5,000, then the Forward Stock Split would be 5,000-for-1) (the “Forward Stock Split,” and together with the Reverse Stock Split, the “Stock Split”). Stockholders owning fewer shares of Common Stock than the Reverse Stock Split ratio denominator at the effective time of the Reverse Stock Split would be converted into the right to receive $2.35 in cash, without interest, for each share of Common Stock held by them at the effective time of the Reverse Stock Split, and thereafter they would no longer be stockholders of the Company. Stockholders owning more shares of Common Stock than the Reverse Stock Split ratio denominator at the effective time of the Reverse Stock Split (“Continuing Stockholders”) would not be entitled to receive any cash for their fractional share interests resulting from the Reverse Stock Split, if any. The Forward Stock Split, which would immediately follow the Reverse Stock Split, would reconvert whole shares and fractional share interests held by the Continuing Stockholders back into the same number of shares of the Common Stock held by such Continuing Stockholders immediately before the effective time of the Reverse Stock Split. As a result of the Forward Stock Split, the total number of shares of Common Stock held by a Continuing Stockholder would not change as a result of the Reverse Stock Split. The Company estimates that as of October 8, 2024, based on a mid-point Reverse Stock Split ratio of 1-for-5,000, approximately 1.3 million shares of Common Stock (or approximately 21% of the Common Stock currently outstanding) would be cashed out in the Transaction (as defined below) and the aggregate cost to the Company of the Transaction would be approximately $3.0 million, plus transaction expenses, which are estimated to be approximately $700,000. The Company expects to fund such costs using the proceeds from the Stock Sale (defined below) and cash-on-hand. On August 12, 2024, in connection with the Transaction, the Company entered into a stock purchase agreement (the “Purchase Agreement,” and the Purchase Agreement, including the transactions contemplated thereby, the Stock Split and the subsequent delisting and deregistration of the Company’s common stock as described herein, collectively, the “Transaction”) with 3K Limited Partnership, a Delaware limited partnership (“3K” and together with Mr. Kamin, the “Investors”), Peter H. Kamin, a natural person in his individual capacity (“Mr. Kamin”), the Peter H. Kamin Revocable Trust dated February 2003 (the “2003 Trust”), the Peter H. Kamin Children’s Trust dated March 1997 (the “1997 Trust”), the Peter H. Kamin GST Trust (the “GST”) and the Peter H. Kamin Family Foundation (the “Foundation”). Pursuant to the Purchase Agreement, the Investors have agreed to purchase, subject to the terms and conditions thereof, up to 1,595,744 shares (the “Shares”) of the Company’s Common Stock, at a purchase price of $2.35 per share, for an aggregate purchase price of up to $3,750,000 (the “Stock Sale”). The Company intends to use the proceeds from the Stock Sale to purchase fractional shares of Common Stock resulting from the proposed Reverse Stock Split and for working capital and general corporate purposes. Prior to the closing of the Stock Sale (the “Closing Date”), the Company will determine the number of Shares to be issued (not to exceed 1,595,744 shares) so as to provide the Company with (i) proceeds sufficient to purchase the fractional shares of Common Stock resulting from the proposed Reverse Stock Split and (ii) an additional $500,000 designated for working capital and general corporate purposes. The consummation of the Stock Sale is subject to the satisfaction of customary closing conditions, including receiving the requisite approval by the Company’s stockholders at the Annual Meeting of (i) the terms and conditions of the Purchase Agreement and the proposed Reverse Stock Split and (ii) the filing of a certificate of amendment to the Company’s amended and restated certificate of incorporation to effect the Reverse Stock Split on the basis of the final split ratio, which final split ratio will be determined by the Board prior to the closing. In addition, under the terms of the Purchase Agreement, in connection with each annual or special meeting of stockholders of the Company occurring after the Closing Date at which directors of the Company are to be elected, (i) the Company shall include two individuals designated by 3K and satisfying certain eligibility criteria (each, a “3K Director Nominee”) as nominees for election to the Company’s board of directors (the “Board”) in its proxy materials and (ii) the Board shall recommend to the stockholders of the Company the election of such 3K Director Nominees to the Board in the same manner as it recommends the election of the Company’s other director nominees. Additionally, pursuant to the terms of the Purchase Agreement, from and after the Closing Date, the Company shall not, without 3K’s prior written consent, increase the size of the Board to more than five directors. In the event the Company’s stockholders are permitted to elect directors by action by written consent pursuant to the Company’s bylaws and applicable law, the foregoing provisions shall be applied mutatis mutandis in connection with any such action. The Company has also granted the Investors certain indemnification rights with respect to the transactions contemplated by the Purchase Agreement. The Shares will be issued and sold without registration under the Securities Act of 1933, as amended (the “Securities Act”), in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws. The Company is taking these steps to avoid the substantial cost and expense of being a public reporting company and to focus the Company's resources on enhancing long-term stockholder value. The Company anticipates savings of approximately $845,000 on an annual basis as a result of the Transaction. The Board has determined the Transaction is in the best interests of all of the Company’s stockholders. The Company currently realizes none of the traditional benefits of public company status, yet incurs all of the significant annual expenses and indirect costs associated with being a public company. Without its public company status, the Company would have an ongoing cost structure befitting its current and foreseeable scale of operations and its management would be able to have an increased focus on core operations. On October 18, 2024, the Company filed a definitive proxy statement that includes important information regarding the foregoing. Subject to stockholder approval of the Transaction at the Annual Meeting, it is anticipated that the Transaction would become effective after the Annual Meeting. Subject to receiving such stockholder approval, as soon as practicable after the Annual Meeting, the Company expects to terminate the registration of its Common Stock with the SEC and de-list its Common Stock from the Nasdaq Capital Market. As a result, at such time, (i) the Company would cease to file annual, quarterly, current, and other reports and documents with the SEC, and stockholders would cease to receive annual reports and proxy statements, and (ii) the Company’s Common Stock would no longer be listed on the Nasdaq Capital Market. Notwithstanding the foregoing, our duty to file periodic and current reports with the SEC will not be suspended with respect to the current fiscal year due to our existing registration statements filed under the Securities Act, including the Annual Report on Form 10-K for the fiscal year ending December 31, 2024. The Board may abandon the Transaction and terminate the Purchase Agreement at any time prior to the filing and effectiveness of the applicable amendments to the Company’s amended and restated certificate of incorporation, even after stockholder approval.

Note 2 - Financial Information

Note 2 - Financial Information	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Business Description and Accounting Policies [Text Block]	2. Financial Information Liquidity and Management s Plans At September 30, 2024, our principal sources of liquidity from operations included $1.4 million of cash on hand. As of the date of this report, management currently believes that such funds, together with future operating profits and additional cash proceeds from the Transaction, should be adequate to fund anticipated working capital requirements, including debt obligations, and capital expenditures for at least the next 12 months. However, the terms of our existing equipment financing do not provide for future borrowings, and other than cash infusion contemplated by the Purchase Agreement, we have no existing line of credit or other fixed source of capital reserves. Depending upon our results of operations, our future capital needs, and available marketing opportunities, we may be required to seek various financing sources to raise additional funds. Such sources could include but are not limited to, additional issuance of common stock or debt financing, lines of credit, equipment leasing or a strategic transaction; although there is no assurance that such financings will be available to us on terms we deem acceptable, if at all. If we are unable to maintain sufficient financial resources, our business, financial condition and results of operations would be materially adversely affected. Accounts Receivable The Company believes its allowance for credit losses related to its accounts receivable remained adequate as of September 30, 2024, due to the diversity of its large customer base. While the Company anticipates there could be an increase in the aging of its accounts receivable, the Company does not anticipate a significant increase in default risk. Recently Adopted Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker, among other provisions. The ASU is effective for fiscal year periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the ASU requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the standard to determine the impact of adoption to our consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. The ASU primarily enhances and expands both the income tax rate reconciliation disclosure and the income taxes paid disclosure. The ASU is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. We are currently evaluating the standard to determine the impact of adoption to our consolidated financial statements and disclosures. In November 2024, the FASB issued ASU No. 2024-03, Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40), requiring public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15,2027, with early adoption permitted. The disclosures required under the guidance can be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all periods presented in the financial statements. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements and disclosures.

Note 3 - Stock-based Compensati

Note 3 - Stock-based Compensation	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	3. Stock-Based Compensation The Company’s 2006 Incentive Plan (the “Plan”) and a separate individual equity compensation arrangement outside of the Plan provide for cash-based awards or the grant or issuance of stock-based awards. As of September 30, 2024, 527 thousand shares remained available for future grant under the Plan. Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). The compensation cost charged against income is included in cost of revenues and operating expenses as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Stock-based compensation related to: Stock option grants 150 39 484 73 Stock unit awards 78 362 315 648 Total $ 228 $ 401 $ 799 $ 721 There was no income tax benefit recognized in the condensed consolidated statements of operations for stock-based compensation arrangements for the three and nine months ended September 30, 2024 and 2023. A summary of the Company’s stock option activity for the nine months ended September 30, 2024, is as follows (in thousands except per share amounts and years): Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (1) Outstanding, December 31, 2023 512 $ 6.32 8.7 - Granted 105 3.4 Canceled (50 ) 14.7 Forfeited (1 ) 1.23 Outstanding, September 30, 2024 566 5.05 8.6 - Exercisable, September 30, 2024 112 $ 8.73 6.8 - (1) Intrinsic value is calculated based on the amount by which the closing market value of the Company’s stock exceeded the exercise price of the underlying options, multiplied by the number of shares. A summary of the Company’s stock unit award (“SUA”) activity for the nine months ended September 30, 2024, is as follows (in thousands except per share amounts): Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding & unvested, December 31, 2023 136 $ 5.23 Granted - - Converted to common stock (89 ) 6.54 Cancelled (4 ) 6.52 Forfeited (6 ) 5.96 Outstanding & unvested, September 30, 2024 37 $ 5.01 As of September 30, 2024, the unamortized fair value of awards relating to outstanding SUAs and options was $466 thousand, which is expected to be amortized over a weighted average period of 2.9 years.

Note 4 - Income Taxes

Note 4 - Income Taxes	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Income Tax Disclosure [Text Block]	4. Income Taxes Our effective tax rate for the three and nine months ended September 30, 2024, differs from the statutory rate primarily due to a valuation allowance recorded against our U.S. federal and state deferred tax assets. We recorded a full valuation allowance on our net deferred tax assets based on an assessment of available positive and negative evidence, including being in a three-year cumulative loss position in the U.S., projections of future taxable income, and other quantitative and qualitative information. We intend to maintain a full valuation allowance on our U.S. federal and state net deferred tax assets until there is sufficient positive evidence to support the reversal of all or some portion of the valuation allowance.

Note 5 - Net Loss Per Share

Note 5 - Net Loss Per Share	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Earnings Per Share [Text Block]	5. Net Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during each period. Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities, such as stock options and stock unit awards, that would result in the issuance of incremental shares of common stock. In computing the basic and diluted net loss per share, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation as the impact is anti-dilutive. The following potentially dilutive securities outstanding for the nine months and three months as of September 30, 2024 and 2023 have been excluded from the computation of diluted weighted average shares outstanding, as they would be anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Options 566 551 566 551 SUAs 39 161 39 161 Total 605 712 605 712

Note 6 - Commitments and Contin

Note 6 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	6. Commitments and Contingencies From time to time, the Company is a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. When the Company becomes aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. In accordance with authoritative guidance, the Company records loss contingencies in its financial statements only for matters in which losses are probable and can be reasonably estimated. The Company continuously assesses the potential liability related to the Company’s pending litigation and revises its estimates when additional information becomes available. Although it is difficult to predict the ultimate outcome of these cases, management believes that any ultimate liability would not have a material adverse effect on the consolidated statements of operations. However, an unforeseen unfavorable development in any of these cases could have a material adverse effect on the statements of operations or cash flows in the period in which it is recorded. Developments in legal proceedings and other matters that could cause changes in the amounts previously accrued are evaluated each reporting period. Settlements As previously reported in the 10-K, as of December 31, 2023, we had paid $334 thousand in connection with a previously disclosed contract dispute regarding strategic negotiations with a shipping carrier. The remaining balance of $167 thousand, is due on or before December 31, 2024, which is included in accrued expenses on the accompanying unaudited condensed consolidated balance sheets.

Note 7 - Operating Leases

Note 7 - Operating Leases	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Lessee, Operating Leases and Finance Leases [Text Block]	7. Operating Leases The Company has three operating leases for office and laboratory space used to conduct business. The exercise of lease renewal options is at our discretion. There is one lease which contains renewal options to extend the lease terms included in our Right-Of-Use (“ROU”) assets and lease liabilities as they are reasonably certain of exercise. The Company regularly evaluates the renewal options and when they are reasonably certain of exercise. As most of the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the lease commencement date in determining the net present value of the lease payments. As of September 30, 2024, the Company recognized a “ROU” asset of $959 thousand and an operating lease liability of $995 thousand based on the net present value of the minimum lease payments. The weighted average discount rate used for leases as of September 30, 2024, is 3.9%. The weighted average lease term as of September 30, 2024, is 2.25 years. The operating lease expense for the three and nine months ended September 30, 2024, was $150 thousand and $628 thousand, respectively. In August 2024, the Company entered into a three-year finance lease for certain IT equipment. The Company measured and recognized an initial right-of-use (“ROU”) asset and finance lease liability upon lease commencement. As of September 30, 2024, the Company recognized a “ROU” equipment asset of $88 thousand and a financing lease liability of $89 thousand based on the net present value of the minimum lease payments. The weighted average discount rate used for leases as of September 30, 2024, is 9.0%. The weighted average lease term as of September 30, 2024, is 2.9 years. The financing lease expense for the three and nine months ended September 30, 2024, was $3 thousand, respectively.

Note 8 - Debt

Note 8 - Debt	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Debt Disclosure [Text Block]	8. Debt On March 20, 2014, the Company entered into an equipment financing arrangement (“Loan Agreement”) with Banc of America Leasing & Capital LLC., which it amended on August 8, 2014, September 15, 2015, October 30, 2017, and December 2, 2019. The terms of the arrangement are detailed in the 10-K. The weighted average interest rate on outstanding debt under the Loan Agreement was 3.8% for both the three and nine months ended September 30, 2024. The interest expense was $1 thousand and $5 thousand for the three and nine months ended September 30, 2024. We were not in compliance with the fixed charge coverage ratio as of September 30, 2024. Subsequent to September 30, 2024, we received a waiver from the lender. In May 2024, the Company entered into a note agreement to finance certain insurance policy premiums of $709 thousand at an annual interest rate of 7.25% (the “Insurance Financing Note”). The Insurance Financing Note is payable in monthly installments through May 2025. The Company accrued $12 thousand in interest expenses related to the Insurance Financing Note for the three and nine months ended September 30, 2024. As of September 30, 2024, the balance on the Insurance Financing Note was $418 thousand on the Company’s consolidated balance sheet.

Note 9 - Revenue

Note 9 - Revenue	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	9. Revenue The table below disaggregates our external revenue by major source (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Consolidated Revenue: Testing $ 4,421 $ 4,864 $ 12,900 $ 14,416 Shipping / Collection (hair) 727 819 2,275 2,614 Other 27 21 85 70 Total Revenue $ 5,175 $ 5,704 $ 15,260 $ 17,100

Note 10 - Significant Customers

Note 10 - Significant Customers	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	10. Significant Customers The Company had no one two one

Insider Trading Arrangements

Insider Trading Arrangements	9 Months Ended
	Sep. 30, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	PART II OTHER
Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

Note 3 - Stock-based Compensa_2

Note 3 - Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Share-Based Payment Arrangement, Cost by Plan [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Stock-based compensation related to: Stock option grants 150 39 484 73 Stock unit awards 78 362 315 648 Total $ 228 $ 401 $ 799 $ 721
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (1) Outstanding, December 31, 2023 512 $ 6.32 8.7 - Granted 105 3.4 Canceled (50 ) 14.7 Forfeited (1 ) 1.23 Outstanding, September 30, 2024 566 5.05 8.6 - Exercisable, September 30, 2024 112 $ 8.73 6.8 -
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]	Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding & unvested, December 31, 2023 136 $ 5.23 Granted - - Converted to common stock (89 ) 6.54 Cancelled (4 ) 6.52 Forfeited (6 ) 5.96 Outstanding & unvested, September 30, 2024 37 $ 5.01

Note 5 - Net Loss Per Share (Ta

Note 5 - Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Options 566 551 566 551 SUAs 39 161 39 161 Total 605 712 605 712

Note 9 - Revenue (Tables)

Note 9 - Revenue (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Consolidated Revenue: Testing $ 4,421 $ 4,864 $ 12,900 $ 14,416 Shipping / Collection (hair) 727 819 2,275 2,614 Other 27 21 85 70 Total Revenue $ 5,175 $ 5,704 $ 15,260 $ 17,100

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation (Details Textual)		9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($)	Dec. 31, 2023 $ / shares
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares	$ 0.005	$ 0.005		$ 0.005
Stockholders' Equity, Reverse Stock Split, Cash Per Share for Rounding (in dollars per share) | $ / shares		$ 2.35
Proceeds from Issuance of Common Stock		$ 0	$ (55,000)
Stock Purchase Agreement [Member]
Sale of Stock, Price Per Share (in dollars per share) | $ / shares	2.35	$ 2.35
Significant Transaction, Estimated Savings		$ 845,000
Stock Purchase Agreement [Member] | Working Capital [Member]
Proceeds from Issuance of Common Stock		$ 500,000
Maximum [Member] | Stock Purchase Agreement [Member]
Sale of Stock, Number of Shares Issued in Transaction (in shares) | shares		1,595,744
Sale of Stock, Consideration Received on Transaction		$ 3,750,000
Reverse Stock Split [Member]
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares	$ 0.005	$ 0.005
Stock Issued During Period, Shares, Reverse Stock Splits (in shares) | shares	1,300,000
Stockholders' Equity, Reverse Stock Split, Percentage of Shares Eliminated	2,100%
Adjustments to Additional Paid in Capital, Stock Split	$ 3
Professional Fees	$ 700,000
Reverse Stock Split [Member] | Minimum [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	4,000
Reverse Stock Split [Member] | Maximum [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	6,000
Reverse Stock Split [Member] | Arithmetic Average [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio		5,000

Note 2 - Financial Information

Note 2 - Financial Information (Details Textual) $ in Millions	Sep. 30, 2024 USD ($)
Cash	$ 1.4

Note 3 - Stock-based Compensa_3

Note 3 - Stock-based Compensation (Details Textual) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($) shares
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	2 years 10 months 24 days
Incentive Plan 2006 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | shares	527
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $	$ 466

Note 3 - Stock-based Compensa_4

Note 3 - Stock-based Compensation - Compensation Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based compensation	$ 228	$ 401	$ 799	$ 721
Share-Based Payment Arrangement, Option [Member]
Share-based compensation	150	39	484	73
Stock Unit Awards [Member]
Share-based compensation	$ 78	$ 362	$ 315	$ 648

Note 3 - Stock-based Compensa_5

Note 3 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2024	Dec. 31, 2023
Outstanding (in shares)		512
Outstanding, weighted average exercise price (in dollars per share)		$ 6.32
Outstanding, weighted average remaining contractual life (Year)		8 years 7 months 6 days	8 years 8 months 12 days
Outstanding, aggregate intrinsic value	[1]	$ 0	$ 0
Granted (in shares)		105
Granted (in dollars per share)		$ 3.4
Canceled (in shares)		(50)
Canceled (in dollars per share)		$ 14.7
Forfeited (in shares)		(1)
Forfeited (in dollars per share)		$ 1.23
Outstanding, shares (in shares)		566	512
Outstanding, June 30, 2023 (in dollars per share)		$ 5.05	$ 6.32
Exercisable, June 30, 2023 (in shares)		112
Exercisable, June 30, 2023 (in dollars per share)		$ 8.73
Exercisable, June 30, 2023 (Year)		6 years 9 months 18 days
Exercisable, June 30, 2023	[1]	$ 0
[1]Intrinsic value is calculated based on the amount by which the closing market value of the Company’s stock exceeded the exercise price of the underlying options, multiplied by the number of shares.

Note 4 - Stock-based Compensati

Note 4 - Stock-based Compensation - Nonvested Award Activity (Details) - Stock Unit Award [Member] shares in Thousands	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Outstanding & Unvested at beginning of period (in shares) | shares	136
Outstanding & Unvested, beginning of period, weighted average price per share (in dollars per share) | $ / shares	$ 5.23
Granted (in shares) | shares	0
Granted (in dollars per share) | $ / shares	$ 0
Converted to common stock (in shares) | shares	(89)
Converted to common stock, weighted average price per share (in dollars per share) | $ / shares	$ 6.54
Cancelled (in shares) | shares	(4)
Cancelled, weighted average price per share (in dollars per share) | $ / shares	$ 6.52
Forfeited (in shares) | shares	(6)
Forfeited, weighted average price per share (in dollars per share) | $ / shares	$ 5.96
Outstanding & Unvested at end of period (in shares) | shares	37
Outstanding & Unvested, end of period, weighted average price per share (in dollars per share) | $ / shares	$ 5.01

Note 5 - Net Loss Per Share - B

Note 5 - Net Loss Per Share - Basic and Diluted Weighted Average Common Shares Outstanding (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Options (in shares)	605	712	605	712
Share-Based Payment Arrangement, Option [Member]
Options (in shares)	566	551	566	551
Stock Unit Awards [Member]
Options (in shares)	39	161	39	161

Note 6 - Commitments and Cont_2

Note 6 - Commitments and Contingencies (Details Textual) - Negotiations With Shipping Carrier [Member] - USD ($) $ in Thousands		12 Months Ended
	Dec. 31, 2023	Dec. 31, 2024
Payments for Legal Settlements	$ 334
Forecast [Member]
Payments for Legal Settlements		$ 167

Note 7 - Operating Leases (Deta

Note 7 - Operating Leases (Details Textual) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Dec. 31, 2023
Operating Lease, Right-of-Use Asset	$ 959	$ 959	$ 1,828
Operating Lease, Liability, Total	$ 995	$ 995
Operating Lease, Weighted Average Discount Rate, Percent	3.90%	3.90%
Operating Lease, Weighted Average Remaining Lease Term (Year)	2 years 3 months	2 years 3 months
Operating Lease, Expense	$ 150	$ 628
Finance Lease, Right-of-Use Asset, after Accumulated Amortization	88	88	$ 0
Finance Lease, Liability	$ 89	$ 89
Finance Lease, Weighted Average Discount Rate, Percent	9%	9%
Finance Lease, Weighted Average Remaining Lease Term	2 years 10 months 24 days	2 years 10 months 24 days
Finance Lease Expense	$ 3	$ 3

Note 8 - Debt (Details Textual)

Note 8 - Debt (Details Textual) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	May 31, 2024
Insurance Financing Note [Member]
Interest Expense	$ 12	$ 12
Short-Term Debt	$ 418	$ 418	$ 709
Debt Instrument, Interest Rate, Stated Percentage			7.25%
Line of Credit [Member] | Equipment Loan Arrangement [Member] | Banc of America Leasing and Capital [Member]
Long-Term Debt, Weighted Average Interest Rate, over Time	3.80%	3.80%
Interest Expense	$ 1	$ 5

Note 9 - Revenue - Revenue by M

Note 9 - Revenue - Revenue by Major Source (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues	$ 5,175	$ 5,704	$ 15,260	$ 17,100
Testing [Member]
Revenues	4,421	4,864	12,900	14,416
Shipping/Collection (Hair) [Member]
Revenues	727	819	2,275	2,614
Other Revenue [Member]
Revenues	$ 27	$ 21	$ 85	$ 70

Note 10 - Significant Custome_2

Note 10 - Significant Customers (Details Textual) - Customer Concentration Risk [Member]	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Revenue Benchmark [Member]
Number of Major Customers	0	1
Revenue Benchmark [Member] | Customer One [Member]
Concentration Risk, Percentage		14%
Accounts Receivable [Member]
Number of Major Customers	2	1
Accounts Receivable [Member] | Customer One [Member]
Concentration Risk, Percentage	21%	27%
Accounts Receivable [Member] | Customer Two [Member]
Concentration Risk, Percentage	20%